Air show sparks commercial battle

The Airbus 380: Plane of the future

LE BOURGET, France -- New aircraft technology unveiled at the Paris air show has fuelled rivalry between two giants of the industry.

The U.S. company Boeing has presented its plans for a high-speed passenger plane -- the Sonic Cruiser -- able to carry 150 to 300 passengers 15 percent faster than existing commercial aircraft, flying just below the speed of sound.

Meanwhile, Airbus Industries, Boeing's European rival, has displayed a model of its double decker Airbus 380 super-jumbo, able to hold up to 650 passengers but which would fly no faster than present commercial aircraft.

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Airbus executives believe the Boeing plane will not be able to efficiently fly at its higher speed. Boeing argue speed will be the key to winning orders

Noel Forgeard, Airbus chairman, told CNN: "It (the Sonic Cruiser) triggers a lot of problems, in particular, fuel burn will be 30 percent higher than in classic airplanes and that goes against environmental protection.

"We think passengers and airlines (will) expect more economy and environmental protection more than speed."

But Boeing believe that passengers will choose speed over economy.

"The number of people flying will change by four to five percent a year. That is not huge growth and the more you can spread those people out rather than concentrating them in hubs we think the traffic will flow better," Boeing vice-chairman Harry Stonecipher told CNN.

But analysts say the marketplace just could not sustain two companies making super-jumbos.

Kieran Daily, of Air Transport Intelligence, said: "Both of them knew in their heart of hearts that there simply isn't the marketplace for two (super-jumbos) and in the end Boeing decided that frankly the Airbus would win and gave up leaving them free to explore another sector."

Boeing, according to its executives, will concentrate on diversifying into other areas of the aerospace industry, including designs for its sophisticated jet fighter, space based air traffic control and aircraft leasing and financing.