Why are Boeing and Airbus the only commercial passenger jet manufacturers?
In: Economics
Economies of scale. It takes a ton of time and billions of dollars to design a larger plane. However, the market for larger planes is really not all that big, and existing airlines are fairly loyal to Boeing and Airbus because it’s what their existing operations are designed around.
So if you can’t find enough customers to sell your planes to, then all those billions of dollars of design cost get spread over a very small number of planes, which means that your per-plane cost won’t be competitive relative to Boeing or Airbus.
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