In the last decade, market share of Airbus and Boeing have largely been overlapping. Last year, Airbus had 833 orders, significantly less than Boeing’s 1203. However, this year so far Airbus has fared considerably better, receiving 410 orders whereas Boeing so far has 203. Market Price and stock:
The European Aeronautic Defence and Space Company (EADS.PA) is the dominant aerospace company in Europe today. Its largest subsidiary, Airbus S.A.S., is an aircraft manufacturing company based out of several European nations, with the majority of its operations in France, Germany and Spain. The majority of EADS's profits arise from Airbus' operations. Stock price of the company today is 49.90. Currently Airbus has 48% of future orders in terms of value and 51% percent of orders in terms of total aircraft. Airbus dominates in the category of narrow-body aircraft orders with its workhorse A320. Boeing dominates in the more lucrative category of small/medium wide-body orders. Airbus is the largest freight airline producer, and captures more than half of all airline orders of planes that have 100 or more seats.
1) Falling behind Boeing:
Airbus sales dropped by more than 50 percent during the first six months of 2006 compared to 2007. The company was behind schedule in landing more than 250 sales, which were needed to capitalize on its $13 billion design and production investment. Airbus was reeling from a buyers’ strike for several reasons: * Delivery delays in the A-380, a super jumbo jet
* A class-action lawsuit and the threat of more litigation accusing management of hiding problems * Astronomical fuel costs
* In-fighting by French and German executives at the parent company, EADS * A management shakeup at Airbus
All these developments occurred before the deadly Airbus A-310 accident in Russia that killed the crew and scores of passengers. Yes, Airbus appeared rather vulnerable. 2) Reeling back up again...