For the full year 2019, Boeing delivered 380 aircraft, while Airbus set a new all-time annual record, handing over 863 jets. For the full year 2019, Airbus landed 1,131 gross orders (363 cancellations => net of 768), thereby retaking the orders crown from Boeing. This particularly affects Boeing and its sales of 737 MAX aircraft. However, Airbus has delayed a planned A220 production ramp-up at its Mirabel facility near Montreal, where the company has been producing four A220s per month. 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. Latin America & Caribbean However, investors also need to consider the downside risks, and there appear to be more of them with Boeing than there are with Airbus right now. The latter figure represents 7.4% of Airbus's current market cap. Boeing's prospects have also been more negatively affected by the COVID-19 pandemic, and that's likely to continue in the near future. 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. The cases for buying stock in Airbus (OTC:EADSY) and Boeing (NYSE:BA) are pretty similar. In October 2020 the EU won WTO permission to hit back with tariffs on $4 billion of American goods a year. American Airlines put Boeing’s 737 MAX back in the air with passengers Tuesday on … 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 … by J. Kasper Oestergaard, European Correspondent, Forecast International. North America. Stock Advisor launched in February of 2002. For 2020 to date, Airbus has accumulated 365 gross orders (67 cancellations => net of 298). 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. Finally, the pandemic may well have a lasting effect on the public's willingness to fly. In addition, it’s easy to forget that Boeing too… All of these considerations need to be made before buying either of these stocks, but if you are positive on the industry, which stock is the better buy? Boeing’s all-time backlog high of 5,964 aircraft was set in August 2018. And in few days we shall see the order and delivery for Jun-2020 for Boeing. For the full year 2019, Airbus handed over 642 A320 family aircraft, of which 551 were A320neos. This is the main event. In June, Boeing delivered 10 aircraft, including two 737NGs, one 747-8F, three 767s, one 777, and three 787s. Mr. Oestergaard is an expert in aerospace & defense market intelligence, fuel efficiency in civil aviation, defense spending and defense programs. 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. Boeing vs. Airbus: The Aviation Industry’s Swinging Power Balance ... 12/29/2020. Post was not sent - check your email addresses! Similarly, Airbus generated 3.5 billion euros in adjusted FCF in 2019 and had expected 4 billion euros in 2020 before the pandemic struck. Competition Boeing Vs Airbus. 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. 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. The A320 production rate has been reduced to 40 aircraft per month, down from an average of over 53 aircraft per month in 2019. Boeing has endured a seemingly never-ending series of issues that raise questions about how the company is run. It doesn't stop there. This would have put the company within reach of a total of 1,000 jets deliveries per year. 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. 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. Post Script: Why not compare Boeing 737 MAX 8 vs Airbus A220/CS300 Many commentators have written in asking why don’t we compare a new plane (A220-300) with Boeing 737 MAX 8. You may opt out of our email promotions at any time by selecting opt out, and your email address will be permanently removed from our list. It shows Airbus began floating in US market after order of 25 A320 aircraft from Jet Blue. Better Buy: Boeing vs. Airbus ... Apr 18, 2020 at 12:24PM Author Bio. 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. In comparison, Boeing only delivered 20 aircraft in October and a dozen of these were not 737s. In October of this year, Airbus delivered 77 aircraft, 59 of which were A320s. Boeing's 737 Max has been grounded since mid-March of last year. EADS/Northrop Grumman KC-45A vs Boeing KC-767 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. 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. Click here to learn more. In 2018, Boeing delivered 806 jets (763 in 2017), with Airbus handing over 800 (718 in 2017). But the gap is closing. 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 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. 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. Based on the numbers above and the assumption that commercial aviation will recover in a few years, both stocks look like a good value. The European aerospace group announced Monday that it secured … 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. A Forecast International blog about the arms trade, geopolitics, defense and security, and military spending. Europe Image The Boeing Co – The Boeing Co. Based in Denmark, Joakim Kasper Oestergaard is Forecast International’s AeroWeb and PowerWeb Webmaster and European Editor. 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. 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.. 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. Boeing’s deliveries continue to suffer in the aftermath of two 737 MAX crashes and the subsequent deliveries halt and grounding of the fleet. No rate cut has been announced for the A220 or the A380. The company also reported 60 737 MAX cancellations, for a total of -59 net new orders. Moreover, the slowdown in the wide-body market couldn't possibly have come at a worse time for Boeing. Find out more at www.forecastinternational.com. Year-to-date, Boeing has accumulated 59 gross orders (382 cancellations => -323 net new orders). At the end of June, Airbus’ reported a backlog of 7,584 jets, of which 6,694, or 88 percent, were A220 and A320ceo/neo family narrowbodies. In 2008, he came up with the idea for what would eventually evolve into AeroWeb. 