Manufacturing competition between Airbus and Boeing in 2018
The next-generation Boeing 777-9X prototype is assembled at the Everett plant. Boeing Photos
Last year, the two largest manufacturers, Airbus and Boeing, delivered a record 1606 commercial aircraft to airlines and received 1640 net orders. Slightly ahead of Boeing in annual deliveries and sales, but Airbus has a larger order book. The number of contracted aircraft has increased to 13,45 thousand units, which, at the current level of production, provides it for eight years. The most popular are the A320neo and Boeing 737 MAX series, which have earned the title of the best-selling aircraft in history.
Air transport is a dynamically developing transport industry, but requires large capital expenditures and highly qualified personnel. Worldwide transport activities are carried out by more than two thousand airlines with an aircraft fleet of 29,3 thousand people. airplane. The number of cruises is gradually increasing and the number of passengers is doubling every few years. Therefore, in order to ensure further development, the fleet must increase in numbers. In addition, increasingly stringent environmental regulations and volatile jet fuel prices are forcing carriers to phase out low-cost aircraft. It is estimated that within two decades they will buy 37,4 large aircraft alone. pieces, in the amount of $5,8 trillion. This means that manufacturers will have to deliver 1870 aircraft to airlines annually.
For decades, the manufacturer market was dominated by American and Soviet labels, and Airbus joined the rivalry 47 years ago. The European manufacturer has consistently introduced modern aircraft that have been commercially successful and have been strengthening their positions in the world market year by year. Competition and consolidation in the aviation industry has left only two major manufacturers of large communications aircraft: American Boeing and European Airbus. Their rivalry is a fascinating story of economic and technological struggles that have become emblematic of the economic rivalry between the United States and the European Union.
Producer activities in 2018
Airbus and Boeing built 1606 commercial airliners last year, including the Boeing 806 (50,2% market share) and the Airbus 800, the highest ever. Compared to the previous year, 125 more aircraft were produced (an increase of 8,4%), of which: Airbus by 82, Boeing by 43. The largest share is accounted for by narrow-body aircraft of the Airbus A320 and Boeing 737 series, of which a total of 1206 were built, which accounts for 75% of deliveries. These were modern, environmentally friendly cars, numbering 340 cars. passenger seats. Their catalog value was about $230 billion.
Both manufacturers received orders for 1921 aircraft, including: Boeing - 1090, and Airbus - 831. However, taking into account 281 cancellations from previously concluded contracts, net sales amounted to 1640 units, of which: Boeing - 893 and Airbus - 747. in some cases, carriers have changed previous contracts from smaller models to larger or more modern ones. The catalog value of net orders received was $240,2 billion, including: Boeing - $143,7 billion, Airbus - $96,5 billion.
Traditionally, a significant number of contracts were concluded in the largest air shows. For example, at last year's Farnborough show, Boeing received orders or commitments for 673 aircraft (including 564 B737 MAX and 52 B787), while Airbus sold 431 aircraft, 93 of which were confirmed orders and 338 commitments. It is also worth noting that a significant number of contracts are completed at the end of the year. In the case of Airbus alone, mandatory contracts were signed for 323 aircraft in the last week of the year, compared to only 66 in the entire first quarter. 2018 raised list prices by an average of 2%, e.g. A380 rose from $436,9M to $445,6M).
At the end of 2018, the portfolios of outstanding orders at the disposal of both companies consisted of 13 positions, which, at the current level of production, provides them with more than eight years. This is the highest figure in the history of the global aviation industry. The catalog value of the contracted aircraft is estimated at over $450 trillion. For comparison, it is worth mentioning here that this is three times more than, for example, Poland's GDP. Airbus has a larger order book - 2,0 7577 (56% share). Among the aircraft awaiting sale, the largest number of narrow-body aircraft is 11,2. pcs (84% of the market). On the other hand, the largest VLA classes (more than 400 seats or with equivalent cargo) are only 111, and this is mainly Airbus A380.
Airbus production results
Despite major operational challenges, Airbus managed to maintain this trend by ramping up production again and handing over a record number of aircraft to customers in 2018. I would like to express my admiration and respect for our teams around the world. We owe this result to their efforts and hard work until the last days of the year. We are no less pleased with the solid number of new orders, as this indicates the good state of the civil aviation market and the trust that our contractors place in us. I would like to warmly thank them for their continued support. “In search of solutions that will enable us to further increase the efficiency of our factories, we continue to prioritize the digitalization of our business,” said Guillaume Faury, President of Airbus Commercial Aircraft, announcing last year's results.
Last year was another good year for Airbus. The European manufacturer delivered 93 aircraft to 800 operators, representing 49,8% of the global market for aircraft manufacturers with a capacity of 100 seats or more. This is the best result in the history of the consortium, as well as the sixteenth consecutive increase in production. Compared to last year, 82 more aircraft were built. However, when evaluating operating results, it should be taken into account that in the second half of the year, Airbus acquired shares in the Canadian company that manufactures and sells Bombardier CSeries.
In the narrow-body aircraft segment, Airbus set a new world record for deliveries: 646, up from 558 a year earlier. Deliveries of wide-body vehicles amounted to 142 and were 18 units lower, the number of A350s built increased by 15, from 78 to 93 units, and A330 decreased from 67 to 49 units, from 380 to 15 units.
The catalog value of the aircraft built is estimated to be around US$110 billion, but the actual value obtained after negotiation and standard discounts is around US$60-70 billion. Due to problems with the A320neo/A321neo engines and their erratic deliveries, as well as problems with on-board equipment, monthly transmission figures varied significantly. Airbus handed over 27 aircraft in January, 38 in February, 56 in March, and 127 in December.
The aircraft delivered to the operators (800 units) were in the following modifications: A220-100 - 4 units, A220-300 - 16, A319ceo - 8, A320ceo - 133, A320neo - 284, A321ceo - 99, A321neo - 102, A330- . 200 - 14, A330-300 - 32, A330-900 - 3, A350-900 - 79, A350-1000 - 14 and A380 - 12. The largest customers who received new aircraft directly from the manufacturer were airlines from the regions: Asia and the islands Pacific Ocean - 270, Europe - 135 and North and South America. – 110. In addition, 250 aircraft (31% share) were received by leasing companies, which distributed them to about a dozen operators around the world.
The European manufacturer received orders from 32 operators for 831 aircraft, including: 712 narrow-body aircraft (135 A220-300, 5 A319ceo, 22 A319neo, 19 A320ceo, 393 A320neo, 2 A321ceo and 136 A321neo), as well as 37 A330 (6 A330 -200, 3 A330-300, 8 A330-800 and 20 A330-900), 62 A350 (61 A350-900 and 1 A350-1000) and 20 A380. At list prices, the value of orders acquired was $117,2 billion. However, Airbus recorded 84 cancellations of previously purchased aircraft with a catalog value of $20,7 billion. The subject of the resignation were: 36 A320 aircraft, 10 A330 aircraft, 22 A350 aircraft and 16 A380 series aircraft. Taking into account the adjustments made, net sales amounted to 747 units (45,5% market share). This is also a good result and one of the best in the history of the aircraft industry. The catalog net worth of orders acquired is $96,5 billion. Last year's net results are 25% lower than the previous year (1109). The A320neo series continues to enjoy great popularity, with a net order of 531 aircraft. This model confirms the title of "the best-selling airliner in history", while the wide-body A330 and A350 enjoyed limited interest from carriers.
