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. =