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The Airbus A320 marks a significant shift in favor of European aviation over the Boeing 737.

by Investor Noob
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Airbus revealed plans to manufacture a new single-aisle jet in 1981 to compete with Boeing, at a time when the Boeing 737 was the most prevalent aircraft in the sky.

The American model, which has been in use for more than ten years, revolutionized the aviation sector by making shorter routes more cost-effective and successful. By the time Airbus introduced the A320 in 1988, Boeing had a significant lead with approximately 1,500 deliveries of its top-selling aircraft.

Airbus is on the verge of surpassing its rival after nearly forty years, as the A320 series is set to become the most delivered commercial aircraft in history, with only a 20-unit difference separating it from the 737, according to Cirium consultancy.

Max Kingsley-Jones, head of consulting at Cirium Ascend, expressed surprise that Airbus became number one in production with such high volumes, as did Airbus itself.

The A320’s success demonstrates Airbus’ growth from a newcomer to a strong rival, eventually surpassing Boeing. By the early 2000s, A320 deliveries exceeded those of the 737 family, with total orders surpassing Boeing in 2019, although the 737 maintained the delivery record.

Airbus encountered significant obstacles initially, having been founded in 1970 as a collaboration of European manufacturers backed by government support. Internal conflicts and political tensions between France and Germany plagued the company. Nonetheless, it recognized the necessity to focus on the narrowbodies sector, crucial for short-haul flights connecting cities.

Airbus took advantage of rising fuel prices and the deregulation of the US aviation industry in the late 1970s to introduce a novel aircraft model that appealed to American airlines.

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Airbus took risks to distinguish the A320 by implementing digital fly-by-wire controls, using a side-stick instead of a central manche, raising the plane’s height, and providing various engine choices.

The gamble paid off. Currently, the A320 and 737 make up nearly 50% of the world’s active aircraft. The triumph of the A320 is in stark contrast to missteps like the A380, which was not financially viable. Boeing’s decision to focus on smaller, more adaptable models like the 787 Dreamliner was correct.

The dominance of these two models casts uncertainty on the strength of the Airbus-Boeing duopoly, as they both favored gradual modifications over entirely new ventures.

Airbus proceeded with the A320neo, which featured updated engines that decreased fuel expenses. In response, Boeing introduced the 737 Max, but encountered issues due to modifications, including the MCAS system that led to two tragic incidents and the model being grounded for 20 months starting in 2019.

Airbus faced issues with Pratt & Whitney engines on the A320neo, leading to additional inspections and grounding numerous aircraft.

Analysts are wondering about the future direction as the two existing models have reached their maximum potential. China’s attempt to join the market with the Comac C919 is hindered by the lack of certification in Europe and the USA.

Boeing’s CEO, Kelly Ortberg, mentioned in July that the company is developing a new aircraft model, but progress is contingent on advancements in engines and financial stability.

Airbus, in a better position, is considering designing high heels. CEO Guillaume Faury once thought about introducing a hydrogen-powered aircraft with a flying wing design in the 1920s, but is now concentrating on a more traditional successor to the A320.

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Faury announced at the Paris Air Show in June that a new aircraft model will be launched by the end of the decade to replace the aging A320, with service expected to begin in the mid-2030s.

“I am completely dedicated to developing the future generation of single-use aircraft,” Faury stated. “We are resolute and fully committed to this goal.”

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