02-27-2021Boeing offers to re-engine 737 for AMR - sources
CHICAGO/PARIS, July 19 (Reuters) - Scrambling to rescue a potential $20 billion airplane order from American Airlines parent AMR Corp (AMR.N), Boeing Co (BA.N) has offered to put a new engine in the current version of its 737, retreating from a more ambitious desire to completely redesign its best-selling model, sources said on Tuesday.
If American accepted Boeing's offer to build a re-engined 737, the carrier would become the launch customer for the upgraded narrowbody, which has yet to receive the official green light from Boeing's directors, two sources with knowledge of the talks told Reuters.
A deal is not final as American Airlines is still weighing a generous offer from Boeing's chief rival Airbus, a unit of EADS EADS, which hopes to sell its A320neo -- a re-engined version of its A320 -- to American.
Two sources familiar with the matter predicted a split order, with Airbus and Boeing both gaining a major foothold. Some people familiar with the talks say the order could be for 200 to 300 narrowbodies, but the exact number was unclear and there could be be last-minute changes.
"American is very active with Airbus in talks right now," a senior industry source said, asking not to be identified.
If AMR managers reached an agreement with one or both plane-makers, they would make their recommendation to the company's board of directors at a two-day board meeting that starts on Tuesday.
The company could announce a decision with its quarterly earnings report, due for release on Wednesday. (Additional reporting by Karen Jacobs, editing by Gerald E. McCormick)
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