Money Matters - Simplified

Airbus facing global price war from the challenging Boeing?

Is the Airbus A320neo standing up against a firm competition from competitor Boeing? According to a Sunday report on a German newspaper Chief Executive Officer Fabrice Bregier of the Airbus stated US competitor Boeing has sliced the worth of the Boeing 737 Max Aircraft to snatch the market share from the Airbus A320neo.

Fabrice Bregier CEO, commented in a dialogue to Welt am Sonntag,

"Boeing is desperately trying now to boost the market share of B737 Max. They are very aggressive when it comes to pricing."
Boeing most probably tends to publicize an elevated level of fresh orders for the full year for the entire grouping than Airbus, he said. The Chief executive made claims at the Farnborough Air show The Airbus gears up to book additional narrow body plane demands as compared to the Boeing for these successive two years completing Dec 2012.

This was his attempt to the defense of the European company’s situation after the Boeing landed its first blow to the Airbus at the air show. The Boeing price dip expects the Airbus sales to fall. The showcase event of the Airshow resulted in the Boeing bagging the opening huge order of the aerospace industry. The narrow-body of the Boeing 737 Max is slowly climbing in sales outsmarting the Airbus A320neo in the decisive short-haul market segment.

But Chief Executive of Airbus Breiger asserted to the Reuters Insider TV,"Last year was exceptional as we had just announced the launch of the A320neo, but this year I believe will be a good show and will help us to achieve what we expect this year, which is around 650 new orders." "I am pretty sure that, since we launched the neo (December 2010) by the end of 2012, we will still be ahead of Boeing with their product."

Boeing had taken an antagonistic stand by hacking its price drastically. Bregier was heard saying that Boeing was "very aggressive" on the money price for the clients taking the competition to a very high level.

"We have a competitor who is trying to come back and so is very aggressive regarding the prices. But we keep the line. We keep cool. We have already 1,400 aircraft in the order book, so we are not in a rush, and when we sell the A320neos, we make a very good margin," he alleged.

Bregier claimed he was not unduly anxious about the sluggish deals of a new version of widebody A350 Airbus."I would not be surprised to have good news (on the A350-1000) during this air show," he said optimistically.