A350-XWB Family Will Costs $10 Billion To Develop

The rumors/gossip/rampant speculation we've heard over the past several months regarding Airbus' stillborn A350 were confirmed Monday, as Airbus' new President and CEO, Christian Streiff, confirmed the company's plans for an all-new family of aircraft, dubbed the A350-XWB.

Streiff said the new family will consist of four passenger versions -- up from a rumored three -- and one freighter:

• The 270-passenger A350-800,
• The 314-passenger A350-900, due to arrive in mid-2012, and
• The 350-passenger A350-1000

Airbus says all three versions will have a range of 8500 nm and a cruise speed of Mach 0.85... but there's more. The A350-900R will be an ultra long-range aircraft, intended not only to compete with Boeing's 787 Dreamliner, but also pull double-duty as a Boeing 777-fighter. A freighter version of that aircraft, the A350-900F, will complete the family.

Power choices for the new planes haven't been determined as yet... but Rolls-Royce is said to be developing a new engine for the aircraft.

Streiff said the new planes will offer increased range, speed, passenger comfort and economics over its competitors... much more so than the original A330-based A350 design managed.

"I want this company to get back to its basics: Airbus’ success has been based on the enormous courage it took to introduce the latest technologies, and on strong customer orientation with a spirit of always delivering more than expected," said Streiff. "Based on previous lessons learnt, the A350 XWB brings Airbus fully back into the game and will be a success. A success for customers, shareholders and all other stakeholders in Airbus."

Bringing Airbus back into competition for the medium-range widebody sales race will come at a price, however -- $10 billion, up from the $4.5 billion originally quoted for the A330-derived A350, which was Airbus's hastily conceived first answer to the Boeing 787.

The new CEO -- on the job for only two weeks -- also went on the offensive, telling those in attendance at Monday's news conference the company understands the challenges ahead.

"Yes, Airbus in the middle of a serious crisis in our relationship with our customers," Streiff said. "Yes, this is something we are taking extremely seriously inside Airbus, and yes, we know the competition is taking advantage of this today."

The competition, of course, is Boeing -- which announced several new orders at Farnborough Monday.

As Airbus sets to building the redesigned A350 family, the task of resigning current A350 customers to the new jets -- as well as bringing in new customers -- falls on the shoulders of Airbus Chief Operating Officer John Leahy... the loudest cheerleader for the original A350.

While stressing the benefits of the new design -- seven percent lower operating costs per seat over the Boeing 787, more extensive use of composites compared to the original A350 (45 percent of the airframe, compared to the 787's 50 percent) and offering five more inches cabin width to passengers over the 787 -- Leahy conceded Airbus might lose "one of two" of the 14 customers who ordered the original plane.

However... if customers can wait the extra four years from the time the 787 is scheduled to start commercial service, until the new A350 starts operations... Airbus may just have a winner on its hands. Stay tuned!

FMI: www.airbus.com/en/aircraftfamilies/a350/a350_xwb/index.html