the advantage of confidence
6 June 2006
For the first time in several years, Boeing is leading the industry rather than following in the footsteps of Airbus. Despite the downturn of many US airlines, sales are climbing – and in total airframe value, Boeing had more sales than Airbus last year. The new 787 Dreamliner is driving much of this renewed interest in Boeing widebodies, with nearly 400 orders and another 320 options held as of late May.
Airbus, on the other hand, is having less luck with their A350 – around 180 orders and 28 options. The initial proposal was actually called the A330-200Lite, merely a refresh of the older A330 using a modified wing and next-generation engines. Then came the A350, using a new lithium-aluminum fuselage and a revised cockpit. Both were larger than the 787 variants, and potential competition from the bigger A350-900 caused Boeing to begin work on a double-stretched 787-10 model. Now, following doubts raised by ILFC’s Steven Udvar-Hazy (who called the A350 a ‘band-aid reaction to the 787’), Airbus is again revising the design of the A350.
The underlying problem here is one of confidence in a product – both in its market and in the chosen design. Boeing saw a market – a long-range, efficient twin that could replace the 757, 767, and A330 with lower operating costs and greater range. Not only was there already a substantial fleet, but the design would fit into Boeing’s greater picture of city pairs rather than a spoke and hub network (Continental, for example, has been flying direct US-Europe flights for some time to great effect, using their 757 fleet). Boeing designed an aircraft and stuck with it, as they felt their research and design teams did their jobs. Work has even started on launching a second production line, likely at the old Douglas plant in Long Beach, allowing them to double the already remarkably fast production schedule (three days to complete an airframe).
Airbus, on the other hand, has revised their response not once, but twice, with another looming on the horizon. Ironically, they first dismissed the 787 as a reaction to their A330 and felt that a response wasn’t necessary. Now their internal confusion and public uncertainty is making many of their existing customers nervous, particularly Qatar with their 60-aircraft order. As Qatar’s CEO has stated, the aircraft ‘that we signed for in last September is not there anymore’.
If a product is to succeed, it needs to be well planned, well targeted, and well executed. Boeing has so far clinched the first two; once the first flight takes place in the next year or two, its performance capabilities will be known and we’ll see if they manage to clinch all three. Airbus, on the other hand, has missed on every swing. When the latest A350 redesign goes through – potentially as the A370 – perhaps they’ll have a better, more focused aircraft. ![]()