Airbus vs Boeing at Farnborough Airshow

With the big Farnborough Airshow just a few days away, Airbus (left) and Boeing (right) are preparing to show off their newest jets and announce key deals.

The two rivals like to use the show as a launching pad for new products and for multi-jet deals that make headlines.

• Airbus is considering whether to introduce its A330neo, an updated version of the popular and efficient 330 passenger jet used by more than 100 carriers worldwide. The updated A330 would have a new engine and other upgrades. This new 330 could help Airbus take advantage of Boeing's problems with its 787 Dreamliner. Airbus currently manufactures 10 A330s per month, and already has 1,086 in operation by carriers around the world.
• Boeing is promoting its new stretch 787 Dreamliner and looking for more orders. However, like Airbus, Boeing has a large backlog of orders--an enviable situation on the one hand, because it means future revenue, but a challenge on the other hand because of the need to accelerate production to meet demand. Just in time for Farnborough, Boeing has released its latest long-range demand forecast. The company projects global aircraft demand will result in the sale of nearly 37,000 new planes over the next two decades.

Lion Air flies high from Indonesia

Lion Air, based in Indonesia, markets itself under the strapline 'We make people fly'. The 13-year-old airline is flying high and growing quickly, ordering hundreds of new jets from Boeing (last year) and Airbus (this year) as it expands beyond 36 routes and 226 daily flights.

Buying from archrivals Boeing and Airbus means Lion Air enjoys competitive pricing for jets and replacement parts. And price matters, because Lion Air's marketing message to travellers is: we provide 'value for your money and better quality service, because travelling in a premium airline doesn't have to come at a premium price'. The new jets are highly fuel-efficient and therefore will have lower operating costs than older jets, a key consideration as Lion sets 'value' prices for consumers on holiday and businesspeople who must travel.

Currently, Lion Air is not allowed to operate in the EU or US because of safety concerns. However, the airline is launching longer-distance routes with its new planes and competing more directly with AirAsia and other well-established rivals. In fact, AirAsia is following its own expansion strategy to enter new markets with a budget positioning.

Price wars may emerge as local and non-local carriers fight for awareness, preference and market share. Meanwhile, if Lion remains on its flight path, it will become one of the world's 10 largest carriers (measured by size of fleet) by 2025.