Competition between Airbus and Boeing

The competition between Airbus and Boeing has been characterised as a duopoly in the large jet airliner market since the 1990s.^[1] This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a European consortium while the American Boeing absorbed its former arch-rival, McDonnell Douglas, in a 1997 merger. Other manufacturers, such as Lockheed Martin, Convair and Fairchild Aircraft in the United States, and British Aerospace and Fokker in Europe, were no longer in a position to compete effectively and withdrew from this market.

In the 10 years from 2004 to 2014, Airbus has received 8,933 orders while delivering 4,824, and Boeing has received 8,428 orders while delivering 4,458. In the midst of their intense competition, each company regularly accuses the other of receiving unfair state aid from their respective governments.

Competing products

Passenger capacity and range comparison

Airbus and Boeing have wide product ranges including single-aisle and wide-body aircraft covering a variety of combinations of capacity and range.

Single aisle : A320,^[2] 737^[3]

Type	length	span	MTOW	pax	range	list price (USD)[4][5]
A319neo	33.84 m	35.8 m	75.5 t	140	3750 nm	$98.5M
A320neo	37.57 m	35.8 m	79 t	165	3500 nm	$107.3M
A321neo	44.51 m	35.8 m	97 t	206	4000 nm	$125.7M
737 MAX-7	35.6 m	35.9 m	80.3 t	138	3825 nm	$90.2M
737 MAX-8	39.5 m	35.9 m	82.19 t	162	3515 nm	$110M
737 MAX-9	42.2 m	35.9 m	88.31 t	178	3515 nm	$116.6M

While the 737NG outsold the A320ceo family since its introduction in 1998, it is still lagging overall with 7033 orders against 7940 in January 2016. Airbus received 4471 orders since the A320neo launch in December 2010, while the 737 MAX got 3072 from August 2011 till January 2016. In the same timeframe, the neo had 3355 orders.^[6]

Flight Global fleet forecasts 26,860 single aisle deliveries for a $1,360 Bn value at a compound annual growth rate of 5% for the 2016-2035 period, with a 45% market share for Airbus (12090), 43% for Boeing (11550), 5% for Bombardier Aerospace (1340), 4% for COMAC (1070) and 3% for Irkut Corporation (810) ; Airbus predicts 23,531 and Boeing 28,140.^[7]

Twin aisle : A330, A350,^[2] 787,^[8] 777X^[9]

Type	length	span	MTOW	pax	range	list price (USD)[4][5]
A330neo-800	58.82 m	64 m	242 t	257	7500 nm	$252.3M
A330neo-900	63.66 m	64 m	242 t	287	6550 nm	$287.7M
A350-800	60.45 m	64.75 m	259 t	280	8200 nm	$272.4M
A350-900	66.80 m	64.75 m	280 t	325	8100 nm	$308.1M
A350-1000	73.79 m	64.75 m	308 t	366	7950 nm	$355.7M
787-8	56.69 m	60.17 m	227.93 t	242	7355 nm	$224.6M
787-9	63 m	60.17 m	254 t	290	7635 nm	$264.6M
787-10	68.27 m	60.17 m	254 t	330	6430 nm	$306.1M
777X-8	69.5 m	71.8 m	351.5 t	350-375	8700 nm	$371.0M
777X-9	76.5 m	71.8 m	351.5 t	400-425	7600 nm	$400.0M

Double deck

Type	length	span	MTOW	pax	range	list price (USD)
A380[2]	72.72 m	79.75 m	575 t	544	8200 nm	$428M[4]
747-8[10]	76.3 m	68.4 m	447.7 t	410	7730 nm	$378.5M[5]

Flight Global fleet forecasts 7,960 twin aisle deliveries for a $1,284 Bn value for the 2016-2035 period.^[11] The B787 should lead with 31% of the market share, followed by the A350 with 27% and the 777 with 21%, then the A330 with 7% as the A380.^[12]

Airbus A380 vs Boeing 747

During the 1990s both companies researched the feasibility of a passenger aircraft larger than the Boeing 747, which was then the largest airliner in operation. Airbus subsequently launched a full-length double-deck aircraft, the A380, a decade later while Boeing decided the project would not be commercially viable and developed the third generation 747, Boeing 747-8, instead.^[13] The Airbus A380 and the Boeing 747-8 are therefore placed in direct competition on long-haul routes.

Rival performance claims by Airbus and Boeing appear to be contradictory, their methodologies unclear and neither are validated by a third party source. Boeing claims the 747-8I to be over 10% lighter per seat and have 11% less fuel consumption per passenger, with a trip-cost reduction of 21% and a seat-mile cost reduction of more than 6%, compared to the A380. The 747-8F's empty weight is expected to be 80 tonnes (88 tons) lighter and 24% lower fuel burnt per ton with 21% lower trip costs and 23% lower ton-mile costs than the A380F.^[14] On the other hand, Airbus claims the A380 to have 8% less fuel consumption per passenger than the 747-8I and in 2007 Singapore Airlines CEO Chew Choong Seng stated the A380 was performing better than both the airline and Airbus had anticipated, burning 20% less fuel per passenger than the airline's 747-400 fleet.^[15] Emirates' Tim Clark also claims that the A380 is more fuel economic at Mach 0.86 than at 0.83.^[16] One independent, industry analysis shows fuel consumption in litres per seat per 100 kilometres flown (L/seat/100 km) as 3.27 for the A380 and 3.35 for the B747-8I, or a fuel cost per seat mile of $0.055 and $0.057 respectively. A possible, as yet uncommitted, re-engined A380neo is expected to achieve 2.82 or 2.65 L/seat/100 km depending on the options taken.^[17]

Airbus emphasises the longer range of the A380 while using up to 17% shorter runways.^[18] The A380-800 has 478 square metres (5,145.1 sq ft) of cabin floor space, 49% more than the 747-8, while commentators noted the "downright eerie" lack of engine noise, with the A380 being 50% quieter than a 747-400 on takeoff.^[19] Airbus delivered the 100th A380 on 14 March 2013.^[20] From 2012, Airbus will offer, as an option, a variant with improved maximum take-off weight allowing for better payload/range performance. The precise increase in maximum take-off weight is still unknown. British Airways and Emirates will be the first customers to take this offer.^[21]

