Lufthansa is in midst of a short-haul fleet analysis in preparation for a major order to replace its aging Boeing 737 Classics.Body

Lufthansa is in midst of a short-haul fleet analysis in preparation for a major order to replace its aging Boeing 737 Classics.

The airline plans to make a final decision and an order announcement within the next two years, said Nico Buchholz, the airline's head of fleet planning. Buchholz told The DAILY he expects a midlife update for both the Airbus A320 and Boeing 737 Next Generation families and wants Boeing to offer a wider fuselage.

Lufthansa currently has a 130-strong narrowbody fleet, of which 59 aircraft are Boeing 737-300s and -500s. The oldest 737s are now about

15 years old, and about two-thirds of the fleet are already written off; the airline generally writes off aircraft within 12 years.

Buchholz stressed that while Lufthansa faces increasing low-fare airline competition, its does not want to shrink the European fleet.

In comparison, Air France currently has a European fleet of 144 planes, including 23 Boeing 737-300s/-500s. British Airways operated 111 mainline narrowbodies at the end of Fiscal Year 2003/2004.

With both the A320 and 737 in its fleet, Lufthansa wants Boeing to look at a larger-cross-section 737 based on the 7E7 technology. With regard to the proposed Bombardier C-Series aircraft, Buchholz is cautious on European sales prospects. While the aircraft would be capable of operating U.S. transcontinental services, Buchholz believes it does not need the range in European operations and therefore is likely to carry too much unnecessary weight.

Lufthansa continues to be interested in a slight stretch of the Boeing 747-400 to accommodate about 40 additional passengers. However, Boeing would have to build in systems upgrades and 7E7 engines (as already proposed by Boeing) to make it commercially viable. Buchholz was concerned about the development of 747-400 residual values, as Boeing 777-300 and Airbus A340-600 fleets continue to grow, and major carriers are looking at phasing out their 747-400 fleets.

Lufthansa, however, does not have plans to reduce its 30-strong fleet at this stage. Its 747s are either about 15 or five years old, with the youngest aircraft having been delivered only about two years ago.

Buchholz is confident about the Airbus A380 development targets.

While he expects the aircraft's empty weight to exceed Airbus specifications, it is still within Lufthansa's own estimates.

Lufthansa has ordered 15 of the type and recently added 10 A340-600s to expand the long-haul fleet. Of the seven A330-200s it has been operating on an interim lease basis before its 10 A330-300s are delivered, the airline plans to keep flying four.