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Paris air show: Duelling at 35,000 feet | The Economist
THE Paris airshow opens at Le Bourget airport on June 17th. This can mean only one thing: the air north of the French capital will be thick not only with roaring jets but noisy verbal attacks. Boeing and Airbus, the duelling duopolists which rule the skies for passenger jet planes (over 120 seats) have been warming up in recent weeks. Boeings boss Jim McNerneys opening thrust said Airbus was incapable of developing an all-new plane to match his best. Fabrice Bregier, his opposite number at Airbus, riposted that the firms all-new A350 would soon topple Boeings 787 and 777 planes from their dominant position in the long-haul wide-body market.
The only time these two companies abstain from slagging each other off is when their planes are in deep trouble. Boeing refrained from commenting on the delays that hit the Airbus double-deck super-jumbo A380 in 2007, knowing that it could soon face a similar problemwhich it did when its 787 was delayed three years and then grounded for four months this year with technical troubles. With both planes in the air, the flak has started flying again.
At the last Paris show two years ago Airbus carried the day, boosted by the launch of its narrow-body A320. Boeing recovered last year when it announced a new version of its venerable 737, but the European group still dominates this market, which accounts for four out of five planes sold.
The opposite is true with large, long-haul jets, a market in which Boeing has been in the lead for a decade or so. Boeings longest-range version of its 777 twin-jet has hit the spot for airlines for the past ten years as fuel costs have made four-engine planes less economic. Airbus has stopped making its A340. Its A380 is only slowly chalking up sales in its market niche for planes carrying over 400 passengers. And only the delays to Boeings 787 have kept Airbus in the mainstream wide-body market: airlines have opted for the Airbus A330 twin as a short-term alternative to the delayed American plane, which promises better fuel economy with its lightweight composite structure.
Boeing was hoping to dominate Paris with announcements about its latest product, the 777X, an updated version of its all-conquering twin-jetalthough the plane has not formally been launched yet. But Airbuss latest wide-body, the A350XWB, which is designed to take on both of Boeings champions, will make its maiden flight (weather permitting) on Friday June 14th. This alone should generate glowing headlines for the European manufacturer just as the aviation media touch down in France. But it opens the way to a bigger coup de theatre: a fly-past appearance of the new giant Airbus at the show itself. Reports from Toulouse, where Airbus planes are assembled, suggests the test aircraft is having A350 painted on its belly the better to taunt its rivals.
This wide-body battle is crucial for both manufacturers: though volumes are lower, margins are higher. And in the high-volume narrow body market, competition from Brazil, Canada, Russia and China is set to eat into the duopoly in the next decade.