Commercial Air Wars:

Strategies That Changed Commercial Aviation

8
Airbus versus Boeing
Current and Future

Jim Rauf

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European Collaboration-Formation of Airbus

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American Consolidation - Boeing Today

OLLI Fall 2016 3

 Airbus and Boeing
Cash, Revenues and Income
Cash on Hand
Airbus Boeing Airbus Boeing
2021 $21,150 $16,244 Revenue Net Income Revenue Net Income
2020 $21,655 $25,590 2021 $61,697 $4,984 2021 $62,286 ($4,202)
2019 $15,820 $10,030 2020 $57,014 ($1,294) 2020 $58,158 ($11,873)
2018 $16,351 $8,564 2019 $78,935 ($1,525) 2019 $76,559 ($636)
2017 $18,255 $9,992 2018 $75,238 $3,607 2018 $101,127 $10,453
2016 $14,909 $10,029 2017 $75,467 $3,247 2017 $94,005 $8,452
2015 $12,056 $12,052 2016 $73,679 $1,101 2016 $93,496 $5,031
2014 $15,666 $13,092 2015 $71,565 $2,994 2015 $96,114 $5,172
2013 $16,063 $15,258 2014 $80,706 $3,115 2014 $90,762 $5,440
2012 $16,487 $13,558 2013 $78,710 $1,946 2013 $86,623 $4,578
2011 $13,312 $11,272 2012 $72,639 $1,579 2012 $81,698 $3,900
2011 $68,435 $1,439 2011 $68,735 $4,009

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Both Companies Cover Airlines’ Capacity and Range Requirements

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Airbus and Boeing Current Competing Products

• Single aisle or narrow body • Wide body or twin aisle

• Airbus A320 family • Airbus A330 family
• A319ceo/neo • A330-200
• A320ceo/neo • A330-300
• A321ceo/neo • A330-800
• A321LR • A330-900
• A321XLR • Airbus A350 family
• Boeing 737MAX family • A350-900
• 737MAX 8 • A350-1000
• 737MAX 9 • Boeing 787 family
• 737MAX 10 • 787-8
• 787-9
• 787-10
• Boeing 777 family
• 777
• 777-
• Very large wide body or twin aisle
• Airbus A380
• Boeing 747-8

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 Airbus versus Boeing – First Quarter 2022 Deliveries
• Airbus delivered 140 aircraft • Boeing delivered 95 aircraft
• Airbus was unable to deliver two A350-900s to Aeroflot • Boeing’s deliveries:
due to international sanctions imposed on Russia
• 86 Boeing 737s
• Airbus deliveries:
• 5 five Boeing 767s
• 58 Airbus A321neos No 787s
• 3 Boeing 777s
• 49 Airbus A320neos
• 1 Boeing 747
• 14 Airbus A350s,
• 11 Airbus A220s
• 6 Airbus A330s
• 2 Airbus A319s

Airbus won 253 gross orders, with a net total of 83 Boeing received 167 aircraft orders

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Airbus versus Boeing
Airbus A350XWB Airbus A380
Orders Deliveries Unfilled
A350-900 743 416 327 Net orders A380-800 251
A350-1000 153 64 89
A380F 0
A350F 22 – 22
A350 family 918 480 438 Deliveries A380-800 251

A320neo family A330 family

Orders Deliveries Backlog Orders Deliveries Backlog
A319neo 72 6 66 A330-200 664 650 14
A320neo 3,843 1,474 2,369 A330-300 784 773 11
A321neo 4,163 742 3,421 A330-800 11 4 7
A320neo family 8,078 2,222 5,856 A330-900 262 73 189
A330 family 1,759 1,538 221

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 Airbus versus Boeing
Boeing 777 Boeing 787
Total Total Total Total
orders deliveries Unfilled orders deliveries Unfilled
777-200 88 88 – 787-8 416 377 39
777-200ER 422 422 – 787-9 887 568 319
777-200LR 61 61 – 787-10 182 61 121
777-300 60 60 – Total 1,485 1,006 479
777-300ER 838 832 6
777F 305 220 85
777X * 334 – 334 737 Max family
Total 2,108 1,683 425 Orders Deliveries Unfilled
4,890 798 4,092

* 777X Certification delayed to mid/late 2023

Deliveries 2025

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Airbus and Boeing 2020 and 2021 Aircraft Deliveries

