For example, Boeing generated $13.6 billion in FCF in 2018 (the year before the 737 MAX was grounded), representing over 15% of its current market cap. Asia, Australia & Pacific Rim The cases for buying stock in Airbus (OTC:EADSY) and Boeing (NYSE:BA) are pretty similar. Similarly, Airbus … The A320 production rate has been reduced to 40 aircraft per month, down from an average of over 53 aircraft per month in 2019. However, investors also need to consider the downside risks, and there appear to be more of them with Boeing than there are with Airbus right now. Defense & Security Monitor, an Aerospace & Defense blog by. Note: Boeing 777-300ER orders include one 777-200LR. EU financial assistance to Airbus, in addition to costing Boeing billions of dollars in sales, has contributed to Airbus replacing Boeing as the world’s largest aircraft manufacturer as of 2020. As of 31 January 2020, Boeing had no outstanding unfulfilled orders for the 747-8I passenger version and 17 for the 747-8F freighter; Airbus had 11 A380s remaining to be delivered. The combined 777/777X production rate will be reduced to three per month in 2021. Based on the numbers above and the assumption that commercial aviation will recover in a few years, both stocks look like a good value. Meanwhile, Airbus CEO Guillaume Faury thinks it will happen "somewhere between 2023 and 2025.". Boeing's 737 Max has been grounded since mid-March of last year. As of July 2020, over 300 Boeing 737 Max and roughly 29 Airbus A320 family aircraft orders were cancelled. Next, a Continued Airworthiness Notification to the International Community (CANIC) and an Airworthiness Directive (AD) will be issued, followed by the official ungrounding of the aircraft. In any case, it will be a few years before Boeing is able to hit the monthly production rate of 57 aircraft that was originally planned. Prior to the recent 737 MAX production suspension, Boeing was manufacturing the jet at a reduced rate of 42 per month. As of the end of November, Airbus had captured 380 net orders in 2018, leaving it well behind Boeing, which had secured 690 net firm orders by that point. And it will be a few years beyond that for the industry to return to long-term growth trends." And frankly, the list of potential headwinds for both Boeing and Airbus is lengthy. However, there are numbers, and there is believing in the numbers. However, Airbus has delayed a planned A220 production ramp-up at its Mirabel facility near Montreal, where the company has been producing four A220s per month. The individual country reports are structured to condense a vast range of information into concise segments. Forecast International’s International Military Markets service provides a country-by-country examination of the military capabilities, equipment requirements, and inventories of over 120 nations. Many industry insiders are estimating that commercial aviation won't return to 2019 levels of activity until 2023. The 737 MAX is expected to remain grounded until at least August. North America. Moreover, given the precedent set by the global reaction to COVID-19, it's possible that future outbreaks will be dealt with in a severe and pre-emptive fashion. Meanwhile, the Federal Aviation Administration (FAA) has repeatedly stated that it has no timetable for the aircraft’s return to service. Sign up for the latest blog posts and products sent straight to your inbox. That's obviously a concern given that the 737 MAX is the aircraft intended to compete with the Airbus A320 NEO in the narrow-body market. The 777-300ER backlog includes two 777-200LRs. Between June 29 and July 1, a number of 737 MAX certification flight tests were carried out by Boeing and the FAA to evaluate Boeing’s proposed changes to the automated flight control system. Boeing’s all-time backlog high of 5,964 aircraft was set in August 2018. Source: U.S. Federal Aviation Administration (FAA). Follow me on Twitter to receive quick and thorough analysis of your favorite stocks. Meanwhile, the KC-46 tanker (a military aircraft) has had a raft of issues over the years. Airbus released its final sales and production tally Monday, showing it delivered a total of 863 jets and won 768 net new orders in 2019. The A330 and A350 programs are reduced to a rate of two and six aircraft per month, respectively. Pricing for each region begins at $2,295, with discounted full-library subscriptions available. Prior to the suspension of deliveries in March 2019, Boeing had produced and shipped 387 737 MAX jets. All of these considerations need to be made before buying either of these stocks, but if you are positive on the industry, which stock is the better buy? Post was not sent - check your email addresses! Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: Boeing vs. Airbus @themotleyfool #stocks $BA $EADSY, Dow Jones Slumps 100 Points; Boeing Stock Lower After Fatal Crash; Cisco Fights to Close Acacia Merger, Boeing 737 Crashes Shortly After Takeoff in Indonesia, Boeing Agrees to $244 Million Penalty for 737 MAX Flaws, Airbus Sees Deliveries Plunge 34% as COVID-19 Takes Toll on Airlines, Boeing to Pay $2.5 Billion to Settle 737 MAX Criminal Probe, Copyright, Trademark and Patent Information. The biggest shock … Similarly, Airbus generated 3.5 billion euros in adjusted FCF in 2019 and had expected 4 billion euros in 2020 before the pandemic struck. Airbus and Boeing both confronted a softer market for wide-body aircraft even before the coronavirus hit markets. Boeing also announced that the 787 production rate will be reduced from 14 per month to 10 per month this year, and gradually reduced to seven per month by 2022. Airbus has been struggling to grow its revenues in the last five years, having registered a CAGR of 0.97% since 2014 compared to its rival Boeing, whose revenues grew almost three times faster, at 2.74%, over the same period. At the end of June, Airbus’ reported a backlog of 7,584 jets, of which 6,694, or 88 percent, were A220 and A320ceo/neo family narrowbodies. The FAA will retain its authority to issue airworthiness certificates and export certificates for all new 737 MAX jets manufactured since the grounding and will perform in-person, individual reviews of these aircraft. Indeed, Boeing CEO David Calhoun said as much on the last earnings call: "[W]e currently estimate it will take around three years for travel to return to 2019 levels. But it's not the only major challenge facing the embattled aircraft maker. 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