When Boeing launched its 737 MAX jetliner in response to Airbus's record-se...
PARIS - When Boeing launched its 737 MAX jetliner in response to Airbus’s record-selling A320neo, a wave of poker-faced satisfaction spread through Airbus headquarters in France.
“This is not good for aviation,” new Airbus CEO Guillaume Faury said of the MAX crisis earlier this month. If one of them did, it would likely take drastic action - anything from launching a price war to developing a new jet - that could destabilize both, and so market forces tend to keep the two companies’ strategies in line, industry insiders say.
Airbus knew it would have to respond to this with a costlier Plan B aircraft, code-named A30X, but was facing multiple calls on its cash, including problems with its A400M military plane. Not only could the duopoly be destabilized if the MAX had to be replaced, but now would not be an ideal time for a technology arms race in this crucial part of the market, experts say.
Furthermore, Airbus is not as ready as it would like for a parallel race in factory technology needed for a new plane.
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