Boeing, 2 Airlines Hold Talks on New Jet

Boeing Co. said Wednesday that it had held talks with two of Asia’s biggest carriers about ordering its 7E7 jetliner, the company’s first new commercial aircraft line in 13 years, and could sign a customer next year.

Singapore Airlines Ltd. and Cathay Pacific Airways Ltd. are among airlines in “detailed conversations” concerning the 7E7, said Mike Bair, Boeing’s senior vice president for the program.

The news comes one day after Boeing’s board decided to go ahead and market the plane.

Boeing, which analysts estimate will need about $5 billion to build the 7E7, will have to sign up a sufficient number of orders from carriers worldwide before the board orders it into production. The 7E7 will challenge the A330 made by Airbus.

“It’s an absolutely essential step on Boeing’s part,” said Dan Solon, an analyst at Avmark International in Barcelona. “It has a product line that’s been aging compared with the equivalent-sized Airbus aircraft.”

Chicago-based Boeing, the world’s largest aircraft maker, needs the 7E7 to help it catch up with Toulouse, France-based Airbus, which will surpass Boeing in commercial aircraft deliveries this year. The 7E7 Dreamliner is a 200- to 300-seat twin-engine jet that would burn at least 15% less fuel than comparable jets.

Airbus said Wednesday that it had won a firm order from Qantas Airways Ltd.’s Jetstar airline for 20 A320s worth about $1 billion, making inroads into a carrier that used to operate an all-Boeing fleet. Airbus said Boeing was overestimating the potential market for the 7E7 and that it was not planning a response because it already had a plane that was more economical.

Separately, Boeing saw the ratings on about $15 billion of its debt downgraded by Moody’s Investors Service because of a lack of orders for its planes.