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Airbus A320-family overtakes Boeing 737 in total

deliveries

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Milestone follows fierce competition in busiest part of

market

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Airbus narrow-body jet was launched in 1984, first flew in

1987

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Both planemakers face new rivals but plan no immediate new

jets

By Tim Hepher

PRAGUE Oct 7 (Reuters) - Europe's Airbus broke

a major commercial barrier on Tuesday when its A320 family of

planes overtook the Boeing 737 to become the

most-delivered jetliner in history.

Boeing's ( BA ) decades-old record fell with the handover of an

A320neo model overnight to Saudi carrier Flynas, bringing total

deliveries to 12,260 since the A320 series entered service in

1988, according to benchmark data from UK-based aviation

analytics firm Cirium.

Airbus and Boeing ( BA ) did not immediately respond to requests

for comment on the data, tracked by leading aircraft supply

analyst Rob Morris.

Demand for the industry's workhorse A320 and 737 jets has

surged in recent years, as economic growth led by Asia brought

tens of millions of new middle-class travellers into the skies.

Together, Boeing ( BA ) and Airbus have delivered more than 25,000

of these jets, originally designed to serve major hubs but later

widely adopted by low-cost carriers, which Airbus courted after

Boeing ( BA ) cut output during a downturn in demand post-9/11.

Already the world's largest planemaker by annual deliveries,

Airbus now claims the top spot for cumulative narrow-body

deliveries, capping a 40-year transatlantic battle for market

share after early disagreements over strategy and the share of

jobs among partner nations, France, Germany, Spain and Britain.

DECADES OF TRANSATLANTIC RIVALRY

Launched in 1984, the A320 emerged at a time when Airbus's

future was far from assured, following the rocky introduction of

two wide-body jets. The aircraft first flew in 1987 and entered

service the following year.

Engineers in Toulouse, France, took an ambitious step by

introducing fly-by-wire computer controls to a mainstream

airliner - a pioneering move that met resistance from unions and

some carriers but ultimately became an industry standard.

The brainchild of Airbus co-founder Roger Beteille, its

development was shaped by arguments over whether to prioritise

U.S. airline demands for a jet in the new 150-seat market,

supported by the French, or continue focusing on wide-bodies,

backed by Lufthansa.

The project narrowly escaped collapse when French President

François Mitterrand and German Chancellor Helmut Kohl, unaware

they had chosen the same intermediary - Bavarian politician

Franz-Josef Strauss - asked him to mediate their dispute by

drafting letters between them. The episode is recounted in

Airbus: The First 50 Years, a history commissioned by Airbus but

never published, a copy of which was obtained by Reuters.

It was also nearly derailed by doubts over investment from

European governments. British Prime Minister Margaret Thatcher

told parliament in 1984: "I do not want another Concorde on my

hands", referring to cost overruns on the Anglo-French

supersonic jet. Boeing ( BA ) has long criticised such support.

EUROPE'S FIRST COMMERCIAL JET SUCCESS

The high-tech but visually unremarkable A320 quickly outgrew

the assembly hall deserted by Concorde's short-lived production

run and most recently expanded into space vacated by the

discontinued A380. In coming weeks, Airbus plans to expand

output in the U.S. and China.

"It was the first truly successful non-U.S. commercial jet,"

said Cirium head of advisory Max Kingsley-Jones. "It forced

others to create competitive alternatives."

Boeing ( BA ) responded with a successful version called 737NG

after Airbus won a surprise order from United Airlines in 1992.

But despite strong sales, its third-generation 737 MAX plunged

Boeing ( BA ) into turmoil after fatal crashes in 2018 and 2019. The

storied planemaker has stabilised under new CEO Kelly Ortberg.

The A320 was forced to tackle its own safety concerns after

two early accidents, prompting debate over the balance between

pilot control and cockpit automation.

Now, the Western duopoly faces threats from China and

elsewhere as Brazil's Embraer ( ERJ ) debates whether to step

up from regional jets and Californian startup JetZero proposes a

radical departure from the traditional fuselage design.

Industry sources say neither Airbus nor Boeing ( BA ) is in a rush

to replace their cash-generating models. Boeing ( BA ) is mired in

debt, while Airbus enjoys a price premium and booming sales.

Executives from both companies told the International

Society of Transport Aircraft Trading (ISTAT) conference in

Prague on Monday that new developments are unlikely until there

are further advances in areas including engine technology.

"Boeing ( BA ) can't catch up with the current A320 family based on

their respective production plans, but it may strengthen

Boeing's ( BA ) resolve to think about a future beyond the 737 when the

conditions are right," Morris said.