The ongoing competition between Airbus and Boeing has intensified as Airbus gains a significant edge in the commercial aircraft market. Since their rivalry began over half a century ago, both manufacturers have contributed to innovations that shape global airline fleets. Today, they dominate the sector, accounting for over three-quarters of the world’s passenger aircraft.
Boeing, founded in 1916, was the first to establish itself in this market, introducing groundbreaking aircraft like the Boeing 247 and the iconic 707, which revolutionized air travel in the late 1950s. The company’s continued success in the 1960s and 1970s was marked by the launch of the 727, 737, and 747. In contrast, Airbus emerged later, in 1969, as a consortium of French and German manufacturers, later joined by partners from the UK and Spain. Airbus aimed to create a viable European alternative to the American giants by pooling resources for new developments.
The rivalry escalated in the late 1970s when Airbus introduced the A310, a smaller version of its first aircraft, the A300. This move coincided with the decline of other competitors like the Lockheed L-1011 and Douglas DC-10. Boeing responded with the 767-200, marking the start of a more direct competition in the mid-sized aircraft segment.
Airbus Leverages Innovation in Short-Haul Segment
Deregulation in the US airline industry during the late 1970s further altered the competitive landscape. It prompted airlines to seek efficient single-aisle jets, benefitting Boeing’s 737, which had already established itself as a reliable workhorse. Faced with the need for a competitive model, Airbus launched the A320 program in 1984. The A320 distinguished itself with innovative features such as fly-by-wire controls and a side-stick controller, setting it apart from traditional aircraft designs.
Despite initial skepticism, particularly following a demonstration flight accident in 1988, the A320 gradually gained acceptance. Major US airlines, including American Airlines, began to recognize the advantages of Airbus’s design, leading to a surge in orders. The A320 family evolved to become a serious competitor to the 737, creating a competitive dynamic in the narrowbody market that persists today.
Airbus solidified its leading position with the introduction of the A320neo in 2010, which delivered approximately 15% better fuel efficiency. The aircraft quickly became popular, culminating in a record of 1,419 orders in 2011. As of now, Airbus has a backlog of over 7,100 A320neo units, with nearly 4,100 delivered. In contrast, Boeing’s 737 MAX has seen under 2,000 deliveries from over 6,700 orders, reflecting a significant gap in performance.
Boeing’s Challenges and Airbus’s Forward Momentum
While Airbus has gained momentum, Boeing has faced substantial setbacks, particularly with the 737 MAX program, which was introduced under pressure as Airbus’s A320neo gained market traction. The 737 MAX’s design adjustments, which included larger engines, led to aerodynamic challenges and necessitated the implementation of the Maneuvering Characteristics Augmentation System (MCAS) to maintain stability.
Tragically, flaws within the MCAS contributed to two fatal accidents in 2018 and 2019, resulting in the worldwide grounding of the MAX for nearly two years. Although the aircraft has returned to service, ongoing quality control issues have plagued Boeing, with recent incidents leading to production limitations imposed by the Federal Aviation Administration (FAA).
Despite these challenges, Boeing still dominates the widebody market, boasting nearly 56% of the global fleet. The company has a backlog of over 1,500 jets, including its 787 family and the upcoming 777X. In contrast, Airbus’s A330 has become a commercial success with over 1,700 orders, while the A350 family has emerged as its flagship widebody aircraft.
Airbus, however, is not without its difficulties. The company has faced engine supply chain issues, with many completed airframes waiting for engines due to shortages from key suppliers like CFM International and Pratt & Whitney. As of July, Airbus reported approximately 60 aircraft without engines, leading to production shortfalls in the A320neo family.
Looking ahead, both manufacturers are exploring new technologies to maintain their competitive edge. Airbus has suggested the possibility of a hydrogen-powered aircraft by the mid-2030s, potentially based on a “flying wing” design. Meanwhile, Boeing has signaled a cautious approach, delaying new aircraft programs until advancements in engine technology and cash flow improve.
The rivalry between Airbus and Boeing has undeniably shaped the aviation industry, influencing developments in efficiency and passenger comfort. While Airbus currently leads in several key areas, including single-aisle deliveries and backlog, Boeing continues to work through its challenges. The next decade will likely determine whether the duopoly remains unchallenged or if new entrants, such as China’s Comac and its C919, will alter the competitive landscape.