As of December 2015, Airbus has 319 orders^[22] for the passenger version of the A380 and is not currently offering the A380-800 freighter. Production of the A380F has been suspended until the A380 production lines have settled with no firm availability date.^[23] A number of original A380F orders were cancelled following delays to the A380 program in October 2006, notably FedEx and the United Parcel Service. Some A380 launch customers converted their A380F orders to the passenger version or switched to the 747-8F or 777F aircraft.^[24][25]

At Farnborough in July 2016, Airbus announced that in a “prudent, proactive step,” starting in 2018 it expects to deliver 12 A380 aircraft per year, down from 27 deliveries in 2015. The firm also warned production might slip back into red ink on each aircraft produced at that time, though it anticipates production will remain in the black for 2016 and 2017. The firm expects that healthy demand for its other aircraft would allow it to avoid job losses from the cuts.^[26][27]

As of June 2014, Boeing has 51 orders for the 747-8I passenger version and 69 for the 747-8F freighter.^[28]

EADS/Northrop Grumman KC-45A vs Boeing KC-767

The announcement in March 2008 that Boeing had lost a US$40 billion refuelling aircraft contract to Northrop Grumman and Airbus for the EADS/Northrop Grumman KC-45 with the United States Air Force drew angry protests in the United States Congress.^[29] Upon review of Boeing's protest, the Government Accountability Office ruled in favour of Boeing and ordered the USAF to recompete the contract. Later, the entire call for aircraft was rescheduled, then cancelled, with a new call decided upon in March 2010 as a fixed-price contract.

Boeing later won the contest against Airbus (Northrop having withdrawn) and US Aerospace/Antonov (disqualified), with a lower price, on February 24, 2011.^[30] The price was so low some in the media believe Boeing would take a loss on the deal; they also speculated that the company could perhaps break even with maintenance and spare parts contracts.^[31] In July 2011, it was revealed that projected development costs rose $1.4bn and will exceed the $4.9bn contract cap by $300m. For the first $1bn increase (from the award price to the cap), the U.S. government would be responsible for $600m under a 60/40 government/Boeing split. With Boeing being wholly responsible for the additional $300m ceiling breach, Boeing would be responsible for a total of $700m of the additional cost.^[32][33][34]

Modes of competition

Outsourcing

Because many of the world's airlines are wholly or partially government owned, aircraft procurement decisions are often taken according to political criteria in addition to commercial ones. Boeing and Airbus seek to exploit this by subcontracting production of aircraft components or assemblies to manufacturers in countries of strategic importance in order to gain a competitive advantage overall.

For example, Boeing has maintained longstanding relationships since 1974 with Japanese suppliers including Mitsubishi Heavy Industries and Kawasaki Heavy Industries by which these companies have had increasing involvement on successive Boeing jet programs, a process which has helped Boeing achieve almost total dominance of the Japanese market for commercial jets. Outsourcing was extended on the 787 to the extent that Boeing's own involvement was reduced to little more than project management, design, assembly and test operation, outsourcing most of the actual manufacturing all around the world. Boeing has since stated that it "outsourced too much" and that future airplane projects will depend far more on its own engineering and production personnel.^[35]

Partly because of its origins as a consortium of European companies, Airbus has had fewer opportunities to outsource significant parts of its production beyond its own European plants. However, in 2009 Airbus opened an assembly plant in Tianjin, China for production of its A320 series airliners.^[36]

Technology

Airbus sought to compete with the well-established Boeing in the 1970s through its introduction of advanced technology. For example, the A300 made the most extensive use of composite materials yet seen in an aircraft of that era, and by automating the flight engineer's functions, was the first widebody jet to have a two-man flight crew. In the 1980s Airbus was the first to introduce digital fly-by-wire controls into an airliner (the A320).

With Airbus now an established competitor to Boeing, both companies use advanced technology to seek performance advantages in their products. Many of these improvements are about weight reduction and fuel efficiency. For example, the Boeing 787 Dreamliner is the first large airliner to use 50% composites for its construction. The Airbus A350 XWB features 53% composites.^[37]

Provision of engine choices

The competitive strength in the market of any airliner is considerably influenced by the choice of engine available. In general, airlines prefer to have a choice of at least two engines from the major manufacturers General Electric, Rolls-Royce and Pratt & Whitney. However, engine manufacturers prefer to be single source, and often succeed in striking commercial deals with Boeing and Airbus to achieve this.

Several notable aircraft have only provided a single engine offering: the Boeing 737-300 series onwards (CFM56), the Airbus A340-500 & 600 (Rolls-Royce Trent 500), the Airbus A350 XWB (Rolls-Royce Trent XWB), the Boeing 747-8 (GEnx-2B67), and the Boeing 777-300ER/200LR/F (General Electric GE90).^[38] However, the Airbus A380 has a choice of either the Engine Alliance GP7000 or the Rolls-Royce Trent 900, while the Boeing 787 Dreamliner can be fitted with the General Electric GEnx or the Rolls-Royce Trent 1000.

As of the late 2000s, there appears to be a polarizing of both the engine suppliers as well as the airline manufacturers, such as Boeing and General Electric partnering for the upcoming Boeing 777X, and Airbus working closely with Rolls Royce for the Airbus A350-1000.^[39][40]

Currency and exchange rates

Boeing's production costs are mostly in United States dollars, whereas Airbus' production costs are mostly in Euro. When the dollar appreciates against the euro the cost of producing a Boeing aircraft rises relatively to the cost of producing an Airbus aircraft, and conversely when the dollar falls relative to the euro it is an advantage for Boeing. There are also possible currency risks and benefits involved in the way aircraft are sold. Boeing typically prices its aircraft only in dollars, while Airbus, although pricing most aircraft sales in dollars, has been known to be more flexible and has priced some aircraft sales in Asia and the Middle East in multiple currencies. Depending on currency fluctuations between the acceptance of the order and the delivery of the aircraft this can result in an extra profit or extra expense—or, if Airbus has purchased insurance against such fluctuations, an additional cost regardless.^[41]