DELIVERIES AIRBUS BOEING BOTH

2021 611 340 951
Airbus 2021 2020 Boeing 2021 2020
2020 566 157 723
% Change 8% 117% 32%
• Total 611 566 • Total 340 157
Mkt share
2021 64% 36%
• A320 483 • 737 263
2022 78% 22%
• A350 55 • 767 32
GROSS ORDERS AIRBUS BOEING BOTH
2021 771 909 1680 • A220 50 • 777 24
2020 383 184 567
% Change 101% 394% 196% • A330 18 • 787 14
Mkt share
2021 46% 54% • A380 5 • 747 1
2022 68% 32%

NET ORDERS (1) AIRBUS BOEING BOTH • Net Orders507 • Net Orders535
2021 507 479 986
2020 268 -471 -203
% Change 89% N/A N/A
Mkt share
2021 51% 49%

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 Range 4500 mi

Range 3800 mi

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 Twins replace four engine aircraft

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777

777-200LR 777-300ER
Seats (2-class) 317 396
Range nm (km) 8,555 nmi (15,843 km) 7,370 nmi (13649 km)
Length 63.7 m (209 ft 1 in) 73.9 m (242 ft 4 in)
Wingspan 64.8 m (212 ft 7 in) 64.8 m (212 ft 7 in)
Height 18.6 m (61 ft 1 in) 18.5 m (60 ft 8 in)
Engine GE90-115BL GE90-115BL

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777X

Delivery 2025

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787

Estimated development cost

$32 Billion

Planned development cost

$6 Billion

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 Airbus A350-1000 versus Boeing 777-9 Airbus A380-800 versus Boeing 747-8I
73.78 m 242 ft 1 in length 76.72 m 251 ft 8 in 73.00 m 239 ft 6 in length 76.25 m 250 ft 2 in
64.75 m 212 ft 5 in wingspan 72.80 m 238 ft 10 in 261 ft 10
79.80 m wingspan 68.45 m 224 ft 7 in
443.00 m 2
4,768 ft 2
wingarea 516.70 m 2
5,562 ft 2 in

17.08 m 56 ft height 19.53 m 64 ft 1 in 845.00 m2 9,096 ft2 wingarea 554.00 m2 5,963 ft2

2 engines 2 24.10 m 79 ft 1 in height 19.35 m 63 ft 6 in

432 kN 97,100 lbf thrust per engine 467 kN 105,000 lbf 4 engines 4
864 kN 194,200 lbf total thrust 934 kN 210,000 lbf 334 kN 75,152 lbf thrust per engine 296 kN 66,500 lbf
308,000 kgs 679,000 lbs MTOW 351,534 kgs 775,000 lbs 1,336 kN 300,608 lbf total thrust 1,184 kN 266,000 lbf
14,800 km 7,992 nm range 13,500 km 7,290 nm
548,000 1,208,000 448,000 988,000
MTOW
M0.85 cruise speed M0.84 kgs lbs kgs lbs
369 passengers capacity 426 passengers 15,000 km 8,100 nm range 14,800 km 7,992 nm
M0.85 cruise speed M0.855
Airbus A321XLR versus Boeing 737 MAX 10
525 passengers capacity 467 passengers
44.51 m 146 ft length 43.80 m 143 ft 8 in Airbus A330-900neo versus Boeing 787-10

35.80 m 117 ft 5 in wingspan 35.92 m 117 ft 10 in 208 ft 10

63.66 m length 68.27 m 224 ft
in
123.00 m 2
1,324 ft 2
wingarea 127.00 m 2
1,367 ft 2
64.00 m 210 ft wingspan 60.17 m 197 ft 5 in
11.76 m 38 ft 7 in height 12.30 m 40 ft 4 in
0.00 m2
0 ft 2
wingarea 347.00 m 2
3,735 ft2
2 engines 2
16.79 m 55 ft 1 in height 17.00 m 55 ft 9 in
156 kN 35,000 lbf thrust per engine 130 kN 29,317 lbf
2 engines 2
312 kN 70,000 lbf total thrust 260 kN 58,634 lbf
320 kN 72,000 lbf thrust per engine 338 kN 76,000 lbf
101,000 kgs 223,000 lbs MTOW 92,000 kgs 203,000 lbs
640 kN 144,000 lbf total thrust 676 kN 152,000 lbf
8,700 km 4,698 nm range 6,110 km 3,299 nm
242,000 534,000 252,651 557,000
MTOW
M0.78 cruise speed M0.79 kgs lbs kgs lbs
206 passengers capacity 204 passengers 12,130 km 6,550 nm range 13,001 km 7,021 nm
240 passengers max. capacity 230 passengers M0.86 cruise speed M0.85
287 passengers capacity 323 passengers

