Boeing's Vision Of Future Airline Route Structure

No more hub-and-spoke route structure?


BOEING CO. and its shareholders are counting on the success of
the 787 Dreamliner, the company's first new commercial airplane
in a decade, to fuel growth at rival Airbus' expense after
several recent stumbles, The New York Times said on Sunday. "If
it works, Boeing could vault back in front of Airbus, perhaps
decisively," the newspaper said. "If it fails, Boeing could be
relegated to the status of a permanent also-ran." The newspaper
said Boeing is betting that airlines will prefer point-to-point
nonstop flights with medium-size planes. It said Airbus is
banking on a continuation of the current hub-and-spoke
transport model. Boeing has lost its decades-long dominance in
commercial aviation to Airbus, which is owned by EADS and BAE
SYSTEMS. The newspaper said the planned introduction in 2008 of
the 787 is driving the stock higher. Boeing has sold out three
years of production, with 60 of 345 planes on order going to
China, the newspaper said. The 787, which would replace the
767, is designed to carry 220 to 300 people on routes from
North America to Europe and Asia. Airbus, in contrast, is
developing a 550-seat A380 superjumbo aircraft.
(Reuters 01:56 PM ET 05/07/2006)

Mo

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