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Boeing Faces Airline Tug of War Over Proposed ‘797’ Jet Design

  • Shape of aircraft depends on room left for belly freight
  • Asian airlines prefer to carry more cargo than U.S. peers
Inside a Boeing Co. Aircraft Maintenance Facility Ahead of 4th Quarter Earnings Report

Photographer: Luke Sharrett/Bloomberg

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Boeing Co. may need to rethink one of the most distinctive features of its proposed new mid-range jet -- a small cargo hold -- to win over customers in Asia, potentially the plane’s largest market.

The manufacturer faces a “cargo conundrum,” for the jetliner dubbed the 797 by industry observers, said Domhnal Slattery, founder and chief executive officer of Avolon Holdings Ltd., the world’s third-largest aircraft leasing firm.