Airbus readies counterpunch to new Boeing mid-sized jet

TOULOUSE, France (Reuters) — Airbus hinted on Tuesday at a price battle and imminent aircraft revamp to counter a possible new Boeing mid-sized jet, promising a “left hook, right hook” from two of its established models.

US planemaker Boeing is studying whether to launch a 220-270-seat jet wedged between traditional twinaisle models like the Airbus A330 or its own 787, and the industry’s breadand-butter single-aisle models like the A320/321 and Boeing 737.

Airbus aims to defend that space with its own A330neo at the top end and the best-selling A321neo at the bottom – two models boasting new engines on older airframes.

“Those programs are both so mature that it gives Airbus pricing flexibility to address this middle-of-the-market segment,” sales chief Christian Scherer said.

He promised what he described as a “left-hook, right-hook approach” to that part of the market, using the two Airbus jets, as airlines replace Boeing 757 and some larger 767 aircraft.

Boeing says its possible midmarket aircraft would be significantly more efficient than either Airbus model, but it is under pressure from airlines to develop it at the right price.

Boeing continues to promote the project behind the scenes, while toning down public discussions as it focuses on resolving the crisis over its grounded 737 Max, airline sources say.

Airbus is meanwhile weighing plans to boost the A321 with a longrange version called A321XLR to preempt the Boeing jet.

Chief executive Guillaume Faury hinted confirmation could come at next month’s Paris Airshow, saying the A321LR was the world’s longest-range single-aisle jet plane “for the moment”.

The two giants are playing reverse roles at the top end of the $150 billion annual jet market, where Boeing’s upcoming 406-seat 777X – a derivative of its 777 mini-jumbo with new engines - is up against the newer and slightly smaller A350-1000.

Scherer mocked the 777X as a “reengined Hummer” hobbled by excess weight compared with the carbon A350. Boeing, which recently won a deal to sell the 777X to British Airways after a gap in sales, maintains it is the most efficient plane per seat.