Agreed, but my strategy would have been to forego the A350 and move to an all composite A320 instead. That would have killed demand for the 737, one of Boeing's biggest money makers. Then after launching a plastic A320, you can revisit a replacement for the A330/A340 and take advantage of what weaknesses were exposed in the 787, and another decade of engine refinement. Or take on the 777 head on with an all composite aircraft larger than the 787-1000.
Boeing's next project will be a plastic 737, which will kill the current A319-20-21 family. So Airbus will have to catch up again with Boeing in that market segment. Then Boeing will move to a composite replacement for the 777, which means Airbus will be behind yet again.
There is a difference between competition and perpetual catch-up.
That's the position Airbus will be in for some time. They bet on the 380 - which had more to do with anti-American envy than market forces.
On the other hand, Boeing may well have it's own problems with the 787, which is even more radical than the 380.
You are almost correct. You should have said: "There is a difference between innovation and perpetual catch-up."
This has been Airbus' problem for some time now. The last innovative airplane Airbus built was the A320, and perhaps the A330. The A340 was a good idea, but Airbus failed to anticipate the move to big twins for international routes. Boeing made its own future by betting on big twins with the 777, and making it happen by driving the 180 minute ETOPS certifications.
As a result, early model A340-200s and A340-300s are headed the way of the MD-11 (to charter and cargo conversions), and the later model A340-500s and A340-600s have become niche players, the 747SPs of the 2000s, destined for southern hemisphere routes where ETOPS is insufficient.
When an airline can save money in fuel and support costs by replacing a brand-new A340-600 with a Boeing 777-300ER, Airbus has a problem. Boeing has even been able to raise their prices on the 777s recently.
Then there is the A380 fiasco.
The A320s are the only thing sustaining Airbus right now. It is a good airplane, but it is also Airbus' economic center of gravity. And Boeing can pound them on price with their 737s.
Airbus is chasing Boeing's sloppy seconds with the A350XWB. And they may be forced to do it again with their A320 replacement, if Boeing strikes first.
More on my take of Airbus' current crisis here. See later posts for my opinions on what Boeing's next step should be.