Boeing's shares fell 22 percent on Wednesday compared to the previous month, as the European rival surged after grounding the 737 Max 9.
The Virginia-based aerospace giant is struggling to get back on track after the Jan. 5 accident aboard a Boeing 737 Max 9.
A side panel on the Alaska Airlines plane exploded in mid-air, forcing an emergency landing: miraculously, no one was sitting in the seats near the panel or they would have been sucked out.
In response, the Federal Aviation Authority (FAA) grounded all 171 Max 9s currently flying in US airspace. United and Alaska are the only two airlines affected.
The flight ban came after the Max 8 disasters in 2018 and 2018, which killed 346 people.
Passengers on an Alaska Airlines flight are seen Jan. 5 looking at the hole in the side of the plane – a Boeing 737 Max 9
The fairing on the plane exploded at 16,000 feet – miraculously no one was sitting in the affected seats
Boeing shares fell 22 percent following the Alaska Airlines incident on Jan. 5
Airbus saw its company's value skyrocket amid rival Boeing's woes
In October 2018, a Lion Air flight from Jakarta crashed into the sea 13 minutes after takeoff, killing all 189 people on board. Less than five months later, in March 2019, an Ethiopian Airlines flight from Addis Ababa crashed into the ground six minutes after takeoff, losing all 157 passengers on board.
The Max 8s were grounded for 20 months, costing the company an estimated $20 billion.
This month's incident has only shed more unfavorable light on the company, sparking accusations of excessive production pressure, a demoralized workforce and prioritizing profit over all else.
Boeing insists safety is paramount, but industry whistleblowers say the pressure to compete with Airbus was too great.
Amid the drama, Airbus – which has factories across Europe – announced last week that it had delivered more planes and received more orders than Boeing in 2023.
“What was once a duopoly has become two-thirds Airbus and one-third Boeing,” said Richard Aboulafia, managing director of AeroDynamic Advisory in Washington, DC
He told the New York Times: “Many people, whether investors, financiers or customers, look at Airbus and see a company run by competent people. “The contrast with Boeing is quite stark.”
Airbus shares rose to a record high on Friday after CEO Guillaume Faury said the company received an unprecedented 2,094 orders for new aircraft in 2023.
An emergency exit used as a cabin window flew off the Alaskan Airlines flight from Portland to California at an altitude of 16,000 feet
The flight, which was scheduled to arrive at Ontario International in California, turned around after the shutter came loose
The FAA announced an investigation into Boeing, saying the near-disaster should not have happened and “cannot happen again.”
The orders include many for the popular A320neo single-aisle aircraft, the 737 Max's main competitor.
Boeing also reported more aircraft deliveries and orders in 2023 than the year before, although at a slower pace than Airbus.
Airbus seems to be expanding its lead over Boeing, with many airlines choosing their aircraft.
Last year, Air India ordered 250 Airbus planes and IndiGo, India's largest airline, agreed to buy 500.
Airbus said demand for its planes was strong, with an order backlog of 8,600 planes in 2023 – compared to 5,626 for Boeing.
And Airbus wants to increase production to meet demand.
Faury said Airbus would increase production of the A320neo to 75 jets per month by 2026 to further outpace its rival.
Boeing wants to increase production of 737 jets to 50 per month by around 2025.
“In recent years the economic situation has shifted in Airbus’s favor,” said Philip Buller, an aviation analyst at London-based Berenberg Bank.
He told The New York Times: “The disruptions that have affected the Boeing Max have made it appear as a less reliable aircraft in your fleet.”
“So the benefits of it being a little cheaper are lost because the Airbus is a more reliable aircraft to fly rather than keep on the ground.”
Buller said Boeing's $40 billion in debt due to the COVID travel downturn and the earlier 737 Max crisis made it even more difficult to invest and remain competitive.
“If you have $40 billion in debt and a plane that is your cash cow is grounded because the door blew off, that is a sign that management is not investing in the future but “It can already be remedied today,” he said.