Summary
Strategically, Airbus has bet on the 600-passenger A-380 as the wave of the future in airline capacity demand. In the meantime, Boeing bet on new-technology airliners in the 200 - 250 seat category (787), with new economics, as the future. Airbus attempted to blunt the inroads of the 787 with a hybrid redesign of the A-330, while they concentrated on the A-380. The strategy is now backfiring for Airbus.
Analysis
Recent calls by ILFC and specific airlines for Airbus to re-design the A-350 is indicative of the huge market success of Boeing's 787. The massive improvements in operating efficiency of the 787 are obviously being recognized by carriers. Boeing, knowing it has no really strong competitor in the A-350, is clearly in the position of being able to control pricing of the 787. The result is that key customers are now seeking a competitor to the 787, and it is clear that the A-350 isn't considered such an airliner. A major re-design would make delivery schedule at least three years behind Boeing's 787. By that time, the market would be dominated by Boeing
The conundrum for Airbus is that they are focused on building the A-380, a 600-seat airliner that has seen sales grind to a halt. The Boyd Group's fleet forecasts from the outset of this A-380 project indicated global demand being under 400 units, initially far below forecasts by Airbus, other analysts, and even Boeing. Today, this forecast is clearly much closer to what Airbus can expect. The A-380 is a niche airplane. The attempt at countering the 787 with the A-350 is clearly failing, leaving Airbus with a product line that is facing deteriorating market demand.
