Airlines can expect an all-new narrow-body aircraft from Boeing Co. by 2017 or 2018, according to Morgan Stanley analyst Heidi Wood, who says merely re-engining the 737 will fail to match the fuel efficiency of new models from Bombardier and other competitors. "We think Boeing is prudent to be pre-emptive with an all-new airplane," she says. "Southwest has been agitating for a new 737 replacement for years and would be among the first launch customers." Wood says development costs could reach $13 billion, and the new model could have two aisles to allow for faster boarding.
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