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The battle of the airliners – Boeing and Airbus

by | 17 Jan, 2018

Nordstrom Kohl's Target Macys

 

The battle between 2 of the biggest firms in the large jet airliner market is heating up, after European firm Airbus announced this week that it secured 1,109 aircraft orders in 2017, nearly 200 more than its key competitor, Boeing.

Boeing outperformed its rival in terms of share price gains for 2017 (see chart below), however Airbus managed to capture the global sales title for a fifth consecutive year with a massive deal at the Dubai Air show in December.

The order for 430 A320neo jetliners from U.S. private equity fund Indigo Partners was the largest in the history of the company, with the deal being valued at almost $50 billion.

Airbus attracted more orders overall, but Boeing was no slouch either, booking orders for 912 commercial airplanes during the year, giving the firm a backlog equal to 7 years worth of production. Boeing also led in the number of planes that were actually delivered last year.

While some Airbus models were wildly popular, one in particular has massively underperformed expectations – the A380 double-deck wide-body jet, which is the world’s largest passenger airliner.

The company has delivered only 200 of these giant planes, well below the 1,200 it expected when the aircraft was introduced in 2005. The future of the model depends on airline Emirates, because Airbus believes it is the only company that has the ability to order enough A380’s to keep it as a viable product.

Speaking to reporters on Monday this week, Airbus CEO John Leahy said: “If we cannot work out a deal with Emirates, I think there is no choice but to shut down the program.”

Related: The aerospace stock everyone is talking about

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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