Competition between Airbus and Boeing
Encyclopedia
Competition between Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....

 and Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...

 is a result of both companies' domination of the large jet airliner
Jet airliner
A jet airliner is an airliner that is powered by jet engines. This term is sometimes contracted to jetliner or jet.In contrast to today's relatively fuel-efficient, turbofan-powered air travel, first generation jet airliner travel was noisy and fuel inefficient...

 market since the 1990s, a consequence of mergers within the global aerospace industry
Aerospace manufacturer
An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining aircraft, aircraft parts, missiles, rockets, and/or spacecraft....

 over the years. Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....

 began as a consortium
Consortium
A consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their resources for achieving a common goal....

 from Europe, whereas the American Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...

 took over its former arch-rival, McDonnell Douglas
McDonnell Douglas
McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It formed from a merger of McDonnell Aircraft and Douglas Aircraft in 1967. McDonnell Douglas was based at Lambert-St. Louis International Airport...

, in 1997. Other manufacturers, such as Lockheed Martin
Lockheed Martin
Lockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area....

 and Convair
Convair
Convair was an American aircraft manufacturing company which later expanded into rockets and spacecraft. The company was formed in 1943 by the merger of Vultee Aircraft and Consolidated Aircraft, and went on to produce a number of pioneering aircraft, such as the Convair B-36 bomber, and the F-102...

 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and Dornier and Fokker
Fokker
Fokker was a Dutch aircraft manufacturer named after its founder, Anthony Fokker. The company operated under several different names, starting out in 1912 in Schwerin, Germany, moving to the Netherlands in 1919....

 in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, have pulled out of the civil aviation market after economic problems and dropping sales figures. The collapse of the Eastern Bloc
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...

 and its trade organisation Comecon
Comecon
The Council for Mutual Economic Assistance , 1949–1991, was an economic organisation under hegemony of Soviet Union comprising the countries of the Eastern Bloc along with a number of communist states elsewhere in the world...

 in the 1990s has put the former Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 aircraft industry
Aircraft industry
The aircraft industry is the industry supporting aviation by building aircraft and manufacturing aircraft parts for their maintenance. This includes aircraft and parts used for civil aviation and military aviation. Most production is done pursuant to type certificates and Defense Standards issued...

 in a disadvantaged position, although Antonov
Antonov
Antonov, or Antonov Aeronautical Scientist/Technical Complex , formerly the Antonov Design Bureau, is a Ukrainian aircraft manufacturing and services company with particular expertise in the field of very large aircraft construction. Antonov ASTC is a state-owned commercial company...

, Ilyushin
Ilyushin
Open Joint Stock Company «Ilyushin Aviation Complex» , operating as Ilyushin or Ilyushin Design Bureau, is a Russian design bureau and aircraft manufacturer, founded by Sergey Vladimirovich Ilyushin. Ilyushin was established under the Soviet Union. Its operations began on January 13, 1933, by...

, Sukhoi
Sukhoi
Sukhoi Company is a major Russian aircraft manufacturer, headquartered in Begovoy District, Northern Administrative Okrug, Moscow, famous for its fighters...

, Tupolev
Tupolev
Tupolev is a Russian aerospace and defence company, headquartered in Basmanny District, Central Administrative Okrug, Moscow. Known officially as Public Stock Company Tupolev, it is the successor of the Tupolev OKB or Tupolev Design Bureau headed by the Soviet aerospace engineer A.N. Tupolev...

 and Yakovlev
Yakovlev
The Yak Aircraft Corporation is a Russian aircraft designer and manufacturer...

 still develop new aircraft and have a small market share. This has left Boeing and Airbus in a near-duopoly
Duopoly
A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...

 in the global market for large commercial jets comprising narrow-body aircraft
Narrow-body aircraft
A narrow-body aircraft is an airliner with a fuselage aircraft cabin width typically of 3 to 4 metres , and airline seat arranged 2 to 6 abreast along a single aisle...

