Boeing’s European rival Airbus pulls further ahead of beleaguered aviation giant after its killer 737 Max jets were grounded over yet another safety scare – and insiders said aircraft are riddled with flaws

Boeing’s share price fell 22 percent on Wednesday from a month earlier as its European rival lost steam following the grounding of its 737 Max 9s.

The Virginia-based aerospace giant is struggling to regain its momentum following the Jan. 5 accident aboard a Boeing 737 Max 9. A side panel on the Alaska Airlines plane blew out in midair, forcing an emergency landing : By some miracle no one sat in the seats near the panel or they would have been sucked out.

In response, the Federal Aviation Authority (FAA) has grounded all 171 Max 9s currently flying in US airspace. United and Alaska are the only two airlines affected.

The grounding of the planes came after the Max 8 disasters in 2018 and 2018, which killed 346 people.

The panel on the plane blew out at 16,000 feet – miraculously no one was in the affected seats

Boeing shares fell 22 percent after the January 5 Alaska Airlines incident

Airbus has seen its company’s value rise amid rival Boeing’s problems

In October 2018, a Lion Air flight from Jakarta crashed into the sea 13 minutes after takeoff, killing all 189 people on board. Less than five months later, in March 2019, an Ethiopia Airlines flight from Addis Ababa crashed into the ground six minutes after takeoff, killing all 157 on board.

The Max 8s were grounded for 20 months, costing the company an estimated $20 billion.

This month’s incident has only cast an otherwise unflattering light on the company, prompting accusations of excessive production pressure, a demoralized workforce and putting profits above all else.

Boeing insists it puts safety first, but industry whistleblowers say there has been too much pressure to compete with Airbus.

Amid the drama, Airbus – based in factories across Europe – announced last week that it had delivered more planes and won more orders than Boeing in 2023.

“What used to be a duopoly has become two-thirds Airbus and one-third Boeing,” said Richard Aboulafia, managing director of AeroDynamic Advisory in Washington, DC.

He told The New York Times: ‘Many people, whether investors, financiers or customers, look at Airbus and see a company run by competent people. The contrast with Boeing is quite stark.’

Airbus shares rose to a record high on Friday after CEO Guillaume Faury said the company had won as many as 2,094 orders for new planes in 2023.

An emergency exit used as a cabin window blew out of Alaskan Airlines flight from Portland to California at 16,000 feet

The flight that was supposed to arrive at Ontario International in California turned back after the plug door came loose

The FAA announced an investigation into Boeing, saying the near-catastrophe should not have happened and ‘cannot happen again’

This includes many orders for the popular single-aisle A320neo aircraft, the 737 Max’s main competitor.

Boeing also reported more aircraft deliveries and orders in 2023 than the year before, but at a slower pace than Airbus.

Airbus appears to be expanding its lead over Boeing, with many airlines opting for its aircraft.

Last year, Air India ordered 250 Airbus planes and IndiGo, India’s largest airline, agreed to buy 500.

Airbus said demand for its planes was strong, with a backlog of 8,600 aircraft in 2023 – compared to 5,626 for Boeing.

And Airbus plans to ramp up production to meet demand.

Faury said Airbus would increase production of the A320neo to 75 planes per month by 2026, in a further bid to outpace its rival.

Boeing plans to increase production of 737 aircraft to 50 per month by 2025.

“In recent years, the economic situation has changed in Airbus’ favor,” said Philip Buller, an aviation analyst at London-based Berenberg Bank.

He told The New York Times: “The disruptions that have hit the Boeing Max make it seem like a less reliable aircraft to have in your fleet.

“So the benefits of it being slightly cheaper go out the window because the Airbus is a more reliable aircraft that you can fly rather than ground it.”

Buller said Boeing’s $40 billion in debt from the COVID travel crisis and the earlier 737 Max crisis made it even harder to invest and stay competitive.

“If you have $40 billion in debt, and an airplane that is your cash cow is on the ground because the door blew off, that’s a sign that management is not investing in the future, but in today’s firefighting,” he said.