Boeing vs. Airbus: The middle of the market battle Score another one for Airbus. On June 30, Airbus announced it plans to cut 14,000 jobs (5,000 in France, 5,100 in Germany, 900 in Spain, 1,700 in the U.K. and 1,300 elsewhere) as it deals with the effects of the coronavirus crisis. Turning to the orders race, in June, Boeing booked an order from FedEx for one 767-300F. Boeing's prospects have also been more negatively affected by the COVID-19 pandemic, and that's likely to continue in the near future. For the full year 2019, Boeing delivered 380 aircraft, while Airbus set a new all-time annual record, handing over 863 jets. I write about electrical equipment, transportation, and multi-industry industrial stocks. It shows Airbus began floating in US market after order of 25 A320 aircraft from Jet Blue. The company also reported 60 737 MAX cancellations, for a total of -59 net new orders. In January 2020, Boeing and Airbus delivered 13 and 31 commercial jets, respectively, compared to 46 and 39 deliveries in the same month last year. Boeing has endured a seemingly never-ending series of issues that raise questions about how the company is run. Finally, the pandemic may well have a lasting effect on the public's willingness to fly. However, there are numbers, and there is believing in the numbers. In comparison, Boeing’s backlog would “only” last 6.5 years at the 2018 level, which we use as a proxy for 2019 due to the severe drop in 737 MAX deliveries. In 2019, Boeing’s book-to-bill ratio was negative, while Airbus reported a book-to-bill of 0.89. Airbus’ total jet deliveries were worth about $60 billion (U.S.) compared to Boeing’s $42 billion, based on market pricing estimates from aircraft valuation firm Avitas. EADS/Northrop Grumman KC-45A vs Boeing KC-767 On  June 17, FAA chief Steve Dickson testified at a Senate hearing on the 737 MAX. Recently, Boeing carried out a second round of layoffs involving an additional 1,030 employees companywide. Prior to the recent 737 MAX production suspension, Boeing was manufacturing the jet at a reduced rate of 42 per month. Boeing’s deliveries have suffered for many months in the aftermath of two 737 MAX crashes and the subsequent suspension of deliveries and grounding of the fleet. In June, Airbus received no new orders but reported one cancellation. Forecast International’s Platinum Forecast System is a breakthrough in forecasting technology which, among many other features, provides 15-year production forecasts. Sales … In addition, Boeing and Airbus will have to make financial concessions to customers, and services revenue can come under threat as older planes are retired. On a risk/reward basis, investors will probably feel more comfortable buying Airbus. For example, Boeing generated $13.6 billion in FCF in 2018 (the year before the 737 MAX was grounded), representing over 15% of its current market cap. But the gap is closing. And frankly, the list of potential headwinds for both Boeing and Airbus is lengthy. The top aircraft fleet executive at Alaska Airlines says its decision to sell 10 Airbus A320 jets will be followed by the gradual return of 39 more leased Airbus aircraft between now and 2023. Airbus, which is expected to announce 2020 orders and deliveries in the coming days, declined to comment ahead of their formal publication. Something completely different; first half a year Boeing results will be interesting, they will be announced on 29-Jul-2020. Similarly, Airbus generated 3.5 billion euros in adjusted FCF in 2019 and had expected 4 billion euros in 2020 before the pandemic struck. Yet one is faring better than the other. In addition, the FAA will review and approve training programs for all part 121 operators. The combined 777/777X production rate will be reduced to three per month in 2021. Many industry insiders are estimating that commercial aviation won't return to 2019 levels of activity until 2023. Boeing, like Airbus, announced plans this summer to cut more than 10 percent of its global work force amid a steep decline in travel, which has forced airlines to delay and scale back plans to buy planes. Boeing also announced that the 787 production rate will be reduced from 14 per month to 10 per month this year, and gradually reduced to seven per month by 2022. Let our market intelligence reports be a key part of reducing uncertainties and mastering your specific market and its growth potential. Middle East & Africa The individual country reports are structured to condense a vast range of information into concise segments. While the commercial aviation industry has been dealt a severe blow by the COVID-19 pandemic, it will surely recover over time, and investors are getting an opportunity to buy into the stocks at a significant discount. By the end of June 2020, Boeing’s backlog (total unfilled orders before ASC 606 adjustment) was 5,232 aircraft, of which 4,221, or 81 percent, were 737 NG/MAX narrowbody jets. The long-awaited trade agreement between the U.S. and China may pave the way for Boeing Co. to resume sales to the world’s second-largest … This would have put the company within reach of a total of 1,000 jets deliveries per year. For example, Boeing generated $13.6 billion in FCF in 2018 (the year before the 737 MAX was grounded), representing over 15% of its current market cap. For the full year 2019, Airbus landed 1,131 gross orders (363 cancellations => net of 768), thereby retaking the orders crown from Boeing. Airlines have had to ground some 787 planes and manufacturing issues have been found. Over three days starting June 29, a number of 737 MAX certification flight tests were carried out by Boeing personnel and FAA officials to evaluate Boeing’s proposed changes to the automated flight control system. The biggest shock … The A330 and A350 programs are reduced to a rate of two and six aircraft per month, respectively. It doesn't stop