The roots of Airbus, in fact, lie in state interests and the company continues to be backed by EU nations, with the governments of Germany, France, and Spain currently holding 11.04%, 11.06%, and 4.16% stakes, respectively. Even if you have a preference, true aircraft aficionados should know all of these airliners like the back of their hand! They have a long history that has actually served as a … Similarly, Airbus … 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. Boeing was a mess even before the pandemic, troubled by issues with its 737 MAX and other signature programs. The “superjumbo” is an entirely new class of … The company had an order book of 4,636 units worth $600bn of the 737 Max family at the time of the grounding and continues to face order cancellations from several airlines. Airbus is targeting the urban commutation business with its online helicopter booking platform Voom that connects travellers with air taxi companies, laying the foundation for urban air mobility powered by e-VTOL vehicles. More than half were 787s. Depending on what view you have of the aircraft. 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. If you continue to use this site we will assume that you are happy with it. 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. The Boeing 777X is the world’s largest twin jet ever built. Airbus didn’t become a significant competitor to Boeing until the 1990s when it started launching several competing products such as the A330 and the A340. The US has retaliated by requesting the WTO to impose approximately $11bn in annual countermeasures to offset the damaging trade effects of the subsidies enjoyed by Airbus. 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. The launch of 747 long-range airliner with much larger seating capacity than other commercial aircraft in 1970 further strengthened Boeing’s position in commercial aviation. “Boeing continues to face order cancellations for its 737 Max family, whose order book at the time of grounding was worth $600bn.”. Its space business and helicopters are the crown jewels of its non-passenger aircraft portfolio and are steady revenue generators. Boeing, thus, has a clear competitive edge in military products over Airbus, which misses out fully on missiles and partly on helicopters and fighter jet varieties. Boeing has had to deal with two major groundings. He spends a lot of time these days focused on the industrials and financials. 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. The 737 MAX at launch was expected to be one of the top-selling aircraft of all time, but it was grounded in March 2019 after a pair of fatal crashes. Its A320 was a beneficiary of the 737 MAX's woes, although Airbus… Although Boeing too earns a similar chunk of its revenues (70%) from just two geographic areas namely the US (44.2%) and the Asia Pacific (25.6%), its revenues are more concentrated in the US, unlike Airbus, which has a better diversification. Stock Advisor launched in February of 2002. For those interested in adding aerospace exposure, there are a lot of defense pure plays that look like much better values today. 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. Returns as of 01/11/2021. Airbus, like Boeing, has in recent years leaned heavily on its swelling commercial order book. Competition has, eventually, resulted in legal fights by the governments to safeguard their respective business interests. A320 Flight Deck Fuel efficiency & Range Firstly the Boeing 747-8, Boeing states the 747-8 is more cost effective per seat per mile than any other aircraft in its class based on the following factors. The Boeing 767 (top) and Airbus A330 (bottom) are twin-engine, wide-body airliners. Here's a look at the two aerospace giants to determine which, if either, is the better buy today. Boeing is the more dynamic company, with better franchises on the defense side. At first glance, the design of the flight decks for Airbus and Boeing aircraft which are currently in production are visually quite similar. Boeing forayed into commercial aviation by launching its first aircraft, the B&W Seaplane, in 1916. Airbus has been trying to match its research and development expenditure with that of Boeing, despite its relatively lower business scale. Airbus is the smaller company but makes around half of what Boeing does. Boeing strikes me as the higher-risk, but potentially higher-reward, stock over the coming years. The defense business has largely been brushed out of the spotlight in recent years, in part because one of its flagship programs, the KC-46 tanker, has suffered delays and cost overruns that led to a rare public rebuke from Pentagon officials. We use them to give you the best experience. Boeing, on the other hand, aims to capture the on-demand air deliveries market and has already developed a demonstrator cargo air vehicle named HorizonX. Airbus has so far impressed airlines with its A350 series, but that may change with the 777X on the horizon. Boeing, the world’s oldest aircraft manufacturer, enjoyed a monopoly in aviation for 54 years until its major competitor Airbus was born in 1970. The Micro Systems Technologies (MST) Group provides advanced solutions for microelectronics manufacturing, including high-performance / high-reliability printed circuit boards (PCBs), liquid crystal polymers (LCP) and ceramic substrates, as well as advanced assembly technologies. 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. It also led to the firing of CEO Dennis Muilenburg in December, but his replacement, David Calhoun, helped oversee the company as a Boeing board member since 2009. The COVID-19 pandemic, and the travel slump that has followed, is threatening to upend that success. One is American, one is European and both of them have been standout names in the aviation industry for years. Tiger and NH-90 mainly serve the EU countries, where Boeing too competes, but have zero sales in North America. Product Portfolio: Boeing vs Airbus Airbus loses out to Boeing in the missiles systems category, where it has no direct offerings, although it holds a 37.5% stake in European missiles developer and manufacturer MBDA. Aerospace Technology compares the two aerospace behemoths and tries to envisage what the future holds for them. Its entire global fleet of 737 Max aircraft was grounded in March 2019, following two fatal aircraft crashes. Follow the company to be always up to date with this company. Both the companies have sensed the potential threat of competition emerging from countries like China and have established innovation centres in China. Boeing was the … In March 2011, the WTO ruled out a major part of the allegation stating that 80% of the subsidies were found to be fair. Photo: Airbus/Boeing/Simple Flying Contents Introducing the two contenders. During four of the last five years, Airbus has spent more dollars on research and development compared to Boeing. The main landing gear on the Boeing 767 lean to the front, while those on the A330 lean to the rear. Europe to Airbus is what the US is to Boeing. 