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Pilarski: Re-engining and its many complexities
12 March 2010
The oligopolists will be forced to re-engine their old narrowbodies if realistic competition becomes available, says Adam Pilarski,senior vice-president of Avitas, in his monthly column.
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Re-engining
narrowbodies
Boeing
Airbus
737
A320
Bombardier C-series
Re-engining narrowbody aircraft is all the rage right now. Both James McNerney of Boeing and John Leahy of Airbus indicated that a decision possibly to move forward will be made this year.
Considering that the 737 has been in production since 1967 (the 737NG since 1997) and the A320 since 1988, it is not surprising that their replacement is being actively demanded by airlines. The fact is that both aircraft have improved tremendously over the years but are still of fairly old vintage.
Both Airbus and Boeing have politely ignored the pressure by airlines.
It is not in the interest of the oligopolists to spend considerable resources to improve their products when such an action will not increase the total market and their production lines are sold out for a long time.
The only reason the oligopolists will be forced to act is if realistic competition...
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