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. As many countries face the second wave of … Recently, Boeing carried out a second round of layoffs involving an additional 1,030 employees companywide. On May 27, Boeing announced it had resumed production of the 737 MAX in Renton, Washington. The biggest shock … 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. Returns as of 01/12/2021. Fixing the 737 Max and getting it back in the air is crucial for Boeing. Prior to this, Airbus had retained an orders lead over its rival every year since 2012. That's something that would hurt the industry again. Blue collar workers physically making a better world. On a risk/reward basis, investors will probably feel more comfortable buying Airbus. Boeing vs. Airbus: The middle of the market battle Score another one for Airbus. In the meantime, test flights and software changes continue. Airbus has been struggling to grow its revenues in the last five years, having registered a CAGR of 0.97% since 2014 compared to its rival Boeing, whose revenues grew almost three times faster, at 2.74%, over the same period. 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. Deliveries Improve as Boeing and the FAA Complete Three Days of 737 MAX Certification Test Flights. The A330 and A350 programs are reduced to a rate of two and six aircraft per month, respectively. 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. 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. Forecast International’s Platinum Forecast System is a breakthrough in forecasting technology which, among many other features, provides 15-year production forecasts. The combined 777/777X production rate will be reduced to three per month in 2021. Space 08 January 2021 Airbus signs multi-satellite contract with Intelsat for OneSat flexible satellites en. Turning to the orders race, in June, Boeing booked an order from FedEx for one 767-300F. Middle East & Africa Airbus’ book-to-bill ratio is 1.52, thanks mainly to very strong order bookings in January. The 777-300ER backlog includes two 777-200LRs. In 2019, Boeing’s book-to-bill ratio was negative, while Airbus reported a book-to-bill of 0.89. The individual country reports are structured to condense a vast range of information into concise segments. 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. This puts Boeing on track to deliver just 400 aircraft this year, half of what it delivered in 2018. With just 70 deliveries this year to date, Boeing is 169 shipments behind last year’s total for the first half of the year. Engineer, investment manager and property developer. The last time this happened at the firm was back in 1962. By the time December was done, Airbus had.. Eurasia But it's not the only major challenge facing the embattled aircraft maker. In the first quarter of 2020, it was 68.6. 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. I'm a firm believer that there is something noble about the industrial sector. 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. Market data powered by FactSet and Web Financial Group. Those plans have now been shelved. Production of the 737 MAX was suspended from January of this year until the end of May. Our experienced analysts compile, evaluate, and present accurate data for decision makers. Airbus, which is expected to announce 2020 orders and deliveries in the coming days, declined to comment ahead of their formal publication. 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. 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. Airbus has only delivered 9,086 A320 planes. Each report includes a program overview, detailed statistics, recent developments and a competitive analysis, culminating in production forecasts spanning 10 or 15 years. Source: U.S. Federal Aviation Administration (FAA). As of 31 January 2020, Boeing had no outstanding unfulfilled orders for the 747-8I passenger version and 17 for the 747-8F freighter; Airbus had 11 A380s remaining to be delivered. For the full year 2019, Boeing accumulated 243 gross orders (330 cancellations => -87 net new orders). 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. 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. He has an affiliation with Terma Aerostructures A/S in Denmark – a leading manufacturer of composite and metal aerostructures for the F-35 Lightning II. FI's market research reports offer concise analysis of individual programs and identify market opportunities. The number of Airbus aircraft to be built and delivered represents 8.8 years of shipments at the 2019 production level. In June, Airbus received no new orders but reported one cancellation. And it will be a few years beyond that for the industry to return to long-term growth trends." Airlines have had to ground some 787 planes and manufacturing issues have been found. Airbus A320neo vs. Boeing 737 MAX 8/9. With just 70 deliveries this year to date, Boeing is 169 shipments behind last year’s total for the first half of the year. 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. 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. Something completely different; first half a year Boeing results will be interesting, they will be announced on 29-Jul-2020. 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. Follow me on Twitter to receive quick and thorough analysis of your favorite stocks. Both Boeing and Airbus plan to cut more than 30,000 jobs in all. Following the flights, the FAA announced that, while this was an important milestone, a number of key tasks remain. 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). Boeing 787-9 (Source: Air Lease Corporation) On that basis, Airbus is the better buy. An aircraft control tower. Boeing hopes to win regulatory approval in August for the jet’s return to service, although that could be pushed back until fall. Mr. Oestergaard has a Master’s Degree in Finance and International Business from the Aarhus School of Business – Aarhus University in Denmark. 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. 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