Boeing CEO Unconcerned Over Airbus’ A350 Revamp

Boeing Co. Chief Executive James McNerney shrugged off Airbus’ plan to revamp its mid-size A350 jetliner Tuesday, calling it an ambitious attempt to counter the U.S. plane maker’s hot-selling 777 and 787 Dreamliner models.

Airbus stole the limelight at the Farnborough International Airshow on Monday in announcing a $10-billion redesign of the A350 aimed at seizing orders in the lucrative market for mid-size jets. But Chicago-based Boeing is still outpacing its European rival in total orders this year by about 4 to 1.

“They have come up with a concept that is ambitious ... to secure that span with one family,” McNerney said of Airbus in an interview with Reuters. “Short of just doing two new aircraft families, I’m not sure what else they could do.”

Airbus is seeking to reassure investors at Farnborough that it’s back on track after costly production delays to its flagship A380 super-jumbo sparked high-level management changes, including the recent resignations of its two top executives.

The upheaval came amid mounting customer dissatisfaction with the mid-sized A350 program, which was billed as a rival to the 787 but had won only 100 firm orders, compared with the 787 Dreamliner’s 360.

“It’s too early to say” whether Airbus was back in a position to compete, McNerney said, but he gave no indication of concern.

“I don’t feel any less comfortable about our position today than I did the day before yesterday,” he said Tuesday.

Airbus unveiled the A350 XWB (for “extra wide body”) in an attempt to answer complaints from key customers that the original A350 was narrower and less economical than Boeing’s newest mid-size models.