21st Century flight

United States-based Boeing and Europe's Airbus are engaged in a global battle not only for market share of commercial airline miles flown, but also regarding which air travel model will best meet the needs of air travelers in the initial decades of the 21st century.

Boeing argues that point-to-point air travel will be the era's defining air travel flight, and that customers, frustrated and fatigued by the existing hub-and-spoke system, will flock to airlines that offer fast, direct, point-to-point flights in a postmodern aircraft that boasts numerous traveler comforts/amenities. Boeing's next-generation 787 Dreamliner is at the core of this point-to-point strategy.

Conversely, Airbus, although not willing to completely cede the point-to-point travel market to Boeing, argues that superjumbo air travel, which features lower ticket prices, larger seating capacity and longer ranges, will be the flight most preferred by airlines and air travelers. Airbus' A380, which will typically carry 525 passengers more than 8,000 miles non-stop, is at the core of Airbus' strategy.

Stock Analysis: Tuesday's announcement is a status quo data point for Boeing, with the company's ability to deliver its first 787 on time serving Wall Street as a key metric in 2008. Analysts will also pay attention to the 787's power-up and initial test flights in the months ahead. Along with flight characteristics, if the 787 demonstrates, as promoted, a substantial increase in fuel efficiency, look for BA's shares to move above $110 per share in 2008.