Boeing CFO and Corporate President James Bell said "a number of factors" will go into determining whether the manufacturer launches an all-new aircraft this year to replace the 737NG, and cautioned that no decision has been made with all options—including a re-engining—remaining "open."

Speaking Wednesday at the JP Morgan Aviation, Transportation and Defense Conference in New York, available via webcast, Bell downplayed expectations that Boeing will soon announce a narrowbody replacement program to counter Airbus's re-engined A320neo (ATW Daily News, March 17). Airlines are "looking for a pretty big step change improvement" in an all-new aircraft and Boeing is attempting to determine whether it can deliver one, he explained. "The constraint for us is the innovation we need to have for a completely new aircraft … In the meantime, we're selling more [737NGs] than we can build."

He added that Boeing is still working on "a few other [incremental] improvements" to the 737NG that could help the current model maintain cost "parity with the neo."

Bell also backed away from the notion that the global outsourcing strategy used to produce the 787 needs significant revision (ATW Daily News, Feb. 9), saying that the production model for an all-new aircraft program would look a lot like the Dreamliner program. "We would share whatever that new [development] cost is with partners in the supply chain," he said. "We believe the 787 model is the appropriate model. Obviously, we will take lessons learned and make minor adjustments, but we think that's the right model."

Asked whether a new aircraft would include more than one engine offering, he said, "Providing options to your customer base … could position you better competitively." But he emphasized that it is too early to speculate about definitive decisions regarding a narrowbody replacement.