Friday, April 30, 2010

Airbus, Boeing Engine Makeover Fuels Airlines’ Doubts

April 29 (Bloomberg) -- Airbus SAS and Boeing Co. are mulling a makeover that may not fly with airlines.

The two largest makers of commercial jets are exploring new engines for their bestselling single-aisle planes to cut fuel consumption and shorten clients’ wait for a new version. Some airlines are questioning the benefits of the upgrade, referred to as re-engining in the industry, as it may hurt the value of existing fleets and make their operations more complex.

“It’s still to be determined whether this is something that’ll be to our benefit or not,” American Airlines Inc. corporate finance managing director Peter Warlick said in New York on April 26. “It’s unknown how well the......

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