Boeing has announced plans to offer an improved version of its 737 passenger jet with an increased 200-seat variant, resulting in reduced operating costs per seat.

The company’s latest announcement is part of its efforts to attract low-cost carriers in competition with Europe’s Airbus.

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Boeing Commercial Airplanes chief executive Ray Conner said the additional seating of the new 737 passenger is more than the maximum allowed in the existing 737 version.

"Boeing claims that the new offering will be slightly more expensive to operate and offer 5% more efficient seats compared with the 737."

In order to allow an increase in the maximum of seats, Boeing is set to add an additional door behind each wing that is tied to the number and layout of evacuation points closely.

The door will be added to the 737-8, which is in development, and will be first delivered to Southwest Airlines in 2017.

An additional exit will be added to ensure all 200 passengers can leave the aircraft more quickly.

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Boeing claims that the new offering will be slightly more expensive to operate and offer 5% more efficient seats compared with the 737, which has no extra door.

The aircraft currently has a maximum limit of 189 seats, and the new higher-capacity model is expected to follow later.

A short to medium-range twinjet narrow-body airliner, Boeing 737 is the company’s only narrow-body airliner in production, with the 600, 700, 800, and 900ER variants currently being built.

A re-engined and redesigned version, the 737 MAX, is set to debut in 2017.

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