Two Philosophies 747 and A380

Boeings approach to airplane building is centered on the airline the Airbus approach is centered on the passenger.

It is best said the A380 was built for passengers and not accountants and the 747-8i was an accounting adjustment for airlines. Both carried the moniker of a "Heavy". However, this approach carries through to all of the respective Airbus and Boeing product lines. Airbus is built for passenger sensory organs and Boeing is for accountants wanting performance over posterior. Hence the A-380 lost the battle as Boeing continues to build 747-8F freighters for its customers. Some even think if the 747-8F continues long enough in production, allowing an order for the 747-8i to materialize again in the next five years and after the A-380 is long put to rest.

What is the best final approach for the aircraft industry? Performance or Posterior? The answer will come as fuel price increases and routes are congested. The 747 concept has an afterlife but it has to have two engines instead of four. The 777X is probably the best example of performance coming to the forefront and Boeing holds that key.

A quick mention of the A-350-1000 as a long-range high-density people hauler falls short of the 777X. I would be foolish not to mention recent cancellations from Etihad for its 777X of about 20 units, but Etihad canceled 42 a-350's at the same time! A tiny Boeing phyric victory. However, is this an indication of what is to come for the 777X and its customers? The answer is a resounding no! The industry is in shock over the A380 as a symbolic Boeing beater is laid to rest. Companies like Etihad have found tall grass in which to adjust their accounting problems with the A-380 demise. The 777X reduction is more of an indicator of Etihad financial distress and the A380 collapse is good cover for this type of fleet reorganization. Etihad rapidly becomes a 2nd tier airline while Qatar and Emirates become the big 2 (top tier) Middle East Carriers (ME 2 (3)). 

But there is demand out in airline world. Where one airline retreats another picks up the order slack and don't count Etihad out entirely. It has the scent of 777X blood in its nostrils and it should come back and order another 6 777X's in five years with a reasonable Boeing offer as a tailwind. Boeing just has to get this airplane into customers hands before another accounting adjustment is made in the aviation world.

Boeing's accounting approach for new models is baffling Airbus as they try to beat Boeing from a posterior position instead of performance for the accountants. Customers may like the extra five inches in  A-350 over the  787 in cabin size, but Boeing bet passengers would put up with a 17 1/2" seat compared with an 18" wide seat on an A-350, as an example.

The 777X solves the posterior position Airbus has taken. It can go ten abreast at 18" per passenger seat wide. The A350-1000 is stuck with this problem where it can change its configuration without billions backing a change. Boeing has leaped frog Airbus making the A350 an obsolete choice but still an interesting proposition for airlines. The 777X is a fine wine needing some aging before passengers get to taste its finer points. Even though Etihad is broke it will come back and revisit the 777X order book but within its own successful planning of fleet dynamics. It will never compete with Emirates on a one to one basis. The market is getting saturated and Emirates has momentum in fleet planning to stay ahead of its competitors. Performance over posterior wins and Airbus knows it.