Unsolicited Advice Marc E. Babej and Tim Pollak 05.24.06, 6:00 AM ET New York - = In today's marketplace, distinct differences in the way competitive prod= ucts work have become increasingly rare. But functional product differen= tiation is exactly what the rivalry between the Airbus A380 and the Boei= ng 787 Dreamliner is all about: Two companies with fundamentally differe= nt products, based on diametrically opposite visions of the future, enga= ged in a Hatfields versus McCoys battle with billions of dollars at stak= e. Each company has made a series of big bets. = The Airbus A380 super-jumbo is a plane for the annals of aviation histor= y. When it goes into service later this year, it will be the biggest, ba= ddest airliner around, capable of ferrying from 550 to 800 passengers (d= epending on configuration). With its two full-length decks and the promi= se of amenities such as sleeper cabins, cocktail lounges and a gym, it i= s sure to capture the public's imagination. = But for all its promise of innovation, the A380 represents a bet-the-hou= se wager on one of the most disliked same-old models of air travel: the = hub-and-spoke. The A380 is built around the assumption that airlines wil= l continue to fly smaller planes on shorter routes (spokes) into a few l= arge hubs, then onward to the next hub on giant airplanes. It also presu= mes that passengers will want to put up with the hassles of changing pla= nes in exchange for the privilege of traveling in a jet-powered cruise l= iner. = Whether the A380 will live up to the hype remains very much to be seen. = Passengers may become disenchanted with the plane if it turns out to be = a freighter rather than a luxury liner. When airlines can choose between= more seats and a gym, out goes the gym. Sound cynical? Not to those of = us who fondly remember the upstairs first-class lounge in the early 747s= . Second, and even more importantly, Boeing's 787 represents an appealing = alternative. It's based on a fundamentally different vision, and it is r= adically different by design. = Boeing doesn't take the current hub-and-spoke model as a given. Marty Be= ntrott, vice president of sales, marketing and in-service support for th= e 787, says that since 1990, the number of city pairs more than 3,000 na= utical miles apart served by the world's airlines have doubled, the numb= er of frequencies offered by the airlines have doubled, and the number o= f available seat-kilometers (seating capacity times miles flown) have do= ubled. None of these trends show any signs of abating; meanwhile, the av= erage airplane size has actually declined slightly. Clearly, customers p= refer more point-to-point flights, flown more frequently, on smaller air= planes. = Marketplace insight is at the core of 787 product development. "Our stra= tegy has been to design and build an airplane that will take passengers = where they want to go, when they want to go, without intermediate stops;= do it efficiently while providing the utmost comfort to passengers; and= make it simple and cost-effective for airlines to operate," Bentrott sa= ys. = Rather than seek economies through scale, the 787 will deliver economy t= hrough technological innovation, making the most of newly designed, fuel= -efficient twin engines and lightweight composite materials. The 787 off= ers a very different take on the flying experience, too, focusing on com= fort rather than perks that could be eliminated by airlines: more standi= ng headroom, larger windows and bathrooms, and higher humidity--all feat= ures that will benefit passengers regardless of seat configuration. = If Airbus appears to covet recognition in the Guinness Book of World Rec= ords, Boeing seems predisposed to making a favorable impression in airli= nes' inventories. To date, carriers have ordered 159 A380s, and almost t= wice as many 787s. = Both Airbus and Boeing have a hedge in their back pocket. To compete dir= ectly with the A380, Boeing's 747-8 uses fuel-efficient engines like the= 787 to carry 450 passengers. To counter the 787, Airbus is offering a w= hite elephant called the A350, which has been widely derided as out of s= tep with the changing times. According to Boeing, the 787 is the result of over a decade of focus gro= ups and scientific studies to gain a better understanding of passenger c= omfort and how the design of airplane interiors can make flying a more p= leasant experience. If Airbus made comparable efforts, we are hard-press= ed to find the evidence. The ordeals of air travel after Sept. 11, 2001, make even short flights = feel like long hauls. Did people really tell Airbus that they are perfec= tly happy to stand in more lines in exchange for a cocktail lounge? Airb= us could not be reached for comment. Boeing versus Airbus is one of the most hard-fought, closely watched mar= keting battles out there. It's also one of the most fascinating. Not lon= g ago, it appeared as if Airbus had gained the upper hand. If Boeing suc= ceeds in winning this battle --and it appears to be well on its way--it = will amount to one of the great reversals of business fortunes. It will = also serve as proof of the wisdom of understanding the marketplace well = enough to lead, rather than follow. Marc E. Babej and Tim Pollak are partners at Reason Inc., a marketing-st= rategy consulting firm that works with clients in a range of categories = including media and entertainment, financial and professional services, = packaged goods and the public sector. = The best slide auction on the net: http://www.auctiontransportation.com/sites/psa188/