With the 737 Max Grounded, Airbus Can’t Build Planes Fast Enough
The problem isn’t booking orders, but working through the backlog.
The first copy for tests of the 200 medium-haul A320neo passenger plane leaves its hangar on July 1, at the Airbus plant in Saint-Martin-du-Touch, near Toulouse, in southern France.
Photographer: Eric Cabanis/Getty Images
For decades, Airbus SE and Boeing Co. have been fighting each other for orders. In 2017 and 2018, Boeing delivered more aircraft, but after two fatal crashes in five months, its 737 Max was grounded last year, and it was forced to halt production and deliveries of the popular jet. With its rival in crisis, Airbus supplied 483 more planes than Boeing in 2019, the biggest margin in their 45-year battle. Airbus secured more than 700 net orders for narrowbody aircraft, while Boeing lost more deals than it won, ending the year down 51 narrowbody orders.
While the company has been careful not to revel in Boeing’s misfortunes, they give Airbus the opportunity to reshape the narrowbody market for years. Industry consultant Mark Martin estimates that Airbus could one day deliver 60% to 65% of single-aisle planes (up from about 50% now), which are the most widely used type of aircraft and bring in the bulk of profits for both companies. “It has opened the door for Airbus to fill up the huge hole that the Max grounding has created,” Martin says.