Airlines warming to Boeing's proposed 7E7 jet

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Airlines warming to Boeing's proposed 7E7 jet  =

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Thursday November 13, 3:20 PM EST =


By Chris Stetkiewicz

SEATTLE, Nov 13 (Reuters) - Boeing Co.'s (BA) proposed new mid-sized 7E7 =
jetliner could slash airline operating costs and redefine passenger comfo=
rt, if the aircraft maker can deliver on its promises, potential customer=
s said on Thursday.

"This airplane, I believe, will be a superb machine for operating with th=
e airlines in terms of its economy," said Peter Gardner, U.S. technical v=
ice president at Cathay Pacific Airways Ltd. (0293). "To match (the 7E7),=
 the competition is really going to have to stretch out."

At a press briefing outside closed-door talks with dozens of potential bu=
yers of the 200- to 300-seat 7E7 jet family, a key Boeing official said t=
he program was building momentum as the board of directors considers endo=
rsing the project next month.

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"I don't see anything stopping us," said John Feren, vice president--7E7 =
customers, noting Boeing Chairman Phil Condit this week said the board wa=
s highly likely to allow the Seattle-based jetliner unit to formally offe=
r airlines the 7E7.

Slightly less enthusiastic was Nico Buchholz, senior vice president Corpo=
rate Fleet--Deutsche Lufthansa AG (LHAG), who praised the "significant im=
provements" the 7E7 could offer, but reserved final judgment pending more=
 details.

"The aircraft from our perspective has developed positively into somethin=
g which we see today. We still have some way to go," Buchholz said.

NO LAUNCH ORDERS YET

Neither airline was prepared to say it would sign up as a launch customer=
, which typically gives an airline fat price discounts and more say over =
design, though Gardner said the 7E7 might be "attractive" on routes to ma=
inland China.

Boeing tentatively plans to build the 7E7 for deliveries starting in 2008=
, replacing its 757 and 767 models and going head-to-head with the popula=
r A330 from rival Airbus SAS (EAD) (EAD).

Japan's two biggest airlines, Japan Airlines Systems Corp (9205) and All =
Nippon Airways Co Ltd (9202), have expressed interest in a shorter-range =
model and are considered strong candidates for launch orders.

Boeing claims the 7E7 would cut fuel burn by 20 percent over current airc=
raft and save airlines 10 percent on overall operating costs, citing new,=
 fuel-sipping engines and lightweight materials that will also cut mainte=
nance costs.

During the meetings, airlines have made it clear they want at least two e=
ngine options on the 7E7, bristling at the suggestion that Boeing could s=
ign an exclusive deal with one of the three main powerplant manufacturers=
 to save money.

"I would be a little distressed should it be only one. I think...the worl=
d's operators are going to probably persuade Boeing that more than one is=
 better. Whether three is required, I'm not sure," Gardner said.

Airbus officials have said they might fit 7E7 engines on the A330, cuttin=
g the operating advantage, though questions have arisen over related engi=
neering costs.

Airbus has not yet laid out a formal response to the 7E7, although indust=
ry officials say the European company is planning a series of airline bri=
efings.

STANDARD FEATURES

Boeing hopes to standardize as many features as possible on the new jet, =
lowering production costs and boosting resale values while easing airline=
 training and maintenance costs.

For example, the cockpit will be quite similar to that on the wide-body 7=
77, allowing pilots to switch to 7E7s after just three days of training.

Boeing has even developed a "pretty cool" sidestick control similar to th=
e one Airbus uses, a nod to the growing popularity of Airbus jets, but Fe=
ren said the 7E7 will offer only the traditional yoke control.

Lufthansa raised the sidestick issue, noting the increased costs of two d=
ifferent cockpits, and Buchholz said the airline would prefer not to run =
a mixed fleet of Airbus and Boeing aircraft, without elaborating.

Boeing has also shown airlines a "mock-up" of the 7E7 passenger cabin, wh=
ich promises more moisture in the air, bigger windows, slightly wider ais=
les and better lighting.

"You get a bit of a 'wow' factor when you walk in the door," Gardner said=
=2E "It will give you a completely different feel." =



=A92003 Reuters Limited. =


Roger
EWROPS

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