Boeing's cost challenge for new mid-sized jet

Boeing played for time on its proposed new mid-sized jet at the Farnborough Airshow last week, announcing it would decide next year whether to launch its first all-new plane in a decade and giving itself 9-12 months to hone its business case. With 225-265 seats, Boeing's proposed new mid-sized airplane, or NMA, could fill an opening in the middle of the airplane market between the bread-and-butter single-aisle planes that dominate most fleets and the bigger long-range, twin-aisle jets. That niche has already been partially filled by rival Airbus' largest narrowbody, the bestselling A321neo. But Boeing insists the NMA would be able to open new routes due to longer range and superior economics, just as its 787 revamped long-haul travel by connecting secondary cities. To make business sense, the price must be low enough to lure airlines and high enough to leave a return for Boeing, while squeezing through a narrow economic gap in prices between single-aisle and twin-aisle planes. A key question is whether the gap is wide enough to take the plunge. "That is the challenge of the NMA," said John Plueger, CE of Air Lease Corp. "Building a business case in 2018 for an airplane that won't start in service until 2025 is not such an easy slam dunk."<br/>