Boeing sees no “compelling” reason to offer an upgrade on the engines of its popular 737 single-aisle jetliner, Jim Albaugh, the head of Boeing’s commercial aircraft division told the Financial Times.
He believes most airlines would prefer to wait a few more years for planemakers to develop a new model that could offer up to 20 percent better efficiencies.
"I think most of them will wait for a new airplane," he told the Financial Times. "It's not a simple proposition.”
Albaugh’s remarks come after Airbus’ announcement that it will offer new engines on its A320 family of airplanes.
In addition to paying about $6 million more for re-engined Airbus planes, airlines’ costs would rise because they would have a new type of engine to maintain, the Financial Times said.
Boeing and Airbus, which have dominated the single-aisle market, face new competition from Canada and China.
The two companies have been deciding whether to offer engine upgrades or build all-new airplanes.
Albaugh told the Financial Times that a final decision on the engines will be made sometime next year.