, wide-body aircraft
Wide-body aircraft
A wide-body aircraft is a large airliner with two passenger aisles, also known as a widebody aircraft or twin-aisle aircraft. The typical fuselage diameter is . In the typical wide-body economy cabin, passengers are seated seven to ten abreast, allowing a total capacity of 200 to 850 passengers...

 and jumbo jets. However, Embraer
Embraer
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military, and executive aircraft and provides aeronautical services....

 has gained market share with their narrow-body aircraft in the Embraer E-jets
Embraer E-Jets
The Embraer E-Jets are a series of narrow-body, twin-engine, medium-range, jet airliners produced by Embraer, a Brazilian aerospace conglomerate that produces commercial, military, and corporate aircraft. Announced at the Paris Air Show in 1999, and entering production in 2002, the aircraft series...

 series. There is also a similar competition in regional jet
Regional jet
A Regional jet , is a class of short to medium-range turbofan powered airliners.-History:The term "Regional jet" describes a range of short to medium-haul turbofan powered aircraft, whose use throughout the world expanded after the advent of Airline Deregulation in the United States in...

 manufacturing between Bombardier Aerospace
Bombardier Aerospace
Bombardier Aerospace is a division of Bombardier Inc. and is the third-largest airplane manufacturer in the world. It is headquartered in Dorval, Quebec, Canada.- History :...

 and Embraer
Embraer
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military, and executive aircraft and provides aeronautical services....

.

In the last 10 years (2001–2010), Airbus has received 6,506 orders while delivering 4,009, Boeing won 5,869 orders while delivering 3,921. Airbus had higher deliveries since 2003. Competition is intense; each company regularly accuses the other of receiving unfair state aid
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...

 from their respective governments.

Range overlap

Though both manufacturers have a broad product range varying from single-aisle to wide-body, they do not always compete head-to-head. As listed below they respond with slightly different models.
  • The Airbus A380
    Airbus A380
    The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...

    , for example, is substantially larger than the Boeing 747
    Boeing 747
    The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

    .
  • The Airbus A350
    Airbus A350
    The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

     competes with the high end of the Boeing 787 Dreamliner and the Boeing 777
    Boeing 777
    The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

    .
  • The Airbus A320
    Airbus A320 family
    The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

     is larger than the Boeing 737-700
    Boeing 737 Next Generation
    The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

     but smaller than the 737-800.
  • The Airbus A321
    Airbus A320 family
    The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

     is larger than the Boeing 737-900
    Boeing 737 Next Generation
    The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

     but smaller than the previous Boeing 757-200
    Boeing 757
    The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...

    .
  • The Airbus A330-200
    Airbus A330
    The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

     competes with the smaller Boeing 767-300ER
    Boeing 767
    The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

    .


Airlines benefit from this competition as they get an array of diversified products ranging from 100-500 seats, than if both companies offered identical aircraft.

Passengers/range km (statute miles) for all models

2,645 to 3,185 km (2400 sm) 5,600 to 5,900 km (3500 sm) 6,800 to 7,700 km (4500 sm) 9,000 to 10,200 km (5900 sm) 10,500 to 11,300 km (6800 sm) 12,250 to 12,500 km (7700 sm) 13,300 to 13,900 km (8500 sm) 14,200 to 14,800 km (9000 sm) 14,900 to 15,200 km (9300 sm) 15,400 to 16,000 km (9800 sm) 16,700 to 17,400 km (10500 sm)
100-139 (717-200
Boeing 717
The Boeing 717 is a twin-engine, single-aisle jet airliner, developed for the 100-seat market. The airliner was designed and marketed by McDonnell Douglas as the MD-95, a third-generation derivative of the DC-9. Capable of seating of up to 117 passengers, the 717 has maximum range of...

)
A318-100 737-600
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

140-156 737-700
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

A319-100
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

737-700ER
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

148-189 737-800
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

 A320-200
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

177-255 A321-200
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

 737-900
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

(757-200
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...

)
(A310-200
Airbus A310
The Airbus A310 is a medium- to long-range twin-engine widebody jet airliner. Launched in July 1978, it was the second aircraft created by Airbus Industrie,a consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. the consortium of...