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Single Aisle Twin Aircraft Flying Long Thin Routes - ETOPS

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 Boeing 777-9 versus Boeing 747-8I
76.72 m 251 ft 8 in length 76.25 m 250 ft 2 in
72.80 m 238 ft 10 in wingspan 68.45 m 224 ft 7 in
516.70 m2 5,562 ft2 wingarea 554.00 m2 5,963 ft2
19.53 m 64 ft 1 in height 19.35 m 63 ft 6 in
2 engines 4

467 kN 105,000 lbf thrust per engine 296 kN 66,500 lbf

934 kN 210,000 lbf total thrust 1,184 kN 266,000 lbf

351,534 kgs 775,000 lbs MTOW 448,000 kgs 988,000 lbs

13,500 km 7,290 nm range 14,800 km 7,992 nm
M0.84 cruise speed M0.855
426 passengers capacity 467 passengers
Boeing 787-9 versus Boeing 747-8I
63.00 m 206 ft 8 in length 76.25 m 250 ft 2 in
60.17 m 197 ft 5 in wingspan 68.45 m 224 ft 7 in
347.00 m2 3,735 ft2 wingarea 554.00 m2 5,963 ft2
16.90 m 55 ft 5 in height 19.35 m 63 ft 6 in
2 engines 4

316 kN 71,000 lbf thrust per engine 296 kN 66,500 lbf

632 kN 142,000 lbf total thrust 1,184 kN 266,000 lbf

252,651 kgs 557,000 lbs MTOW 448,000 kgs 988,000 lbs

15,394 km 8,313 nm range 14,800 km 7,992 nm
M0.85 cruise speed M0.855
280 passengers capacity 467 passengers

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Some Things That Changed Commercial Aviation
• Metal Aircraft – Strength and Durability
• Multi engine Aircraft – Larger Aircraft
• Pressurized Cabins – Higher Altitude Flight
• Turbojet Engines – More Thrust and Reliability than Piston Engines
• High Bypass Turbofan Engines – More Thrust ,Lower Noise than Turbojets
• Wide Body (Twin Aisle) Aircraft – Greater Capacity-Lower Cost per Seat mile
• Hub and Spoke Airline Systems – Narrow Body and Wide Body Aircraft
• Aircraft Manufacturing Mergers – Reduced Competition
• European Collaboration-Formation of Airbus
• Boeing Management Emphasis – Emphasis on Financials/Stock Price
• Airbus Boeing Competition – “Matching” Other’s Products
• Deregulation of Airlines-U.S. and Global – Reduced Real Air Fares –Airlines’ Businesslike Management
• Rise of Narrow Body (Single Aisle) Aircraft – Support Increased Passenger Traffic
• ETOPS – Twin Engine Long Distance Aircraft

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Some Things That Changed Commercial Aviation
• Decline of Hub and Spoke Systems-Point to Point
• Fuel Price Volatility – Airlines seek low Fuel Consumption Aircraft
• Longer Range Narrow Body Aircraft-ETOPS-Displace Wide Bodies
• Composite Materials in Aircraft Structures – Lighter Weight Than Metal
• Increases in High Bypass Engines’ Thrust and Efficiency – Reduced Fuel Burn and Emissions
• Derivative Aircraft Models vs New Design Models – Reduced Capital Investment for Manufacturers
• Increased Cost of Aircraft Development – Fewer New Designs
• Potential Challenges to the Airbus Boeing Duopoly
• Narrow Body Aircraft Development in China - Comac C919
• Wide Body Aircraft Development in Russia - CRAIC CR929
• Environmental Challenges Facing Airlines and Manufacturers - Governments’ Regulations of CO2 Emissions

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Airbus and Boeing Challenges

• Financial management • Partner work splits

• Financing new aircraft • Oversight
• Deciding to build new aircraft • Passenger growth
• Market needs • Airline profitability
• Competition • Fuel prices
• Technology
• Chinese competition
• Engine availability
• Risk sharing • Emissions regulations

