Falling dominoes

First Hong Kong falls to the juggernaut http://today.reuters.com/News/newsArticle.aspx?type=businessNews&storyID=2005-12-01T100826Z_01_HO136342_RTRUKOC_0_US-AIRLINES-HONGKONG-CATHAY.xml … is Australia next? The Australian is reporting http://www.theaustralian.news.com.au/common/story_page/0,5744,17428629%255E23349,00.html that Boeing has emerged as the favorite to win an order for up to 100 widebody jets from Qantas. An announcement is expected next week.

Key Quote 1: “While the 777-200LR appears to be a clear winner over the A340-500 for the ultra-long-range hub-busting mission for Qantas, the race for the larger order, between the 787 and A350, is closer run, with the 787 a short nose in front.”

It’s not a slam-dunk for Boeing, according to the paper.

Key Quote 2: “Both have ground to make up – or bridges to mend. Boeing suffered from a bout of pricing arrogance through 2003 and 2004, which has now disappeared with the very public demise of president Harry Stonecipher earlier this year.”

But Airbus’ problems with the A380, and the way they’ve responded to them in public, has put Team Toulouse in a hole, the paper continued.

Key Quote 3: “Airbus has infuriated airlines with delays in the giant A380 program. Singapore Airlines CEO Chew Choon Seng … said: ‘Airbus took some time to acknowledge the delay in the timetable for the A380 first delivery. I would have expected more sincerity.’ … Mr Chew and Qantas CEO Geoff Dixon sat through a dinner … where Airbus’s Mr (John) Leahy told an amazed audience of airline CEOs the A380 delays were due to special airline specifications. That glib remark irritated airline CEOs…”

One more thing — The Australian reports that the superior range of the 787 over the A350 has got Qantas thinking about direct flights from Australia to secondary cities on the U.S. West Coast — like Sydney to Seattle.

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