Next, a Continued Airworthiness Notification to the International Community (CANIC) and an Airworthiness Directive (AD) will be issued, followed by the official ungrounding of the aircraft. 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. In October 2020 the EU won WTO permission to hit back with tariffs on $4 billion of American goods a year. The Airbus NSR is expected to be unveiled in the mid-2020’s to be released at the beginning of the 2030’s. Sorry, your blog cannot share posts by email. Days sales outstanding (a measure of how long it takes to collect money owed) was 30.2 in 2015, 37.6 in 2017, 45.1 in 2018, and 62.5 last year. Yet one is faring better than the other. In 2008, he came up with the idea for what would eventually evolve into AeroWeb. Moreover, given the precedent set by the global reaction to COVID-19, it's possible that future outbreaks will be dealt with in a severe and pre-emptive fashion. Sales … Engineer, investment manager and property developer. Airbus has only delivered 9,086 A320 planes. Fixing the 737 Max and getting it back in the air is crucial for Boeing. The 737 MAX debacle is a huge issue in itself, but there's also the problem of management's credibility, particularly regarding a return-to-service (RTS) for the 737 MAX. 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. 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. Better Buy: Boeing vs. Airbus ... Apr 18, 2020 at 12:24PM Author Bio. Prior to the recent 737 MAX production suspension, Boeing was manufacturing the jet at a reduced rate of 42 per month. I write about electrical equipment, transportation, and multi-industry industrial stocks. As of the end of November, Airbus had captured 380 net orders in 2018, leaving it well behind Boeing, which had secured 690 net firm orders by that point. Let our market intelligence reports be a key part of reducing uncertainties and mastering your specific market and its growth potential. For over 45 years, Forecast International intelligence reports have been the aerospace and defense industry standard for accurate research, analysis, and projections. Indeed, Boeing CEO David Calhoun said as much on the last earnings call: "[W]e currently estimate it will take around three years for travel to return to 2019 levels. Follow me on Twitter to receive quick and thorough analysis of your favorite stocks. Middle East & Africa Last month saw the WTO then rule in favor of Airbus, meaning that a new set of tariffs worth US$4bn per year can be imposed by the European Union. Note: Boeing 777-300ER orders include one 777-200LR. American Airlines put Boeing’s 737 MAX back in the air with passengers Tuesday on … Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. In June, Boeing delivered 10 aircraft, including two 737NGs, one 747-8F, three 767s, one 777, and three 787s. With just 70 deliveries this year to date, Boeing is 169 shipments behind last year’s total for the first half of the year. Airbus’ CEO Guillaume Faury has told the company’s 135,000 employees to brace for potentially deep job cuts and warned that Airbus’ survival was at stake without immediate action. Aside from a second wave of the pandemic and associated travel restrictions, there's also the financial state of the airlines to consider. Airbus A320neo vs. Boeing 737 MAX 8/9. Deliveries of 737 MAX aircraft have been on hold since March 2019. Competition Boeing Vs Airbus. 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. Finally, the pandemic may well have a lasting effect on the public's willingness to fly. No rate cut has been announced for the A220 or the A380. However, the net order inflow was -1 for Airbus and -59 units for Boeing, and at this stage, Boeing and Airbus are both active in a loser’s market. 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.. Airbus delivered a record 112 A350s in 2019, up from 93 and 78 in 2018 and 2017, respectively. Something completely different; first half a year Boeing results will be interesting, they will be announced on 29-Jul-2020. Both aspirations will be severely challenged in the aftermath of the pandemic. Governmental and political structures, political and economic trends, national and defense budgets, force structures, military planning requirements, recent and future procurements, the security environment, threat assessments, and military postures – all are detailed in these six services broken out by region (click each title for more details). The A330 and A350 programs are reduced to a rate of two and six aircraft per month, respectively. Those plans have now been shelved. For the full year 2019, Airbus landed 1,131 gross orders (363 cancellations => net of 768), thereby retaking the orders crown from Boeing. Meanwhile, Airbus CEO Guillaume Faury thinks it will happen "somewhere between 2023 and 2025.". When Boeing presented its first-quarter 2020 results in April, it was announced that the 737 MAX production rate will gradually increase to 31 per month during 2021, with further gradual increases as market demand allows. Forecast International’s International Military Markets service provides a country-by-country examination of the military capabilities, equipment requirements, and inventories of over 120 nations. The Boeing-Airbus rivalry started when Airbus offered four A300s to Eastern Airlines for a free six-month trial; the airlines liked the aircraft and ordered 23 more aircraft. 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. Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Boeing vs. Airbus @themotleyfool #stocks $BA $EADSY, Dow Jones Slumps 100 Points; Boeing Stock Lower After Fatal Crash; Cisco Fights to Close Acacia Merger, Boeing 737 Crashes Shortly After Takeoff in Indonesia, Boeing Agrees to $244 Million Penalty for 737 MAX Flaws, Airbus Sees Deliveries Plunge 34% as COVID-19 Takes Toll on Airlines, Boeing to Pay $2.5 Billion to Settle 737 MAX Criminal Probe, Copyright, Trademark and Patent Information. Coverage includes Civil & Military Aviation, Military Weapons, International Military Markets, Defense Electronics, and Naval and Power Systems worldwide. Firstly, the manufacturer was able to bring the dispute with Boeing at the WTO to an end, as well as filing its own counter-claim. In addition, it’s easy to forget that Boeing too… Asia, Australia & Pacific Rim 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. Pricing for each region begins at $2,295, with discounted full-library subscriptions available. That's something that would hurt the industry again. The author has used the Platinum Forecast System to retrieve the latest delivery forecasts and, for 2020, Forecast International’s analysts expect Boeing and Airbus to deliver 255 and 490 commercial jets, respectively. The US planemaker has delivered almost 10,563 737 aircraft. Airbus, which is expected to announce 2020 orders and deliveries in the coming days, declined to comment ahead of their formal publication. It shows Airbus began floating in US market after order of 25 A320 aircraft from Jet Blue. 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. Boeing’s deliveries continue to suffer in the aftermath of two 737 MAX crashes and the subsequent deliveries halt and grounding of the fleet. Space 08 January 2021 Airbus signs multi-satellite contract with Intelsat for OneSat flexible satellites en. FI's market research reports offer concise analysis of individual programs and identify market opportunities. 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. ... As 2020 came around, Boeing was reporting some alarming numbers. Based in Denmark, Joakim Kasper Oestergaard is Forecast International’s AeroWeb and PowerWeb Webmaster and European Editor. For the full year 2018, Boeing booked 893 net new orders and 1,008 gross orders. Prior to COVID-19, Airbus was targeting a 5 percent A320 rate increase to 63 jets per month from 2021, and was also discussing a further ramp-up with its supply chain that could have brought the production rate up to as high as 67 aircraft per month, or 804 per year, by 2023. The last time this happened at the firm was back in 1962. Similarly, Airbus generated 3.5 billion euros in adjusted FCF in 2019 and had expected 4 billion euros in 2020 before the pandemic struck. Moreover, the slowdown in the wide-body market couldn't possibly have come at a worse time for Boeing. And in few days we shall see the order and delivery for Jun-2020 for Boeing. This puts Boeing on track to deliver just 400 aircraft this year, half of what it delivered in 2018. The exact timing of a recovery is impossible to predict because it depends on a host of factors relating to the pandemic, not least of which are government restrictions on travel. 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. Post was not sent - check your email addresses! The 737 MAX is expected to remain grounded until at least August. Prior to the suspension of deliveries in March 2019, Boeing had produced and shipped 387 737 MAX jets. Year-to-date, Boeing has accumulated 59 gross orders (382 cancellations => -323 net new orders). Navigating the DoD Acquisition Budget During Uncertain Times, Stay up to date on the latest from Forecast International, http://www.boeing.com/commercial/#/orders-deliveries, https://www.airbus.com/aircraft/market/orders-deliveries.html, https://www.faa.gov/news/updates/?newsId=93206, https://www.boeing.com/commercial/737max/737-max-update.page, https://boeing.mediaroom.com/news-releases-statements?item=130685, https://boeing.mediaroom.com/news-releases-statements?item=130673, https://boeing.mediaroom.com/2020-04-29-Boeing-Reports-First-Quarter-Results, https://www.washingtonpost.com/local/trafficandcommuting/faa-accused-of-stonewalling-by-senators-pursuing-changes-to-agencys-safety-role-after-boeing-737-max-crashes/2020/06/17/b5c44316-b0c6-11ea-856d-5054296735e5_story.html, https://www.reuters.com/article/us-boeing-737max/u-s-faa-chief-to-testify-at-senate-hearing-on-boeing-737-max-idUSKBN2392YZ, https://www.reuters.com/article/us-boeing-737max/boeing-737-max-expected-to-remain-grounded-until-at-least-august-sources-idUSKCN22A35G, https://edition.cnn.com/2020/04/27/business/airbus-furloughs/index.html, https://www.seattletimes.com/business/boeing-aerospace/boeing-to-cut-nearly-10000-jobs-in-washington-more-than-12000-overall/, MTU Aero Engines Sees MRO Recovery In 2021, Airbus and Boeing Report November 2020 Commercial Aircraft Orders and Deliveries, United Aircraft Corporation the Centerpiece of Rostec’s Aviation Cluster, View all posts by Forecast International →, https://www.france24.com/en/20200630-airbus-to-cut-15-000-jobs-worldwide-a-third-of-them-in-france. It's still a pretty safe bet that the industry will recover, though, and if either stock can get anywhere near the kind of earnings/free cash flow (FCF) generated in 2018/2019, then they will look like a very good value. Airbus delivered a total of 196 jets from January to June, compared to 389 during the same period last year. Latin America & Caribbean Turning to the orders race, in June, Boeing booked an order from FedEx for one 767-300F. Financial performance: Airbus vs Boeing. Source: U.S. Federal Aviation Administration (FAA). Meanwhile, the Federal Aviation Administration (FAA) has repeatedly stated that it has no timetable for the aircraft’s return to service. EU financial assistance to Airbus, in addition to costing Boeing billions of dollars in sales, has contributed to Airbus replacing Boeing as the world’s largest aircraft manufacturer as of 2020. This year to date, Boeing’s book-to-bill ratio, calculated as net new orders divided by deliveries, is negative due to cancellations exceeding gross orders. As of July 2020, over 300 Boeing 737 Max and roughly 29 Airbus A320 family aircraft orders were cancelled. That's obviously a concern given that the 737 MAX is the aircraft intended to compete with the Airbus A320 NEO in the narrow-body market. Mr. Oestergaard is an expert in aerospace & defense market intelligence, fuel efficiency in civil aviation, defense spending and defense programs. 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. 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. 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