Re: Airbus Misses a Paradigm Shift

Since Boeing and Airbus must design their aircraft based on their best
projection for the future, it is not difficult to see where a new
aircraft design might fail. Boeing bet on lighter weight composite
materials while Airbus looked to grab the market for long haul air
travel -- an aircraft which would cram in the maximum number of
passengers. With the cost of a barrel of oil now around $70, Boeing's
lighter weight design has presently come ahead as the winner. Although
Airbus has yet to be counted out.

Established industries always face a difficulty in matching their
development to meet the market. For example, it has taken too long for
American car manufacturers to recognize that gas guzzlers are likely
not to be the future trend. For the serious problems at GM, it was
nothing less than popping the clutch during a paradigm shift. And
demonstrates that regardless of the industry, a business cannot always
force a market change to accommodate their inventory.

.

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