Why are Boeing and Airbus the only commercial passenger jet manufacturers?
In: Economics
They’re not… but other aircraft manufacturers only make smaller planes (Fokker, Bombarier, Embrar). But for large jets, it’s a market with super high barriers of entry, between the costs and time to design and certify a new plane as well as the scale of the manufacturing plants needed. And there are very few customers — only a few dozen airlines globally, who tend to buy in large quantities.
So how would a company finance the development of a plane that might cost many billions of dollars and a decade or more to develop, then need to find buyers, and then need to build the infrastructure to produce in quantities airlines want?
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