Wirraway
16th Dec 2004, 13:39
Fri "The Australian"
Boeing's row with rival climbs to new heights
Steve Creedy
December 17, 2004
SNIPING between Airbus and Boeing is heading for new levels after the European manufacturer's decision to take on the 7E7 "Dreamliner" with the A350.
Boeing has already circulated a briefing note in which it accuses Airbus of "scrambling to update its uncompetitive A330" because of interest in the 7E7.
"Airbus believes that a reworked (A350) powered by 7E7 engines - which must be detuned for the A330's lesser capabilities - will be equivalent to the 7E7," it says.
"In reality, Airbus is rushing something to market to hide its A330 problem."
Boeing Commercial Airplanes vice-president of marketing Randy Baseler is due to expand on the company's view in an international teleconference today.
With Airbus selling more planes than its US rival and set to grab the headlines over the next 18 months with its A380 super jumbo, Boeing has good reason to want to shoot down the A350, having claimed for some time that the market for aircraft carrying more than 450 passengers is not big enough for the development of a new plane.
Instead, it has concentrated on developing the highly efficient mid-size 7E7 for the point-to-point markets it predicts will develop over the next 20 years.
It will be Boeing's first all-new plane in 15 years and is seen as a major driver for growth.
The aircraft has been finding favour with airlines, which is not lost on Airbus, and Boeing recently predicted it would reach 200 orders by the end of this year.
The Airbus decision to compete in the same market with a lighter version of the A330 (that will take advantage of the 7E7 engines), muddies the water, at the very least.
Airbus's $US150 million ($195.8 million) "sticker price" on its new aircraft is above the $US120 million price tag Boeing has put on the 7E7, but airlines never pay the publicly disclosed price and both can be expected to be steeply discounted.
How much of a threat the A350 poses will depend on the efficiency gains Airbus can squeeze out of it.
If it gets close to the 7E7, analysts say it will put pressure on Boeing and makes airline decision-making more difficult.
This week's briefing note from the US aerospace giant signalled its intention to come out fighting.
As well as spelling out a long list of 7E7 advantages to passengers and airlines, Boeing accused Airbus of drastically shifting its focus away from the A380 and scrambling to get back into the mid-size market. It also renewed its attack on the level of government aid it believes Airbus receives.
Similar accusations have been levelled against Boeing by the Europeans.
"Airbus put A350 development at between $US2 billion and $US4 billion and said it may request launch aid from European governments," it said. "Such an investment, while Airbus is funding the A380 and the A400M (military project), would demonstrate launch aid's market-distorting effects."
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Boeing's row with rival climbs to new heights
Steve Creedy
December 17, 2004
SNIPING between Airbus and Boeing is heading for new levels after the European manufacturer's decision to take on the 7E7 "Dreamliner" with the A350.
Boeing has already circulated a briefing note in which it accuses Airbus of "scrambling to update its uncompetitive A330" because of interest in the 7E7.
"Airbus believes that a reworked (A350) powered by 7E7 engines - which must be detuned for the A330's lesser capabilities - will be equivalent to the 7E7," it says.
"In reality, Airbus is rushing something to market to hide its A330 problem."
Boeing Commercial Airplanes vice-president of marketing Randy Baseler is due to expand on the company's view in an international teleconference today.
With Airbus selling more planes than its US rival and set to grab the headlines over the next 18 months with its A380 super jumbo, Boeing has good reason to want to shoot down the A350, having claimed for some time that the market for aircraft carrying more than 450 passengers is not big enough for the development of a new plane.
Instead, it has concentrated on developing the highly efficient mid-size 7E7 for the point-to-point markets it predicts will develop over the next 20 years.
It will be Boeing's first all-new plane in 15 years and is seen as a major driver for growth.
The aircraft has been finding favour with airlines, which is not lost on Airbus, and Boeing recently predicted it would reach 200 orders by the end of this year.
The Airbus decision to compete in the same market with a lighter version of the A330 (that will take advantage of the 7E7 engines), muddies the water, at the very least.
Airbus's $US150 million ($195.8 million) "sticker price" on its new aircraft is above the $US120 million price tag Boeing has put on the 7E7, but airlines never pay the publicly disclosed price and both can be expected to be steeply discounted.
How much of a threat the A350 poses will depend on the efficiency gains Airbus can squeeze out of it.
If it gets close to the 7E7, analysts say it will put pressure on Boeing and makes airline decision-making more difficult.
This week's briefing note from the US aerospace giant signalled its intention to come out fighting.
As well as spelling out a long list of 7E7 advantages to passengers and airlines, Boeing accused Airbus of drastically shifting its focus away from the A380 and scrambling to get back into the mid-size market. It also renewed its attack on the level of government aid it believes Airbus receives.
Similar accusations have been levelled against Boeing by the Europeans.
"Airbus put A350 development at between $US2 billion and $US4 billion and said it may request launch aid from European governments," it said. "Such an investment, while Airbus is funding the A380 and the A400M (military project), would demonstrate launch aid's market-distorting effects."
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