Safety and quality

Both aircraft manufacturers have good safety records on recently manufactured aircraft and generally, both firms have a positive reputation of delivering well-engineered and high-quality products.^[42][43] By convention, both companies tend to avoid safety comparisons when selling their aircraft to airlines or comparisons on product quality. Most aircraft dominating the companies' current sales, the Boeing 737-NG and Airbus A320 families and both companies' wide-body offerings, have good safety records. Older model aircraft such as the Boeing 707, Boeing 727, Boeing 737-100/-200, Boeing 747-100/SP/200/300, Airbus A300, and Airbus A310, which were respectively first flown during the 1960s, 1970s, and 1980s, have had higher rates of fatal accidents.^[44] According to Airbus' John Leahy, the Boeing 787 Dreamliner battery problems will not cause customers to switch airplane suppliers.^[45]

Aircraft prices

Airbus and Boeing publish list prices for their aircraft but the actual prices charged to airlines vary; they can be difficult to determine and tend to be much lower than the list prices. Both manufacturers are engaged in a price competition to defend their market share.^[46]

However, the actual transaction prices may be as much as 50% less than the list prices, as reported in 2012 in the Wall Street Journal, giving some examples from the Flight International subsidiary Ascend:^[47]

Model	List price 2012, US$M	Market price	% Discount
Boeing 737-800	84	41	51%
Boeing 737-900ER	90	45	50%
Boeing 777-300ER	298	149	50%
Airbus A319	81	30	63%
Airbus A320	88	40	55%
Airbus A330-200	209	84	60%

In May 2013, Forbes magazine reported that the Boeing 787 offered at $225 million was selling at an average of $116m, a 48% discount.^[48]

Those discounts were presented again in Le Nouvel Observateur's Challenges.fr again with Ascend valuations in 2013:^[49]

Model	List price 2013	Market price	Discount
Boeing 747-8	351.4	145.0	59%
Airbus A320-200	91.5	38.75	58%
Airbus A330-200	239.4	99.5	58%
Boeing 737-800	89.1	41.8	53%
Boeing 777-300ER	315.0	152.5	52%
Airbus A380	403.9	193.0	52%
Airbus A320neo	100.2	49.2	51%
Boeing 737 MAX-8	100.5	51.4	49%
Boeing 787-8	206.8	107.0	48%
Airbus A350-900	287.7	152.0	47%

In 2014, Airways news indicated discounted list prices for long haul liners :^[50]

Model	List price 2014	Market price	Discount
Airbus A330-900neo	275.6	124.0	55%
Airbus A350-900	295.2	159.4	46%
Boeing 777-200LR	296.0	118.4	60%
Boeing 787-9	249.5	134.7	46%

On 24 December 2014, Transasia Airways announced a commitment to four A330-800neos, list price $241.7m, for $480m or $120m each.^[51] At the end of 2015, the sale and leaseback of new Airbus A350-900 from GECAS to Finnair value them at €132.5M ($144M)^[52]

In order to close the production gap between the B777 classic and the new 777X, Boeing is challenged by a $120m market price for the -300ERs. Competitive pressure from the Bombardier CSeries and E-Jet E2 lead Boeing to pursue the development of the 737 MAX-7 despite low sales,^[53] and to sell the Boeing 737-700 at $22m to United Airlines, 27% of the 2015 list price and well below what Embraer or Bombardier could offer for their aircraft.^[54]

Moody’s Investors Service estimates Delta Air Lines paid $40 million each for its 37 A321 ceo order on 29 April 2016, an "end-of-the-line model pricing" of 35% of the $114.9 million list price.^[55] Likewise, Air Caraïbes subsidiary French Blue received its A330-300 for $100 million in September 2016.^[56]

May 2016 market prices^[57]

Aircraft	List ($m)	Mkt Value ($m)	Discount	Seats	Mkt/Seat
A380	432.6	236.5	45%	544	434743
B777-300ER	339.6	154.8	54%	368	420652
A350-900	308.1	150.0	51%	325	461538
B787-9	264.6	142.8	46%	290	492414
B787-8	224.6	117.1	48%	242	483884
A330-300	256.4	109.5	57%	277	395307
A330-200	231.5	86.6	63%	247	350607
A321	114.9	52.5	54%	185	283784
A320neo	107.3	48.5	55%	165	293939
B737-900ER	101.9	48.1	53%	174	276437
B737-800	96.0	46.5	52%	160	290625
A320	98.0	44.4	55%	150	296000
A319	89.6	37.3	58%	124	300806
B737-700	80.6	35.3	56%	128	275781

Effect of competition on product plans

The A320 has been selected by 222 operators (Dec. 2008), among these several low-cost operators, gaining ground against the previously well established 737 in this sector; it has also been selected as a replacement for 727s and aging 737s by many full-service airlines such as Star Alliance members United Airlines, Air Canada and Lufthansa. After dominating the very large aircraft market for four decades, the Boeing 747 now faces a challenge from the A380. In response, Boeing now offer the stretched and updated 747-8, with greater capacity, fuel efficiency, and longer range. Frequent delays to the Airbus A380 program caused several customers to consider cancelling their orders in favour of the refreshed 747-8.^[58] However, all orders for the A380F freight variant have been cancelled. To date, Boeing has secured orders for 78 747-8F and 51 747-8I aircraft with first deliveries originally scheduled for 2011 and 2012 as the 747-8I is only in service with Lufthansa, while Airbus has orders for 318 A380s, the first of which entered service in 2007 and has delivered a total of 152 to customers (as of December 31, 2014).

Several Boeing projects were pursued and then cancelled, for example the Sonic Cruiser. Boeing's current platform for fleet rejuvenation is the Boeing 787 Dreamliner, which uses technology from the Sonic Cruiser concept.

Boeing initially ruled out producing a re-engined version of its 737 to compete with the Airbus A320neo family launch planned for 2015, believing airlines would be looking towards the Boeing Y1 and a 30% fuel saving, instead of paying 10% more for fuel efficiency gains of only a few percent. Industry sources believe that the 737's design makes re-engining considerably more expensive for Boeing than it was for the Airbus A320. However, there did prove to be considerable demand. Southwest Airlines, who use the 737 for their entire fleet (680 in service or on order), said they were not prepared to wait 20 years or more for a new 737 model and threatened to convert to Airbus.^[59] Boeing eventually bowed to airline pressure and in 2011 approved the 737 MAX project, scheduled for first delivery in 2017.

