SEATTLE, Washington (Reuters) --Boeing Co.'s proposed new mid-sized 7E7 jetliner could slash airline operating costs and redefine passenger comfort, if the aircraft maker can deliver on its promises, say potential customers.
"This airplane, I believe, will be a superb machine for operating with the airlines in terms of its economy," said Peter Gardner, U.S. technical vice president at Cathay Pacific Airways Ltd. "To match (the 7E7), the competition is really going to have to stretch out."
At a press briefing outside closed-door talks with dozens of potential buyers of the 200-to 300-seat 7E7 jet family, a key Boeing official said the program was building momentum as the board of directors considers endorsing the project next month.
"I don't see anything stopping us," said John Feren, vice president-7E7 customers, noting Boeing Chairman Phil Condit this week said the board was highly likely to allow the Seattle-based jetliner unit to formally offer airlines the 7E7.
Slightly less enthusiastic was Nico Buchholz, senior vice president Corporate Fleet-Deutsche Lufthansa AG, who praised the "significant improvements" the 7E7 could offer, but reserved final judgment pending more details.
"The aircraft from our perspective has developed positively into something which we see today. We still have some way to go," Buchholz said.
No launch orders yet
Neither airline was prepared to say it would sign up as a launch customer, which typically gives an airline fat price discounts and more say over design, though Gardner said the 7E7 might be "attractive" on routes to mainland China.
Boeing tentatively plans to build the 7E7 for deliveries starting in 2008, replacing its 757 and 767 models and going head-to-head with the popular A330 from rival Airbus SAS.
Japan's two biggest airlines, Japan Airlines Systems Corp and All Nippon Airways Co Ltd, have expressed interest in a shorter-range model and are considered strong candidates for launch orders.
Boeing claims the 7E7 would cut fuel burn by 20 percent over current aircraft and save airlines 10 percent on overall operating costs, citing new, fuel-sipping engines and lightweight materials that will also cut maintenance costs.
During the meetings, airlines have made it clear they want at least two engine options on the 7E7, bristling at the suggestion that Boeing could sign an exclusive deal with one of the three main powerplant manufacturers to save money.
"I would be a little distressed should it be only one. I think...the world's operators are going to probably persuade Boeing that more than one is better. Whether three is required, I'm not sure," Gardner said.
Airbus officials have said they might fit 7E7 engines on the A330, cutting the operating advantage, though questions have arisen over related engineering costs.
Airbus has not yet laid out a formal response to the 7E7, although industry officials say the European company is planning a series of airline briefings.
Standard features
Boeing hopes to standardize as many features as possible on the new jet, lowering production costs and boosting resale values while easing airline training and maintenance costs.
For example, the cockpit will be quite similar to that on the wide-body 777, allowing pilots to switch to 7E7s after just three days of training.
Boeing has even developed a "pretty cool" sidestick control similar to the one Airbus uses, a nod to the growing popularity of Airbus jets, but Feren said the 7E7 will offer only the traditional yoke control.
Lufthansa raised the sidestick issue, noting the increased costs of two different cockpits, and Buchholz said the airline would prefer not to run a mixed fleet of Airbus and Boeing aircraft, without elaborating.
Boeing has also shown airlines a "mock-up" of the 7E7 passenger cabin, which promises more moisture in the air, bigger windows, slightly wider aisles and better lighting.
"You get a bit of a 'wow' factor when you walk in the door," Gardner said. "It will give you a completely different feel."
