European Manufacturer Fights Back With Bigger, Better A350

After losing the sales crown to Boeing for 2006 -- due in large part to the American planemaker's widebody offerings -- Airbus is striking back with its redesigned A350 XWB as the company aggressively seeks a 60-plane US Airlines aircraft order.

The Chicago Tribune reports US Airways is about to place one of the largest US carrier aircraft orders since the 2001 industry collapse... and that marks a significant decision for the future of Airbus, as it endeavors to rebound for 2007.

Expect the purchase to be closely observed by American Airlines, Delta Air Lines, Northwest Airlines and United Airlines; all are expected to purchase planes over the next two years as their finances strengthen.

The stakes for Airbus are high. Airbus must start winning head-to-head competitions to draw close to Boeing in the highly-profitable larger, long-range market.

"If they want to compete in the 200- to 400-seat segment, this is their future," aerospace analyst Richard Aboulafia said of Airbus. "This is the strongest wide-body [airplane] market ever, and it's largely Boeing's."

Airbus' A350 is targeted at two midsize Boeing planes: the 787, due to be delivered next year, and the 777, which rolled out in the 1990s and was recently overhauled so it could fly halfway around the world.

"They [Airbus] need to show that they have a strong product they can bring to the market, and with very competitive pricing," said Scott Daniels, vice president of asset management for Back Aviation Solutions, a CT-based consulting firm.

"I think they [Airbus] need to get their A350 either in the game or out in a big way," added Jon Bogaard, partner in the equipment-finance group at Chicago law firm Vedder Price Kaufman and Kammholz. "The jury's still out on whether they are going to do that."

"This year, yes, there's a lot to play for," agreed Chris Jones, vice president of marketing with Airbus North America. "There's a big wave of [aircraft] replacement coming up in the next two to three years, which positions us well."

Additionally, as reported by ANN, Dubai-based carrier Emirates is also considering the A350 XWB, as it reassesses its fleet requirement that may include "possibly more than 100 aircraft," as originally projected in the category, reports the Khaleej Times.

The A350 XWB is the latest iteration of Airbus' concept for a medium-capacity, long-range, extra wide-body (thus the XWB designation) passenger liner that started as the A350. Airbus hopes the A350 XWB will better compete with Boeing's 787 Dreamliner.

Emerites' Senior Vice-President, Corporate Communications, Mike Simon, said the carrier is looking at both aircraft models, Airbus' A350 XWB and Boeing's 787 Dreamliner, and a decision would not be made until Emirates was satisfied with the final details of both planes.

Confirmed reports, however, indicate Emirates president Tim Clark expressed satisfaction at the new design of the Airbus A350 XWB when he recently visited Toulouse. Simon said Emirates will choose between the Boeing 787 Dreamliner or A350 XWB to replace its existing Airbus A330 and Boeing 777 aircraft by 2012-2013.

"Tim Clark has said the performance gap between the two models are [sic] closing and the look and feel of both models are getting very similar," Simon said.

On Wednesday, Bloomberg reported that Airbus might secure the 100-plane order, valued at $24 billion, from Emirates after developing a wider body and more efficient wing.

"With Emirates revising its fleet requirements to more than 100 planes, the stakes would be higher for the transatlantic aircraft makers," said an airline industry analyst.

According to Clark, choosing between the two planes will be difficult "because they both do brilliant jobs."

"The A350 is "essentially going to be a good airplane. The only problem is that it is so much behind the 787," which is to go into service next year."

Boeing, which has begun major assembly of the 787, is on schedule to deliver the first one in May 2008 and is working with suppliers on how to build more to meet demand. The plane is sold out until the "back end" of 2013, program manager Michael Bair said last month. The A350 XWB will enter service in 2013.

Emirates is the biggest customer of Airbus' 555-seat A380, with 45 planes on order. The airline will take delivery of the first next year, 21 months late, due to manufacturing delays.

The only firm order for the A350 XWB from an airline has been an 11-plane contract from Finnair Oyj, Finland's state-controlled carrier. In December, US-based leasing company Pegasus Aviation Finance ordered two of the planes, while Singapore Airlines agreed to buy 20 A350 XWBs last June, with options to buy 20 more, although a firm order has yet to be signed.

On March 22, Airbus also won a pledge from Russia's OAO Aeroflot to buy 22 A350s, a deal worth worth $4.4 billion, with Airbus offering Russian industry a 5 percent stake in building the aircraft. Aeroflot, Eastern Europe's largest airline, signed a preliminary agreement March 22.

FMI: www.airbus.com, http://indian-airlines.nic.in/index.asp