Premium – A330neo nears test flight

Airbus has a lot riding on its A330neo program.  This aircraft, in combination with the A321neo, provide airlines with a compelling solution to the widely defined middle of the market.  Even Boeing is apparently looking at two models for it.

Whereas Boeing is working on a design but has nothing announced, Airbus

has two aircraft to show.  Airbus has another advantage, the A321neo is handily outselling the MAX models it competes with.  Airlines know that the Boeing solution is likely to follow the 787 thinking – a new design, with lots of technology and lighter materials.  But do airlines need this technology?  More importantly, will they pay for it?

In Paris, at the recent air show, Mike Delaney, Boeing’s head of aircraft development, noted “We’re going to put an airplane in that space that has the economics that nobody can touch, and what it will do is open up the city pairs and the economics that nobody else can. That’s the part that [Airbus executives] don’t tell you about.”  The core of this thinking seems to be that the new Boeings will continue to follow through on the 787’s hub busting abilities.   That is a reasonable strategy, except that hub airlines may not see the ability as attractive.  Big network airlines like their fortress hubs and will fight to protect them.  New airlines, like Norwegian and Primera, without hubs and developing long haul LCC services, probably will like this thinking.