CEO McNerney says 737 replacement is unlikely

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CEO McNerney says 737 replacement is unlikely =0ABy Padraic Cassidy, Market=
Watch=0ALast Update: 3:23 PM ET Feb 6, 2007=0A=0ANEW YORK (MarketWatch) - A=
ircraft maker Boeing Co., after two record years of airplane orders, reiter=
ated Tuesday it was on schedule to deliver its 787 twin-aisle jet by May 20=
08 and that it didn't foresee replacement any time for soon for its 737 air=
craft.=0A"I am more than confident that we are going to get within shouting=
 distance of our weight reduction target" on the 787, CEO Jim McNerney Jr. =
said at an analyst and investment banking conference in New York.=0A GET QU=
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=0A=0A=0A=0A=0ABoeing (BA: news) has received 452 orders so far for the new=
, mid-range, composite built plane, named the Dreamliner, but has had to sp=
end more than originally planned to lighten a plane that is said to be abou=
t 2% over its designed weight. Boeing is about halfway to its weight-reduct=
ion goal, McNerney said.=0AThe company is also leaning on suppliers to meet=
 tight schedules for a plane that, unlike others in the company's fleet, is=
 heavily outsourced.=0A"That schedule has had a tremendous amount of pressu=
re on it," said Mark Donegan, the chief executive of Precision Castparts Co=
rp. (PCP: news) , which is supplying 787 parts.=0AAbout two weeks ago, Wach=
ovia analysts downgraded Boeing shares, saying there could be a delay of th=
ree to six months on 787 deliveries, a charge Boeing strongly disputed. See=
 full story.=0ABoeing's major suppliers on the 787, wing maker Mitsubishi H=
eavy Industries and center fuselage manufacturer Alenia, have fallen behind=
 schedule, making cost overruns or a delay in customer deliveries likely, a=
ccording to Wachovia.=0A"We have made good progress on heavies in Japan but=
 there is some schedule pressure," McNerney said Tuesday.=0AThe current dem=
and for aircraft is being driven by airlines in Asia and the Middle East, r=
ather than in the United States and Europe, according to McNerney. "I don't=
 think you are going to see the same year as we saw in the last two years,"=
 he said. But, he added, "There is still skyline available on the 787 where=
 we are today and when the A350 comes on line," he said.=0AThe Boeing chief=
 also said the company was working with customer to finalize a design for a=
 stretched version of the 787. =0AAirbus, owned by pan-European aerospace c=
ompany EADS , has redesigned the A350, adding the letters XWB for "extra wi=
de body" to compete with the Dreamliner. =0ABoeing's net income more than d=
oubled in the fourth quarter, capping a year in which it set a record for a=
irplane orders and setting the stage for higher growth in 2007. See full st=
ory.=0AMcNerney said Boeing was not planning to make a successor to the 737=
 line, but was studying how to update the 30-year-old technology on the air=
craft.=0A"I don't see that plane happening any time soon," he said. "We hav=
e no immediate plans for it. It's sort of a technology maturation investiga=
tion at this point."=0ABoeing stock, a component of the Dow Jones Industria=
l Average, rose 3 cents to $90.75 late Tuesday.=0A=0APadraic Cassidy is a r=
eporter for MarketWatch in New York.

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