Airbus wary of triggering a price war with Boeing The Toulouse-based manufacturer is keen to stabilise its duopoly with Boeing Airbus is seeking to reduce the risk of a protracted price war with Boeing by openly declaring it will not attempt to increase its share of the next generation narrow-body passenger jet market beyond 60 per cent. The Toulouse-based manufacturer wants to stabilise its duopoly with Boeing in this market, and hints that it might accept its share falling a little below 60 per cent. Concerns about a profit-sapping price war in the narrow-body market emerged last year when Boeing accused Airbus of aggressive sales tactics and pledged to respond in kind. Airbus has alarmed Boeing by securing a 60 per cent share of the next generation single-aisle market following the successful launch of the A320neo in late 2010 - a new version of its narrow-body jet featuring more-fuel-efficient engines. Airbus has obtained orders for 2,245 A320neo jets, while Boeing has deals for 1,431 737 Max aircraft - a revamped model of the US manufacturer's narrow-body jet that also has more-fuel-efficient engines that launched in mid-2011. John Leahy, Airbus's chief operating officer for customers and its top salesman, told the Financial Times he was most concerned about the risk of a price war with Boeing over single-aisle jets, even though Airbus has vowed to cut the US company's lead in the widebody aircraft market. He said the single-aisle market for next generation jets looked like it would split 60-40 by order volume in Airbus's favour. "[Boeing] will probably accept Airbus being somewhere in the upper 50s to about 60 [per cent market share], but I don't think they would accept us going above that," added Mr Leahy. "So we are being very careful - even though the natural market might be two thirds-one third [in Airbus" favour] - not to go in that direction." James McNerney, Boeing's chief executive, said last month at the Paris air show that the US company was intent on having a 50 per cent share of the total narrow-body market. "Half of that market is something that's very important to us," he said, indicating Boeing would compete primarily on the quality of its products rather than price. Agency Partners, the research firm, estimated Airbus has a 56 per cent share of current and next generation single-aisle jet orders that have yet to be delivered to customers, with Boeing holding the remainder. The duopoly enjoyed by the two manufacturers in single-aisle jets with more than 120 seats is coming under limited immediate pressure from new entrants. The most advanced threat - from Bombardier's planned CSeries jet carrying up to 150 passengers - is struggling to attract large numbers of orders, although the company is confident more deals will emerge. Frederico Curado, chief executive of Embraer, the Brazilian jet manufacturer, said it decided last year not to compete against Airbus and Boeing in the large narrow-body jet market because the technology was not available to develop an aircraft that would perform significantly better than existing products.