UPDATE 1-Airbus seals riposte to rivals as regulators back revamped jet

(Adds analyst comment, engine approval)
By Tim Hepher
PARIS, Nov 24 (Reuters) - Airbus AIR.PA said on Tuesday it
had won certification for the A320neo, paving the way for first
delivery of a revamped, best-selling jet that has shored up its
joint domination of the global jet market with Boeing (N:BA).
The European planemaker said the European Aviation Safety
Agency (EASA) and the Federal Aviation Administration (FAA) of
the United States had jointly approved the model, which is a
fuel-efficient upgrade of its popular A320 medium-haul jet.
The approval is a boost for United Technologies (N:UTX) UTX.N unit
Pratt & Whitney, whose decision to develop a new generation of
engines accelerated airliner projects from Canada to Russia and
whose engines will power the first A320neo.
Qatar Airways is expected to take first delivery next month
of the first of more than 4,300 jets sold since Airbus launched
the A320neo, promising 15 percent fuel savings.
A similar version powered by CFM International, co-owned by
Safran SAF.PA and General Electric (N:GE) GE.N , should win
certification in coming months, Airbus said. Its engines won
their own regulatory approval on Friday.
Airbus took the risky decision to upgrade its most popular
model, which serves as cash cow for Europe's largest aerospace
group, in December 2010 after witnessing a challenge from
industry upstarts led by Canada's Bombardier BBDb.TO .
Boeing followed suit a year later with plans to upgrade its
popular 737, a move that also generated thousands of sales.
"Airbus made a gutsy move and forced Boeing to follow," said
Adam Pilarski, senior vice president at Avitas consultancy.
"They took a chance by saying they would be successful with
an existing platform if they just updated the engine."
The decision to defend a segment of the market estimated at
$2 trillion over 20 years catapulted shares in both companies
and many suppliers to record levels, with Airbus Group more than
trebling in value since 2010.
Richard Aboulafia, vice president at Teal Group, said Airbus
faces a crucial task to ensure ambitious output plans are met.
"When you have first mover advantage, ramping up is hugely
important," he said, adding this would be dictated mainly by
whether engine firms could deliver on promises.
Boeing says it has started building a 737 MAX test airplane
and is on course to deliver the first jet in 2017.
In a reminder of challenges facing those trying to break
into the main jet market, just as Airbus celebrated Tuesday's
approval, Bombardier briefed investors on turnaround plans after
delays and cash shortages on its rival CSeries. ID:nL3N13J3BK
Bombardier is expected to win certification for its plane
very soon, but remains under pressure to boost sales after
winning emergency investment from Quebec. ID:nL1N13I2G2