) (A310-300
Airbus A310
The Airbus A310 is a medium- to long-range twin-engine widebody jet airliner. Launched in July 1978, it was the second aircraft created by Airbus Industrie,a consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. the consortium of...

)
767-300ER
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

767-200ER
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

787-8
243-375 (757-300
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...

)
767-400ER
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

 747SP
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

253-300 (A300
Airbus A300
The Airbus A300 is a short- to medium-range widebody jet airliner. Launched in 1972 as the world's first twin-engined widebody, it was the first product of Airbus Industrie, a consortium of European aerospace companies, wholly owned today by EADS...

)
(A300-600
Airbus A300
The Airbus A300 is a short- to medium-range widebody jet airliner. Launched in 1972 as the world's first twin-engined widebody, it was the first product of Airbus Industrie, a consortium of European aerospace companies, wholly owned today by EADS...

)
A330-200
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

A340-200
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

A350-800
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

 787-9
295-440 777-200
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

A330-300
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

A340-300
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

777-200ER
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

A350-900
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

777-200LR
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

313-366 A340-500
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

A340-500HGW
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

 A350-900R
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

358-550 747-100SR
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

 747-300SR
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

747-100
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

777-300
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

747-200
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

777-300ER
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

 A350-1000
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

380-419 A340-600
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

 A340-600HGW
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

410-568 747-400
Boeing 747-400
The Boeing 747-400 is a major development and the best-selling model of the Boeing 747 family of jet airliners. While retaining the four-engine wide-body layout of its predecessors, the 747-400 embodies numerous technological and structural changes to produce a more efficient airframe...

747-400ER
Boeing 747-400
The Boeing 747-400 is a major development and the best-selling model of the Boeing 747 family of jet airliners. While retaining the four-engine wide-body layout of its predecessors, the 747-400 embodies numerous technological and structural changes to produce a more efficient airframe...

<467 747-8
Boeing 747-8
The Boeing 747-8 is a wide-body jet airliner developed by Boeing Commercial Airplanes. Officially announced in 2005, the 747-8 is the fourth-generation Boeing 747 version, with lengthened fuselage, redesigned wings and improved efficiency...

525-853 A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...


Airbus A320 vs Boeing 737


Airbus A330 vs Boeing 767 & 777


Airbus A350 vs Boeing 787 & 777


Empty weight EW:

Airbus A380 vs Boeing 747



The wide-body
Wide-body aircraft
A wide-body aircraft is a large airliner with two passenger aisles, also known as a widebody aircraft or twin-aisle aircraft. The typical fuselage diameter is . In the typical wide-body economy cabin, passengers are seated seven to ten abreast, allowing a total capacity of 200 to 850 passengers...

 Boeing 747-8
Boeing 747-8
The Boeing 747-8 is a wide-body jet airliner developed by Boeing Commercial Airplanes. Officially announced in 2005, the 747-8 is the fourth-generation Boeing 747 version, with lengthened fuselage, redesigned wings and improved efficiency...

, the latest modification of Boeing's largest airliner, is notably in direct competition on long-haul routes with the A380, a full-length double-deck aircraft
Double-deck aircraft
A Double-deck aircraft has two decks for passengers; the second deck may be only a partial deck, and may be above or below the main deck. Almost all commercial aircraft have one passenger deck and one cargo deck for luggage and ULD containers, but only a few have two decks for passengers,...

 now in service. For airlines seeking very large passenger airliners, the two have been pitched as competitors on various occasions. Following another delay to the A380 programme in October 2006, FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...

 and the United Parcel Service
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...

 canceled their orders for the A380-800 freighter. Some A380 launch customers deferred delivery or considered switching to the 747-8 and 777F aircraft.

Boeing's advertising claims the 747-8I to have over 10% lighter per seat and 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. In order to counter the perceived strength of the 747-8I, from 2012 Airbus will offer, as an option, improved maximum take-off weight allowing for a better payload/range performance. The precise size of the increase in maximum take-off weight is still unknown. British Airways and Emirates will be the first customers to take this offer.
As of April 2009 no airline has canceled an order for the passenger version of the A380. Boeing currently has only two commercial airline orders for the 747-8I: Lufthansa (20) and Korean Air Lines (5).

