MarketLine Blog

Posts tagged to Aerospace

Monarch Airlines: Management not to blame for collapse of UK’s longest-serving airline


In the early hours of Monday October 2, 2017, KPMG announced that it had entered the office of Monarch Airlines and the company had officially entered administration. In the following hours the Civil Aviation Authority chartered 30 planes from across Europe to repatriate some 110,000 British citizens and customers who were then stranded abroad with no return flights. Cancellations of every flight from October 2 and onwards have affected some 300,000 bookings and likely close to a million individuals, and Monarch’s departure from the short-haul flight market will almost certainly… Read more

Boeing vs. Bombardier: Tariffs justified as Bombardier receives state aid


In September 2017, the US Department of Commerce announced the preliminary decision to implement import tariffs of approximately 220% on any imports of Bombardier’s C-Series jets into the US. Following a complaint by major competitor Boeing that Bombardier was dumping its jets into the US market as below cost-price, the tariff plan has met with widespread criticism across Canada – where Bombardier is based – and in the UK, where wings are built in a plant in Belfast, currently providing 4,200 jobs. In reality the tariff – which would more… Read more

COMAC C919 Airliner lands


When the COMAC C919 launched, comparisons were immediately made with the failed Bombardier effort to break the Boeing/Airbus duopoly. Bombardier failed for several reasons, chiefly because it was unable to gain the required customer base needed to gain traction in the airline industry. This does not apply to COMAC: the company has a ready-made market of state controlled airlines, colossal state backing and provides fantastic opportunities for foreign companies. These factors will aid the company to make serious inroads into the Chinese domestic airline market, providing the impetus for future… Read more

SpaceX: turbulent week for Elon Musk


September 01 2016 saw SpaceX (Space Exploration Technologies Corporation) hit the headlines after the explosion of one of its Falcon-9 rockets on the launch pad at Cape Canaveral. The incident, which occurred during a test launch, destroyed the rocket and its cargo – a $200m satellite. The explosion was the latest bad news in a turbulent week for CEO Elon Musk. Shares in Tesla Motors – where Musk is CEO and largest shareholder – dropped 5.3% after it announced it would need to raise additional capital before the end of… Read more

Will the new Mitsubishi Regional Jet (MRJ) erode Embraer’s market share?


In the 1990s, Embraer and Bombardier identified a gap in the production of an aircraft sized for efficient operation in the regional jet market in Europe, Asia, Africa and, particularly, in the United States. Regional American airlines were increasingly demanding an aircraft designed specifically to serve markets that can be optimized with 37 to 110 seat capacity equipment. The production of Embraer Regional Jet-145 (ERJ-145) launched the company into the lucrative regional jets market in 1996, only two years after privatization. Prior to 1996, Bombardier was the sole player in… Read more

Airlines: strategies of the world’s largest carriers


Worldwide, airline passenger volumes have been increasing steadily for decades, with only the occasional temporary downturn. Air transport of both passengers and freight is vital for the globalized economy. In the BRIC countries and other emerging economies, personal incomes are rising and making air travel accessible to a greater proportion of the population. This ought to be a good time to be in the airline industry, right? Wrong. Airline profit margins are among the thinnest of any industry sector. According to IATA data, the global industry had an average operating… Read more

Airline seating patent demonstrates the importance of innovation to the future of passenger air transport


The recent filing of a patent by French manufacturing group Zodiac Aerospace for an innovative high density seating solution for single aisle passenger aircraft has caused a stir in the industry. By configuring the seats into an offset facing pattern, the space between seats is claimed to increase by 15%, offering each passenger an additional 10cm of available leg room. While the introduction of the seating is likely to be some way off, such innovation is indicative of the how the industry as a whole is seeking to meet the… Read more

Embraer targets the US


There is widespread disappointment with the recovery of the US economy, but the American economic stimulus is rendering more fruits then the fiscal consolidation packages undertaken by European governments. This is reflected in the difference in new business opportunities currently presenting themselves on either side of the Atlantic. During the economic free-fall of the developed world, the European and the American market shared a comparable decline in the Gross Domestic Product (GDP). However, the GDP in the US is showing a more robust increase than many European countries, with the… Read more

Boeing: The 787 Dreamliner


In 2011, Boeing made the first commercial delivery of its 787 Dreamliner. It is designed to offer airlines enhanced fuel efficiency and long-haul capability in a mid-sized jetliner. This article shows that how Boeing responded to customer demand in order to make the Dreamliner a reality, and how its strategy differed from that of Airbus, its chief rival. Fuel is a major cost for airlines, and its price is likely to continue to rise. This is generating demand for fuel-efficient planes. Boeing’s new 787 was designed to offer ‘super-efficient’ fuel consumption…. Read more

EADS: Life after BAE? Flying High after the Failed Merger despite Challenges in the Defense Sector


The much vaunted merger of BAE Systems and EADS failed to materialize in October 2012 because of political deadlock, generating uncertainty regarding the future of both companies. The full results for the financial year 2012 show that EADS seems to be doing just fine. 2012 saw a 15% increase in revenues for the company, driving it to €56.5bn ($78.6bn) against 2011’s €49.1bn ($68.3bn). Airbus, Eurocopter and Astrium provided the boost, with defense remaining flat. Net income was up 20% to €1.9bn ($2.6bn). Order books were also up 5%. Shares peaked… Read more

Boeing 787 Dreamliner

Designed to offer airlines enhanced fuel efficiency and long-haul capability in a mid-sized jetliner, in 2011, Boeing made the first commercial delivery of its 787 Dreamliner. Boeing’s new 787 was designed to offer ‘super efficient’ fuel consumption. Innovations in airframe and engine design were critical to achieving an efficiency said to be 20% better than that of rival planes. Airbus is Boeing’s only significant competitor in jetliner production. The two companies have differing views of the future of air travel. Airbus considers that spoke-and-hub routing will continue to expand; Boeing… Read more