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 … If both emerge from scandals safely, Airbus would continue to compete with Boeing’s commercial aircraft as well as Space businesses. Airbus, like Boeing, has in recent years leaned heavily on its swelling commercial order book. Across all variations of 737 (because not all types have the MAX’s problems), the company delivered 7. 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. Boeing 737 & Airbus A320. The EU filed another case in 2012, alleging that the US failed to abide by the findings against it. They'll just have to sit out a prolonged slump, and perhaps a broader market recovery, to realize those gains. Boeing 767 vs Airbus A330 Two popular wide-body jetliners are similar in overall appearance. CCP Gransden is a leading specialist in advanced composites design... CCP Gransden is a leading specialist in advanced composites design and manufacturing. Airbus received its first order for the A300B from Air France in 1970. Both the companies are eying the potential mass markets in different applications. !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 WTO’s verdict in 2010 confirmed that Airbus received $18bn of illegal subsidies, including $15bn of launch aid from the three governments that have interests in Airbus. Although Airbus’ deck in this space is not empty, six of the eight military rotorcraft it offers are based on civilian helicopter platforms. 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 can use its defense business, which accounted for about one-third of 2019 revenue, to help cushion the blow of a commercial slowdown. The company is an amalgamation of European aerospace companies pushed together in the 1970s to better compete against U.S. giants. “Boeing has a clear competitive edge in military products, over Airbus.”. Elsewhere in the portfolio there are issues as well. Both management teams are going to be talking up their defense businesses in the quarters to come, but both companies rise and fall with the commercial aerospace cycle. It also will likely have more freedom to right-size its business as necessary compared to its European rival. Of the two, it's hard to say which stock will perform better over the next year or two. But investors should be aware that the German, French, and Spanish governments still control about 25%, combined, of the company's stock. One of the most notable rivalries in the skies: Boeing vs Airbus. Boeing Vs. Airbus Stock. Investors have taken notice, with shares of both Boeing and Airbus down more than 50% year to date. The EU filed a counter case against the US alleging $23bn indirect subsidies to Boeing. 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. Rival Airbus had a modest beginning with the launch of the A300B, which is based on the A300 wide-body jetliner. 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. The corporate rivalry between Boeing and Airbus is the one of the most heated on the planet. North America has been dominated by Boeing for a long time, with the majority of its revenues coming from the US (44.2%) alone, whereas its counterpart earns just 17.5% of revenues from North America. Boeing (NYSE:BA) and Airbus (OTC:EADSY) have been waging a global battle for commercial air superiority for decades, and shareholders of both companies have benefited. Boeing has targeted mid-year 2020 to return the MAX to service, but it is debatable whether customers will care. 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. The immediate future for Boeing and Airbus looks equally uncertain as both have their own set of challenges to overcome. Boeing also has a competitive edge in the ballistic missiles space since MBDA doesn’t produce them. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. 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. Airbus historically has been a bit of an enigma to U.S. investors. Boeing and Airbus enjoy a global duopoly on large and midsize jets, and an unprecedented, decade-long buying spree by airlines has swelled the order books of both companies. According to Airfleets.net, Airbus has suffered 86 total crashes or accidents between its models – fewer than just the 147 suffered by Boeing’s 737 alone. Boeing vs Airbus Safety Records What about Boeing and Airbus’ safety record? Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. This partly explains why Boeing is better placed to absorb any potential financial shocks of multiple grounding incidents that may affect sales. The company arguably has the more complete lineup of commercial aircraft, thanks in part to its 2017 acquisition of a controlling stake in Bombardier's CSeries jet family. 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. Incidents such as grounding due to serious technical issues could mar the reputation and sales of commercial aircraft manufacturers. The spat is in focus with the WTO allowing the EU to impose tariffs on billions of dollars worth of US goods. 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. When not arguing on Twitter or writing about the markets, Lou spends his free time out in nature, complaining online about the Baltimore Orioles or Watford FC, or listening to early 1990s alt rock. The only fighter jet Airbus offers is the Eurofighter Typhoon, which has no variants to suit customer-specific mission requirements. The company earns more revenue from Asia Pacific (36.6%) than Europe (27.9%) and the two regions together contribute approximately 65% to its gross revenue. 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 introduced its first commercial jetliner, the 707, in 1958. Market data powered by FactSet and Web Financial Group. Investors who put money into Boeing today and are patient through an extended cycle will probably come out significantly ahead. 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. It too has had less success with larger, wide-body aircraft, developing the massive, but ultimately commercially unsuccessful, A380 double-decker behemoth. Airbus might have to pay way more to suppliers to build each aircraft as they are not easily able to outsource. Airbus too has a defense business, with defense, space, and helicopters accounting for about 26% of total revenue. In the early 1990’s The Boeing Company and rival Airbus (two of the World’s biggest competitors in the commercial aviation industry) were each interested in developing a “superjumbo” class of commercial airliners. Boeing is massive, during classic “Airbus vs Boeing” debates, you can’t deny the fact that Boeing is massive in comparison to Airbus. Boeing’s plants are bigger, their aircraft are bigger, their offices are bigger, even their market cap is bigger! 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. The below table compares the product portfolio of the two companies: Airbus loses out to Boeing in the missiles systems category, where it has no direct offerings, although it holds a 37.5% stake in European missiles developer and manufacturer MBDA. Airbus also earns higher revenue from the Asia Pacific, which Boeing too recognises to be a crucial market for its future growth. The investigation into the MAX revealed embarrassing details about Boeing's culture that raised fresh questions about its commitment to safety. 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