Boeing’s deal with Embraer gives it an edge over Airbus

Boeing’s deal with Embraer gives it an edge over Airbus.

Boeing’s deal with Embraer gives it an edge over Airbus.

Boeing, the Chicago based airplane manufacturer, delivered 137 aircrafts by the end of this first quarter, with an increase of 32% in production from last year. In comparison to 2011, Airbus augmented their production by 12 planes, while Boeing manufactured 33 aircrafts more. It is the first time in 9 years that Boeing has surpassed Airbus, their European competition, in a very substantial way.

The American manufacturer delivered 99 Renton-Built 737’s, five 787’s, seven 767’s and twenty 777’s. With these results, predictions for a very good year for Boeing have already started. Based on these results analysts expect Boeing to lead in production and delivery.

In terms of placed orders, the company is ahead of Airbus with over a 1000 orders of the fuel efficient 737 model. In addition to this, Boeing’s new model the 737 MAX scored a $19 billion dollar order with Southwest Airlines.

Airbus’s projection for deliveries comes up to 570 aircrafts, while Boeing’s projections show 585-600 aircrafts.

Environmentally friendly aircrafts

The production of the Boeing 737 and Airbus 320, both fuel efficient airplanes, increased considerably. Desires from airlines to cut prices on oil consumption and environmental factors have played an important role on the demand for these planes.

The models have a lesser negative impact on the environment. This year, Boeing delivered six 747-8 stretched jumbos and five 787 Dreamliners.

Boeing’s 787 Dreamliner, made from composite material, is a mid-size plane with the capability to cover long routes. In addition to this, the 747 model, another less fuel-consuming offer from Boeing was also on a very high demand. Airbus competition for the Dreamliner and the 747, the A350 is currently being manufactured in Airbus’s Toulouse factory, and is expected to be released in mid 2014.

Demands from Asian and Middle-eastern airlines to acquire these airplanes, and the possibility of new routes are also factor that determined the production.

Last year the Asia-Pacific market was the strong point for both manufacturers. Both manufacturing giants and extreme competitors are looking to make these types of airplanes into their premium offer for airlines.

Infact, Both carriers did really well with the deliveries of medium-sized jets, with Boeing’s 737 Next Generation and Airbus’ A320 selling strongly during this quarter and look forward to continue through the year.

Apparently Boeing raced ahead with the 747 and 787, its latest fuel-efficient models that have been in high demand by carriers that are looking to cut their dependency on fuel. Boeing has been recently focusing on producing aircrafts that are sleek and modern and are highly fuel efficient. This move is going to completely revamp Boeing’s portfolio.

Boeing ties up with Embraer

Recently, the president of Boeing Jim Allbaugh signed an agreement with Frederico Curado of Embraer after the annual meeting of a public-private partnership group that ties the two countries together.  “The agreement establishes an important relationship between two of the world’s largest aerospace companies to cooperate in ways that enhance operational efficiency, safety and productivity, improve customer satisfaction and create value for both companies and their customers,” Boeing said in a statement. This deal clearly would increase the competitive pressure on Airbus.

Jay Raol

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