Airbus Secures Major Win Over Boeing with EVA Air Deal
In a striking turn of events in the aviation industry, Airbus has outpaced its rival Boeing by clinching the first significant airline contract of 2024. EVA Air, based in Taipei, has formalized a monumental deal with Airbus, acquiring a mixed fleet of both widebody and narrowbody aircraft. This includes a total of 33 new planes, with 18 of the advanced A350-1000s and 15 A321neos set to enhance the Taiwanese airline's capabilities.
The agreement, initially hinted at in a stock exchange filing by the Star Alliance member in early November, marks a pivotal shift for EVA Air, which has traditionally balanced its fleet between Boeing and Airbus. The deal, estimated to be worth around $10.1 billion based on list prices, signals a significant leaning towards the European aerospace giant, though typical industry practices suggest actual costs may be lower due to customary discounts.
EVA Air's decision didn't come lightly. Clay Sun, the airline's president, revealed that an extensive evaluation of various models led to the choice of Airbus for their modern, fuel-efficient features and superior passenger comfort—a choice that implicitly suggests Boeing's offerings fell short in this instance.
Strategic Shifts and Implications for Boeing
This deal has broader implications, particularly for Boeing. The most notable part of the contract is EVA Air's plan to phase out some of its Boeing 777-300ERs, replacing them with Airbus' A350s. This move is significant as it aligns all three of Taiwan's major long-haul carriers, including China Airlines and Starlux Airlines, under the Airbus A350 banner for their flagship routes, notably those to the United States.
The A350 has been a success story for Airbus, amassing over 1,000 orders from 60 customers. Meanwhile, the A321neo has seen a staggering demand of over 5,600 orders since 2016. The popularity of these models underlines Airbus' growing influence in the market.
However, it's not all gloom for Boeing. EVA Air maintains strong ties with the American manufacturer, with plans to integrate additional 787 Dreamliner planes into its fleet, replacing its outgoing Airbus A330s. But the overarching concern for Boeing is whether delays in its next-generation 777X airliner are driving customers towards Airbus, especially as the current 777 model loses its commercial sheen.
Looking Forward: An Evolving Aerospace Landscape
As the industry navigates these developments, Boeing faces a crucial period of introspection. The increasing preference for Airbus' A350, particularly in lucrative long-haul markets, could spell further challenges for Boeing, unless it can expedite the 777X's introduction and recapture the market's confidence.