EADS A330 MRTT - Northrop Grumman KC-45A vs Boeing KC-767

Data are preliminary and partially copied from A330-200 and 767-200ER.

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
United States Air Force
The United States Air Force is the aerial warfare service branch of the United States Armed Forces and one of the American uniformed services. Initially part of the United States Army, the USAF was formed as a separate branch of the military on September 18, 1947 under the National Security Act of...

 drew angry protests in the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

. Upon review of Boeing's protest, the Government Accountability Office
Government Accountability Office
The Government Accountability Office is the audit, evaluation, and investigative arm of the United States Congress. It is located in the legislative branch of the United States government.-History:...

 ruled in favor of Boeing and ordered the USAF to recompete the contract. Later, the entire call for aircraft was rescheduled, then canceled, with a new call decided upon in March 2010.

Boeing later won the contest, with a lower price, on February 24, 2011. 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. In July 2011, it was revealed that projected development costs rose $1.4bn and will exceed the $4.9bn contract cap by $300m. The first $1bn increase from the award price to the cap Government would be responsible for $600m under a 60/40 Government/Boeing split and with the additional $300m ceiling breach wholly Boeing would be responsible for $700m of the additional cost.

Competition by outsourcing

Because many of the world’s airlines are wholly or partially government owned, aircraft procurement decisions are often taken according to political and commercial criteria. 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.

For example, Boeing has offered longstanding relationships with Japanese suppliers including Mitsubishi Heavy Industries
Mitsubishi Heavy Industries
, or MHI, is a Japanese company. It is one of the core companies of Mitsubishi Group.-History:In 1870 Yataro Iwasaki, the founder of Mitsubishi took a lease of Government-owned Nagasaki Shipyard. He named it Nagasaki Shipyard & Machinery Works, and started the shipbuilding business on a full scale...

 and Kawasaki Heavy Industries
Kawasaki Heavy Industries
is an international corporation based in Japan. It has headquarters in both Chūō-ku, Kobe and Minato, Tokyo.The company is named after its founder Shōzō Kawasaki and has no connection with the city of Kawasaki, Kanagawa....

 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 Boeing's own engineering and production personnel.

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 has opened an assembly plant in Tianjin
Tianjin
' is a metropolis in northern China and one of the five national central cities of the People's Republic of China. It is governed as a direct-controlled municipality, one of four such designations, and is, thus, under direct administration of the central government...

, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 for production of its A320 series airliners.

Competition through use of technology

Airbus sought to compete with the well-established Boeing in the 1970s through its introduction of advanced technology. For example, the A300
Airbus A300
The Airbus A300 is a short- to medium-range widebody jet airliner. Launched in 1972 as the world's first twin-engined widebody, it was the first product of Airbus Industrie, a consortium of European aerospace companies, wholly owned today by EADS...

 made the most extensive use of composite material
Composite material
Composite materials, often shortened to composites or called composition materials, are engineered or naturally occurring materials made from two or more constituent materials with significantly different physical or chemical properties which remain separate and distinct at the macroscopic or...

s yet seen in an aircraft of that era, and by automating the flight engineer's
Flight engineer
Flight engineers work in three types of aircraft: fixed-wing , rotary wing , and space flight .As airplanes became even larger requiring more engines and complex systems to operate, the workload on the two pilots became excessive during certain critical parts of the flight regime, notably takeoffs...

 functions, was the first large commercial jet to have a two-man flight crew. In the 1980s Airbus was the first to introduce digital Fly-by-wire
Fly-by-wire
Fly-by-wire is a system that replaces the conventional manual flight controls of an aircraft with an electronic interface. The movements of flight controls are converted to electronic signals transmitted by wires , and flight control computers determine how to move the actuators at each control...

 controls into an airliner (the A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

).

Since then Airbus has established itself as a viable competitor to Boeing, both companies use advanced technology to seek performance advantages in their products. For example, the Boeing 787 Dreamliner will be the first large airliner to use composites for most of its construction.

