BE­GIN­NING OF THE END OF AIR­BUS-BOE­ING DUOPOLY?

“While they will no longer have the mar­ket to them­selves, we ex­pect Boe­ing and Air­bus to re­tain the lion’s share of the large com­mer­cial air­frame mar­ket, with emerg­ing com­peti­tors gar­ner­ing only a rel­a­tively mod­est low sin­gle-digit share.” —Moody’s analys

SP's Airbuz - - Aircraft Oem - BY R. CHAN­DRAKANTH

IN APRIL THIS YEAR, the At­lanta-based Delta Air Lines (DAL) or­dered 75 Bom­bardier CS100 jets and that has re­ally peeved the US de­fence and aero­space gi­ant Boe­ing which has filed a com­plaint with US In­ter­na­tional Trade Com­mis­sion of ‘un­fair’ trade prac­tices against the Cana­dian com­pany, Bom­bardier Aero­space. The order has kind of shaken the US gi­ant which holds al­most duopoly com­mer­cial air­craft mar­ket with Euro­pean be­he­moth Air­bus. This could be the be­gin­ning of the end of the Air­bus-Boe­ing duopoly.

Moody’s an­a­lyst Rus­sell Solomon in a re­port “The Gloves Come Off as Boe­ing and Air­bus Fight More Than Just Each Other for Share” has fore­cast “The be­gin­ning of the end of the long-run­ning Boe­ing/Air­bus duopoly is upon us.” Solomon said that “Bom­bardier has joined the ranks of the two big OEMs, and Em­braer, in the 100-plus seat nar­row-body mar­ket. For about the past two decades, the mar­ket for large com­mer­cial air­planes (100 seats or more) has es­sen­tially been a duopoly com­prised of the Boe­ing Com­pany and Air­bus Group SE.”

“While they will no longer have the mar­ket to them­selves, we ex­pect Boe­ing and Air­bus to re­tain the lion’s share of the large com­mer­cial air­frame mar­ket, with emerg­ing com­peti- tors gar­ner­ing only a rel­a­tively mod­est low sin­gle-digit share,” states Solomon.

Bom­bardier’s steep pric­ing dis­count, ear­lier avail­abil­ity of the CS100 jets and per­haps the most tech­ni­cally pro­fi­cient model avail­able in its class may have been the swing fac­tors. The C Se­ries is the first that the Cana­dian com­pany is pit­ting it­self against Air­bus and Boe­ing. The Cana­dian com­pany has had tur­bu­lent times to net the level of sales as the Boe­ing 737 and the Air­bus A320. De­spite the strug­gle, in­dus­try ex­perts have ac­knowl­edged the per­for­mance, fuel ef­fi­ciency and de­sign of the CS air­craft. The CS100 is a 133-seater air­craft while the CS300 is a 160-seater, com­pet­ing against the Boe­ing 737 MAX7 and the Air­bus A319­neo.

THE C SE­RIES IS THE FIRST THAT THE CANA­DIAN COM­PANY IS PIT­TING IT­SELF AGAINST AIR­BUS AND BOE­ING

Air­bus A350 XWB: Built with over 70 per cent ad­vanced ma­te­ri­als; com­bin­ing car­bon com­pos­ites (53 per cent), ti­ta­nium and mod­ern alu­minium al­loys, cre­ate a lighter and more cost-ef­fi­cient air­craft while also re­duc­ing main­te­nance re­quire­ments

Boe­ing 737 MAX 9 in flight. Boe­ing plans to in­tro­duce a slightly larger sin­gle-aisle model (tentatively called the 737 MAX 10X), in an at­tempt to com­pete more ef­fec­tively with the A321­neo.

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