Both Boeing and Airbus had a spectacular year in 2014, with Boeing likely to have an edge over its arch rival in terms of both aircraft orders and deliveries, according to a new analysis by the Centre for Aviation (CAPA).
“2014 proved to be a year that exceeded the expectations of the manufacturers. Both manufacturers successfully brought new products to customers and have kept production levels up, keeping airlines and investors happy. Aircraft deliveries have climbed for the fifth consecutive year, driven by the burgeoning of aviation in Asia Pacific,” said the report.
CAPA added that initial order projections for 2014 were exceeded, revised, and then exceeded again. Globally, large commercial aircraft orders in 2014 exceeded 2,000 for the fourth year running.
“The challenges for Airbus and Boeing for 2015 and the few years beyond are about executing new programmes and bringing them to market, rather than winning orders.”
In total, more than 2,500 aircraft have been ordered between the two big manufacturers. Orders are close to matching the peak years seen in 2013 and 2007. Even with production at unprecedented levels, with Boeing set to deliver a record 715 to 725 aircraft and Airbus around 625 to 630, book-to-build ratios are better than 2:1, keeping order backlogs growing.
“And there are few signs that this situation will deteriorate, with lower fuel prices, at least for the medium term and a relatively strong economy in the US and Asia,” said the report.
For 2014, Boeing had 1,550 gross orders, and 118 cancellations, for a net total of 1,432, a new record for the company, surpassing the 1,413 orders achieved in 2007. Boeing had a particularly successful December, adding 174 new orders, including 20 777s and 16 787s.
On the other hand, Airbus is expected to outsell Boeing in terms of orders in 2014, despite only having logged significantly fewer orders by the end of November 2014. Airbus usually finalizes a large number of orders late in the year, with the final few weeks of December turning into a “13th month” for the company.
Airbus has a similar number of gross orders to Boeing, with 1,328 to the end of November 2014. It has been hit much harder by order cancellations this year, mostly for A320s, but also for the A350. These 297 cancellations cut Airbus net order total to 1,031, although the company has announced another 140-odd orders since the beginning of December 2014.
Orders aside, Airbus will be well behind Boeing in deliveries, with the manufacturer expected to only marginally better its target of matching 2013 deliveries of 626. For the year to the end of November 2014, Airbus had delivered 564 aircraft.
Looking ahead, “the underlying picture for passenger traffic, and thus aircraft demand, is supported by generally robust economic growth, forecast record airline profitability and the long-term aircraft replacement cycle, maintaining the strength of the market,” said CAPA.
Photo courtesy of Cargoitalia