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Fuel Price

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Commercial Aviation Emission Regulations
Aviation overall accounts for only 2.5% of global carbon dioxide (CO 2) emissions

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Airbus and Zero Emission Aviation
• September 2020 - Airbus has revealed three concepts for zero-emission
commercial aircraft which could enter service by 2035
• All rely on hydrogen as a primary power source

• A turbofan design (120-200 passengers) with a range of 2,000+ nautical miles,

powered by a hydrogen burning modified engine
• The liquid hydrogen will be stored and distributed via tanks located behind the
rear pressure bulkhead

• A turboprop design (up to 100 passengers) powered by hydrogen in gas-turbine

engines, which would be capable of traveling more than 1,000 nautical miles

• A “blended-wing body” design (up to 200 passengers) concept in which the wings
merge with the main body of the aircraft with a range similar to that of the
turbofan concept
• The exceptionally wide fuselage opens up multiple options for hydrogen storage
and distribution, and for cabin layout

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Airbus and Green Hydrogen

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Boeing and Sustainable Aviation Fuel (SAF)

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 Boeing and Airbus Zero Emission Aircraft

• Boeing • Airbus Holds Its Ground – But Likes SAF

• CEO David Calhoun said: • “SAF is very important for us as a complement to
hydrogen
• “I have a fair amount of experience with hydrogen, our
company has an incredible amount of experience with • It’s the only alternative for the existing fleet and a future
hydrogen long-range aircraft
• At least in the size of airframe that we are all talking • Our SAF support has drowned in the interest in our
about hydrogen work
• We experiment at the low end, but that’s not going to be • But hydrogen is one part of the solution, SAF is the other
a meaningful market here
• Hydrogen is the solution for regional and intra-
• “And the advent of sustainable fuel already, already continental traffic as it has better operating economics
we’re capable of living with that sustainable fuel
• For long-range aircraft, the volume demands of hydrogen
• I believe that’s going to be the 15-year answer to 2050 make SAF the only carbon-free alternative.”
guidelines and approaches because we have all worked
with it, experimented with it, we know it works, and now
we have to develop a supply line for it
• But I believe it’s the only answer between now and
2050.”

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Fuel and Battery Energy Densities

LNG -260F
LH2 -423F

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Commercial Aviation

• Commercial aviation has benefited from technology and engineering developed for military aviation
• Manufacturers merging and forming partnerships has created the Airbus Boeing duopoly
• Barriers to entry are high
• Deregulation of airlines changed the industry –more businesslike, increased competition, lower fares
• Manufacturers rely on global sourcing
• Manufacturers compete to offer what airlines need and “match” the other company’s technology
• Manufacturing requires skilled work force and astute management
• Industry is highly regulated - globally
• Commercial aircraft manufacturing is still a high risk business
• Manufacturers that “guessed wrong” or were unwilling to take risks and invest in with new products are gone
• Safety is vital to commercial airlines and commercial aircraft design and manufacturing
• It is a challenging industry – but can also be fun- to work in

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 Books
• Air Wars The Global Combat Between Airbus and Boeing • From Props to Jets Commercial Aviation’s Transition to the
• Scott Hamilton 2021 Jet Age 1952-1962
• Jon Proctor , Mike Machat and Craig Kodera 2010
• The World’s Greatest Civil Aircraft An Illustrated History
• Paul E. Eden 2015 • McDonnell Douglas DC-10
• Terry Waddington 2000
• Evolution of the Airliner
• Ray Whitford 2007 • Lockheed L1011 Tristar
• Phillip Birtles 1998
• Boeing the First Century and Beyond
• Eugene E. Bower 2008 • Turbulent Skies The History of CommercialAviation
• T.A. Heppenheomer 1995
• The Sporty Game
• John Newhouse 1982 • Boeing 787 Dreamliner
• Guy Norris and Mark Wagner 2009
• Barons Of The Sky
• Wayne Biddle 1991 • The Boeing 787 Dreamliner
• Claude G. Luisada and Steven D. Kimmell 2014
• Higher 100 Years of Boeing
• Russ Banham 2015 • Flying Blind: The 737 Max Tragedy and the Fall of Boeing
• Peter Robison 2021
• Twenty First Century Jet The Making and Marketing of the Boeing 777
• Karl Sabbagh 1996

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