Boeing vs. Airbus 2006 orders January 2007

In 2006 Boeing recorded 1,044 net orders, 42 more than 2005 and, crucially, 254 more net orders than Airbus, which recorded 790 net orders.

Boeing’s record 2006 performance was heavily supported by 737 orders, which accounted for almost 70% of the manufacturer’s net orders. Widebody sales included 157 orders for the yet-to-be-launched 787 series aircraft, 76 orders for the 777, and ten 767 orders. As Richard Aboulafia, Teal Group analyst, puts it “[Boeing] have gone from uncertain future and second place to unquestioned dominance”.

Boeing and Airbus have sold more commercial jets in the past two years than at any time in aviation history. Orders placed in Asia, and in particular China, were very robust. Boeing recorded 284 orders in Asia, with a 2:1 narrowbody to widebody ratio. Airbus fared better, recording 344 orders, with CASGC ordering 150 A320 family air craft. Other significant orders in 2006 included an 82 737 order from Southwest, Air Berlin ordered 75 and Ryanair 42 of the same model. Apart from CASGC, main orderers of Airbus were the LCCs easyJet and AirAsia, with US low cost start-up Skybus ordering 65 A319s.

The sales performance at Airbus reflects its high-profile problems last year. Wiring problems plagued production of the A380, delaying delivery slots by two years and costing Airbus at least $3.6bn. Airbus has booked orders for 166 A380s, but only took under 20 orders in 2006, with a notable ten-plane cancellation from Fedex. Airbus indecision over the A350XWB, as well as potential customer concerns that it did not measure up to the 787, created a major advantage for the 787, which now has 448 orders booked to date. Notwithstanding its problems, Airbus has performed well in the final quarter of 2006 to finish with a 43% overall net order share, against a mid-2006 position of less than 20%.

In developments likely to figure in the orderbook battle, Airbus announced the industrial launch of the A330F, creating new competition in the midsized freighter market where Boeing has prevailed with virtually no competition in the past. The A330F will go up against the older 767 and newer 777 freighters and will be more capable than the 767 and cheaper than the 777, according to Airbus.

On the production side, both companies are predicting 440-450 deliveries for 2007. The industry’s all-time peak of 900 aircraft shipped in 1999 looks set to be equalled. A repeated combined total of around 900 units indicates another all-round record year is in store for 2007.