If US Airways orders the 787

The source of this rumor is no less the The Times. The Times says we will hear news by the weekend. This will be a tough blow for Airbus, with a likely consolation prize being a big order for more A320s.

Airbus will tout the merits of its order, as will not want to lose face. For Boeing it will be another flipped Airbus customer. The 787 is now marching towards 600 orders before its first flight at an accelerating pace; with orders this week from Air Canada and Virgin adding over 40 including options. By the time the Paris show starts, Boeing may headed towards 700 orders for this plane.

For Airbus the unstated issue will be yet another loss to its A350XWB - now increasingly seen as too little and too late and the outcome of the A380 debacle. What was a "captured customer" defecting over to the 787 will certainly make Airbus more aggressive. Note Airbus was already offering the A350 at over 50% off sticker prices. These are desperate days at Airbus.