Market Presence. In the context of re-engining from both manufacturers, the effect on residual values of the A320 and B737 could be relatively modest in terms of deviation from existing projections. While re-engining offers improvement, it is more incremental than evolutionary. If the difference between the existing model and the intended replacement was more significant, then there would be less incentive to order both the existing A320 and the A320neo so close together in terms of delivery dates. Whereas the move from the B737-200 to the B737-300 represented a significant change, the re-engining can be more likened to the change from the CF6-80A powered B767 to one powered by the CF6-80C2B1F. While Boeing will still have to discount the B737-800 to maintain production through to the service entry of the B737MAX, the pressure to do so may be less muted than if an all new aircraft was under development.
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