Competition through provision of engine choices

The competitive strength in the market of any airliner is considerably influenced by the choice(s) of engine available. In general, airlines prefer to have a choice of at least two engines from the major manufacturers General Electric, Rolls-Royce
Rolls-Royce plc
Rolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...

 and Pratt & Whitney
Pratt & Whitney
Pratt & Whitney is a U.S.-based aerospace manufacturer with global service operations. It is a subsidiary of United Technologies Corporation . Pratt & Whitney's aircraft engines are widely used in both civil aviation and military aviation. Its headquarters are in East Hartford, Connecticut, USA...

. However engine manufacturers prefer to be single source, and often succeed in striking commercial deals with Boeing and Airbus to achieve their objective. Several notable aircraft have only provided a single engine offering: the Boeing 737-300
Boeing 737 Classic
The Boeing 737 Classic is the name given to the -300/-400/-500 series of the Boeing 737 following the introduction of the -600/-700/-800/-900 series. They are short- to medium- range, narrow-body jet airliners produced by Boeing Commercial Airplanes. The Classic series was introduced as the 'new...

 series onwards (CFM56
CFM International CFM56
The CFM International CFM56 series is a family of high-bypass turbofan aircraft engines made by CFM International , with a thrust range of . CFMI is a 50–50 joint-owned company of SNECMA, France and GE Aviation , USA. Both companies are responsible for producing components and each has its own...

), the Airbus A340-500 & 600
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

 (Rolls-Royce Trent 500), the Airbus A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

 (Rolls-Royce Trent XWB - so far) the Boeing 747-8
Boeing 747-8
The Boeing 747-8 is a wide-body jet airliner developed by Boeing Commercial Airplanes. Officially announced in 2005, the 747-8 is the fourth-generation Boeing 747 version, with lengthened fuselage, redesigned wings and improved efficiency...

 (GEnx-2B67
General Electric GEnx
The General Electric GEnx is an advanced dual rotor, axial flow, high-bypass turbofan jet engine in production by GE Aviation for the Boeing 787 and 747-8...

), and the Boeing 777-300ER/200LR/F (General Electric GE90
General Electric GE90
General Electric GE90 is a family of high-bypass turbofan aircraft engines built by GE Aviation for the Boeing 777, with thrust ratings ranging from 74,000 to 115,000 lbf . It was first introduced in November 1995 on British Airways' 777s, and is available only on the 777...

).

Effect of currency on competition

Boeing's production costs are mostly in United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

s, while Airbus' production costs are mostly in euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

s. When the dollar appreciates against the euro the cost of producing a Boeing aircraft rises relative 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 - assuming Airbus has not purchased insurance against such fluctuations.

Orders and deliveries

Orders
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
  Airbus 1231 1341 790 520 556 460 326 106 125 38 136 101 404 421
  Boeing 518 530 142 662 1002 272 239 251 314 355 125
Sources 2011: Airbus net orders until October 31
Boeing net orders until November 29

Deliveries
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
  Airbus 418 303 325 311 294 229 182 126 124 123 138 157 163 95 105
  Boeing 387 462 481 375 441 398 290 285 281
Sources 2011: Airbus deliveries until October 31
Boeing deliveries until October 31

Orders and deliveries, by product
Civil airplanes 2010 Deliveries 2010 Orders 2010 Backlog Historical Deliveries ending Dec 2010
  Airbus   Boeing   Airbus   Boeing   Airbus   Boeing   Airbus   Boeing
single aisle 1010 707
Boeing 707
The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...

single aisle 1831 727
Boeing 727
The Boeing 727 is a mid-size, narrow-body, three-engine, T-tailed commercial jet airliner, manufactured by Boeing. The Boeing 727 first flew in 1963, and for over a decade more were built per year than any other jet airliner. When production ended in 1984 a total of 1,832 aircraft had been produced...

single aisle 401 A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

376 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

416 A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

486 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

2418 A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

2186 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

4728 A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

6637 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

single aisle 1049 757
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...

widebody 12 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

3 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

50 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

561 A300
Airbus A300
The Airbus A300 is a short- to medium-range widebody jet airliner. Launched in 1972 as the world's first twin-engined widebody, it was the first product of Airbus Industrie, a consortium of European aerospace companies, wholly owned today by EADS...