Orders and deliveries

It took Boeing 42 years and 1 month to deliver its 10,000 7series aircraft (October 1958-November 2000) and, 42 years and 5 months for Airbus to achieve the same milestone (May 1974-October 2016).^[60] Boeing deliveries considerably exceeded that of Airbus throughout the 1980s. In the 1990s this lead narrowed significantly but Boeing remained ahead of Airbus. In the 2000s Airbus assumed the lead in narrow-body aircraft. By 2010 little difference remained between Airbus and Boeing in both the wide-body or narrow-body categories or the range on offer.

Orders^[61][62]

	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993	1992	1991	1990	1989
Airbus	395	1080	1456	1503	833	1419	574	271	777	1341	790	1055	370	284	300	375	520	476	556	460	326	106	125	38	136	101	404	421
Boeing	459	768	1432	1355	1203	805	530	142	662	1413	1044	1002	272	239	251	314	588	355	606	532	664	379	112	220	230	240	456	563
Sources: Airbus Orders & deliveries until October 31, 2016 Boeing orders until November 8, 2016

Deliveries

	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993	1992	1991	1990	1989
Airbus	516	635	629	626	588	534	510	498	483	453	434	378	320	305	303	325	311	294	229	182	126	124	123	138	157	163	95	105
Boeing	617	762	723	648	601	477	462	481	375	441	398	290	285	281	381	527	491	620	563	346	219	207	272	330	446	435	385	491
Sources: Airbus Orders & deliveries until October 31, 2016 Boeing deliveries until October 31, 2016 The former McDonnell Douglas MD-80, the MD-90 and the MD-11 are included in Boeing deliveries since MD's August 1997 merger with Boeing.

Orders and deliveries by product

Civil airplanes	2015 Deliveries		2015 Orders		2015 Backlog		Historical Deliveries *
	Airbus	Boeing	Airbus	Boeing	Airbus	Boeing	Airbus	Boeing
single aisle								1010 707
single aisle								155 717
single aisle								1831 727
single aisle	491 A320	495 737	945 A320	588 737	5583 A320 family	4392 737	6876 A320	8845 737
single aisle								1049 757
widebody		16 767		49 767		80 767	561 A300 255 A310	1083 767
widebody	103 A330	98 777	136 A330	58 777	346 A330	524 777	1257 A330 377 A340	1361 777
widebody	14 A350	135 787	-3 A350	71 787	762 A350	779 787	15 A350	363 787
widebody	27 A380	18 747	2 A380	2 747	140 A380	20 747	179 A380	1519 747
Total	635	762	1080	768	6831	5795	9520	17216
*Historical deliveries are all jet airliners from Boeing since 1958 and Airbus since 1974 until 31 December 2015
Boeing [65]					Airbus [66]

Deliveries by year and product (through September 30, 2016)

	707	717	727	737	747	757	767	777	787	Boeing[67]	A300	A310	A320	A330	A340	A350	A380	Airbus
1974	21		91	55	22					189	4							4
1975	7		91	51	21					170	8							8
1976	9		61	41	27					138	13							13
1977	8		67	25	20					120	15							15
1978	13		118	40	32					203	15							15
1979	6		136	77	67					286	26							26
1980	3		131	92	73					299	39							39
1981	2		94	108	53					257	38							38
1982	8		26	95	26	2	20			177	46							46
1983	8		11	82	22	25	55			203	19	17						36
1984	8		8	67	16	18	29			146	19	29						48
1985	3			115	24	36	25			203	16	26						42
1986	4			141	35	35	27			242	10	19						29
1987	9			161	23	40	37			270	11	21						32
1988				165	24	48	53			290	17	28	16					61
1989	5			146	45	51	37			284	24	23	58					105
1990	4			174	70	77	60			385	19	18	58					95
1991	14			215	64	80	62			435	25	19	119					163
1992	5			218	61	99	63			446	22	24	111					157
1993				152	56	71	51			330	22	22	71	1	22			138
1994	1			121	40	69	41			272	23	2	64	9	25			123
1995				89	25	43	37	13		207	17	2	56	30	19			124
1996				76	26	42	43	32		219	14	2	72	10	28			126
1997				135	39	46	42	59		321	6	2	127	14	33			182
1998				282	53	54	47	74		510	13	1	168	23	24			229
1999		12		320	47	67	44	83		573	8		222	44	20			294
2000		32		282	25	45	44	55		483	8		241	43	19			311
2001		49		299	31	45	40	61		525	11		257	35	22			325
2002		20		223	27	29	35	47		381	9		236	42	16			303
2003		12		173	19	14	24	39		281	8		233	31	33			305
2004		12		202	15	11	9	36		285	12		233	47	28			320
2005		13		212	13	2	10	40		290	9		289	56	24			378
2006		5		302	14		12	65		398	9		339	62	24			434
2007				330	16		12	83		441	6		367	68	11		1	453
2008				290	14		10	61		375			386	72	13		12	483
2009				372	8		13	88		481			402	76	10		10	498
2010				376			12	74		462			401	87	4		18	510
2011				372	9		20	73	3	477			421	87			26	534
2012				415	31		26	83	46	601			455	101	2		30	588
2013				440	24		21	98	65	648			493	108			25	626
2014				485	19		6	99	114	723			490	108		1	30	629
2015				495	18		16	98	135	762			491	103		14	27	635
2016				368	8		10	73	104	563			380	40		26	16	462
Total (All-time)	1010	155	1831	9213	1527	1049	1093	1434	467	17779	561	255	7256	1297	377	41	195	9982
	707	717	727	737	747	757	767	777	787		A300	A310	A320	A330	A340	A350	A380

Deliveries by Continent and fuselage type (through December 31, 2015)

Airliner	Europe		North America		Latin America & Caribbean		Asia Pacific		Middle East		Africa		Leasing Companies		VIP-Gov-Others		Total
	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body	Narrow-body	Wide-body
707	139		582		21		73		37		31				127		1010
717	9		125				10						11				155
727	210		1301		89		106		36		54		25		10		1831
737 Original	284		455		60		138		44		94		34		35		1144
737 Classic	457		691		18		276				27		513		6		1988
737NG	1046		1494		205		1305		74		131		1201		257		5713
737 MAX
A320ceo	1548		953		491		1576		200		103		1889		116		6876
A320neo
757	172		634				83		10		7		137		6		1049
767		115		434		60		264		28		19		149		14	1083
A300		101		179		9		187		32		28		22		3	561
A310		114		39		4		48		27		13		7		3	255
777		177		205		12		515		219		28		195		10	1361
777X
A330ceo		183		86		39		441		112		33		326		37	1257
A330neo
A340		179		10		4		80		35		22		33		14	377
787		45		50		22		153		33		21		34		5	363
A350		3				1				7				4			15
747		366		280		13		637		63		31		14		14	1418
747-8		40		10				41								10	101
A380		34						62		83							179
Total	3865	1357	6235	1293	884	164	3567	2428	401	639	447	195	3810	784	557	110	26736

