Amid the wrangling that has engulfed the purchase by China Airlines Co (
Whether China Airlines' apparent preference for Airbus will be overturned by political wrangling from the US and Boeing remains uncertain. The simple fact is, however, that both companies offer competitive products that appear to satisfy the carrier's needs.
China Airlines' US$2 billion-to-US$3 billion plan is to simplify its fleet and find a suitable mid-range replacement for its six A300-600Rs.
The A330-300 series on offer from Airbus boasts savings on training due to commonality in cockpit design and operation with Airbus jets already owned by China Airlines, not to mention steep discounts totalling a reported US$410 million.
Boeing's offer of the 777-200ER on the other hand provides long-haul ability and a large interior, allowing extra passenger and cargo capacity and thus higher profit margins.
The respective ranges of the two aircraft looms large in the minds of salespeople at the two firms, as this sale could effectively seal a future purchase order from China Airlines for longer-range jets.
"We expect China Airlines will be looking at acquiring additional long-haul aircraft in the next two to four years," said Andrew Doyle, deputy Asia editor at Flight International magazine.
"So if Airbus managed to secure this order for the short-haul aircraft, then they're in a very strong position to sell more A340s to China Airlines in the future," he said.
"Operating the A330-300 and A340-300 as a fleet would pave the way for the introduction of the A340-500 and A600 should future fleet requirements entail ultra-long range aircraft to be added ... as the Airbus fly-by-wire aircraft feature common flight decks, handling characteristics and maintenance procedures," a spokesman from Airbus said.
"But if they go for the 777 now, it will be very difficult for Airbus to swing any future order back in favor of their A330/340 family. This order is really of strategic importance for both Boeing and Airbus," Doyle said.
The commonality factor is in Airbus' favor, he said.
Airbus holds the cockpit commonality card, he said. "You can't cross qualify pilots between the 777 and the 747. If China Airlines brings in the 777, that would effectively be a new fleet that would require new pilot training, new engineering support and spares support," Doyle said.
China Airlines already operates the A340-300. The A330-300 shares common cockpit, systems and handling characteristics with the A340, an Airbus spokesman said.
"The benefits of commonality for operators include a much shorter training period for pilots and engineers to transition from one aircraft type to another ... [and] significant savings through streamlined maintenance procedures and reduced spare-parts holdings," the spokesman said.
Airbus' cross-crew qualification system means that pilots transitioning from the A330 to the A340 require three days of training. A move from the A340 to the A330 requires only one day.
Boeing's 777 on the other hand offers up to 50 more seats than the A330/340 family and around 12 percent to 17 percent more cargo volume, Boeing said. The extra seats and cargo space can generate up to US$6 million in additional revenue over a 20-year period, the company said.
"The 777 airplanes that we are proposing to China Airlines are the most suitable airplanes for the airline in its endeavor to simplify its fleet, increase its profit margin and provide the most pleasant flying experience for its passengers," Boeing said in a statement.
Despite the advantages of both planes, at the end of the day it may simply come down to which government drives the most effective lobbying machine.
As one industry observer noted, "in all aircraft orders, because they are such high-profile deals, politics tends to play a role. This can tilt the playing field for commerce.
"Because the US provides so much in the way of military support, the Americans feel aggrieved that China Airlines -- a state-owned airline -- is going to spend all this money buying all these aircraft from Europe," he said.
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