Finally, things are looking up for Boeing in battle with Airbus

On Monday, Korean Air Lines announced an order for 10 787s, a midsize, fuel-efficient jet dubbed the Dreamliner. Northwest Airlines is near a deal to buy as many as 18, said people close to the talks. After a slow start, Boeing says it has 203 orders and commitments for the plane. Boeing has been buoyed by a mix of aggressive salesmanship and rising concerns about oil prices, and doubts about Airbus plans for a rival plane, given the possible loss of its subsidies.

It is not clear that Boeing’s success will change the course of the trans-Atlantic tussle, which entered a tense lull after a deadline to take the matter to the World Trade Organization expired on Monday.

Some analysts believe the 787’s recent strides will make subsidies all the more imperative for Airbus as it develops the A350, a midsized rival to Boeing’s plane. The loans for this project, which could total $1.3 billion, are the key sticking point between Washington and Brussels.

Trade officials on both sides of the Atlantic say they are open to restarting settlement talks. But as the standoff drags on, the shift in the fortunes of Boeing and Airbus, even if transitory, adds an unpredictable new element to both the political and commercial showdown.

The longer the A350’s financing is unresolved, analysts say, the more pressure Airbus will face. The company, based in Toulouse, France, and owned by Europe’s defense industry, insists it could develop the plane without so-called launch aid. But with Boeing busily signing up customers for the 787, even a modest delay could hobble the project.

The A350, with 245 to 285 seats, roughly comparable to the 787, would be derived from the existing A330, though equipped with new engines that would give it longer range. That would allow Airbus to put it into service by 2010, only two years after the 787. If the gap between the two planes were to be longer, analysts said, the A350 might be deemed obsolete at birth.

Airbus disputes that, saying the plane has won broad acceptance from airlines and will outperform the 787 in several areas, including fuel efficiency on a per-seat basis. It has set a goal of booking 100 orders this year, and would like to formally launch it by the Paris Air Show in June. Still, John Leahy, the chief commercial officer of Airbus, said the trade dispute was complicating his sales job.

Adding to the image problems, Airbus has pushed back the maiden flight of its flagship plane, the 555-seat A380.

The company insists there are no major glitches, and that the plane will take to the skies sometime this month, but the delays are sowing uneasiness in the market. — NYT