there. Production of the 737 MAX was suspended from January of this year until the end of May. Widely criticized former CEO Dennis Muilenburg told investors a RTS would occur in October 2019, but the company is still waiting for it deep into 2020. Airbus delivered a record 112 A350s in 2019, up from 93 and 78 in 2018 and 2017, respectively. By the time December was done, Airbus had.. This is 141 aircraft below the company’s all-time backlog record of 7,725 aircraft set in January 2020. For over 45 years, Forecast International intelligence reports have been the aerospace and defense industry standard for accurate research, analysis, and projections. Airbus A320neo vs. Boeing 737 MAX 8/9. Moreover, the slowdown in the wide-body market couldn't possibly have come at a worse time for Boeing. Latin America & Caribbean An aircraft control tower. Turning to the second point, the recovery in commercial aviation is widely seen as being led by domestic flights rather than international, and that means narrow-body demand is likely to recover quicker than wide-body. Airbus has only delivered 9,086 A320 planes. by J. Kasper Oestergaard, European Correspondent, Forecast International. This is the main event. Airbus and Boeing both confronted a softer market for wide-body aircraft even before the coronavirus hit markets. Airbus delivered a total of 196 jets from January to June, compared to 389 during the same period last year. In the meantime, test flights and software changes continue. Eurasia Click here to learn more. That's something that would hurt the industry again. Image The Boeing Co – The Boeing Co. Subscribe to receive up-to-date news on market developments, along with trend analysis and contract announcements. Prior to the suspension of deliveries in March 2019, Boeing had produced and shipped 387 737 MAX jets. Getting life-saving satellite imagery to where it’s needed most. In the first quarter of 2020, it was 68.6. Find out more at www.forecastinternational.com. Airbus released its final sales and production tally Monday, showing it delivered a total of 863 jets and won 768 net new orders in 2019. Due to COVID-19, both manufacturers have been forced to temporarily close down production facilities and have announced significant production rate cuts. For 2020 to date, Airbus has accumulated 365 gross orders (67 cancellations => net of 298). The Airbus NSR (“New Short Range”) will be a short haul aircraft that can both travel a longer distance and carry more people than any A320 variant that has come before it. Aircraft are being built at a low rate as more than a dozen initiatives focused on enhancing workplace safety and product quality are being implemented. These include a number of evaluation reviews and reports to be held and issued by the FAA and the Joint Operations Evaluation Board (JOEB), which includes international partners from Canada, Europe, and Brazil. No rate cut has been announced for the A220 or the A380. Boeing, however, continues to lead Airbus in deliveries of wide-body, larger planes such as Boeing's 787 Dreamliner and Airbus' A350, which enjoy bigger profit margins. Boeing's 737 Max has been grounded since mid-March of last year. 2020 is miserable for Boeing and Airbus, but not to equal amount As is confirmed by the results of aircraft deliveries and orders from the second quarter of 2020, production and sales of commercial aircraft by industry giants Boeing and Airbus shrank dramatically in comparison with 2019. The Airbus NSR is expected to be unveiled in the mid-2020’s to be released at the beginning of the 2030’s. Both aspirations will be severely challenged in the aftermath of the pandemic. On April 27, Airbus announced that it had begun the process of furloughing more than 6,000 employees in Europe, including 3,200 production workers at its wing manufacturing site in Broughton, Wales, and another 3,000 workers in France. Simply put, investors can be forgiven for throwing in the towel on Boeing, and the company really needs a blemish-free period in order to restore confidence. Blue collar workers physically making a better world. Prior to this, Airbus had retained an orders lead over its rival every year since 2012. As many countries face the second wave of … The last time this happened at the firm was back in 1962. We protect your personal information as if it were our own and we do not provide or sell this information to any other group or organization. Defense & Security Monitor, an Aerospace & Defense blog by. Boeing and Airbus delivered 10 and 36 commercial jets in June 2020 compared to 37 and 76 deliveries, respectively, in the same month last year. This particularly affects Boeing and its sales of 737 MAX aircraft. will be interesting to see, how many Max are pending to be delivered (including these, already stated as unlikely to be delivered in the books). With just 70 deliveries this year to date, Boeing is 169 shipments behind last year’s total for the first half of the year. Management had high hopes for the new 777X aircraft to spur a new round of wide-body replacement demand, while also benefiting from ongoing sales of the 787. FI's market research reports offer concise analysis of individual programs and identify market opportunities. Due to the COVID-19 pandemic, Airbus has cut production on several programs and is looking to hold underlying jet output at 40 percent below pre-pandemic plans for two years. Between June 29 and July 1, a number of 737 MAX certification flight tests were carried out by Boeing and the FAA to evaluate Boeing’s proposed changes to the automated flight control system. Boeing 787-9 (Source: Air Lease Corporation) Financial performance: Airbus vs Boeing. Boeing and Airbus have reveled in a decade of airplane sales that outshined any other in history—but the period is ending on a sour note..

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