Competition between Airbus and Boeing is a result of the two companies' domination of the large jet airliner market. The two companies got 5200^{[citation needed]} orders each in the decade between 1997 and 2006, and they fight for the best commercial figures every year. The concurrence is hard enough to cause disputes on the supposed help of each company's government. Their respective range covers narrow-body aircrafts, wide-body aircrafts and jumbo jets with variations.

Orders and deliveries

Orders

	2007 so far	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993	1992	1991	1990	1989
Airbus	1292	824	1111	370	284	300	375	520	476	556	460	326	106	125	38	136	101	404	421
Boeing	1013	1044	1002	272	239	251	314	588	355	606	543	708	441	125	236	266	273	533	716
	Sources: 2007: Justplanes.com - Airbus-Boeing Orders] (12 November 2007)

Deliveries

	2006	2005	2004	2003	2002	2001	2000	1999	1998	1997	1996	1995	1994	1993	1992	1991	1990	1989
Airbus	434	378	320	305	303	325	311	294	229	182	126	124	123	138	157	163	95	105
Boeing	398	290	285	281	381	527	491	620	563	375	271	256	312	409	572	606	527	402

In recent years Boeing has faced an increasingly high competition from Airbus, which offers some commonality between models (reducing maintenance and training costs) and the latest fly-by-wire technology. From the 1970s Airbus has increased its family of aircraft to the point where they can now offer an aircraft in almost every class Boeing does. Indeed, Airbus is now competing in markets that Boeing once was dominant over : the A320 has been selected by several low-cost operators, gaining ground against a previously well established 737 in this sector ; and on the very large aircraft market the A380 offers competition for Boeing's 747 after 40 years without any.

After several decades of domination, Boeing lost ground to Airbus and subsequently has delivered less planes since 2003. Multiple Boeing projects were pursued and then cancelled, like the Sonic Cruiser, launched in 2001 along with a new advertising campaign to promote its new motto, "Forever New Frontiers", and rehabilitate Boeing's image. Boeing is now focused on the newly launched 787 Dreamliner as a platform of total fleet rejuvenation, which uses technology from the Sonic Cruiser concept. The 787 is the fastest selling wide body airliner so far, which can be a burden for Boeing if they fail to produce it as promised and have to pay large sums of compensation to their customers, and the aircraft have already faced delays before its maiden flight.

In 2004, Boeing ended production of the 757 after 1055 were produced. More advanced, stretched versions of the 737 were beginning to compete against the 757, and the new 787-3 will fill some of the top end of the 757 market. Also that year, Boeing announced that the 717, the last civil aircraft to be designed by McDonnell Douglas, would cease production in 2006. The 767 was in danger of cancellation as well, with the 787 replacing it, but recent orders for the freighter version have extended the program. If Boeing wins the contract for new USAF tankers, the 767 program will continue for years to come.

Recently, Boeing launched five new variants of existing designs: the ultra-long-range 777-200LR, 737-900ER, 737-700ER, 777 Freighter and the 747-8. The 777-200LR has the longest range of any commercial aircraft and was first delivered in 2006. The 737-900ER and 737-700ER will extend the range of the -900 and -700 models. Due to rising fuel costs, the more efficient twinjet 777 has been winning orders at the expense of the four-engined A340.

The rapid sale success of the 787 has forced Airbus to follow suit with the competing A350, though it still lags behind in development and orders. The 747-8 is a stretched version of the venerable 747-400 and will offer higher efficiency and longer range. Following frequent delays to the Airbus A380 program, some stated they are considering switching their orders to the 747-8 instead, so far none has done so and repeat orders have even been placed for the Airbus A380, but all A380F orders has been cancelled. On September 27th, 2007, a major blow was dealt to the Boeing 747-8 project as British Airways, a potential 747-8 customer, opted for the A380 instead and didn't mention the 747-8 as one of the aircraft being considered for their fleet replacement. This leaves the order for the passenger version of the Boeing 747-8 at 20 with only Lufthansa as the launch customer.^[1]

Not including commitments, listed on justplanes.com

Product development

Subsidies

Boeing has continually protested over launch aid in form of credits to Airbus, while Airbus has argued that Boeing receives illegal subsidies through military and research contracts and tax breaks.

