Why are Boeing and Airbus the only commercial passenger jet manufacturers?
In: Economics
One note I don’t see mentioned is the relative lack of innovative space in the commercial aviation industry. There just aren’t a lot of ways you can eek out a competitive advantage as an aircraft manufacturer. Everyone uses the same small number of suppliers for wings, avionics, engines, etc. Even if you had the billions of dollars to invest in a new aircraft manufacturer, there’s no guarantee that your product will stand out against the competition.
As the saying goes, “if you want to make a million dollars in the aerospace industry, start with a billion dollars.”
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