Boeing vs. Airbus: Why Aviation’s Biggest Rivalry Is in Flux | WSJ

– [Narrator] This is Boeing’s 737 MAX, and this is its rival, the Airbus A320neo. These planes are at the
center of the biggest rivalry in the aviation industry.
(pleasant orchestral music) They’re both competing for the same market and are mostly used on
relatively short trips like Boston to Miami or London to Madrid. Now, also thanks to the A320neo, Airbus has had a solid year. The airliner has established
itself as a best-seller since it first made its
commercial flight in 2016. Boeing, on the other hand, has had a very rough year. The 737 MAX, which started
flying commercially in 2017, was supposed to strengthen
Boeing’s position as the world’s largest plane maker. Instead, it became a symbol
of one of the worst crises in the company’s history. What does this all mean
for the two companies that secure 99% of the
world’s large-plane orders? – It’s really two old
competitors, you know, battling it out in the ring, and they say there’s no room
in this ring for anybody else. – [Narrator] This chart shows deliveries for Boeing and Airbus
since the start of 2019. You’ll see Boeing’s total
deliveries start to fall after the March grounding of 737 MAX jets, and, as it stands now,
there’s virtually no way Boeing can deliver more
planes than Airbus this year, but Airbus might not hold
the top spot for long. – This’ll bounce back and
forward between the two companies depending on the product they’re selling, on the number of airlines
they can get on board. It really is something
you can sort of watch this go back and forward like a tide coming out and tide going in. – [Narrator] So what’s behind
this latest power shift in the aviation world? What’s happening with Boeing’s 737 MAX is a good place to start. – [Reporter] To crash into the ocean. – A Lion Air Boeing 737. – [Reporter] A devastating scene tonight. – An Ethiopian Airlines jet with 157 people onboard has crashed. – [Narrator] After two deadly
crashes in five months, Boeing’s 737 MAX became the subject of international
investigations, public scrutiny, a flood of lawsuits, and
some high-profile shakeups in the company’s leadership. – We’re gonna be issuing an
emergency order of prohibition to ground all flights of the 737 MAX 8 and the 737 MAX 9. – [Narrator] The MAX
situation has raised concerns about whether Boeing has done enough to make sure its planes are safe to fly. – Safety is our responsibility. We own it, and the work of
our team will make the 737 MAX one of the safest airplanes ever to fly. – [Narrator] The company’s
business has taken a hit. Many of those 737 MAXs are just
sitting in Boeing facilities and other storage areas around the world. As of October, the MAX crisis
had already cost Boeing $9 billion and wiped more than 40 billion off its market value. As the situation drags on, Boeing has tried to boost confidence, reiterating that safety
is its top priority. In a September press release,
CEO Dennis Muilenburg said that ensuring the safety
of the flying public, pilots, and crew is Boeing’s top priority as they work to return
the 737 MAX to service. Muilenburg was stripped of his
chairmanship on October 11th, but he is still the CEO. (pensive mallet percussion music) So does this mean Airbus is benefiting from the 737 MAX’s woes? Not necessarily. – Buying an airliner
is not like going down to your local car showroom and saying, “I don’t like a Ford,
I’ll pop down to Chevy “and see what they’ve got.” You really are in a
list, you’re in a queue that’s got a line that’s
gonna stretch back to maybe even three years if
it’s a really popular airplane. – [Narrator] Even without
the MAX situation, Airbus was already on track to
overtake Boeing’s deliveries. Now, it just appears to be happening a little sooner than expected, and that’s thanks in part to the A320neo. Airbus has gone from
producing 50 a month in 2017 to 60 the next year, with the CEO saying demand
could possibly support more than 70 a month in the near future, but it’s not all about these two planes. Airbus and Boeing make other models, and their facing challenges there, too. Airbus is phasing out its A380 model, which hasn’t been selling well, but production on it was already so low, it’s not having much of an impact on the company’s overall output. Boeing has repeatedly had to push back the first test flight of its 777X due to production problems. In a September press release, Boeing said it doesn’t
expect further delays and, quote, “we remain
fully focused on safety “as our highest priority,
as we subject the 777X “to a rigorous test program
prior to first flight.” Not that delays on new planes are unusual. Both Boeing and Airbus have faced production problems before. It’s just really bad timing for Boeing to take on another set
of issues right now. The company is still trying to get its 737 MAX back in the air after more than seven
months on the ground, and that’s just the planes. The aviation giants have
a lot of other factors to think about, too, like
geopolitics and tariffs. In October, the WTO said the U.S. can slap $7.5 billion worth of tariffs on EU-produced goods
because of the subsidies Airbus gets from the EU. In a statement, Airbus said the only way to prevent negative effects of the tariffs is for the U.S. and EU to
negotiate a settlement. There’s also Brexit, oil prices, trade wars, regulation,
and of course, competition. Supported by the Chinese government, Chinese-made planes may
soon hit the market, though it could take years
for the Chinese company known as Comac to scale up production. – The competition from the Chinese is maybe 10 years away
from becoming significant. – [Narrator] As air
travel continues to rise and both companies anticipate
growth in the coming years, whatever happens with these planes will impact how millions of
people move across the world. (pensive mallet percussion music)

