Airbus Industrie can't seem to get a ticket to the hottest party in its own neighborhood--the rapid expansion of no-frills air travel in Europe. None of the region's discount carriers, from Ryanair to easyJet to Virgin Express, owns an Airbus plane. And there was little surprise on Jan. 24 when rival Boeing Co. (BA ) landed an order for up to 150 Boeing 737-800s from Ryanair, a deal that ensures the Dublin-based carrier will remain all-Boeing for at least the next 10 years.

Airbus, based in Toulouse, France, faces an uphill fight to win over Europe's discount airlines, which are expected to buy as many as 300 planes over the next 10 years, even as European flag carriers such as the bankrupt Sabena and Swissair have canceled dozens of Airbus orders.

Why can't Airbus grab a piece of the action? Its A320 model, the chief competitor to the 737, lists for only $54 million, compared to about $60 million for the Boeing plane. But the A320 has nine fewer seats than the 189-seat 737, which works out to $1 million less annual passenger revenue per plane. Most important, the 737 has been flying since 1966, some 22 years longer than the A320. That has created a large supply of secondhand 737s for discount carriers starting up on a shoestring.

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