Why Boeing lost the latest Qantas order

The news yesterday that Qantas selected Airbus for the A321XLR and A220 should not be a surprise.  The deal was Boeing’s to lose and lose it they did. Let’s explain how we see this.

Qantas’ requirements are the same as any other airline – they need tools that can handle multiple tasks.  Replacing the 717 is easy because the options are excellent. The choices are the Embraer E2 and the Airbus A220.  The performance of both aircraft makes them compelling choices for the “crossover” segment.  When they compete one-on-one, the choice is tough in terms of tradeoffs.  We have seen Embraer win important campaigns in Europe (KLM, Helvetic & Wideroe) where one would think Airbus had a “home turf” advantage.  It is naive to dismiss Embraer’s E2 as highly competitive.