The two crashes in five months of a B737 max is a real blow for the Boeing’s flagship aircraft. These accidents already have consequences in the American aircraft manufacturer’s order book and Boeing overall image. This situation may lead everyone to wonder whether these accidents can benefit Airbus and more particularly the direct competitor of the B737 max, the A320 family?
B737 max Crashes: A Fatal Blow for Boeing?
It can’t be denied that these crashes have a direct impact on Boeing order books with the cancellation of orders. The order cancellation of Garuda, the Indonesian national carrier for an amount of 4.9 billion dollars in March 2019 and the cancellation of the Flyadeal, a Saudi low-cost order of 50 aircraft for the A320 in July 2019. Cancellations in addition to the freeze on orders from airlines affected by the Lion Air and Ethiopian Airlines crashes.
B737 max Situation: How Airbus’ A320NEO & A321XLR Are Taking the Lead
Moreover, the number of Airbus aircraft ordered in the first half of 2019 was 88, compared to a negative result of -119 for Boeing. We can indeed say that the A320 family is benefiting from the failure of the B737 max and Boeing in general. However, this advantage for Airbus is limited for several reasons. With 383 aircraft ordered at the Paris Air Show 2019 and the presentation of a new aircraft, the A321 XLR, the Airbus order book is already full.
The B737 max Crisis: Not Such a Profitable Situation for Airbus
It has been observed that the production rate is already causing delivery delays for the European manufacturer. The backlog is representing 6000 aircrafts just for the A320 family. Airbus, its partners, suppliers and subcontractors would not absorb the entire B737 max market. The failure of the B737 is an opportunity for Airbus and its A320 family. However, this is a limited opportunity due to Airbus’ production capacity. On the other side, these crashes led Boeing to postpone the presentation of a new aircraft; NMA; while Airbus presented a new aircraft in the same segment, the A321 XLR.
Airbus is ahead in the race in the medium-sized aircraft market, will Boeing be able to catch up?
Damien Roger, VP Logistic Operations OEMServices
