Airbus is further ahead of Boeing in the global aircraft rivalry

Airbus said Thursday it would ramp up deliveries of some of the world's most sought-after planes this year, strengthening its position as the largest commercial aircraft manufacturer and further widening its lead over Boeing as its US rival focuses on the consequences of a major security crisis. involving the 737 Max line of aircraft.

Airbus, the European aerospace giant, plans to deliver about 800 commercial aircraft this year, including the popular single-aisle A320neo, the 737 Max's main rival. Last year, 735 aircraft were delivered, more than originally intended. This year's push is aimed at meeting what Guillaume Faury, the aircraft maker's CEO, said was a sharp recovery in air travel demand after pandemic lockdowns.

Airbus won a record 2,094 orders for commercial aircraft last year, partly thanks to a surge in demand for narrow-body and mid-size jets from India and other fast-growing countries. That contributed to the company's extensive backlog of 8,598 commercial aircraft by the end of 2023.

On the other hand, Boeing delivered 528 commercial aircraft and 1,576 net orders registered.

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

The company's profits were hit by a large writedown in its aerospace business, which Mr Faury said Airbus was working to turn around.

But in its core commercial aircraft business, where Airbus and Boeing make most of the world's planes, the European manufacturer is expanding its lead.

To the extent that Airbus has problems, it concerns the challenge of producing the thousands of aircraft its customers have ordered on a faster scale. To this end, Airbus plans to increase production of the A320neo to 75 aircraft per month by 2026.

Boeing planned to increase production of its 737 model to 50 planes per month by 2025. But the US company suspended its forecasts last month as it addresses quality control issues highlighted by an incident in early January when a door panel blew off. on an Alaska Airlines 737 Max 9 plane shortly after takeoff.

That episode rocked Airbus' main rival, prompting a U.S. federal investigation and forcing Boeing CEO Dave Calhoun to focus on reassuring customers, regulators and the public that the company puts safety before profits.

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

But the Federal Aviation Administration announced it would limit Boeing's ability to increase production of all 737 Max planes until the company proved it had resolved its quality control problems.

That setback has given Airbus the opportunity to increase its competitive advantage.

The headquarters just outside Toulouse, in south-west 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 the company recently cut the ribbon on a sleek new welcome center for its global customers, preparing for a flurry of deliveries in the coming years.

On Wednesday, as Mr. Faury and Airbus executives were finalizing the company's earnings release, two newly completed Air India A320neo jets, with the airline's yellow sun logo on the tail, were parked in slots near the new delivery center, just outside the airport. from a hollow blue hanger where the jets had recently been mounted. Other aircraft, 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 expected to board the plane 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 panoramic terrace of the new building, where a hollow hanger that used to house the giant A380 superjumbo stood. converted to the A321neo. “We are growing and need to be more efficient and create greater capacity to deliver our aircraft.”

At a press conference on Thursday, Mr Faury stressed the need to prioritize quality and safety over quantity, even at a time when the company is working to ramp up monthly production of A320neo aircraft to meet high demand.

“It cannot be that quantity trumps quality,” Mr Faury said. “We don't want to deliver a number of aircraft, we want to deliver a number of aircraft that are high quality and safe,” he said. Mr Faury emphasized that the company has a strong risk management culture.

“The way to do that is to constantly challenge yourself,” he said, “by being afraid of what might happen, and always thinking about what might go wrong.”