Air-India's decision to purchase Boeing's 787 Dreamliners has re-ignited the fight for supremacy between Boeing and Europe's Airbus in the civil aviation market, media reports said in Washington.
"This is better than we ever could have imagined," Michael B Bair, Boeing's programme manager of the 787, said about the Air-India orders as well as those of Air Canada and Korean Air Lines, with more sales to other airlines in the works.
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One of his biggest problems would now be to work out a delivery schedule for the new orders, he said. Boeing's manufacturing line is booked for 787 deliveries through 2010, he added.
"It is hard to put a word on it. Phenomenal, gratified, excited. We are really, really pleased with how this is unfolding," Bair said.
According to media reports both European and US governments have lobbied heavily in India for their offerings. National prestige is heavily involved in these sales, apart from the very important economic aspect.
Airbus North America Holdings Inc's chairman T Allan McArtor said Boeing offered 'sweet deals' to the carriers to get the sales. "You will find some generous terms on pricing and extra sugar on top," he said.
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The competition between Airbus and Boeing is intense. Boeing's once predominant position has come under strong assault from its European rival. Airbus surpassed Boeing in 2003 to become the world's biggest maker of commercial airplanes.
With national pride also at stake, the rivalry erupted into a trade dispute last year between the U.S. and Europe. The US says Airbus is subsidized. Airbus retorts that Boeing gets tax breaks and military contracts that amount to subsidies.
Boeing now has 217 orders for the 787. The new plane is also spurring sales of other models, e.g. the 777. The Air Canada and Air-India deals add up to $11.9 billion based on list price, though every planes are always sold at a discount.
Robert A Milton, chief executive and chairman of ACE Aviation Holdings, parent company of Air Canada, said he considered the Airbus A350 but ultimately was won over by the Boeing 787's promise of fuel efficiency and new materials -- instead of aluminium -- that will be used throughout the plane.
The Boeing planes, he said, would give the carrier a competitive edge in its routes to Asia, and especially to China. "The 787 is a true game-changer -- a quantum leap in
Technology -- the likes of which our industry has not seen in decades," Milton said.
