When we talk about the titans in the world of aircraft manufacturing, two names often come up: Boeing and Airbus. Yet, as we peeked into their performances last month, the scales didn’t quite balance out. Boeing faced a series of challenges that made it lag behind its European counterpart, Airbus.
Boeing’s Delivery Dip
Boeing handed over 43 planes to customers in July, which might sound impressive, but it’s a drop when you compare it to the 60 aircraft they sent out in June. On the other hand, Airbus had a smoother ride, delivering 65 planes in the same month.
The 737 MAX, one of Boeing’s bestsellers, experienced a significant drop in deliveries. In June, 48 of these planes reached customers, but July saw only 32. Remember the fuss about brackets installed incorrectly on the tails of a vast majority of these jets? That’s still causing a ripple effect. The incorrect installation issue affected about 75% of the 737s in Boeing’s stock.
Dave Calhoun, the man steering the ship at Boeing, acknowledged these challenges last month. He highlighted the issue with the bracket defect and also mentioned how an unexpected stoppage at supplier Spirit AeroSystems and a bridge collapse affecting railway deliveries of the 737 fuselage might reduce deliveries in the upcoming quarter.
Stepping Up Production Amidst Challenges
Despite the setbacks, Boeing revealed its intentions to increase the 737’s production from 31 to 38 jets every month. But their Chief Financial Officer, Brian West, conveyed a realistic view, indicating it would be a while before they could maintain that production level consistently.
July also saw Boeing deliver a mix of their other aircraft models, including four 787 Dreamliners, three 767s, three 777 freighters, and a unique Next-Generation 737 modified for the U.S. Navy’s maritime patrol.
Order Books: Boeing vs. Airbus
Here’s a snapshot of the order books: Boeing received 52 gross orders in July, with 39 Dreamliners for Saudia stealing the spotlight. Airbus, however, outpaced them with 60 gross orders.
From the beginning of the year until the end of July, Boeing’s gross orders totaled 579, reaching 467 net orders after considering cancellations and conversions. The number becomes 659 net orders after some accounting adjustments. The company’s commercial backlog in aircraft orders also showed an uptick, growing from 4,879 to 4,928.
Airbus, riding the momentum, boasted 1,140 gross orders, which come to 1,101 after accounting for cancellations, up to the end of July.
It’s evident that July presented a blend of challenges and opportunities for Boeing, and while the hurdles were significant, the resilience of this aviation giant is undeniable. With each month bringing its own set of unique circumstances, it’ll be intriguing to see how both Boeing and Airbus navigate the rest of the year.
Source: Reuters
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