Re: Forbes: Boeing Versus Airbus

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Would anyone agree on the hypotesis that it's very likely we will not
have a clear winner here ? There are many different marketplaces out
there to see just point-to-point winning over hub-and-spoke. Then,
how many point-to-point routes would be better suited by A380, say,
in Asia and India (ie. SIN <-> *, HKG <-> *, NRT <-> KIA) ? And then,
do you see  that larger jets between intra-regional hubs are ok but
only if the  large players are not competing (ie. AMS <-> CDG, FRA <->
ZRH) ? Just to spur debate..

Cheers,
Paolo


Bill Hough wrote:
> 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. =

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