Boeing strikes me as the higher-risk, but potentially higher-reward, stock over the coming years. For those interested in adding aerospace exposure, there are a lot of defense pure plays that look like much better values today. Boeing’s revenues are concentrated in North America, whereas Airbus is benefitted by European state support. In October, Airbus received 11 gross orders vs. 0 for Boeing bringing the combined total to 11 compared to 425 orders in the same month last year where it should be noted that Airbus … Defence and Security businesses, where Airbus has been weaker, can partially offset the effect for Boeing, whereas Airbus will have no similar offset. Sign up here for GlobalData's free bi-weekly Covid-19 report on the latest information your industry needs to know. European revenue contribution for Airbus (27.9%) is more than double compared to Boeing (12.8%). The screens, thrust levers, and various controls and levers are located in similar positions as can be seen when comparing an Airbus 320-200 and Boeing 737-800 flight deck in images below. Market data powered by FactSet and Web Financial Group. The geographical distribution of revenues of the two companies is evidence of just how much Airbus benefits from state support. One of the most notable rivalries in the skies: Boeing vs Airbus. Boeing forayed into commercial aviation by launching its first aircraft, the B&W Seaplane, in 1916. They have a long history that has actually served as a … Boeing has had to deal with two major groundings. Boeing had already planned to decrease production rates for its larger 787 Dreamliner in 2021, and its 777X has been plagued by development delays and risks entering service as demand for large planes is waning. The company has struggled to return it to service. The company reported the cancellation of 150 orders for the 737 MAX in March, and ended the first quarter with net cancellations across the portfolio of 119 planes. Airbus planes have suffered no major grounding issues apart from a temporary grounding of 14 Airbus A320 Neo aircraft in India due to P&W engine woes in 2018. For Boeing, the immediate threat is further crashes or failures of the 737 Max, which can result in order cancellations and litigations that could affect revenue and market share in a crucial business segment. Airbus is the smaller company but makes around half of what Boeing does. One is American, one is European and both of them have been standout names in the aviation industry for years. Boeing has sounded the alarm, suspending its dividend, temporarily halting aircraft manufacturing, and lobbying for government assistance CEO Calhoun claims the company doesn't really need. The US Government filed a case with the World Trade Organization (WTO) in 2006, against the EU subsidies worth $22bn to Airbus for new product development. Boeing offers unique and advanced military rotorcraft products such as the AH-64 Apache, CH-47F, V-22 Osprey, and AH-6. Weiss Technik UK is a market leader and one of... Weiss Technik UK is a market leader and one of the most innovative manufacturers of environmental simulation systems. Boeing also has a competitive edge in the ballistic missiles space since MBDA doesn’t produce them. Boeing introduced its first commercial jetliner, the 707, in 1958. Investors who put money into Boeing today and are patient through an extended cycle will probably come out significantly ahead. Boeing was founded by William Boeing in the early 1900s, while Airbus was founded in the 1970s. Incidents such as grounding due to serious technical issues could mar the reputation and sales of commercial aircraft manufacturers. While the Airbus China Innovation Centre focuses largely on the company’s global factories, Boeing’s Chinese innovation centre is focused on innovating and improving exclusive access for the Asia Pacific market. Airbus vs. Boeing: Some background Before we get into preferences, let’s talk a little about the differences between the companies. If you continue to use this site we will assume that you are happy with it. Families on the brink fear what's next as pandemic benefits expire. The grounding, however, didn’t cause a significant impact on the 787 orders and deliveries as the US Federal Aviation Administration (FAA) allowed US carriers to operate Dreamliners after making the required changes to battery systems in April 2013. Its enormous engines and unprecedented wingspan promise to bring unbeatable fuel efficiency, and to usher in a new era of high capacity, long-range flying. Boeing’s plants are bigger, their aircraft are bigger, their offices are bigger, even their market cap is bigger! CCP Gransden is a leading specialist in advanced composites design... CCP Gransden is a leading specialist in advanced composites design and manufacturing. Airbus’ product portfolio is differentiated by civilian helicopters that include models ranging from light single-engine to twin-turbine heavy-lift rotorcraft, where Boeing has no presence. We use cookies to ensure that we give you the best experience on our website. Airbus also has just a single product in the fighter aircraft segment unlike Boeing, which has advanced fighter jets such as F-15 Strike Eagle and F/A-18 Hornet that are offered in multiple variants. Both have smaller and underappreciated defense businesses to fall back on, but commercial has dominated the headlines, and the income statement, for years. The Boeing 777X is the world’s largest twin jet ever built. A 16-YEAR