Boeing and Airbus Competition Heats Up at Paris Air Show

The 49th International Paris Air Show is starting to heat up Monday, as Qatar Airways was set to announce billions of dollars worth of airplane orders from two industry leaders.

Airplane manufacturers Airbus and Boeing (NYSE: BA) are both set to benefit from the airlines' expansion plans. Qatar Airways ordered six Boeing 777-300ER wide-body jets worth $1.7 billion at current list prices.

Blagnac, France-based Airbus is also expected to announce an order later this week for 30 of its new A320neo planes worth approximately $2.4 billion at list prices from European airline SAS.

According to its website, the A320neo is "15 per cent reduction in fuel consumption, two tonnes of additional payload, up to 500 nautical miles of more range, lower operating costs, along with reductions in engine noise and emissions."

A Reuters report notes that "The European planemaker has targeted an order surge worth tens of billions of dollars, but was left reeling on the eve of the air show by a series of mishaps including a taxiway collision involving an A380 superjumbo."

Boeing is certainly no stranger to controversy, as its highly-anticipated 787 Dreamliner airplane has been delayed repeatedly. Investors have punished the stock since 2007, when it traded above $100. Friday's closing price was below $75.

Interestingly, the Dreamliner may be getting an upgrade before it even enters commercial flight. A bigger 787 could enter the market by 2016, Jim Albaugh, Boeing's commercial airplanes chief, said yesterday.

“We have to go through some more analysis and we haven't decided yet if we'll offer it, but it wouldn't surprise me if we did,” Albaugh said in an interview.

More orders from Middle Eastern and Asian airlines are expected throughout the week.

The Paris Air Show runs from June 20 to June 26.