In the ongoing battle for commercial aircraft supremacy, Airbus has taken the lead over Boeing (NYSE:BA), buoyed by a series of manufacturing successes and continued growth. Despite Boeing’s challenges, Airbus remains cautious about its position in the duopoly.
Airbus has outpaced Boeing in plane orders and deliveries for five consecutive years, reporting a 28% quarterly increase in net profit. It’s gaining market share with fuel-efficient aircraft and maintaining a backlog of over 8,600 orders.
However, Airbus’ ability to capitalize on Boeing’s setbacks is limited by its own production constraints and supply chain challenges. With both companies operating at maximum capacity, Airbus can’t fully exploit Boeing’s difficulties to gain more market share.
Boeing faces government-mandated production caps and financial losses due to manufacturing issues and safety concerns. Its recent setback with the 737 Max 9 adds to ongoing challenges since the crashes in 2018 and 2019.
Airbus, despite its success, remains humble and cautious. CEO Guillaume Faury emphasizes safety and quality while acknowledging the industry’s challenges. Airbus and Boeing rely on complex supply chains, making it difficult for either to swoop in and capture the other’s customers.
United Airlines’ decision to lease Airbus jets due to Boeing’s Max 10 delays signals a symbolic victory for Airbus. However, both companies face supply-demand mismatches, impacting travelers and airlines alike.
While Airbus benefits from innovative aircraft designs and strategic acquisitions, its production capabilities are stretched. Delays in aircraft delivery and production adjustments hinder further market expansion.
Analysts believe the current duopoly will persist, with no strong competitors emerging in the near future. Embraer and COMAC are not yet positioned to challenge Airbus and Boeing’s dominance.
For now, the industry relies on a healthy competition between Airbus and Boeing. Despite rooting for Boeing’s recovery, stakeholders understand the importance of maintaining a balanced market for commercial aircraft.
Featured Image: Istockphoto
Author Stephanie Bédard-Châteauneuf 
