Investing in the future

I get a lot of questions when I'm out traveling around. Many times those questions begin with what you might call a "leading statement." Such as: "Airbus has developed more new and derivative airplanes than Boeing over the past 15 years." Or: "Boeing has not been investing in the future."

That perception has been changing recently, but it still persists. So, not surprisingly, when someone starts with a leading statement like that, I have to set the record straight before I answer their question.

Boeing has always invested in the future. And we continue to develop airplanes for the ever-changing needs of our customers. We do that by incorporating the latest breakthroughs in technology when they bring more value to our customers. And that goes for both derivative and all-new airplanes.

That said, has Airbus out-developed us? No. You might be surprised to know that Boeing and Airbus have each developed and launched the same number of airplanes (all-new and major derivatives) since 1989.

Now, it's important to recognize that "launch aid" from European governments allowed Airbus to rapidly develop the core of its airplane family over the last 30 years. And they are still reaping the benefits of risk-free government money today. But the real story of what happened in the last 15 years or so is often misunderstood.

Boeing Airbus chart image

Boeing and Airbus have each developed and launched six new or derivative airplanes in the past 15 years. The dates shown reflect the year each model entered into service.

With the delivery of the first A380 in late 2006, it will have been 13 years between new airplane deliveries for Airbus. Coincidentally, with the delivery of the first 787 in 2008, it will be 13 years between new deliveries for Boeing as well. The previous all-new Boeing airplane being the 777, first delivered in 1995.

Airbus likes to boast about how much more money than Boeing they spend on R & D (Research and Development). But occasionally you see commentary from industry experts that puts a different spin on that.

"If the A380 costs Airbus the mid-market then it's the biggest misinvestment in aerospace history since Concorde," said Richard Aboulafia of the US consultancy Teal Group. "The way the market's changing makes this look more like a science fair project every day."

"Launch aid" has certainly helped the other guys develop airplanes. But maybe they aren't investing all that money very effectively.