After a year of global recession, and with its premier airplane development programs in intensive care, Boeing is acknowledging that it is time to address another thorny issue—strategic planning for two programs that set delivery records last year, the 737 and 777.

Signaling the company’s highest priority, CEO James McNerney says “some pretty detailed thinking” is underway on production alternatives for the 737, which accounts for about 70% of Boeing’s orders.

The alternative would be for Boeing Commercial Airplanes (BCA) to tackle a larger version of the 365-seat 777-300ER first, to meet a pending challenge from the Airbus A350-1000 . But as he has in the past, McNerney says that airplane is not defined well enough for Boeing to respond yet.

Airbus says it is studying a powerplant upgrade for the A320, its best-selling jet and the 737’s competitor, which adds pressure on Boeing to act.

“We’re beginning to harden up alternatives, maturing the technologies with the right amount of [research and development] spending,” McNerney told Wall Street analysts in a 2009 earnings teleconference last week. “And we have a wedge in our budget to quickly move on both as the market requires.”

Although re-engining the 737 promises to be the least expensive and time-consuming alternative, it may entail costs that the A320 avoids. For instance, an MTU official says the larger fan size of Pratt & Whitney’s PW1000 geared turbofan is likely to require a landing gear redesign.

Boeing has named Vice President Mike Bair, general manager of the 787 during its formative product definition years, to head the newly created Advanced 737 Product Development team. And it has brought Lars Andersen, who headed development of the 777-300ER/-200LR program, out of retirement as a consultant to lead the equivalent effort for the 777.

The 737 customer base, the largest for any commercial airplane, is divided between an update with new engines and launch of a completely new airplane. Reading those tea leaves, McNerney says, “I think airlines are focused less on the obsolescence issue, although it’s a factor, obviously, but more on ongoing productivity.”

Boeing took that same approach when it introduced the Next Generation 737 series in 1995, saying airlines were focused more on performance—achieving greater range while burning less fuel—than technology upgrades, such as fly-by-wire controls.

The company says its production goals are 460-465 aircraft this year. It made 481 in 2009. Early last year said it would cut 777 production this June to accommodate softening demand for its biggest twin-engine airplane.