Boeing ^[68] Airbus ^[69]

Deliveries by decade and fuselage type (through Dec 31, 2015)

	Narrow-body	Wide-body	Boeing[67]	Narrow-body	Wide-body	Airbus	Ratio B:A
1980s	1747	624	2371	74	402	476	4.98:1
1990s	2466	1232	3698	1068	563	1631	2.27:1
2000s	2974	966	3940	2983	827	3810	1.03:1
2010s	2583	1090	3673	2751	771	3522	1.04:1
Total	12890	4326	17216	6876	2644	9520

Commercial airliners still in operation

	707	717	727	737	747	757	767	777	787	Boeing[67]	A300	A310	A320	A330	A340	A350	A380	Airbus	Ratio B:A
2006	68	155	620	4328	989	996	862	575		8593	408	199	2761	418	306			4092	2.09:1
2007	63	155	561	4583	985	1000	880	640		8867	392	193	3095	481	330			4491	1.97:1
2008	61	154	500	4761	955	980	873	714		8998	387	194	3395	533	330		4	4843	1.86:1
2009	58	142	442	4928	947	970	864	780		9131	376	188	3737	607	345		16	5269	1.73:1
2010	39	147	398	5153	915	945	863	858		9318	348	160	4092	675	342		30	5647	1.65:1
2011	10	130	250	5177	736	898	837	924		8962	296	121	4392	766	332		50	5957	1.50:1
2012	2	143	169	5357	690	860	838	1017	15	9091	262	102	4803	848	312		76	6403	1.42:1
2013		148	109	5458	627	855	821	1094	68	9180	234	84	5170	927	298		106	6819	1.35:1
2014		154	87	5782	585	812	795	1188	163	9564	216	71	5632	1020	266		136	7341	1.30:1
2015		136	69	6135	571	738	765	1265	286	9965	207	62	6050	1095	227	5	167	7813	1.28:1
2016		154	64	6512	515	688	742	1324	423	10422	210	47	6510	1154	196	29	193	8339	1.25:1
	707	717	727	737	747	757	767	777	787		A300	A310	A320	A330	A340	A350	A380
World Airliner Census 2006 [70] 2007 [71] 2008 [72] 2009 [73] 2010 [74][75] 2011 [76] 2012 [77] 2013 [78] 2014 [79][80] 2015 [81] 2016[82][83]

Controversies

Subsidies

Boeing has continually protested over launch aid in the form of credits to Airbus, while Airbus has argued that Boeing receives illegal subsidies through military and research contracts and tax breaks.^[84]

In July 2004, Harry Stonecipher (then CEO of Boeing) accused Airbus of abusing a 1992 bilateral EU-US agreement regarding large civil aircraft support from governments. Airbus is given reimbursable launch investment (RLI, called "launch aid" by the US) from European governments with the money being paid back with interest, plus indefinite royalties if the aircraft is a commercial success.^[85] Airbus contends that this system is fully compliant with the 1992 agreement and WTO rules. The agreement allows up to 33 per cent of the program cost to be met through government loans which are to be fully repaid within 17 years with interest and royalties. These loans are held at a minimum interest rate equal to the cost of government borrowing plus 0.25%, which would be below market rates available to Airbus without government support.^[86] Airbus claims that since the signing of the EU-U.S. agreement in 1992, it has repaid European governments more than U.S.$6.7 billion and that this is 40% more than it has received.

Airbus argues that pork barrel military contracts awarded to Boeing (the second largest U.S. defence contractor) are in effect a form of subsidy (see the Boeing KC-767 vs EADS (Airbus) KC-45 military contracting controversy). The U.S. government support of technology development via NASA also provides support to Boeing. In its recent products such as the 787, Boeing has also received support from local and state governments.^[87] Airbus' parent, EADS, itself is a military contractor, and is paid to develop and build projects such as the Airbus A400M transport and various other military aircraft.^[88]

In January 2005, European Union and United States trade representatives Peter Mandelson and Robert Zoellick agreed to talks aimed at resolving the increasing tensions. These talks were not successful, with the dispute becoming more acrimonious rather than approaching a settlement.

World Trade Organization litigation

On 31 May 2005 the United States filed a case against the European Union for providing allegedly illegal subsidies to Airbus. Twenty-four hours later the European Union filed a complaint against the United States protesting support for Boeing.^[90]

Increased tensions, due to the support for the Airbus A380, escalated toward a potential trade war as the launch of the Airbus A350 neared. Airbus preferred the A350 program to be launched with the help of state loans covering a third of the development costs, although it stated it will launch without these loans if required. The A350 will compete with Boeing's most successful project in recent years, the 787 Dreamliner. EU trade officials questioned the nature of the funding provided by NASA, the Department of Defense, and in particular the form of R&D contracts that benefit Boeing; as well as funding from US states such as Washington, Kansas, and Illinois, for the development and launch of Boeing aircraft, in particular the 787.^[91] An interim report of the WTO investigation into the claims made by both sides was made in September 2009.^[92]

In September 2009, the New York Times and Wall Street Journal reported that the World Trade Organization would likely rule against Airbus on most, but not all, of Boeing's complaints; the practical effect of this ruling would likely be blunted by the large number of international partners engaged by both plane makers, as well as the expected delay of several years of appeals. For example, 35% of the Boeing 787 Dreamliner is manufactured in Japan. Thus, some experts are advocating a negotiated settlement.^[93] In addition, the heavy government subsidies offered to automobile manufacturers in the United States have changed the political environment; the subsidies offered to Chrysler and General Motors dwarf the amounts involved in the Airbus-Boeing dispute.^[94]

