The Strategist

Here's how Boeing's problems supported Airbus growth

07/17/2019 - 10:06

Shipments of Boeing fell by 37% in the second quarter after two fatal accidents involving the company's best-selling aircraft. In the meantime, European Airbus has significantly advanced in the competition between the world's leading manufacturers of air vehicles.

Global Panorama
Global Panorama
On Tuesday, Airbus representatives reported that the company delivered 389 aircraft in the first half of the year, which is 28% more than a year earlier. Supplies for its more economical family of aircraft A320neo showed the best figures.

According to Boeing, the company delivered 239 aircraft in the first half of 2019, compared with 378 in the same period last year. Shipments of Boeing 737, workhorses for short and medium flights, have more than halved.

A year ago, airlines actively have been actively buying the Boeing 737 Max, the main competitor of the Airbus neo. But Max’s flights have been suspended around the world for almost four months after the second disaster, in which 346 people died. In March, Boeing management temporarily stopped supplying Max, but continues to supply an older model 737 called NG.

For the third month in a row, Boeing has been reporting that there were no new orders for Max in June. Nevertheless, the parent company British Airways said last month that it intends to buy 200 aircraft, which can be regarded as a demonstration of support for the problem vehicle. Boeing management has not yet considered this an official order, as the deal has not yet been finalized.

Reports of both companies simultaneously appeared the next day after Saudi low-cost airline Flyadeal changed its previous intention to order 30 Max aircraft from Boeing and instead placed an order for 30 A320neo aircraft with an option for another 20 air vehicles. The deal with Airbus will cost the airline $ 5.5 billion at list prices, although discounts are possible.

This order will lead to the fact that the fleet of Flyadeal, part of Saudi Arabian Airlines Corp, will consist entirely of Airbus aircraft.

Meanwhile, on Tuesday, the White House announced that Qatar Airways had acquired five Boeing 777 cargo planes. The Middle Eastern carrier announced its intention to book aircraft last month during the Paris Air Show.