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. While Boeing has no offerings in the civilian helicopter segment, it’s a market leader in the military attack and transport helicopter segments. Unfortunately, the book is neither as well-written nor as well-edited as the first book, repetitive and … 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. Both the companies are eying the potential mass markets in different applications. 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. 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. Investors have taken notice, with shares of both Boeing and Airbus down more than 50% year to date. 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. The corporate rivalry between Boeing and Airbus is the one of the most heated on the planet. 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 “superjumbo” is an entirely new class of … Boeing is the older of the two. 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. For those interested in adding aerospace exposure, there are a lot of defense pure plays that look like much better values today. 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 American planemaker and its European rival share the market for large airliners almost 50/50, based on deliveries in 2018, and fight tooth and nail to beat one another. 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. Airbus’ revenues are better diversified and are from markets that have high growth potential such as the Asia Pacific, especially China. But Airbus too has been afflicted by production problems that have caused it to miss delivery targets and burn cash. Boeing sold its 8,000th 737 aircraft in 2014, 46 years after its launch – a feat that Airbus achieved in just 30 years. 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. 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. Rival Airbus had a modest beginning with the launch of the A300B, which is based on the A300 wide-body jetliner. It also has a larger backlog than Boeing. Returns as of 01/11/2021. 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 Boeing 777X is the world’s largest twin jet ever built. China contributes more revenue than the rest of the Asia Pacific for Boeing. 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. 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. Its entire global fleet of 737 Max aircraft was grounded in March 2019, following two fatal aircraft crashes. In addition, Boeing doesn’t offer civilian helicopters. Boeing’s revenues are concentrated in North America, whereas Airbus is benefitted by European state support. The spat is in focus with the WTO allowing the EU to impose tariffs on billions of dollars worth of US goods. Incidents such as grounding due to serious technical issues could mar the reputation and sales of commercial aircraft manufacturers. Its A320 was a beneficiary of the 737 MAX's woes, although Airbus' wait list for the A320 was so long already that airlines found it hard to switch on the fly. CCP Gransden is a leading specialist in advanced composites design... CCP Gransden is a leading specialist in advanced composites design and manufacturing. 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. European revenue contribution for Airbus (27.9%) is more than double compared to Boeing (12.8%). Airbus also dominates the civilian helicopter segment with a market share of 54%. It's no secret speculation around the safety and future commercial viability of the Boeing 737 Max weighed heavily on investors' minds. The A350 vs. the 777X, which is best? But investors should be aware that the German, French, and Spanish governments still control about 25%, combined, of the company's stock. Airbus also earns higher revenue from the Asia Pacific, which Boeing too recognises to be a crucial market for its future growth. Families on the brink fear what's next as pandemic benefits expire. It's been a boon to airlines, who have benefited from every more efficient airplanes at competitive prices even though a classic duopoly like this usually results in less favorable outcomes for buyers. Boeing was the … For Airbus, the looming threat is the $11bn annual countermeasures proposed by the US for alleged unfair trading, which, if imposed, would cause severe financial pressure and greatly reduce its competitive position. 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. There are some bright spots in defense. 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. Boeing 737 & Airbus A320. The investigation into the MAX revealed embarrassing details about Boeing's culture that raised fresh questions about its commitment to safety. The EU filed another case in 2012, alleging that the US failed to abide by the findings against it. Earlier in January 2013, the Boeing 787 Dreamliner fleet was also grounded due to issues in onboard lithium-ion batteries. Depending on what view you have of the aircraft. A320 Flight Deck To be honest, I have no desire to invest my money in either of these stocks right now. 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Both aircraft lines have become flagships of each respective firm, and the winner in the future will determine who builds the most premium aircraft. Europe to Airbus is what the US is to Boeing. Airbus historically has been a bit of an enigma to U.S. investors. Which company is better prepared to weather the storm and reward shareholders? 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. Further, the success or otherwise in highly scalable new businesses such as urban air commutation and local air cargo deliveries could flip their position either way. Boeing’s plants are bigger, their aircraft are bigger, their offices are bigger, even their market cap is bigger! Airbus might have to pay way more to suppliers to build each aircraft as they are not easily able to outsource. The geographical distribution of revenues of the two companies is evidence of just how much Airbus benefits from state support.