The business world is all about competition and the most recent one making rounds in the market involves two of the largest jet manufacturers of the world, Boeing Co (NYSE:BA) and Airbus Group NV (EPA:AIR). According to the latest reports, Boeing said that it is not planning to compete with Airbus over the long-range 737 jet.
While talking about its product line, Boeing said that it doesn’t find any justifiable reason to launch an extended-version of 737 jet to compete with the latest long-range jet from Airbus. While talking about long-range jets, Boeing said that its 737-900 jet and the MAX 9 already offer better range as compared to A321 from Airbus and the later is likely to catch up with what Boeing already offers.
At the same time, Randy Tinseth, vice president of marketing for Boeing, said that the projections of Airbus Group NV (EPA:AIR) for over 1,000 long-range plan is laughable. It is important to consider that Boeing Co (NYSE:BA) has defeated Airbus Group NV (EPA:AIR) for a straight third year in terms of jet deliveries whereas Airbus has overcome Boeing in terms of more orders in 2014.
In 2014, Boeing made 723 deliveries putting it ahead of 629 plane deliveries made by Airbus. However, what is more interesting is the fact that the order book of Airbus Group NV (EPA:AIR) is nearing $1 trillion with a record backlog of 6,386 aircrafts. This order list has current value of $919.3 billion and it is quite impressive for a company’s plane design. On the other hand, Boeing Co (NYSE:BA) booked 1,432 orders in 2014 against 1,456 orders of Airbus.
The president and chief executive of the commercial jetliner unit of Airbus, Fabrice Bregier said,
“We believe it is time now to work out a solution to offer additional aircraft.”
This article has been written by Prakash Pandey.