PARIS - The successful first flight of the A380 gives Airbus an edge in the super-jumbo airliner market, but it is in the long-haul, mid-size arena where the European group faces its fiercest battle with US rival Boeing.
In the super-jumbo segment, Boeing's 416-seat 747 has ruled unchallenged for more than 30 years.
But that monopoly is on its way out with the advent of the A380.
Loaded with technological innovations, the world's largest commercial passenger plane carried out a highly anticipated -- and apparently glitch-free maiden flight over southwestern France Wednesday that broke aviation records.
The enormous plane, capable of ferrying between 555 and 840 people, is more fuel-efficient and quieter than its smaller competitor.
And for customers -- Singapore Airlines is to be the first to put the A380 in service, in mid-2006 -- the plane also will ease operating costs.
"The companies that operate A380 will have a strong competitive advantage, in terms of operating cost per seat," estimated at 15-20 percent less than the 747, said Air France chairman Jean-Cyril Spinetta, who has ordered 10 of the aircraft.
These arguments already have convinced 15 airline companies, which have signed contracts for 154 A380s, 144 of them firm orders.
Faced with this threat, Boeing, which sold only 10 747s last year, is responding with the launch of an extended version of its 747, even though it considers the market limited.
But in a bid to win back its top slot in the commercial aircraft sector, Boeing has switched its strategic offensive to another level -- long-haul, medium capacity aircraft, such as the A330 that built Airbus's success.
Openly skeptical about the A380's chances of commercial success, Boeing a year ago began development of its new 787 Dreamliner, capable of carrying 223-296 passengers
The US manifacturer is banking on demand for direct flights by passengers and cost-savings by airlines.
The super-efficient plane, billed as using about 20 percent less fuel than similar planes thanks to the lightness of the composite materials used in its structure, has proved a hit with carriers struggling with surging oil prices.
This week Boeing announced major back-to-back deals for the 787 -- due to enter service in 2008 -- with Air Canada and Air India.
In one year, the US giant has snared 217 contracts for the Dreamliner, and 27 companies have signaled interest in buying a combined 449 additional planes.
This commercial tidal wave across the Atlantic seems to have taken Airbus by surprise as the European group focused on its A380 program.
The A350, aimed at directly challenging the 787, was launched only in December and until now has only interested one potential client.
A trade dispute between the European Union and the United States over state subsidies to aircraft makers has also plagued Airbus. Ahead of a settlement, the aid that Airbus had been counting on for the A350 has been frozen.
Nevertheless, Airbus forecasts it will have 100 orders between now and the end of the year. In the longer run, it expects to capture half of the medium-sized plane market segment, where demand is estimated at 3,000 aircraft over 20 years.
"The battle in the mid-size aircraft is fierce," Airbus chief executive Noel Forgeard admitted Wednesday. But he added: "This is just the beginning of this new battle."
However, the clash between Airbus and Boeing is expected to move eventually into the segment of smaller, 110-190 seat planes, analysts said.
"The next battle will be waged at the end of the decade, on the range of the A320s and the 737s," which the two giants will be called on to update," Bischoff said.
"On this point, the advantage will return for the moment to Boeing, an unbeatable best-seller in its category."
04/28/2005 15:48 GMT