Friday, September 20, 2024

Airbus and Boeing: Dogfighting For Sales

Airbus and Boeing run a high stakes dogfight in the skies as each competes for sale in the competitive airline industry. Airbus has flown in behind Boeing and has the U.S. manufacturer on the run after picking up a $6 billion, 100 aircraft order with a new low cost airline in India.

The new airline, called IndiGo, is in the formative stages but this order of 100 A320s gives Airbus a leg up on Boeing. That brings the total for the Paris Airshow up to 255 for the world’s leading manufacturer for this year’s show. Boeing is looking at about 146 thus far.

Airbus’s flying colossus, the A380 has been one of the big highlights of the air show this year. The 555-seat passenger jet is the largest passenger jet built and orders for the monstrosity have already started coming in at the air show.

Boeing has a new ship in development, the 787 Dreamliner, expected for delivery in 2008. Boeing promises a lot of new advancements in the plane. Airbus is planning the A350 to compete with the 787. It’s not due out until 2010 and promises many of the same advantgages.

The real issue underlying the air show is the riff between the E.U. and the U.S. over the help each gives to its respective aircraft manufacturer. The U.S. has accuse the E.U. of giving subsidies and low interest loans to Airbus, particularly to help them develop the A350. The E.U. accuses the U.S. of giving aide to Boeing in the form of fat government contracts. Both parties have registered complaints with the World Trade Organization and as yet are unresolved.

For those making the road trip to the Paris Air Show, the show opens to the general public on Friday and will close on Sunday.

John Stith is a staff writer for Murdok covering technology and business.

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