100 thoughts on “Boeing vs. Airbus: Why Aviation’s Biggest Rivalry Is in Flux | WSJ

  1. Some will argue the 737MAX is basically flawed and cannot be fixed easily.. Some will not agree. Time will tell. One thing for sure, the 737 is a remarkable if not iconic aircraft. Did the MAX forever tarnish the legacy?

  2. Even with two crashes that isn't too bad as safety records are concerned, it was just overblown by media being sensationalist.

  3. well, russia, brazil, south africa, and india are all ramping up production and selling to their local markets so far

  4. Just Noticing how on top of Trump being so late to ban the Boeing 737 Max – to protect US interests (140k US employees) He then omits namedropping Boeing in the announcement, referencing the planes just by their model number. All those Defence contracts and US Jobs on the on the line, his approach is to jeopardise Lives around the world for the sake of giving Boeing a softer crash on the stock market -corruption!

  5. NO ONE is going to buy Comac after the Max situation. The Chinese can't even build a toy airplane right.

  6. Problems with Boeing are 2 :

    1. Third class aircrafts like B737crax & B787 Cheapliner,

    2. Threat of overnight sanctions on countries or duties by US Govt & to counter it, other countries will impose tariffs on US goods making spares & maintenance cost more expensive for Boeing. This is also a reason why many businesses outside North America don't prefer Gulfstreams even in biz jet market.

  7. Retrench 500 Boeing Software engineers and outsource work to cheap and inexperienced contractors: Save $10m; Knock $4bn off your market value: priceless!

  8. Don't underestimate the Chinese planes. They are a leading nation in Electric Vehicles & battery producers. They were not known for high-speed trains. Look at them now. They are now ahead of everyone in 5G tech. Given them 10 years & they will show you why the US are afraid of them.

  9. The real issue: new engines have large diameter in order to reduce noise. New engines could not retrofitted to the 747 max because wings were too low on the 737 and the engines would touch the ground. So the designers were instructed to mount the new engines a higher and off centre. However, the problem with this is that aircraft would pitch down. The solution to this was the software, which would automatically correct the pitch of the aircraft. The problem was that was a Boeing selected a cheap fix (i.e not redesigning the wings) and also opted for cheap software (i.e. they retrenched their experienced software engineers and hired lower cost inexperienced programmers). The management thought that they could offer a better product than Airbus as a lower cost. Unfortunately it did not work out that way.

    Therefore, is classic case study, where management instructed in reducing the quality of Boeing engineering, which bit them hard on the back side. Unfortunate people also had to die in the process as well.

  10. I’ve said it before and I’ll say it again. I’ll never fly on the 737 Max. If you as an airline company choose 737 Max as your fleet, I’ll avoid flying with you. And I’m sure I’m not alone. Therefore if you want to be profitable, skip the 737 Max and get the A320 Neo instead. I’m not willing to gamble my life on an airplane that has the tendency to dive uncontrollably.

  11. I believe the problem stems from constant updating an old airframe rather than making a brand new start which I find bizarre because it is their largest seller by far , I read that the airframe goes back decades is this true ?????

