Boeing says no plan to scrap 757, 767 jets

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I didn't write the headline.

Walter
DCA

PARIS, May 13 (Reuters) - Boeing Co (BA), the world's biggest planemaker,
has no plan to replace its mid-sized 757 and 767 jets in response to
flagging sales, the chief of its commercial unit said on Monday.

Boeing has booked only eight 757 sales in the last 15 months. Even before
the September 11 hijackings hit demand for new planes, backlogs on several
models were falling to worrying levels.

Several industry sources in recent days said that the Chicago-based firm was
now preparing its first all-new programme in a decade, with a more efficient
replacement of the 757 the most likely scenario.

"Right now we don't know of any plane we could make that's more efficient
than the 757," Boeing's commercial jet chief Alan Mulally told reporters in
Paris.


"These airplanes are made for 30 to 40 years. Sometimes the economy will be
down and you make less and sometimes it will be up and you'll make more."

Mulally said for the moment the company's principle target remained the
Sonic Cruiser, a futuristic plane whose delta wings would break with decades
of conventional civil jet design and which would fly up to 20 percent faster
than other airliners.

"It's right on schedule," he said. "We're not looking for orders yet. We've
got plenty of time to do it and get it right."

He said the plane would probably come at the end of the decade.

Recent speculation over the Sonic Cruiser has centred on how big it would
need to be in order to be commercially viable.

Mulally said it could be the same size as the 767, but would not compete
with that model as the planes would not be used on the same routes due to
their difference in speed.

The September attacks hit air traffic and forced cash-strapped carriers to
tear up expansion plans, leading Boeing to announce the firing of up to
30,000 employees at its civil arm.

Though the company is trying to diversify beyond the volatile commercial jet
business, that activity still accounts for 60 percent of its revenue and in
the first quarter of 2002 it lost $1.25 billion, its first loss since 1997.

Mulally reaffirmed a previous forecast that Boeing aimed to deliver 380 jets
this year and between 275 and 300 next year.

He would not be drawn on the number of orders he expects to book, but said
that next year would represent the trough in demand.

"We have turned the corner," he said. "By the end of the year we are
assuming that the global economy will start to recover. The low point for
deliveries will be next year... and we will then increase production again
to more normal levels."


©2002 Reuters Limited.

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