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Airbus v Boeing Is A Race-In-Progress

Airbus vs Boeing Race? Nothing To Declare...Zero Sum Jobs

Some recent news in circulation states that Airbus has overtaken Boeing on Jet orders. That may be good news for the investors and others wishing to improve their fiscal standing. However, we’re well aware there are numerous factors which should be evaluated to determine which manufacturer is truly performing the best compared to others in the same industry segment.

The numbers bandied around for orders in Q1 of 2022 alone do not tell the full story as that position is still in a state of flux, particularly in the face of legal, mechanical, or other challenges. But what is particularly hopeful is Airbus’ plan to expand operations in Alabama, netting an additional 1,000 jobs for the region, while Boeing lost 1,000 jobs in Washington earlier this year!

Earlier in January 2021 Airbus was embroiled in a legal battle with Qatar Airways regarding reports of ‘surface degradation’ and ‘abnormal paint issues’; the result of which was a ruling in Airbus’ favor some 12 months later, however Airbus went ahead and terminated the order for Qatar’s 50ea A321neo’s that they’d ordered in 2017.  Following a spate of accidents between 2018-2019 involving Boeing’s 737 MAX, the FAA was chided for taking too long to issue a grounding order, and the flying community lost faith in the integrity of the inspection authorization process which had essentially put the fox in charge of the hen house.’

Those are but two major issues that plagued these mega manufacturers, and there might be many ‘minor’ ones. Orders can be made, reduced, taken away, or cancelled. Deliveries, while a good indicator that the product has been ‘sold’ is not entirely accurate, particularly if there are mechanical or aesthetic issues, post sales, that have prevented those deliveries from flying, such as the Pratt & Whitney PW4000 engine recalls that has a created a sizeable fleet of very expensive birdhouses. More insightful measures are perhaps a balanced matrix of opportunities lost (through unfavorable perceptions), opportunities gained; utilization, on-time-delivery, overall equipment effectiveness? What about jobs and economic growth? Who do you think is wining the ‘airplane’ race?



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