Boeing's decision on new jet is critical in rivalry with Airbus

Boeing is coming to this year’s Paris Air show with some hard choices that will go far in determining who comes out on top in the jetliner duopoly it shares with Airbus. Reeling from the grounding of its most important aircraft in the wake of two deadly crashes, Boeing needs to reconsider its timeline and strategy for new models. Piling on pressure is Airbus’s likely unveiling of a long-range variant of its A321 model, potentially siphoning off more business from its US rival in the increasingly important market for midrange planes. The cat-and-mouse game over jets to be rolled out during the next decade is one of the top issues for Boeing CEO Dennis Muilenburg as he meets customers and faces the public at the industry’s biggest gathering, which kicks off June 17 on an airfield north of Paris. His choices: spend big on a so-called mid-market airplane, or NMA, to stanch customer defections to the A321. Or plow that $15b or so into the 737’s successor -- a scenario that has gained considerable urgency now that the Max grounding is in its fourth month and some customers are considering dropping their orders outright. If Boeing doesn’t strike just the right balance, “Airbus has a clear path to 60% market share for the next 10 to 15 years,” said Henri Courpron, chairman and founder of Plane View Partners and a former executive in the aircraft-leasing business. “Airbus is sitting pretty and waiting to see Boeing show its hand.” Story has more.<br/>