Boeing sees 7E7 launch customer news by mid-2004 = = = = Thursday September 25, 12:34 PM EDT = (Adds quotes, details throughout) By Jason Neely, European Aerospace & Airlines Correspondent LONDON, Sept 25 (Reuters) - Boeing Co. (BA) expects to win management app= roval to go ahead with its proposed new 7E7 Dreamliner passenger aircraft= and to announce launch customers by mid-2004, its chief financial office= r said on Thursday. "I'd say the first half of next year would be highly likely," Mike Sears = told reporters, referring to when launch customers might be announced. The world's largest planemaker is seeking final management approval this = year to deliver the 7E7 Dreamliner by 2008, its first all-new commercial = plane in more than a decade. Analysts expect U.S. and Japanese airlines such as Japan Airlines System = Corp (9205) to be key to the 7E7's success. = A quickly changing airlines sector in which low-fare carriers have sparke= d an industry-wide drive to lower operating costs is shaping the 7E7, whi= ch is expected to be cheaper to fly. "We're seeing market share (among airlines) going to the low-cost guys," = Sears said. More automation and outsourcing will be used to contain development costs= of the 7E7, he said. "We'll do that task with less people, that's one dimension of why costs a= re going to be less than on (manufacturing) previous airplanes," Sears sa= id. "The second dimension is we're going to enjoin major partners in the deve= lopment process funding," he said. "We'll finalise all that in the remain= ing months of this year." Much of the 7E7 is expected to be sourced abroad, from countries includin= g Japan and Italy. Japan's big three heavy machinery makers -- Mitsubishi Heavy Industries L= td. (7011), Kawasaki Heavy Industries Ltd (7012) and Fuji Heavy Industrie= s Ltd (7270) -- are expecting large pieces of the 7E7. Italy's Alenia Aeronautica, part of state-controlled Finmeccanica (SIFI),= has also been named in the 7E7 design and manufacturing team. And Sears said one key decision expected by the end of the year is whethe= r Boeing will invite one, two or three aero-engine manufacturers to devel= op powerplants for the 7E7. He said no decision had yet been made but added that aircraft financiers = had expressed interest in the 7E7 being developed with limited variations= to make it easier for airlines and lessors to trade the aircraft. Boeing duels with Europe's Airbus (EAD) (BA) in the world's main market f= or commercial planes of over 100 seats. Airbus hopes to expand market share with the 555-seat A380 due in 2006 wh= ile Boeing is placing its bets on a more cost-efficient design in the 200= -seat range. = =A92003 Reuters Limited. = Roger EWROPS