Bruce Andrews, partner at middle market aerospace and defence mergers and acquisition bankers Alderman and Company put the two workhorses of the narrow-bodied sector through their paces
Ranging from faulty titanium used in planes to the lost door incident in January 2024, on an Alaska Airlines flight, Boeing’s issues have been well documented over the last year.
Consequently, competitors like Airbus have been looking to fill the demand gap left by these woes.
Airbus’s latest new model, the A321neo, is the latest member of the A320neo family, now featuring new engines and aerodynamic augmentations to improve range and efficiency.
The neo already has more than 6,700 orders from more than 90 airlines, with demand continuing to grow.
With the A321neo already drawing many comparisons to a staple of the industry and Boeing’s narrow body equivalent, the Boeing 737 Max, let’s take a look at how the two aircraft stack up against each other performance-wise.
How the A321neo stacks up against the 737 Max
Starting with the range of the two aircraft, the A321neo has an impressive range of almost 4,000 nautical miles, almost 500 more than the 737 Max’s range of 3,550 nautical miles.
The A321neo also beats out the 737 Max when it comes to capacity, seating 10 more passengers at 240 compared to Boeing’s capacity of 230.
When it comes to design and technology, the A321neo’s wider fuselage allows for more spacious seating and greater headroom, offering a more comfortable ride.
The A321neo also features a fly-by-wire system and an advanced onboard computer, which enhances maneuverability, improves flight stability, reduces pilot workload, and boosts overall safety.
On the other hand, the Boeing 737 Max sticks to more traditional control systems and uses conventional winglets rather than the A321neo’s wingtip fences and sharklets (Airbus’s winglet equivalent).
While it may not incorporate as many cutting-edge technologies as the A321neo, the 737 Max still offers notable upgrades over previous 737 models, including more fuel-efficient engines, better aerodynamics, and advanced avionics.
Furthermore, the 737 Max is generally more fuel-efficient and, overall, more economical as a new 737 Max will cost an airline approximately $100 million, $10 million less than an A321neo.
While the 737 Max offers a more affordable yet high-quality option for many airlines, the A321neo stands out as the superior choice for those prioritising customer experience, especially on international flights.
Airbus vs Boeing delivery numbers
Boeing and Airbus both ended 2024 with strong delivery numbers, however Airbus is currently well ahead in both production and deliveries, caused largely by the “lost door incident” and a three-month strike of IAM workers halting 737 production.
Boeing delivered 30 jets in December, including 18 737s, while Airbus delivered 123 aircraft, including 92 A320s. Due to an order by the FAA, Boeing is currently capped at 38 737 Maxs per month.
Boeing expects FAA approval to move beyond the rate of 38 per month by the second half of 2025 but is expecting to be near that capped rate for the remainder of 2025, which falls short of the pre-crash/pre-pandemic rate of 52 737s per month in 2018.
Meanwhile, Airbus is planning to increase its A320 family production to 75 per month by 2027. The company delivered 50 A320s per month in 2024, compared to 48 and 43 in 2023 and 2022.
Airbus is no longer releasing their monthly production rate, instead opting to announce future target rates. Right now, the estimated A321neo production rate per month is 52.
The A320 program was initially projected to reach a monthly production rate of 65 by late 2024, but this milestone is now anticipated to be delayed until late 2025.
Looking specifically at the A321neo, which currently makes up about 65% of the A320 family firm order backlog, reportedly more than 5,600 have been ordered by over 100 customers worldwide.
Act quickly to secure position in the A321neo supply chain
With our 23+ years of experience in the Aerospace and Defense Middle Market, we, at Alderman and Company, recommend that middle market companies participating in the commercial aerospace supply chain act quickly to secure their position in the A321neo supply chain.
If the A321neo emerges as the preferred narrow body aircraft of the next generation, or even a major player in the space, Airbus will prioritise ramp-ups for A321neo production, meaning increased demand for suppliers across multiple tiers, from raw materials to avionics, interiors, and structural components.
Already, Airbus has expanded production facilities, including in Toulouse, Hamburg, Mobile (Alabama), and Tianjin (China) to support this increased demand from the consumer side.
This creates both opportunities and risks for middle-market companies, as Airbus will favour long-term contracts to maintain a stable supply base, securing key suppliers with lucrative agreements while limiting entry for others.
The increased demand for the A321neo presents a critical window of opportunity for suppliers to begin leveraging their relationships to secure crucial contracts connected to the aircraft.
In an industry driven by innovation and shifting market demands, the A321neo’s growing dominance signals a significant opportunity for aerospace suppliers.
As Airbus ramps up production to meet increasing orders, securing a place in its supply chain now could yield long-term benefits for OEMs looking to establish stability and growth.
With Airbus prioritising reliable, long-term partnerships, the window for new suppliers to enter is rapidly closing.
Those who act swiftly will position themselves for success in the evolving narrow-body market, while those who hesitate risk missing out on one of the most lucrative aerospace opportunities of the decade.
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