Airbus, Boeing accuse each other of price war; what’s the real story?
What’s the truth? It seems to us that orders might tell the story. The scorecard YTD:
Airbus A320 family: 88
Boeing 737 family: 413
It seems to us that if Airbus were engaged in predatory pricing, the scorecard would be reversed.
Last year, of course, Airbus pounded Boeing at a time when it had the NEO defined and Boeing’s MAX was still evolving. But Boeing ended the year with about 1,000 orders and commitments while Airbus ended the year with about 1,200 firm orders and another 200 or so commitments. So while Airbus ended the year ahead, we believe it was essentially because Airbus had a firm product and Boeing did not.
Something doesn’t pass the sniff test here.