Tuesday, January 22, 2013

Jubilation at Airbus Is Unlikely to Last

Airbus overwhelmed Boeing Co. (NYSE:BA) in 2011 with an all-time high of 1,419 plane orders and deliveries.

At the same time, however, Airbus noted that the initial rush of orders for its more fuel-efficient single-aisle A320neo is expected to wane in 2012, while its U.S. rival retains an edge in the market for more profitable wide-body aircraft. Boeing’s wide-body 777 will have no rival until Airbus’ much-delayed A350 debuts in 2017.

More points for Boeing: Demand for its 737 MAX, a fuel-saving version of its single-aisle 737, introduced a year and a half after Airbus’ neo, is gathering speed. Odd timing, then, that Boeing CEO James McNerney may be on the ropes.

�I�ve got to give them credit on the 777 — if you need lift in the long-range wide-body market now, that�s the plane,� said Airbus Chief Operating Officer John Leahy. �But the day we deliver the first A350-1000, the 777-300ER will become obsolete.�

More on this dogfight at Bloomberg BusinessWeek.

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