Order Wars – Airbus versus Boeing at Farnborough

The Farnborough International Airshow is a seven-day international trade fair for the aerospace industry which is held in even-numbered years in mid-July at Farnborough Airport in Hampshire, England alternating with the Paris Airshow. This year the FAB Show will be from July 9 through July 15.

As the show approaches, a fierce sales battle is being planned by the aerospace leaders, especially Airbus and Boeing. Each side is now “storing up” prospective “order announcements” to be unveiled at the show next week, which we will report on in these pages as they are announced. Each side hopes to “out-announce” and “out sign” the other, often “firming up” or announcing “signed contracts” of previous announced intentions to purchase (MOUs). It is all about perception and of course, signed orders leading to market share. Neither side wants to have the perception grow that they are losing any ground in the “orders wars”.

To a lessor extent, the smaller manufacturers like Bombardier and Embraer are doing the same thing in order to gain ground on the “Big Two”. However the real battle is between the two Titans of the industry.

Many other communities would like to have a Paris or Farnborough-type of show but the truth be told, the manufacturers can’t afford any more public displays of these desperate order wars.

This article by Reuters details the current raging battle between the two giants to maintain market share. Both sides are now desperately discounting their prices (great for the struggling airlines) in order to not lose any further customers. They are promising the world with their new models. “Yes, we can cut your fuel bill” is their on-going A320neo and 737 MAX sales mantra. Both sides are attempting to snatch away long-time customers from the other giant. There are no rules except winning the battle. Careers will be made (and lost) next week.

Massive price cutting has severe implications for the both sides in the future along with all of the people who work for either company. Once you cut the price to bone how are you going to impress future customers?

All of the classic sports battles pale in comparison to next week’s gladiatorial “Battle of the Titans”. This battle won’t appear in the sports pages, but it has all of the competitive drama as the Super Bowl, World Series, Stanley Cup, World Cup or even the upcoming Olympics in London. Bragging rights are on the line in Toulouse and Seattle.

Settle back in your easy chair on this Sunday morning before the battle and read this article and then visualize all of the maneuvers and strategies that are now taking place behind the scenes.

Reality TV? I wish all of this could be available to watch. It would be a great show.

Read the full article: CLICK HERE