 
255 A310
Airbus A310
The Airbus A310 is a medium- to long-range twin-engine widebody jet airliner. Launched in July 1978, it was the second aircraft created by Airbus Industrie,a consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. the consortium of...

994 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...

widebody 87 A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

 
4 A340
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

74 777
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

47 A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

 
1 A340
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

46 777
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

354 A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

 
4 A340
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

253 777
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

750 A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....

 
350 A340
Airbus A340
The Airbus A340 is a long-range four-engine wide-body commercial passenger jet airliner. Developed by Airbus Industrie,A consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. a consortium of European aerospace companies, which is...

910 777
Boeing 777
The Boeing 777 is a long-range, wide-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet and is commonly referred to as the "Triple Seven". The aircraft has seating for over 300 passengers and has a range from , depending on model...

widebody 0 A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

0 787 78 A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

-4 787 583 A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

847 787 0 A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

0 787
widebody 18 A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...

0 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

32 A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...

-1 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

193 A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...

107 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

41 A380
Airbus A380
The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the largest passenger airliner in the world. Due to its size, many airports had to modify and improve facilities to accommodate it...

1418 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

Total 510 462 574 530 3552 3443 6685 13849
Boeing (1957) and Airbus (1972) until 31st December, 2010


Sources : Wikipedia pages and Analysis: Airbus’s late push sees off Boeing - again



Effect of competition on product plans

The A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

 has been selected by 222 operators (Dec. 2008), among these several low-cost operators, gaining ground against the previously well established 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

 in this sector; many full-service airlines also have selected it as a replacement for 727
Boeing 727
The Boeing 727 is a mid-size, narrow-body, three-engine, T-tailed commercial jet airliner, manufactured by Boeing. The Boeing 727 first flew in 1963, and for over a decade more were built per year than any other jet airliner. When production ended in 1984 a total of 1,832 aircraft had been produced...

s and aging 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

s, such as United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...

 and Lufthansa
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...

; and after 40 years the A380 now challenges the Boeing 747s dominance of the very large aircraft market. The Boeing 747-8
Boeing 747-8
The Boeing 747-8 is a wide-body jet airliner developed by Boeing Commercial Airplanes. Officially announced in 2005, the 747-8 is the fourth-generation Boeing 747 version, with lengthened fuselage, redesigned wings and improved efficiency...

 is a stretched and updated version of the venerable 747-400 and will offer 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, although none have done so and some have even placed repeat orders for the A380. However, all A380F orders have been canceled. To date, Boeing has secured orders for 78 747-8F and 28 747-8I with first deliveries originally scheduled for 2010 and 2011 respectively now, after certification the 747-8F, revised to 2011 and 2012 as the 747-8I is still (as of August 2011) being test-flown, while Airbus has orders for 234 A380s, the first of which entered service in 2007 and has delivered a total of 53 to customers (as of July 2011).

Several Boeing projects were pursued and then canceled, like the Sonic Cruiser
Boeing Sonic Cruiser
|-References:*Haenggi, Michael. "The Sonic Future?". Boeing Widebodies. MBI, 2003. ISBN 0-7603-0842-X.-External links:* * * * . Seattle PI, November 4, 2001* . Flight International, January 7, 2003*...

, launched in 2001. Boeing is now focused on the Boeing 787 Dreamliner as a platform of total fleet rejuvenation, which uses technology from the Sonic Cruiser concept. Despite having been delayed by more than three years, the 787 is still the fastest selling wide-body
Wide-body aircraft
A wide-body aircraft is a large airliner with two passenger aisles, also known as a widebody aircraft or twin-aisle aircraft. The typical fuselage diameter is . In the typical wide-body economy cabin, passengers are seated seven to ten abreast, allowing a total capacity of 200 to 850 passengers...

 airliner in history. The 787's rapid sales success and pressure from potential customers forced Airbus to revise the design of its competing A350.