  12. The 737Max is an engineering failure. To save fuel, put a bigger engine. Unfortunately, the 737Max does non have enough ground clearance to accept bigger engine, it was already the case with the previous version and its flattened air intake. Solution : put the engine forward on a longer support. Caveats : the bigger and more powerfull engines in a wrong aerodynamic position make the planes rise its nose. Solution : trick mistakes made in engineering and in physics by a computer program. Consequences : 2 crashes, all plane grounded, and a lot of money lost. The A320, although having its own problems, does not suffer from this lack of ground clearance below the engines, so the Neo can accept bigger engine and take the market. The best solution for Boeing, instead of injecting growing hormones in their 707 with 2 engines, eventually at the limit of its evolution process, should have gone with the slightly bigger 757 with better engines.

  13. And here I thought we were worried about climate change. Meh! It’s all fkd folks! Keep on flying!

  14. A320neo – wide seats, cheaper to purchase, 0 crash, 0 fatalities.
    B737 MAX – narrow seats, expensive to purchase, 2 crashes, 346 fatalities.
    B737 MAX 👎👎👎💥☠️⚰️

  15. "Seven thirdy seven," "a three twenny"?!? How professional, and right off the bat to boot. So much for the gold-standard integrity of the Wall Street Journal. smh

  16. Well…….this doesn’t tell us anything we didn’t know…rather a waste of time actually….mmmm

  17. I really hope China comes up with a good plane. Only 2 players is like abusing customers.

  18. Let’s be honest. Boeing has the better airframe and equipment, but rushing through and pencil whipping to get a new plane legal with no extra type rating is just stupid. The real problem here is trying to save money…

  19. Boing outsourced engineering jobs to India for nine dollars an hour, fired its American engineers, that’s what’s nobody’s talking about

  20. Who would want to fly an airplane that says 'made in China' on it?
    They first have to get rid of their reputation for unreliability.

  21. Boing transformed from an engineer driven company to a MBA, Lawyer, Controllers and other locusts driven company about 20 years ago. All those locusts did, was to "cut costs" by firing experienced engineers because they were "too expensive" and lined up their own pockets. Now they have the result of this policy. Mullenburg as first engineer CEO since 20 years is not able to roll that back.
    There is exactly one big company I know of which survived the death grip of MBAs, Laywers and Controllers taking over: Audi. Back in the late 1970s it was also basically bankrupt. Then Piech took over, a successful engineer and majority shareholder and the very first thing he did was to fire all MBAs,. most Lawyers, most Controllers and put back the engineers. Plus added the following roles which can not be modified: A engineering decision can not be overruled by any controller or MBA. The board of directors must be mainly engineers, the CEO must always be an engineer.
    After that it took a few years and they were successful ever since.

  22. 2:36 the first thing that cause the plane to crash in the first place was you guys don't care about safety but about the rivaly between boieng and airbus.

  23. airbus also swimming better

  24. airbus also swimming better

  25. Can anyone imagine what is like and what's inside the passenger's head when he's inside a missile targeted to the ground? Boeing should be permanently closed.

  26. 2:30 shows a drogue parachute off the max 8 vertical stabilizer… what’s that about. Oh and there it is again when they flash value numbers on the screen a little bit later.

  27. Youtube's algorithem just wanted to show me the irony of this video's unironic statement from Boeing.

  28. They didn’t mention it’s only the max 8 and 9 that are grounded. Also, I still love Boeing over airbus

  29. WSJ is covering that Boeing got billions in subsidies from the US Goverment and there agencys

  30. Airbus is propped up by the tax payer, while Boeing simply builds an excellent product and is a well run company, that's the biggest differences.

  31. New press release says they have discovered serious pitchfork cracks in the 737ng model which the max is based.. Clearly Boeing has been failing too long

  32. Boeing didn't want to build a new plane because its cheaper. They didn't want to re-designed it, because the plane would lose its type rating and would have to recertify it $$$, and airlines would have to retrain new pilots $$$. The 737 was designed over 50yrs ago since then its been re-engineered pass its limitations.

