Things With Wings

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  • ALC Lukewarm on Re-Engined 737
    Posted by Robert Wall 1:48 PM on Aug 12, 2011

    Boeing's decision to re-engine the 737 rather than replace it with a new product, the NSA or New Small Airplane, leaves Air Lease Corp. CEO Steven Udvar-Hazy "disappointed," but he also understands the decision from Boeing's perspective.

    Although he calls the re-engining plan a "band-aid" solution, he adds that "I fully recognize and understand the reason why Boeing is going down this path." With the problems the 787 and 747-8 developments have entailed and their “tremendous negative cash flow for the company,” it was hard for Boeing to commit to another $10 billion to $12 billion development effort.

    Will ALC, already a customer for the Airbus A320NEO (new engine option) but the new Boeing offering? That's not clear. The company is working with Boeing, but Udvar-Hazy also tells analysts during the company's half-year earnings call that he has concerns.

    "Boeing has many, many challenges to overcome to make it an effective airplane,” he says. 

    Tags: tw99, Boeing, 737

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