In March 2010, the WTO ruled that European governments unfairly financed Airbus.^[95] In September 2010, a preliminary report of the WTO found unfair Boeing payments broke WTO rules and should be withdrawn.^[96] In two separate findings issued in May 2011, the WTO found, firstly, that the US defence budget and NASA research grants could not be used as vehicles to subsidise the civilian aerospace industry and that Boeing must repay $5.3 billion of illegal subsidies.^[97] Secondly, the WTO Appellate Body partly overturned an earlier ruling that European Government launch aid constituted unfair subsidy, agreeing with the point of principle that the support was not aimed at boosting exports and some forms of public-private partnership could continue. Part of the $18bn in low interest loans received would have to be repaid eventually; however, there was no immediate need for it to be repaid and the exact value to be repaid would be set at a future date.^[98] Both parties claimed victory in what was the world's largest trade dispute.^{[99][100][101]}

On 1 December 2011 Airbus reported that it had fulfilled its obligations under the WTO findings and called upon Boeing to do likewise in the coming year.^[102] The United States did not agree and had already begun complaint procedures prior to December, stating the EU had failed to comply with the DSB's recommendations and rulings, and requesting authorisation by the DSB to take countermeasures under Article 22 of the DSU and Article 7.9 of the SCM Agreement. The European Union requested the matter be referred to arbitration under Article 22.6 of the DSU. The DSB agreed that the matter raised by the European Union in its statement at that meeting be referred to arbitration as required by Article 22.6 of the DSU however on 19 January 2012 the US and EU jointly agreed to withdraw their request for arbitration.^[103]

On 12 March 2012 the appellate body of the WTO released its findings confirming the illegality of subsidies to Boeing whilst confirming the legality of repayable loans made to Airbus. The WTO stated that Boeing had received at least $5.3 billion in illegal cash subsidies at an estimated cost to Airbus of $45 billion. A further $2 billion in state and local subsidies that Boeing is set to receive have also been declared illegal. Boeing and the US government were given six months to change the way government support for Boeing is handled.^[104] At the DSB meeting on 13 April 2012, the United States informed the DSB that it intended to implement the DSB recommendations and rulings in a manner that respects its WTO obligations and within the time-frame established in Article 7.9 of the SCM Agreement. The European Union welcomed the US intention and noted that the 6-month period stipulated in Article 7.9 of the SCM Agreement would expire on 23 September 2012. On 24 April 2012, the European Union and the United States informed the DSB of Agreed Procedures under Articles 21 and 22 of the DSU and Article 7 of the SCM Agreement.^[105]

On 25 September 2012 the EU requested discussions with the USA, because of the alleged non compliance of the US and Boeing with the WTO ruling of 12 March 2012. On 27 September 2012 the EU requested the WTO to approve EU countermeasures against USA's subsidy of Boeing. The WTO approved creating a panel to rule on the disputed compliance this was initially to rule in 2014 but is not now expected to complete its work before 2016 due to the complexity of the case. The EU wants permission to place trade sanctions of up to 12 billion US$ annually against the USA. The EU believes this amount represents the damage the illegal subsidies of Boeing cause to the EU.^[106][107]

On 19 December 2014 the EU requested WTO mediated consultations with the US over the tax incentives given by the state of Washington to large civil aircraft manufacturers which they believed violated the earlier WTO ruling, on 22 April 2015 at the request of the EU a WTO panel was set up to rule on the complaint.^[108] The tax incentives given by the state of Washington and believed to be the largest in US history^[109] surpassing the previous record of $5.6bn over 30 years awarded by the state of New York to the aluminum producer Alcoa in 2007. The $8.7bn over 40 years incentive to Boeing to manufacture the 777X in the state includes $4.2bn from a 40% reduction in business taxes, £3.5bn in tax credits for the firm, a $562m tax credit on property and buildings belonging to Boeing, a $242m sales tax exemption for buying computers and $8m to train 1000 workers,^[110] Airbus alleges this is larger than the budgeted cost of Boeings 777X development program and the EU argues amounts to an entire publicly funded free aircraft program for Boeing, the legislation was an extension of the duration of a tax break program given to Boeing for Dreamliner development that had already been ruled illegal by the WTO in 2012.^[111] Boeing defends the allegation by arguing the subsidies are available to anyone however for an aircraft to qualify for the tax breaks a company must manufacture aircraft wings and perform all final assembly for an aircraft model or variant exclusively in the state.^[112]

See also

• Airbus Corporate Jets
• Boeing Commercial Airplanes
• Competition in the Regional jet market
• List of civil aircraft

