Boeing Co. (NYSE: BA) stopped making its 757 aircraft in 2004. The single-aisle, narrow-body plane can carry up to 193 passengers on flights of up to 3,900 miles. There is no other aircraft with those capabilities. Yet.  European Aeronautic Defence and Space Co. (OTC: EADSY), makers of the Airbus planes, is preparing to introduce its A320neo model and at least one US airline is looking at the plane as a replacement for the 757. US Airways Group, Inc. (NYSE: LCC) has initiated talks with Airbus in an effort to determine if the A320neo could be a suitable replacement for the 757.

US Airways flies 24 of the Boeing 757s, and the plane makes up a decent portion of the fleets of other airlines. United Continental Holdings, Inc. (NYSE: UAL) operates 158 of the planes, about 22% of its mainline fleet. Delta Air Lines Inc. (NYSE: DAL) owns or leases 183 Boeing 757s, about 23% of its total fleet. AMR Corp.’s (NYSE: AMR) American Airlines operates 124 of the 757s. American recently placed an order for 460 new planes of which 260 will be the A320neo.

The Airbus A320neo is a re-engined version of the aircraft maker’s venerable A320. The new engines are more fuel efficient and when it enters service in 2016, the new plane will have seats for about 185 passengers and be comparable in range to the Boeing 757. Airbus claims that the A320neo can accommodate more than 90% of the flights currently flown by the 757.

Boeing, of course, claims that there is no replacement for the 757. When production of the plane ended, the company began building a version of its 737 single-aisle, narrow-body aircraft that seated 180 passengers. The range of the 737-900, however, was considerably shorter. As a result, the 737-900 could not be used on some of the over-water routes served by the 757.

That Boeing has no replacement lined up for the 757 should be no surprise. The company is more than three years late delivering its first 787 Dreamliner, now scheduled for next month. Boeing has also not made a decision on whether to follow Airbus’s lead and put a new, more efficient engine on its 737 or to design and build a whole new aircraft. That decision has been pending for months as Boeing talks to customers, particularly Southwest Airlines Co. (NYSE: LUV) which flies the 737 exclusively. If Boeing chooses to go with an entirely new plane, the company says deliveries will begin in 2020. Right.

Boeing’s shares are down more than -3% in the pre-market this morning, at $60.30, in a 52-week range of $56.01-$80.65.

Paul Ausick

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