Boeing finds strong demand to make new mid-range jetliner

Boeing Co. could likely find demand for nearly 2,700 planes if it decided to go ahead with producing a new midsize, medium-range jetliner, Bank of America analysts estimate in a new report.

Boeing has said it is considering a new jet that would have 200 to 250 seats and be capable of flying around 4,800 nautical miles. Boeing has said it thinks there is sufficient demand for such an aircraft, which would fit between its single-aisle 737 and long-range 787 Dreamliner. But the company hasn't given a figure and hasn't said it would proceed with making one.

Bank of America analysts Ron Epstein and Kristine Liwag said in their report, published Thursday, that they looked into the market dynamics for a new plane in response to investor demand and found "a strong case" for Boeing to go ahead. They estimated that if Boeing did so, it could launch the effort with its first orders around 2018 or 2019 and delivery to airlines around 2024.

The report estimates a market for around 2,685 aircraft from airlines to replace older planes or swap in for inefficient, long-range jets that they are currently using for medium-range flights. That estimate, which doesn't factor in market growth or new routes using the plane, would mean enough demand for about 14 years of production, assuming Boeing captures more than half of the market for such a plane, the report said.

Boeing internally refers to the new-plane concept as NMA, or new medium-range airplane, according to a person familiar with Boeing's planning. The company has been polling more than 30 possible customers, including airlines that have traditionally shied away from expensive twin-aisle aircraft like low-cost carriers.