IN THE RACE.

The industrial launch of the A350 puts the near-term focus for Airbus on engineering efforts and supplier selections to ensure the aircraft is in service â€" as advertised â€" in 2010.

But the next set of challenges awaits. These include resolving governmental financial support that, for now, remains frozen, and, in the longer-term, preparing an aggressive production ramp-up to meet customer demand for the new twin-engine widebody.

Airbus's response to the market success of Boeing's 787 has been slow. First the aircraft maker thought an A330 derivative would suffice, only to have the market respond with a "no thank you." Airbus then switched strategies in favor of a new design. The aircraft features 90% new parts and advanced materials content is at 60% â€" higher if titanium is counted, notes Airbus Chief Operating Officer John Leahy. About 39% will be composites, and 21% aluminum-lithium. The new materials should lead the A350-800 to weigh 8 metric tons less than an A330-200.

EADS and BAE Systems on Oct. 6 gave the A350 the formal thumbs up, clearing the way for industrial launch. The A350 enters the market somewhat later than planned. An anticipated summer launch was pushed back due to a lack of engineers to work on the design. In recent months, this shortfall has been addressed with additional staff, note Thomas Enders and Noel Forgeard, co-CEOs of Airbus-major-shareholder EADS. Nevertheless, the aircraft maker faces a huge workload, finishing up the already late A380, designing the A400M military airlifter, and now the A350.

But even as the program launch slipped, development milestones were kept in place. First flight of the aircraft is planned in the second half of 2009.

THE INTERNAL DELAY had little impact on the A350 order book, with 140 commitments to its name. EADS believes the backlog will grow to 200 aircraft or more before year-end. The commitments gathered, so far, are going to be converted to orders in the next 60 days once deposits are received.

Leahy notes the aircraft has largely sold out its first years of projected production. "My biggest problem right now is production ramp-up," he says, which needs to be accelerated to meet demand.

The A350 will be offered with General Electric's GEnx (with four thrust ratings of 63,000-75,000 lb.), long part of the program, and now also Rolls-Royce's Trent 1700 â€" repeating the propulsion battle on the 787, where Rolls's Trent 1000 is squaring off against the GEnx.

GE will retain its lead position on the aircraft, since Rolls says its Trent 1700 won't be ready for deliveries until mid-2011. First engine run for the 75,000-lb.-thrust-rated Trent 1700 is slated for 2009, with certification a year later. Unlike GE, Rolls has opted for slightly different engine designs for the A350 and 787, arguing that the larger fan for Airbus's offering better suits the aircraft, which will extract bleed air from the engine; Boeing is betting on a bleedless system. Airbus reexamined the bleedless approach, but decided the higher efficiency was offset by the complexity of such a design and potentially higher maintenance costs.

Airbus has decided to follow Boeing's lead and offer the ability for an aircraft owner to quickly change engine types. Although Leahy says that feature is not likely to have a huge sway in the marketplace, it might appeal to some banks or leasing companies.

Airbus and suppliers, at least initially, will make do without preferential government loans, although those aren't off the table. Such loans are at the heart of a U.S. complaint now before the World Trade Organization regarding subsidies Airbus is allegedly receiving, while the WTO is also hearing a counterclaim that challenges tax benefits and other aid Boeing receives.

All four "Airbus governments" â€" Britain, France, Germany and Spain â€" have set aside funds for such loans and expressed backing for the project in writing. But money won't change hands through 2006, unless negotiations with the U.S. to resolve the subsidy dispute fail. U.S. officials are unhappy that the Europeans have provided even this level of commitment to the A350.

Despite Europe's freeze on launch aid for now, Boeing issued a statement that jumped on the issue. "Today's actions are nothing less than the Airbus partner governments committing launch aid to yet another subsidized airplane," Boeing said, "even though senior Airbus executives have repeatedly said their company has the funds to develop the A350 without launch aid."

Airbus is keeping mum about its anticipated break-even point, although one industry official says the number is being put at around 600 aircraft. The break-even point is critical to the repayment scheme for government loans.

The A350 will also be a central element of Airbus's strategy to globalize its supply chain. About 5% of the aircraft is likely to be sourced from China. Suppliers are being encouraged to team with Chinese entities, primarily AVIC-1. Risk-sharing partners have also been found in Russia.

Second- and third-tier suppliers in the U.S. and Europe are eagerly awaiting competitions for work packages. Latecoere CEO Francois Bertrand notes that discussions are underway with Airbus. However, in some areas, formal requests for proposals wait while Airbus reviews its make-versus-buy options.

Some key industrial decisions have been made. For instance, Airbus U.K. will build the wing. Other suppliers will be named by early next year. The program's definition freeze is set for early spring 2006.

Airbus is promoting the A350 as a member of the A330/A340 family. Airbus CEO Gustav Humbert says that in the long-haul sector it offers "the A380 for hub-to-hub, the A340 for the ultra-long-range, and the A330, and now the new A350, for medium- to very-long ranges." However, industry observers note that the A350 is likely to undermine the market for the A330/A340.

The A350 comes in two classes, targeted slightly larger than the Boeing 787 to also appeal to the 777 market. The 253-seat, 8,800-naut.-mi.-range A350-800 would enter service in mid-2010, followed six months later by the A350-900, carrying 300 passengers over 7,500 naut. mi.

British Airways, which is slated to make wide-body replacement decisions next year, will be one target of Airbus's dual-market sales pitch. Leahy says the A350-900 would be an ideal candidate to replace the 777-200ER, while the A350-800 could take the place of the 767.

In terms of design, the A350 will feature new winglets, a re-profiled upper-wing surface for better aerodynamics, and a belly fairing to allow speed flexibility. Overall, high-speed drag has been reduced by 2.5% over earlier designs. Cruise speed will be Mach 0.82, although operators could reach Mach 0.84 if they accept higher fuel burn â€" highly unlikely given current fuel prices.

BUT THE 787 IS CLEARLY the main competitive target. Airbus says it is designing the A350 to have 20% relative humidity and a cabin pressure of 6,000 ft., matching Boeing's. Airbus is sticking to its traditional 222-in.-wide fuselage. But to compete with the 787's 226.5-in.-wide fuselage, it is carving out the interior to offer 3 in. more than the A330/340's.

The type rating for the A350 will be the same as that for the A330, although Airbus plans to introduce A380 features into the cockpit. For instance, the A350 will have an onboard airport navigation system, head-up display, information terminal to reduce paper in the cockpit, and a vertical display.