FIGHT at the World Trade Organisation (WTO) between Boeing, an American planemaker, and Airbus, a European one, over illegal subsidies resembles a heavyweight boxing bout in … Boeing was a mess even before the pandemic, troubled by issues with its 737 MAX and other signature programs. But Airbus too has been afflicted by production problems that have caused it to miss delivery targets and burn cash. Boeing, the world’s oldest aircraft manufacturer, enjoyed a monopoly in aviation for 54 years until its major competitor Airbus was born in 1970. Boeing has targeted mid-year 2020 to return the MAX to service, but it is debatable whether customers will care. They'll just have to sit out a prolonged slump, and perhaps a broader market recovery, to realize those gains. The company, once known as European Aeronautic Defence and Space, has in recent years asserted its independence after years of criticism that it acted at the whim of European governments. This might be because Boeing receives millions in government contracts (see below) as well as having cheaper aircraft to build. The History of the Airbus vs. Boeing Rivalry Garrett Parker 2 years ago There is no secret to the fact that Airbus and Boeing have long been rivals, offering one another stiff competition in the airplane manufacturing business. Some of the fault lies with suppliers, including Raytheon Technologies' Pratt & Whitney engines, but delays were also due to internal design changes and backed-up assembly lines. Boeing has delivered more than 10,000 of its bestselling 737 family since its launch in 1968, while the Airbus A320, which hit the market two decades later in 1988, saw more than 8,000 units sold by 2018. The company went on to develop several small passenger and military aircraft in the two decades that followed,  becoming a frontrunner in all-metal aircraft construction. That's going to be a blow for Boeing and Airbus. Airbus has been trying to match its research and development expenditure with that of Boeing, despite its relatively lower business scale. Airbus is counting more on start-ups, broad-basing its innovation efforts, by setting-up innovation centres housing start-ups and offering technical and funding support to start-ups in select areas such as autonomy, electrification, and security. Boeing also has a competitive edge in the ballistic missiles space since MBDA doesn’t produce them. Boeing can use its defense business, which accounted for about one-third of 2019 revenue, to help cushion the blow of a commercial slowdown. Boeing 767 vs Airbus A330 Two popular wide-body jetliners are similar in overall appearance. A compliance panel set up by the WTO to assess the appeal rejected 28 of the 29 claims made by the EU, in June 2017. John Cox: I am asked this question frequently, it is very hard to answer.I flew the Boeing 737 for 15 years and the Airbus A320 for six years and thoroughly enjoyed both of them. Both the companies have sensed the potential threat of competition emerging from countries like China and have established innovation centres in China. “Airbus spends as much as Boeing in R&D, despite its smaller scale of operations compared to the latter.”. Airbus is more dependent on civilian aircraft for its revenues, with its commercial and helicopters (majorly civilian) segments together contributing a majority share of more than 80% of its revenues, whereas Boeing earns just 60% from the commercial aircraft category. 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Boeing 747-8 and Airbus A380 are the largest two aircraft produced by both manufacturers, this means not all airlines will find a home for these in their fleets. But investors should be aware that the German, French, and Spanish governments still control about 25%, combined, of the company's stock. Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Boeing vs. Airbus @themotleyfool #stocks $BA $EADSY, embarrassing details about Boeing's culture, design and build an autonomous submarine for the Navy, 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. Both the companies are eying the potential mass markets in different applications. Aircraft, developed by other companies, but sold by Boeing or Airbus (such as the Boeing 717 and the Airbus A220) are excluded, as are modifications of particular base model (such as the Boeing 737 MAX 9 or the Airbus A321 – derivatives of the 737 MAX 8 and the A320 respectively). Depending on what view you have of the aircraft. Although Airbus’ deck in this space is not empty, six of the eight military rotorcraft it offers are based on civilian helicopter platforms. Its space business and helicopters are the crown jewels of its non-passenger aircraft portfolio and are steady revenue generators. !function(){"use strict";window.addEventListener("message",function(a){if(void 0!==a.data["datawrapper-height"])for(var e in a.data["datawrapper-height"]){var t=document.getElementById("datawrapper-chart-"+e)||document.querySelector("iframe[src*='"+e+"']");t&&(t.style.height=a.data["datawrapper-height"][e]+"px")}})}(); While the quick growth of Airbus can be attributed partly to the boom in commercial aviation, the feat wouldn’t have been possible without state benefits, which the US claims are unfair. The EU filed a counter case against the US alleging $23bn indirect subsidies to Boeing. Airbus too has a defense business, with defense, space, and helicopters accounting for about 26% of total revenue. 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