# Why is the A320neo considerably ahead of B737Max?

The A320neo has a 16% higher market share, 1022 more orders, 316 more MoU's and $122.1 bn greater estimated value than the B737Max. Though both were released at almost the same time (231 days gap) with identical features and price (rather B737Max is$15 mn cheaper), why is the A320 flying past the B737?

Data source : PDXLight

• It is not for efficient reasons it is for, which aircraft that they can get the soonest that has than the previous model like the a320NEO has an efficient advantage over the a320 – Ethan Aug 21 '15 at 1:33
• Sorry for the use of very agressive (and misleading) language earlier.. – anshabhi Aug 21 '15 at 16:10
• What sorry I was at school today so I have no idea what happened – Ethan Aug 21 '15 at 21:14
• The chat room Go ahead I join me I am very curious to know what happened – Ethan Aug 21 '15 at 21:43
• @Ethan nothing much happened..!! I just used words like lose out heavily to and race ahead of which were little inappropriate that's it... The sorry is for the community and not you specifically.. (Remember the @replies system) – anshabhi Aug 22 '15 at 13:26

I certainly would not say that the 737 MAX is "losing heavily" to the A320neo. The A320neo is entering service in the next couple of months (October 2015.) The 737 MAX isn't entering service for another 2 years (2017.) I don't think many aircraft manufacturers would be upset with having 2,727 orders for an aircraft that is still 2 years from even entering service. It should further be noted that the A320neo was right around the same total when it was 2 years from entering service.

Some additional factors that come into play:

• The A320 line tends to be more popular in the low-budget Asian market, which is growing significantly right now.
• The U.S. Dollar is currently relatively strong compared to the Euro, due to lots of economic problems in the Eurozone. This means that products exported by European manufacturers are relatively cheaper than products exported by American manufacturers compared to their usual price difference. Obviously, that's an advantage for Airbus, as it means that it's cheaper than normal right now for customers to buy Airbus vs. buying Boeing. This is, again, especially important to the cost-sensitive low-budget markets.
• Airbus' Chinese assembly line allows them to make A320s for the Asian market quite a bit cheaper than Boeing can make 737s for that market, due to the major differences in labor costs.
• It also probably depends on recent deliveries of and orders for the newer 737 models. Airlines that just upgraded are unlikely to place huge orders again for the max. – egid Aug 21 '15 at 3:10

The 231 days gap is a big factor. Some airlines will want their planes sooner rather than later, which means the first one to the market will have an advantage. There is more than 231 days of gap between their entries into service. So if airlines are ordering planes out to, say, 2020, then naturally the type introduced earlier will have more orders. A graph from the linked source shows the number of orders based on days since launch. The A320 still comes out ahead of the 737, but the difference is not as dramatic.

Although the list prices are similar, no one will actually pay those prices. Both Boeing and Airbus will negotiate heavily with their customers to secure sales at much lower prices. The prices actually agreed to are typically not published, but it's possible that one factor is that Airbus is willing to give more of a discount.

Features are also not really identical. They may be very similar on the outside, but each manufacturer will tell you about the features that distinguish their product from the competition.

Another important factor is where the orders are coming from. Asia is a rapidly growing market, and the map shows that Airbus has received far more orders there. Airbus has an assembly line in China, which could be another factor working in their favor.

• in Asia, India has developed some special love for the A320's. Indigo has ordered 430 of them, two new airlines went with A320 and now boeing is keenly looking over to some order from spicejet.. – anshabhi Aug 20 '15 at 16:04
• One major factor that also plays into pricing is relative currency values. Right now, the Euro is down relative to the dollar compared to where it has been in recent years, so that actually works against Boeing and in favor of Airbus (because it makes Airbus' products end up being cheaper for export.) This is actually a rather big factor for international markets. – reirab Aug 20 '15 at 17:52
• Airbus sells in USD, so it just makes more profits for them. Anyway, for expensive purchases, currencies are not bought on market value but via constant prices through insurance and banks. Moreover, the euro drop is just a few month old, clearly not enough to explain the difference. – Antzi Aug 22 '15 at 9:07
• @Antzi Wider profit margin on the lists prices also means more room for negotiating lower prices, though, which can indeed help them to have more competitive bids. While you're right that the most dramatic drop-off has been within the past year, the EUR has been dropping against the USD since the recession started in mid 2008. I agree that this doesn't explain the whole difference, but it does make a difference. – reirab Aug 22 '15 at 15:56