Competition between the two airplane makers, The Boeing Company (NYSE:BA) and Airbus, owned by European Aeronautic Defence and Space Company, has intensified over time. Airbus won the order battle at The Paris Air show, leaving The Boeing Company (NYSE:BA) behind. The upcoming Dubai Air show is expected to be held in November this year, and is being touted as one of the biggest opportunities of all time for these companies. Let’s see whether Airbus will be able to beat Boeing once again.
Fierce competition
Due to electrical problems identified in the 787 Dreamliner stemming from its lithium-ion batteries that overheated, The Boeing Company (NYSE:BA) gave Airbus the international advantage. Airbus, with its A350, is well positioned to compete with Boeing’s 787. The Boeing 787 Dreamliner and Airbus A350 are popular planes due to fuel efficiency, yet Airbus A350 is more fuel efficient than the 787 Dreamliner.
According to The Boeing Company (NYSE:BA), the new 787 Dreamliner has 210-250 passenger seats and has a flying range from 7,650 miles-8,200 miles; as compared to the Airbus A350 which can fly up to 10,300 miles. Boeing launched a longer version of 787-10 with 323 seats to carry more passengers. The Boeing Company (NYSE:BA) also beat Airbus on a cost basis. The 787 Dreamliner costs about $206 million – $243 million each compared with $254 million – $332 million for the A350.
Airbus beats Boeing in order battle
The battle between the world’s biggest airplane makers heated up at the Paris Air show. Airbus won the order battle from Boeing and booked orders for 466 aircraft worth $69 billion. These orders included 59 orders from Singapore Airlines and Air France for A350. Boeing booked a total 442 aircraft orders, including 102 orders for the 787. The list price of Boeing’s total order was $66 billion.
At the Paris Air show United Continental Holdings Inc (NYSE:UAL) was an active customer of Airbus and Boeing. United Continental Holdings Inc (NYSE:UAL) ordered 10 Airbus 350-1000 and upgraded 25 previous orders for the smaller A350-900 to the new 350-1000 model. It also purchased 20 787s from Boeing. Twenty Boeing orders consisted of 10 new Dreamliners and the remaining 10 were for converting the older orders to the new and larger version.
At the Farnborough Air Show held last year, Boeing booked total orders worth $72.2 billion as compared to $16.9 billion for Airbus.This order battle will also heat up at the Dubai Air Show, expected to be conducted in November 2013. Emirates Airline wants to replace its 175 planes of 777s generation and will be a prime customer for The Boeing Company (NYSE:BA) or Airbus. The Dubai Air show organizers are expecting that this will be the biggest air show in their 26 year history and expect a crowd of more than 60,000 visitors and over 1,000 exhibitors from 50 countries which include 80 defense companies.
