Boeing: No Reason for 737 Upgrade

Boeing said it could not see a "compelling reason" to follow European rival Airbus in upgrading its best-selling single-aisle passenger plane, its commercial aircraft chief told the Financial Times.

Airbus, the world's largest plane-maker, said earlier this month it would spend roughly $1.3 billion to improve efficiency of its A320 aircraft by upgrading it with engines that offer 15 percent fuel savings. [ID:nLDE6B008X]

Boeing was mulling whether to upgrade its competing 737 plane, as airlines and the market welcomed the Airbus announcement on December 1.

"We certainly can't see a compelling reason to do it," Jim Albaugh said in an interview published in the Friday's edition of the newspaper.

Albaugh said it would only add "a few percent" in financial benefits for customer airlines. "I think most of them will wait for a new aeroplane."

Albaugh confirmed the delivery date for its first 787 plane would shift until at least the second quarter of next year, but declined to give a more specific date after that, the FT said.

Boeing has delayed delivery of the Dreamliner six times due to problems with engineering and its global supply chain as well as labor unrest.

(Reporting by Michel Rose; Editing by Lincoln Feast)

(Created by Lincoln Feast)