Boeing first ruled out producing a re-engined version of its 737 to compete with the A320neo launch in 2016 saying it did not believe airlines would be willing to pay 10% more for only a few percentage gained in fuel efficiency, instead airlines would be looking towards the next major redesign and a 30% fuel saving. The company is facing airline pressure to offer a direct re-engined competitor including from Southwest Airlines who use the 737 for their entire fleet (680 in service or on order) saying they were not prepared to wait 20 years or more for a new 737 model and threatening to convert to Airbus. Industry sources believe that a re-engine of the 737 would be considerably more expensive for Boeing than it was for Airbus A320 due to the 737's design but decided to do so during the summer of 2011.

There are 5,417 (April 30, 2009) Airbus aircraft in service, with Airbus managing to win over 50 per cent of aircraft orders in recent years. Airbus products are outnumbered by in-service Boeings.

Safety

Both aircraft manufacturers have good safety records on recently manufactured aircraft. By convention, both companies tend to avoid safety comparisons when selling their aircraft to airlines. Most aircraft dominating the companies' aircraft sales, such as the Boeing 737-NG
Boeing 737 Next Generation
The Boeing 737 Next Generation, commonly abbreviated as Boeing 737NG, is the name given to the -600/-700/-800/-900 series of the Boeing 737 after the introduction of the -300/-400/-500 Classic series. They are short- to medium-range, narrow-body jet airliners...

 and Airbus A320
Airbus A320 family
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...

 families (as well as both companies' wide-body
Wide-body aircraft
A wide-body aircraft is a large airliner with two passenger aisles, also known as a widebody aircraft or twin-aisle aircraft. The typical fuselage diameter is . In the typical wide-body economy cabin, passengers are seated seven to ten abreast, allowing a total capacity of 200 to 850 passengers...

 offerings) have good safety records as well. Older model aircraft such as the Boeing 727
Boeing 727
The Boeing 727 is a mid-size, narrow-body, three-engine, T-tailed commercial jet airliner, manufactured by Boeing. The Boeing 727 first flew in 1963, and for over a decade more were built per year than any other jet airliner. When production ended in 1984 a total of 1,832 aircraft had been produced...

, the original Boeing 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...

s and 747s, Airbus A300 and Airbus A310
Airbus A310
The Airbus A310 is a medium- to long-range twin-engine widebody jet airliner. Launched in July 1978, it was the second aircraft created by Airbus Industrie,a consortium of European aerospace companies, Airbus is now fully owned by EADS and since 2001 has been known as Airbus SAS. the consortium of...

, which were respectively first flown during the 1960s, 1970s, and 1980s, have had higher rates of fatal accidents.

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.

In July 2004 Harry Stonecipher
Harry Stonecipher
Harry C. Stonecipher is a former President and Chief Executive of American aerospace companies McDonnell Douglas and, later, Boeing. Stonecipher orchestrated the merger between McDonnell Douglas and Boeing, and was widely credited with the resurgence of Boeing...

 (then-Boeing CEO) accused Airbus of abusing a 1992 bilateral EU-US agreement providing for disciplines for 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. 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 programme 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. 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 the pork barrel
Pork barrel
Pork barrel is a derogatory term referring to appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district...

 military contracts awarded to Boeing (the second largest U.S. defense contractor) are in effect a form of subsidy (see the Boeing KC-767
Boeing KC-767
The Boeing KC-767 is a military aerial refueling and strategic transport aircraft developed from the Boeing 767-200ER. The tanker received the designation KC-767A in 2002, after being selected by the US Air Force initially to replace older KC-135Es...

 vs EADS (Airbus) KC-45 military contracting controversy). The significant U.S. government support of technology development via NASA
NASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...

 also provides significant support to Boeing, as does the large tax breaks offered to Boeing which some claim are in violation of the 1992 agreement and WTO rules. In its recent products such as the 787, Boeing has also been offered substantial support from local and state governments. However, Airbus' parent, EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...