In July 2004 Harry Stonecipher (then-Boeing CEO) accused Airbus of abusing a 1992 bilateral EU-US agreement providing for disciplines for large civil aircraft support from governments. Airbus is given reimbursable launch investment (RLI, called "launch aid" by the US) from European governments with the money being paid back with interest, plus indefinite royalties if the aircraft is a commercial success^[4]. Airbus contends that this system is fully compliant with the 1992 agreement and WTO rules. The agreement allows up to 33 per cent of the programme cost to be met through government loans which are to be fully repaid within 17 years with interest and royalties. These loans are held at a minimum interest rate equal to the cost of government borrowing plus 0.25%, which would be below market rates available to Airbus without government support^[5]. Airbus claims that since the signature of the EU-U.S. Agreement in 1992, it has repaid European governments more than U.S.$6.7 billion and that this is 40% more than it has received.

Airbus argues that the pork barrel military contracts awarded to Boeing (the second largest U.S. defense contractor) are in effect a form of subsidy (see the Boeing KC-767 military contracting controversy). The significant U.S. government support of technology development via NASA also provides significant support to Boeing, as does the large tax breaks offered to Boeing which some claim are in violation of the 1992 agreement and WTO rules. in its recent products such as the 787, Boeing has also been offered substantial support from local and state governments^[6].

In January 2005 the European Union and United States trade representatives, Peter Mandelson and Robert Zoellick (since replaced by Rob Portman) respectively, agreed to talks aimed at resolving the increasing tensions. These talks were not successful with the dispute becoming more acrimonious rather than approaching a settlement.

World Trade Organization litigation

On 31 May 2005 the United States filed a case against the European Union for providing allegedly illegal subsidies to Airbus. Twenty-four hours later the European Union filed a complaint against the United States protesting support for Boeing.^[7]

Portman (from the USA) and Mandelson (from the EU) issued a joint statement stating: "We remain united in our determination that this dispute shall not affect our cooperation on wider bilateral and multilateral trade issues. We have worked together well so far, and intend to continue to do so."

Tensions increased by the support for the Airbus A380 have erupted into a potential trade war due to the upcoming launch of the Airbus A350. Airbus would ideally like the A350 programme to be launched with the help of state loans covering a third of the development costs although it has stated it will launch without these loans if required. The A350 will compete with Boeing's most successful project in recent years, the 787 Dreamliner.

EU trade officials are questioning the funding provided by NASA, the Department of Defense (in particular in the form of R&D contracts that benefited Boeing) as well as funding from US states (in particular the State of Washington, the State of Kansas and the State of Illinois) for the launch of Boeing aircraft, in particular the 787.

Range overlap

Though both manufacturers have a broad product range in various segments from single-aisle to wide-body, both manufacturers' offerings do not always compete head-to-head. instead they respond with models a bit smaller or a bit bigger than the other in order to plug any holes in demand and achieve a better edge.^{[citation needed]}

• The A380, for example, is bigger than the 747.
• The A350 XWB competes with the high end of the 787 and the low end of the 777.
• The A320 is bigger than the 737-700 but smaller than the 737-800.
• The A321 is bigger than the 737-900 but smaller than the previous 757-200.

Airlines see this as a benefit since they get a more complete product range from 100 seats to 500 seats than if both companies offered identical aircraft.^{[citation needed]}

The smaller A330-200 competes with the 767, outselling its Boeing counterpart in recent years.

The A380 is anticipated to further reduce sales of the Boeing 747, gaining Airbus a share of the market in very large aircraft, though frequent delays in in the A380 program have caused several customers to consider the refreshed 747-8.^[1] Airbus has also proposed the A350 XWB to compete with the fast-selling Boeing 787, after being under great pressure from airlines to produce a competing model.

There are around 4,463 Airbus aircraft in service, with Airbus managing to win nearly 50 per cent of aircraft orders in recent years. Airbus products are still outnumbered by in-service Boeings (there are about 4,495 Boeing 737s alone in service^[8], about 13,000 total^[9]). This however is indicative of historical success - Airbus made a late entry into the modern jet airliner market (1972 vs. 1958 for Boeing).

Airbus won a slightly greater share of orders in 2003, 2004. It also delivered more aircraft in 2003, 2004, 2005 & 2006. However, Boeing won more orders in 2006 and 2007 (to date) by a much larger margin.

Passengers/range (km) for all models^{[verification needed]}

Airbus A320 vs Boeing 737^{[verification needed]}

Airbus A350 XWB vs Boeing 787 and 777^{[verification needed]}

Airbus A380 vs Boeing 747^{[verification needed]}