Boeing will proceed with development of the re-engined 737 after its board of directors approved its launch based on order commitments for 496 aircraft from five airlines.
Boeing said that it has seen "overwhelming demand" for the new aircraft. It promised a fuel burn 4% lower than the Airbus A320neo.
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The new 737-family will be powered by CFM International LEAP-1B engines.
Deliveries are scheduled to begin in 2017.
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Boeing has named Bob Feldmann vice-president and general manager of the programme and Michael Teal has been named vice-president, chief project engineer and deputy programme manager.
Source: Air Transport Intelligence news
