Narrowbody jets: New entrants challenge big two in short-haul market (Financial Times)

Release Date: 2011-06-21

The duopoly enjoyed by Airbus and Boeing in large commercial jets since the late 1990s is coming under increasing pressure from new entrants and established aircraft makers targeting the shorthaul market between 100 and 200 seats. The two types account for about half of all commercial jets flying today.

For years many in the industry expected both manufacturers to come up with all-new aircraft designs for the workhorses of the global airline industry.

The so-called A320 New Engine Option, or Neo for short, has already attracted a flurry of interest from airlines, securing just over 330 orders and commitments.

At the time of the launch, Airbus predicted it would have more than 500 commitments for the Neo by Paris and there is every expectation that number will be easily surpassed by the end of the show.

While the US aircraft-maker had initially indicated very strongly that it was more likely to opt for a brand new jet rather than to re-engine the 737, it has in recent months emphasised that re-engining the popular aircraft remains a serious possibility.

But whatever Airbus and Boeing do to try to maintain their position in the narrowbody segment, the days of the duopoly are numbered.

The signing of a strategic agreement between China’s Comac and Bombardier in March this year has raised the possibility that the two could combine in the future to present Airbus and Boeing with an even more formidable competitor.

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