Notes

References

1. ↑ Airlines Industry Profile: United States, Datamonitor, November 2008, pp. 13–14
2. 1 2 3 "Family figures" (PDF). Airbus. March 2016. 
3. ↑ "737 MAX". Boeing. 
4. 1 2 3 "aircraft list prices". Airbus. 2016. 
5. 1 2 3 "Commercial Airplanes prices". Boeing. 
6. ↑ "ANALYSIS: A320neo vs. 737 MAX: Airbus is Leading (Slightly) – Part I". Airways News. January 27, 2016. 
7. ↑ "Flight Fleet Forecast's single-aisle outlook 2016-2035". Flight Global. 16 August 2016. 
8. ↑ "787 Dreamliner". Boeing. 
9. ↑ "777X". Boeing. 
10. ↑ "747-8". Boeing. 
11. ↑ "Flight Fleet Forecast Summary". Flight Global. 2016. 
12. ↑ "Ascend widebody fleet forecast". Flight Global. 13 October 2016. 
13. ↑ "Boeing, partners expected to scrap Super-Jet study". Los Angeles Times. 10 July 1995. Retrieved 30 December 2011. 
14. ↑ "Boeing 747-8 Family background". boeing.com. 2005-11-14. Retrieved 2011-05-21. 
15. ↑ "SIA's Chew: A380 pleases, Virgin Atlantic disappoints". ATW Online. 13 December 2007. Archived from the original on 15 December 2007. Retrieved 13 December 2007. 
16. ↑ Flottau, Jens (21 November 2012). "Emirates A350-1000 Order 'In Limbo'". Aviation Week. Retrieved 22 November 2012. Clark points out that “the faster you fly [the A380], the more fuel-efficient she gets; when you fly at [Mach] 0.86 she is better than at 0.83.” 
17. ↑ "Updating the A380: the prospect of a neo version and what's involved". 2014-02-03. Retrieved 2014-06-29. 
18. ↑ "A380 family presskit". 2012-01-01. Retrieved 2012-02-08. 
19. ↑ Saporito, Bill (23 November 2009). "Can the A380 Bring the Party Back to the Skies?". TIME magazine. Archived from the original on 19 September 2010. Retrieved 21 September 2010. 
20. ↑ "The A380 global fleet spreads its wings as deliveries hit the 'century mark'". Airbus, 14 March 2013.
21. ↑ "British Airways and Emirates will be first for new longer-range A380". flightglobal.com. Retrieved 2011-05-21. 
22. ↑ "Orders & Deliveries". Airbus.com. Retrieved 22 November 2015. 
23. ↑ Quentin Wilber, Dell (8 November 2006). "Airbus bust, Boeing boost". The Washington Post. Retrieved 30 December 2011. 
24. ↑ Robertson, David. "Airbus will lose €4.8bn because of A380 delays", Time, 3 October 2006.
25. ↑ Schwartz, Nelson D. "Big plane, big problems", CNN, 1 March 2007.
26. ↑ NY Times: Airbus Cuts Delivery Goal for A380 Jumbo Jets
27. ↑ WSJ: Airbus Cuts A380 Production Plans
28. ↑ "747 model summary". boeing.com. Retrieved 3 August 2014. 
29. ↑ "Air tanker deal provokes US row, BBC, 1 March 2008". BBC News. 2008-03-01. Retrieved 2011-05-21. 
30. ↑ "The USAF's KC-X Aerial Tanker RFP: Canceled". Defense Industry Daily. 13 March 2011. 
31. ↑ Leeham News and Comment: How will Boeing profit from tanker contract?, 12-7-2011, visited: 3-2-2012
32. ↑ Broken link: missing 3-2-2012
33. ↑ A1 Blog: Mc Cain blasts Boeing overruns
34. ↑ Defensenews.com: Boeing Lowers KC-46 Cost Estimate, 27-7-2011, visited: 3-2-2012
35. ↑ Gates, Dominic (March 1, 2010). "Albaugh: Boeing's 'first preference' is to build planes in Puget Sound region". The Seattle Times. Retrieved 2010-06-16. 
36. ↑ "Airbus' China gamble". Flight International. October 28, 2008. Retrieved 2008-11-15. 
37. ↑ "Qatar Airways A350 XWB factsheet". Airbus. Airbus. Retrieved 28 September 2016. 
38. ↑ Thomas, Geoffrey (April 4, 2008). "Engines the thrust of the Boeing-Airbus battle". The Australian. Retrieved 2008-11-08. 
39. ↑ "ANALYSIS: Rolls and Airbus – how the latecomer excelled". Flightglobal.com. 
40. ↑ "GE In, Rolls Out As Boeing Seeks 777X Approval". aviationweek.com. 
41. ↑ "Strong Euro Weighs on Airbus, Suppliers". Wall Street Journal: B3. October 30, 2009. 
42. ↑ Muellerleile, Christopher M (2009). "Financialization takes off at Boeing". Journal of Economic Geography. doi:10.1093/jeg/lbp025. Boeing’s engineers [...] tended to be first and foremost concerned with safety and quality. This contributed to Boeing’s solid reputation 
43. ↑ Gray, Edmund R.; Balmer, John MT (1998). "Managing corporate image and corporate reputation". Long Range Planning. 31.5. doi:10.1016/S0024-6301(98)00074-0. Airbus [...] enjoys a high-profile image and positive reputation 
44. ↑ "Statistical Summary of Commercial Jet Airplane Accidents - Worldwide Operations - 1959–2015" (PDF). Boeing. July 2016. 
45. ↑ Robert Wall & Andrea Rothman (17 January 2013). "Airbus Says A350 Design Is 'Lower Risk' Than Troubled 787". Bloomberg. Retrieved 17 January 2013. I don't believe that anyone's going to switch from one airplane type to another because there's a maintenance issue," Leahy said. "Boeing will get this sorted out. 
46. ↑ TIM HEPHER (9 July 2012). "How plane giants descended into global 'price war'". Reuters. 
47. ↑ DANIEL MICHAELS (9 July 2012). "The Secret Price of a Jet Airliner". Wall Street Journal. 
48. ↑ Agustino Fontevecchia (21 May 2013). "Boeing Bleeding Cash As 787 Dreamliners Cost $200M But Sell For $116m, But Productivity Is Improving". Forbes. 
49. ↑ Vincent Lamigeon (13 June 2013). "Le vrai prix des avions d'Airbus et de Boeing" (in French). Challenges.fr. 
50. ↑ Vinay Bhaskara (November 25, 2014). "UPDATED ANALYSIS: Delta Order for A350; A330neo Hinged on Pricing, Availability". Airways News. 
51. ↑ DAVID KAMINSKI-MORROW (24 December 2014). "TransAsia to take four A330-800neo jets". Flight Global. 
52. ↑ "Finnair has entered into a memorandum of understanding on the sale and leaseback of two A350 aircraft" (Press release). Finnair. 2015-12-23. 
53. ↑ "In strategy shift, Boeing backs 7 MAX: sources". Leeham news and comment. 22 February 2016. 
54. ↑ "Boeing Gives United A Smoking Deal On 737s To Block Bombardier From Gaining Traction". Forbes. 8 March 2016. 
