Boeing executive says oil over $65 leads to increased demand for new jets

SYDNEY (Reuters) – Boeing Co (BA.N) is expecting increased demand for new airplanes now that oil is above $65 a barrel, a senior executive said on Sunday.

“When you take a look at where the price of fuel is today … it means replacement economics make more sense for our customers,” said Randy Tinseth, Boeing vice president for commercial airplane marketing.

Speaking on the sidelines of the International Air Transport Association annual meeting in Sydney, Tinseth also said Boeing did not plan to change the design of a potential new mid-sized airplane to carry more cargo in its belly because larger widebody jets were better suited for that job.

“We don’t want to over design an airplane just to carry belly cargo, especially when I can make an airplane that becomes more efficient delivering and carrying passengers,” he said.

Boeing has yet to launch the new mid-sized airplane. Tinseth said if it was approved, it could come into service around 2025.