Reports: Boeing offers to re-engine 737 for American Airlines order

Boeing has told American Airlines it will replace the engines of its popular 737 single-aisle airliner in hopes of rescuing a potential $20 billion airplane order from the airline, Reuters reports.

American could announce an order that may exceed more than 250 narrow-body jets Wednesday in an earnings report. The order may be split between Airbus and Boeing, sources told Reuters.

Boeing officials have said the company is leaning toward designing a new plane to replace the 737 rather than upgrading the 737 with new engines.

Teams are studying each option, officials said at the Paris Air Show last month.  An announcement would be made later this year, they said.

In the meantime, American is weighing a “generous offer” from Airbus¬† for a re-engined A320 single-aisle airplane, Reuters said.

Airbus announced hundreds of orders for its A320 neo (new engine option) at the Paris Air Show. It has orders and commitments for more than 1,000 of the planes. That’s also put additional pressure on Boeing to respond.