Airbus remains modest while Boeing struggles; Here’s why | Global News

In the ongoing battle for dominance in the commercial aircraft industry, Europe’s Airbus has established a clear lead over its American rival Boeing. Airbus has been outpacing Boeing for five consecutive years in plane orders and deliveries, with a recent 28 per cent increase in quarterly net profit.

The European company’s success can be attributed to its development of fuel-efficient, mid-sized aircraft that are more cost-effective for airlines. In contrast, Boeing has been facing manufacturing problems and ongoing safety concerns, leading to a government-mandated production cap on its best-selling plane, the 737 Max.

Despite Airbus’ current advantage, analysts believe that the company may not be able to extend its lead much further due to manufacturing constraints and a backlog of over 8,600 orders. Boeing, on the other hand, has a backlog of more than 5,660 commercial planes, creating a mismatch between demand and supply in the post-COVID market.

Boeing’s recent troubles, including a decline in aircraft deliveries and compensation for a temporary grounding of the Max 9, have further hindered its recovery from previous crashes. In contrast, Airbus has been cautious in its approach to the situation, emphasizing safety, quality, and compliance in any production expansions.

While Airbus has been making strategic moves to capitalize on Boeing’s setbacks, including securing leases with United Airlines, the company remains humble in its success. With both companies facing challenges in meeting demand, the commercial aircraft industry continues to be a two-company race for now, with analysts predicting no strong competitor emerging for years to come.