, itself is a military contractor, and is paid to develop and build projects such as the Airbus A400M
Airbus A400M
The Airbus A400M, also known as the Atlas, is a multi-national four-engine turboprop military transport aircraft. It was designed by Airbus Military as a tactical airlifter with strategic capabilities. The aircraft's maiden flight, originally planned for 2008, took place on 11 December 2009 in...

 transport and various other military aircraft.

In January 2005, the European Union and United States trade representatives, Peter Mandelson
Peter Mandelson
Peter Benjamin Mandelson, Baron Mandelson, PC is a British Labour Party politician, who was the Member of Parliament for Hartlepool from 1992 to 2004, served in a number of Cabinet positions under both Tony Blair and Gordon Brown, and was a European Commissioner...

 and Robert Zoellick
Robert Zoellick
Robert Bruce Zoellick is the eleventh president of the World Bank, a position he has held since July 1, 2007. He was previously a managing director of Goldman Sachs, United States Deputy Secretary of State and U.S. Trade Representative, from February 7, 2001 until February 22, 2005.President...

 (since replaced by Rob Portman
Rob Portman
Robert Jones "Rob" Portman is the junior United States Senator from Ohio. He is a member of the Republican Party. He succeeded retiring Senator George Voinovich....

, and then Susan Schwab
Susan Schwab
Susan C. Schwab is an American politician, who served as United States Trade Representative from June, 2006 to January, 2009....

, and the present office holder, Ron Kirk
Ron Kirk
Ronald "Ron" Kirk is the 16th United States Trade Representative, serving in the Obama administration. He served as mayor of Dallas, Texas from 1995 to 2002; he also ran for the United States Senate in 2002.-Early life and career:...

) respectively, 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.

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
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

. Thus, some experts are advocating a negotiated settlement. In addition, the heavy government subsidies offered to automobile manufacturers in the United States have changed the political environment; the subsidies offered to Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....

 and General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

 dwarf the amounts involved in the Airbus-Boeing dispute.

World Trade Organization litigation

On 31 May 2005 the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 filed a case against the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 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.

Increased tensions, due to the support for the Airbus A380, escalated toward a potential trade war as the launch of the Airbus A350
Airbus A350
The Airbus A350 is a family of long-range, wide-body jet airliners under development by European aircraft manufacturer Airbus.A consortium originally comprising European aerospace companies from the UK, France, Spain and West Germany, Airbus is now fully owned by EADS and since 2001 has been known...

 neared. Airbus would prefer the A350 programme to be launched with the help of state loans covering a third of the development costs although it has 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
United States Department of Defense
The United States Department of Defense is the U.S...

, and in particular the form of R&D contracts that benefit Boeing; as well as funding from US states such as the State of Washington, Kansas, and Illinois, for the development and launch of Boeing aircraft, in particular the 787. An interim report of the WTO investigation into the claims made by both sides was made in September 2009.

In March 2010, the WTO ruled that European governments unfairly financed Airbus. In September 2010, a preliminary report of the WTO found unfair Boeing payments broke WTO rules and should be withdrawn. In two separate findings issued in May 2011, the WTO found, firstly, that the US defense 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. Secondly, the WTO Appellate Body
Appellate Body
The Appellate Body of the WTO is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members...

 partly overturned an earlier ruling that European Governments 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. Both parties claimed victory in what is the world's largest trade dispute.

See also

  • Boeing Commercial Airplanes
    Boeing Commercial Airplanes
    Boeing Commercial Airplanes designs, assembles, markets and sells large commercial jet aircraft and provides product-related maintenance and training to customers worldwide...

  • Airbus Executive and Private Aviation
    Airbus Executive and Private Aviation
    Airbus Executive and Private Aviation is a producer of large corporate aircraft. It is a part of Airbus S.A.S., an EADS company, and had a model range that parallels the commercial aircraft offered by the company, ranging from the A318 Elite to the double/triple-decked Airbus A380 Prestige...

  • List of civil aircraft
  • Cooperation between Bombardier and Comac

External links

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