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At this year's Farnborough Air Show Airbus Industrie exhibited on its stand one‐twentieth scale models of its entire aircraft family — the A300–600, A310, A320, A321, A330 and A340.

This is an impression of the Paris Salon de l'Aeronautique drawn from visits during the first three days: a more detailed report on the exhibits and the flying displays, together with “An Engineer's Impression of the Paris Air Show” will appear in our next issue.

Boeing Company has been the world's leading producer of large commercial airplanes for several decades. However, in the late 1990s, Europe‐based Airbus Industrie competed with Boeing aggressively and captured almost fifty percent of the over‐100‐seat airplane market. This paper examines the battle between Boeing and Airbus, including a concise report on Airbus' launch of its A380 superjumbo project. The paper also contains the authors' recommendations to Boeing and the U.S. government.

Boeing and Airbus are contemplating entry into very-large-aircraft (VLA) markets. Both firms are convinced the market cannot support two players due to the extremely high R&D costs and the limited (and highly uncertain) state of demand. The key strategic issue is the uncertainty surrounding Boeing's development cost: to what extent would Boeing's experience with the 747 help it reduce the R&D cost of a new VLA prototype? The main point is that Boeing's strategic moves signal its private information, and that this eliminates any first-mover advantage Boeing might have had in this market.

To introduce some of the strategic issues arising in natural monopoly industries in which the winner takes all, and focus on the issues of credible preemption and signaling.

When Boeing was finalising the design of the 747, which first flew in early 1969, discussions began in Europe to consider the design and construction of a short/medium range large capacity European airliner.

Space was the dominating theme at the 35th Paris Air Show. Whether on the ground or in the air, the American Space Shuttle seemed to overshadow the show. The Space theme also was predominant in the Russian pavilion, where, much to the delight of thousands of Parisian schoolchildren who swarmed aboard it, a mock‐up of a Salyout space 7 station was on display. Also to be seen was the Soyus T‐6 command module, with its blackened and charred ablative covering, along with the space suits of the three crew members worn during the Franco‐Soviet orbital mission of June 1982. Outside Hall 1 stood the European Ariane rocket.

AEM will be exhibiting in Hall 4, Stand G1. The exhibit will illustrate AEM's comprehensive range of accessory repair and overhaul services for electrical, hydraulic, avionic and safety equipment. Farnborough will also be used as the official launch of AEM's Boeing 737 Landing Gear Total Support Pro‐gramme, which encompasses a complete exchange and overhaul service. Copies of Aviation Accessory News will be available on the stand.