Airbus still ahead of Boeing in global aircraft rivalry

Airbus said Thursday it will increase deliveries of some of the world’s most sought-after planes this year, strengthening its position as the largest commercial jet maker and further ahead of Boeing as its U.S. rival focuses on the fallout from a major security crisis. involving its 737 Max airline line.

Airbus, the European aerospace giant, plans to deliver around 800 commercial planes this year, including the popular single-aisle A320neo, its main competitor to the 737 Max. It delivered 735 plans last year, more than it had originally planned. This year’s initiative aims to respond to what Guillaume Faury, the aircraft manufacturer’s chief executive, called a strong recovery in demand for air travel following pandemic-related lockdowns.

Airbus booked a record 2,094 commercial plane orders last year, driven in part by strong demand for narrow-body and mid-size planes from India and other fast-growing countries. This added to the company’s vast order backlog, which stood at 8,598 commercial aircraft at the end of 2023.

However, Boeing delivered 528 commercial aircraft and recorded 1,576 net orders.

Airbus reported adjusted profit of 5.8 billion euros ($6.2 billion) in 2023, a slight increase from the previous year, on revenue of more than 65 billion euros. The company added a special dividend, on top of its usual payout, as its net cash exceeded €10 billion.

The company’s profit was affected by a significant depreciation of its activities, which Airbus was trying, according to Mr. Faury, to recover.

But in its core commercial aircraft business, where Airbus and Boeing represent the bulk of the world’s airlines, the European manufacturer is extending its lead.

If Airbus is having problems, it is to meet the challenge of producing more quickly the thousands of planes that its customers have ordered. To this end, Airbus plans to increase production of the A320neo to 75 aircraft per month in 2026.

Boeing had planned to increase production of its 737 model to 50 units per month by around 2025. But the U.S. company suspended its forecast last month as it addresses quality control issues highlighted by an incident in early January in which a door panel exploded. aboard an Alaska Airlines 737 Max 9 plane shortly after takeoff.

The episode shook Airbus’ main rival, triggering a U.S. federal investigation and forcing Boeing Chief Executive Dave Calhoun to scramble to reassure customers, regulators and the public that the company is giving prioritize safety over profits.

The crisis has slowed Boeing’s ability to produce more of its 737 Max planes. Boeing said it aims to produce 42 Max jets per month this year, up from about 38 per month in 2023.

But the Federal Aviation Administration said it would limit Boeing’s ability to increase production of all 737 Max plans until the company proves it has resolved its quality control issues.

This setback created an opportunity for Airbus to increase its competitive advantage.

Its main headquarters just outside Toulouse in southwest France is a testament to how quickly the company continues to grow. Airbus opened a new assembly line in Toulouse last summer to support the development of the A321neo. And it recently opened a sleek new reception center for its international customers, to prepare for a rush of deliveries in the years to come.

On Wednesday, as Mr. Faury and Airbus executives put the finishing touches on the company’s earnings announcement, two recently completed Air India A320neo jets, whose tails are adorned with the carrier’s yellow solar logo, were parked in spots at the new delivery center just outside. of a cavernous blue hangar where the jets were recently assembled. Other projects, for IndiGo and British Airways, were also ready for delivery.

Airbus officials were preparing a signing ceremony for Air India officials, and the airline’s crews were scheduled to board later in the evening to fly the plane to India.

“We are delivering more and we will continue to deliver more,” said Jill Lawrie, head of Airbus’ customer experience team, speaking on the new building’s viewing deck, where there was a cavernous hangar used to manufacture the gigantic A380 superjumbo. was converted to make the A321neo instead. “We are growing and need to be more efficient and create greater capacity to achieve our plans.”

At a press conference on Thursday, Mr. Faury stressed the need to prioritize quality and safety over quantity, even as the company strives to increase monthly production of A320neo plans to meet to a burning demand.

“Quantity cannot take precedence over quality,” said Mr. Faury. “We don’t want to come up with a certain number of plans, we want to come up with a certain number of plans that are high quality and safe,” he said. Mr. Faury emphasized that the company had a strong risk management culture.

“The way to do that is to constantly challenge yourself,” he said, “to be afraid of what could happen and to always think about what could go wrong.”