Boeing vs Airbus: Competition Heats-Up in India for Vistara Deal

Boeing vs Airbus – the two rivals have been fighting out for the Big Ticket Vistara Deal and get a foothold in India. Boeings attempts to weaken the sales of Airbus SE’s latest aircraft – the A330 Neo have moved beyond North America and are now competing in India for the Vistara Deal. Boeing vs Airbus – Which is a better aircraft is very difficult to answer, however, both the companies are battling and woo Vistara and gain an upper edge in one the biggest aviation markets, India.

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Boeing vs Airbus: The History

Boeing vs Airbus has been characterised as a duopoly in the large jet airliner market since the 1990s. This resulted in a series of mergers and acquisitions within the aviation industry. Airbus started as a European consortium while the Boeing acquired its former arch-rival and key competitor – McDonnell Douglas.

Other players in the aviation market like Lockheed Martin, Convair and Fairchild Aircraft in the US, and British Aerospace and Fokker in Europe were unable to compete and retracted from the market.

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Boeing vs Airbus: Global Competition

In the major setback to the Airbus, the Indian affiliate of Singapore Airlines Ltd. opted for the Boeing 787 over the bigger A350, according to report by Bloomberg.  This incident was preceded by a similar setback when American Airlines Group and Hawaiian Holdings, both discarded their previous orders for Airbus and selected the Boeing 787 instead.

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Boeing’s aggressive marketing, coupled with Donald Trump’s tax cuts, has proved beneficial for the American company. In April 2018, Airbus announced that it will limit the production of the A330 Planes as it moves to the latest model (in part) due to lower than anticipated sales.

Boeing vs Airbus: Competing for Vistara

Vistara, an Indian airliner, is set to place an order for six Boeing 787, with a possibility to buy four more, according to key sources. The most expensive model of the Boeing Dreamliner is priced at $325.8 million, making the overall order from Vistara worth a whopping $3.3 billion.

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On the other hand, Airbus is making a steady progress with Vistara in respect to narrow-body aircraft. The European consortium is favoured to acquire an order for 60 new-engine, single-aisle airliners and gain a robust footing in India.

Vistara is slowly and steadily inclining toward purchasing the A320 Neo jets after a hard-fought struggle with Boeing’s 737 Max model, according to key sources. The A320 Neo has is priced at approximately $110 million, valuing the entire deal at $6.6 billion, double than that of Boeing.

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