55. ↑ "ANALYSIS: Delta sees long upgauge runway ahead with A321s". Flightglobal. 2 May 2016. 
56. ↑ "Premier vol français (et vendéen) low-cost long courrier" (in French). Ouest France. 13 September 2016. 
57. ↑ "Aircraft Pricing - List vs. market". Airinsight. May 16, 2016. 
58. ↑ Robertson, David (October 4, 2006). "Airbus will lose €4.8bn because of A380 delays". London: The Times Business News. 
59. ↑ Associated, The (2011-01-20). "Southwest waiting to hear Boeing's plan for 737". BusinessWeek. Retrieved 2013-02-16. 
60. ↑ "How Airbus went from zero to 10,000". Flight Global. 14 October 2016. 
61. ↑ Sources 2015: Airbus net orders until December 31, 2015
62. ↑ update on 2015 Airbus net orders
63. ↑ Airbus.com
64. ↑ Boeing.com
65. ↑ "The Boeing Company". Active.boeing.com. Retrieved 2014-02-06. 
66. ↑ "Orders & deliveries". Airbus.com. 2016-01-16. Retrieved 2016-01-16. 
67. 1 2 3 Time Period Reports. boeing.com
68. ↑ "Boeing". boeing.com. 
69. ↑ "Orders & deliveries". airbus. 
70. ↑ http://www.flightglobal.com/assets/getAsset.aspx?ItemID=14954
71. ↑ http://www.flightglobal.com/assets/getAsset.aspx?ItemID=18906
72. ↑ http://www.flightglobal.com/assets/getasset.aspx?ItemID=24736
73. ↑ https://upload.wikimedia.org/wikipedia/commons/4/41/World_Airliner_Census_2009.pdf
74. ↑ https://www.flightglobal.com/assets/getAsset.aspx?ItemID=35827
75. ↑ "Airliner Census 2010 – fleet growth marginal and idle jets at record high". Flight Global. 2010-08-23. Retrieved 2014-02-06. 
76. ↑ https://upload.wikimedia.org/wikipedia/commons/f/f9/World_Airliner_Census_2011.pdf
77. ↑ https://upload.wikimedia.org/wikipedia/commons/8/80/World_Airliner_Census_2012.pdf
78. ↑ https://upload.wikimedia.org/wikipedia/commons/6/67/WorldAirlinerCensus2013.pdf
79. ↑ "ANALYSIS: The changing size and shape of the world airliner fleet". Flightglobal.com. 
80. ↑ https://d1fmezig7cekam.cloudfront.net/VPP/Global/WorldAirlinerCensus2014.pdf
81. ↑ https://d1fmezig7cekam.cloudfront.net/VPP/Global/Flight/fint-archive/feature-images/AirlinerCensus2015.pdf
82. ↑ https://www.flightglobal.com/asset/12798
83. ↑ https://www.flightglobal.com/news/articles/analysis-flightglobal-airliner-census-reveals-fleet-428019/
84. ↑ "Don't Let Boeing Close The Door On Competition" (PDF). Retrieved 2011-01-09. 
85. ↑ O'Connell, Dominic; Porter, Andrew (29 May 2005). "Trade war threatened over £379m subsidy for Airbus". The Times. London. Archived from the original on 14 January 2006. Retrieved 22 October 2014. 
86. ↑ "Q&A: Boeing and Airbus". BBC News. 7 October 2004. Retrieved 22 October 2014. 
87. ↑ "See you in court". The Economist. 23 March 2005. 
88. ↑ "EADS Military Air Systems Website, retrieved September 3, 2009". eads.net. 2011-05-13. Retrieved 2011-05-21. 
89. ↑ "EU, US face off at WTO in aircraft spat". Defense Aerospace. 31 May 2005. 
90. ↑ "Flare-up in EU-US air trade row". BBC News. 31 May 2005. Retrieved 2010-01-02. 
91. ↑ Milmo, Dan (14 August 2009). "US accuse Britain of stoking trade row with £340m Airbus loan". London: The Guardian. 
92. ↑ "US refuses to disclose WTO ruling on Boeing-Airbus row". EU Business. 5 September 2009. 
93. ↑ Clark, Nicola (2009-09-03). "W.T.O. to Weigh In on E.U. Subsidies for Airbus, New York Times, September 3, 2009, retrieved September 3, 2009". Europe;United States: nytimes.com. Retrieved 2011-05-21. 
94. ↑ Boeing Set for Victory Over Airbus in Illegal Subsidy Case, Wall Street Journal, September 3, 2009, p.A1
95. ↑ "WTO says Europe subsidises Airbus, Boeing's rival, unfairly". USA Today. 3 March 2010. Retrieved 2010-06-16. 
96. ↑ "EU claims victory in WTO case versus Boeing". Paris: Reuters. 15 September 2010. 
97. ↑ Freedman, Jennifer M. "WTO Says U.S. Gave at Least $5.3 Billion Illegal Aid to Boeing". Bloomberg. Retrieved 2011-05-21. 
98. ↑ "BBC News: WTO Airbus ruling leaves both sides claiming victory". bbc.co.uk. 2011-04-19. Retrieved 2011-05-21. 
99. ↑ Lewis, Barbara (2011-05-19). "WTO gives mixed verdict on Airbus appeal". Reuters. Retrieved 2011-05-21. 
100. ↑ "WTO final ruling: Decisive victory for Europe". LogisticsWeek. 2011-03-25. Retrieved 2011-05-21. 
101. ↑ Khimm, Suzy (2011-05-17). "U.S. claims victory in Airbus-Boeing case". The Washington Post. Retrieved 2011-05-21. 
102. ↑ "Airbus satisfy WTO obligations". 
103. ↑ "European Communities — Measures Affecting Trade in Large Civil Aircraft". 
104. ↑ "Sweeping Loss for Boeing in WTO Appeal". Airbus.com. 2014-01-16. Retrieved 2014-02-06. 
105. ↑ "United States — Measures Affecting Trade in Large Civil Aircraft — Second Complaint". 
106. ↑ "WTO Boeing case: EU requests to impose countermeasures against the US". European Commission. 2012-09-27. Retrieved 2012-09-28. 
107. ↑ "Next chapter in eight year old WTO conflict: Boeing's WTO Default Prompts $ 12 Bn in Annual Sanctions". Airbus. 2012-09-27. Retrieved 2012-09-28. 
108. ↑ https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds487_e.htm
109. ↑ Reid Wilson (12 November 2013). "Washington just awarded the largest state tax subsidy in U.S. history". Washington Post. 
110. ↑ Jon Ostrower (10 December 2013). "Boeing Holds Bake-Off for Biggest Tax Breaks". WSJ. 
111. ↑ "Exclusive: EU may challenge $8.7 billion U.S. tax breaks in Boeing-Airbus trade dispute - sources". Reuters UK. 
112. ↑ "Washington state's Boeing tax breaks are illegal, Europe charges". mcclatchydc. 

Bibliography

• Newhouse, John (2007), Boeing versus Airbus, USA: Vintage Books, ISBN 978-1-4000-7872-1 

External links

• Official Airbus website
• Official Boeing website
• Official Airbus Military website
• Complete production lists of all Airbus models
• BBC Q&A: Boeing and Airbus