Airbus COMPETITIVE EDGE

"Last week, Airbus solidified its position as the world's leading aircraft manufacturer for the fifth

consecutive year, revealing that it had surpassed Boeing in both aircraft deliveries and order

placements for the year 2023. Meanwhile, Boeing was grappling with a significant public relations

and safety crisis stemming from a dramatic near-disaster involving its 737 Max series of planes.

In the ongoing competition between these two aviation giants, Airbus has significantly outpaced

Boeing.

Richard Aboulafia, the managing director of AeroDynamic Advisory in Washington, D.C., remarked,

"What was once a duopoly has now shifted to two-thirds Airbus, one-third Boeing." He noted that

many stakeholders, including investors, financiers, and customers, view Airbus as being led by

competent management, highlighting a stark contrast with Boeing's current situation.

The recent incident involving the 737 Max 9, where a fuselage hole opened during an Alaska Airlines

flight, represents the latest in a series of safety issues plaguing Boeing's flagship aircraft. These

incidents, including two fatal crashes in 2018 and 2019, indirectly contribute to the enhancement of

Airbus's market position within the aerospace industry."

Shares in Airbus, a consortium with operations spanning across several European

countries, surged to an all-time high on Friday following an announcement by its CEO,
Guillaume Faury, revealing a record-breaking 2,094 orders for new aircraft in 2023,
marking the highest number in a single year. This figure includes the widely popular
single-aisle A320neo planes, which directly compete with Boeing's 737 Max.

Boeing also experienced an increase in aircraft deliveries and orders in 2023 compared
to the previous year, albeit at a slower pace than Airbus. Together, these two companies
dominate the commercial jet market worldwide.

During a news briefing on Thursday, Mr. Faury refrained from directly commenting on
the latest issue concerning Boeing's Max aircraft. He stated, "We are closely monitoring
all developments emerging from the ongoing investigation."

Despite its successes, Airbus has faced its own challenges. Supply chain disruptions
during the pandemic necessitated production cuts and layoffs, resulting in a loss of 1
billion euros ($1.1 billion). Additionally, Airbus settled a corruption investigation in 2020
for €4 billion. Furthermore, in 2019, it ceased production of the A380 superjumbo jet
following reduced demand from airlines, who favored smaller models.