  33. I think that airbus gives u a better safety priority and they(atleast)care for our safety but not Boeing because the safety he meant was safety for his bank balance…….-_-

  34. Airbus Espionage on Boeing !!- Unions n globalist ! 1. Priced the plane too high ! 2. Want to see it fail ! Thus weakening U. S.
    While chinos have ravaged all secretes to the “homeland” to be reverse engineered !
    Laugh,point fingers,n wait till it’s too late ! Watch your backs !

  35. Why didn't they just patch the software in the 737-Max and put it back in the air?

  36. To everyone who thinks ALL of Beoing’s aircraft are bad just because of the crashes of two planes of the same variant, it’s just the freaking max, and ALL maxes are grounded for repairs and inspections! The 747-400s, 747-8is, 777s, 787s, 737-800s, and 737-900s have good safety records! One bad variant of an aircraft does not make all the others bad!

  37. Love both airbus and Boeing, however it’s hard to trust Boeing right now with safety and reliability.

  38. The equivalent to that joke some north americans used to like: "If it is Boeing, I ain't going".

  39. So how does an almost century old ariline with tradition and ecellence comission an entire faulted line in the air? 3 words: Commercial Management Rush. As an engineer l can attest every time quality/safety were compromised, in every field of engineering, it was because of schedule pressure. The rush for seeing the crusty new dollar bills roll in is just too overwhelming for the Commercial Management to provide enough time to the tech team for trial and testing. It is very sadening to hear money mongers agreeing on blaming monetary loss on entire tech teams on the grounds of inefficiency, lack of talent, carelessness and sloth even when schedules are not compromised, or even worse, and l've seen it happen, when pre-arranged schedules are overcame.
    l don't think l'd be mistaken if l say engineers and developers are the most passionate beings when it comes to their work. Theorizing, building and testing is very much a labor of love, like breeding a child. A passionate engineer is NEVER driven by money but by seeing his/her this "child" grow strong. That feeling of leaving your mark in the world needs no rushing pressure for engineers rush themselves on their own fire. This is what the corporation can never understand

  40. Americans continue bashing vital American companies like Tesla, Boeing and Apple…in doing so, it gives Chinese companies the advantage so they can grow and then steal and cheat their way into the American Economy…and the unfortunate result will be that; one day, your children and their children will work in China owned US factories slaving away, building futuristic military vehicles and Chinese robotic soldiers for China 🇨🇳

  41. I used to like Boeing, but now I might have to hang up my Boeing hat

  42. Airbus is of course profiting from this situation. A lot of Airlines consider to buy the A320NEO instead of the B737-8. Even Southwest Airlines, a "only-737-operator" now considers to buy Airbus planes, e.g A220.
    This is really bad for Boeing at the moment

  43. I don't get how the 737 max crashes have anything to do with the safety of flying Boeing now going forward. If anything the max 8 will be safer than any other plane when it gets ungrounded because… well, money is a powerful motivator and there's now $9 billion reasons to make sure it doesn't happen again.

    Honestly when it comes to Boeing and Airbus choosing between one and the other is kind of arbitrary. Commercial airline travel is incredibly safe no matter which airline you fly and which airplane you fly on. Southwest, which uses more Max 8s than any other airline, has logged close to 100,000 flight hours with the Max 8 with no issues at all, let alone any crashes. So even a plane that is now notorious for being "unsafe" is, in fact, still very safe.

  44. It's time to stop the USA domination in the air forever.. You have become number 1 for so long.. Time to left the chat..

  45. At this point, I wonder if the 777x delays even matter at all. The 737 MAX issue alone is probably single-handedly bankrupting Boeing. That automatically gives Airbus the advantage.

  46. What was the conclusion of this video?

    Airbus was already ready to surpass Boeing.
    Boeing had issues, with the 737 Max and with the 777X.
    Airbus is having low sales on their A380.
    Aviation is growing.

    Nothing new, then.

    What about regional flights?
    The A220 war, with Bombardier and Airbus.
    What about the Embraer – Boeing relationship?
    These were important issues.

  47. 02:45 you had to do this at the first place, not after so many lives has been lost!

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