Battle for the skies

Adjust font size:

LONDON, (England) CNN -- While the Airbus A380 finally had its maiden passenger flight last week, the real battle for the skies is happening on terra firma, between Boeing and Airbus.

Each has their backers and each their detractors in a mire of politics, power, money and influence. One thing is for sure though, from the smallest plane to the biggest it is one mighty struggle between the two.

"It's a major contest. Can Airbus sell the A380 against all the Boeing range of planes? There is also the fight for the medium-sized market -- there's going to be a titanic struggle between the 787 Dreamliner and Airbus' A350, which it also got into difficulty with," Kieran Daly, of Air Transport Intelligence told CNN.

"I also think we're just seeing the very beginnings of the biggest contest of all -- who will replace the smaller narrow-bodied planes, like the 737s, which are everywhere you look."

Orders for new planes tell part of the story. For the best part of a decade, Airbus held the lead while Boeing struggled with a painful and lingering restructuring.

But the tables have turned. While delays to the A380 led to some airlines canceling orders of the planes, Boeing enjoyed an almost record-breaking year with 1,050 on its books in 2006, compared to Airbus' 790.

Technical problems with the A380 are symptomatic of a broader ideological malaise at Airbus, and at the end of February, Europe's plane-maker is about to embark on its own restructuring program, called Power 8.

By reducing aircraft development times by two years, from eight to six, the airline hopes to streamline productivity and regain their market lead. It won't be a smooth ride -- there will be job loses within the company and industrial action has already been threatened.

It is in the airline boardrooms, however, that the fate of Airbus and Boeing will be decided.

Most carriers embark on a rolling program of renewals. Not so British Airways. It is opting for a block replacement of its fleet and that's got the plane manufacturers salivating at the prospect of a truly gigantic order.

So will BA stick with Boeing or go for Airbus?

"If you're Willy Walsh looking at Boeing, all your pilots are trained for their aircraft, so there's an incumbent advantage. However I don't think that's necessarily a done deal. BA will be looking at the future shape of the industry," Andrew Fitchie, an analyst for Collins Stewart told CNN.

"There will be certain routes that the A380 will be more suited to on BA's global network. What is interesting is that BA is looking to do the whole fleet and expansion in one, which will give them considerable bargaining power with manufacturers."

Who wins between Airbus and Boeing can only be judged over a large number of years, but one things for sure. Once you are squashed back into seat 36F, it's still going to seem like a very long flight.

Mammogram guidelines change for women in 40s Women in their 40s should not get routine mammograms for early detection of breast cancer, according to updated guidelines set forth by the U.S. Preventive ...

---

• Chicago school board chief's body found
• Police: Girl's body found in North Carolina
• Mexican striker De Nigris dies aged 31
• Oklahoma doctor held in slaying of son, 9
• Rosie says partner 'moved out two years ago'

• Fed targets gift card fees
• USPS reports $3.8B loss
• Body in river is Chicago schools chief
• Shuttle launched to space station
• Firm that feeds troops accused of fraud

• Talkin' 'Icky Thump' blues (1:40)
• 'Why you treat yourself bad?' (3:15)
• Soviet culture returns (3:47)
• Unseemly rap lyrics targeted (3:29)
• Now In The News