The Airbus-Boeing duopoly - can it ever be broken?

Airbus and Boeing are arguably two of the best, well-established aircraft manufacturers and designers in the world. They both are world leaders at what they do and hence the Airbus-Boeing rivalry, which started with the merger of McDonnell Douglas with Boeing barely two decades ago, has become tightly ingrained in popular culture.

The aerospace behemoths have been at loggerheads with each other since then, launching new programs, winning customer orders and ramping up production rates.

Profits raked in and both companies enjoyed a smooth ride until.

The two fatal B737 MAX crashes in 2018, set in a series-a chain of events, which would eventually put Boeing's reputation on the line- leading to the grounding of the entire fleet worldwide. Troubles would seem to pursue Boeing with quality and manufacturing issues of the B787 Dreamliner cropping up.

2 Fatal B737 MAX crashes 5 months apart | Representative | Fighter Jets World

Consequently, Boeing since then still continues to work on its shortcomings and establish itself as the engineering-driven aerospace company it always has been.

Airbus, on the other hand, has had its own share of setbacks as well. The company decided to pull the plug on the production of its iconic "jumbo jet''- the A380-after selling just 250 units worldwide, in December of last year. The orders for its A350 were drying up as well, tallying to less than 100 in the past 3 years. In the meantime, Airbus has been carrying on with the development of its A321XLR, which potentially pulls the rug from under Boeing’s work on addressing the “middle of the market” segment.

NewsRoom Jetstar

The Covid pandemic, of course, only made things worse. Having brought the entire aviation industry to its knees, the pandemic dealt a further severe blow to the already crippling airline operations.

It is only natural then, to evaluate where the Airbus-Boeing duopoly stands today, especially in these unprecedented times.

So, why do just two companies dominate a $13-trillion market?

Stock Target Advisor

Estimated at around $190 billion, the commercial aviation market is one of the biggest and most profitable markets in the world. For almost three decades, it has been split between Airbus and Boeing. The duopoly occupies approximately 99% of the global market for large commercial airliners, largely because the high barriers to entry and exit make it extremely hard for other competitors to join the game.

Although Quebec-based Bombardier and Brazil-based Embraer dominated the small private jet segment, Airbus and Boeing have dominated the commercial aviation sector by and large.

Representative | Bleeping Computer

Regardless of whatever the business model, politics and government ties are two entities that can never be separated, something to which both the companies have immense access, and hence can influence decisions in their favour and rule major markets across the world.

Will there ever be a competitor to the duopoly?

In the face of it, Boeing might seem to be in worse condition than Airbus. However, it would be unfair to gauge Airbus's strengths solely on Boeing’s current weaknesses. It is to be noted that Airbus's commercial aerospace business pretty much stands on its own, whereas, on the other hand, Boeing can rely on a large and relatively stable defence and space business. Boeing and Airbus have empirically been accused of not keeping passenger safety in mind while designing airplanes just to cut costs.

That said, will there ever be an opponent strong enough to challenge the longstanding duopoly in aviation history?

Well, the audience seems to be divided on this.

Popular opinion says although it is possible, it is highly unlikely to happen, at least in the near future. Here's why some think so:

The market for medium to large airliners is not big enough to support more than two players.The entry barrier in this business is extremely high, in terms of capital, expertise, and talent requirements.The recovery period for the initial investment is far too long.

Representative | The Motley Fool

The last time Bombardier tried to cross Boeing, they were countered by the Boeing B737-700s. Although Bombardier is receiving state funding now, it is highly unlikely that they would take on an aerospace behemoth like Boeing again.

Both Boeing and Airbus offer a “family” of aircraft that cover different sizes and ranges suitable for most routes, be it short or intercontinental. The commonality in cockpit layout and parts make for less expensive training and maintenance. This is why most airlines operate a fleet from one manufacturer and use different types from the same “generation".

The Airbus A320 Family | masfahmi.com

Low-cost carriers, on the other hand, operate a single aircraft type that fits their entire network. A clean-sheet replacement for the A320 and B737 is just what many low-cost carriers are waiting for and this is one segment of the market other aircraft manufacturers have a fair chance of getting into.

The Chinese COMAC C919

The  COMAC C919 made its maiden flight at an airshow on November 2, 2020-in what can be described as the Chinese answer to the Boeing B737 and the Airbus A320 family.

South China Morning Post

COMAC’s promotional material stated that the aircraft will have fuel consumption and direct operating costs lower than those of competing airplanes- with its LEAP-1C engines by Safran, projected to burn 10-15% less fuel than anything mounted on the 737 NG and the A320ceo. Furthermore, the passenger capacity which is touted to be about 100 passengers (according to COMAC), is sort of speculative at this point.

While European or American airlines likely will not buy a Chinese airplane for some time, carriers in other regions may be enticed more easily. But in a world where trade wars could become increasingly the norm, China has a lot of assets to put forth. 

In the long term, China’s market entry is bound to alter the economics and the politics of the business, if only because it will force Boeing and Airbus to reconsider their global industrial strategy and take more risks

Regardless of how it pans out in the coming future if we were to head towards a "triopoly" aviation, the engines used would still be largely US/EU based.

Ultimately, safety is paramount in aviation and hence it’s only fair that whichever of them—the veterans or the new entrants—can offer a safe flight, should get to rule the skies.

In the current scenario, Is it really possible to break the age-old dominance of Boeing and Airbus in the commercial aviation sector? If so, how?

Drop-in your thoughts below.

SOURCE(s)

COVER: Straturka

The Ministry of Civil Aviation (MoCA) on Thursday, February 10 said seven airports that participated in the ACI-ASQ survey in 2021 have been chosen for ‘Voice of Customer Recognition’ under Airports Council International (ACI) World’s Voice of the Customer initiative.

These Airports Authority of India (AAI) airports to be named under the scheme are: Chennai, Kolkata, Goa, Pune, Patna, Bhubaneswar & Chandigarh, the ministry said.

Chennai Airport is one of the 7 airports chosen for ‘Voice of Customer Recognition’.

Airports Council International has initiated the ‘Voice of the Customer' initiative to acknowledge and recognise airports that continued to prioritise their customers and are committed to ensuring their voice was heard, even during the ongoing COVID-19 pandemic.

Airport Service Quality (ASQ) survey is the world-renowned and internationally established global benchmarking programme measuring passenger’s satisfaction, whilst they travel through an airport, conducted by the Airports Council International (ACI), the ministry statement added.

ASQ Awards recognise those airports around the world that deliver the best customer experience.

ASQ Awards recognise those airports around the world that deliver the best customer experience in the opinion of their passengers.

The ASQ programme provides the research tool and management information to better understand passengers’ views and what they want from an airport from the products and services standpoint.

In what can be termed as "the" largest procurement by an airframer for SAF as of today, Boeing has entered into a purchase agreement with "EPIC Fuels" for two million gallons (7.5 million litres) of blended sustainable aviation fuel (SAF).

The move demonstrates Boeing's continued interest in promoting sustainable aviation and would power its commercial airplanes operations in the state of Washington and South Carolina through 2022.

Representative | The Loadstar

SAF is a safe, proven, immediate solution that will help achieve our industry's long-term commitment to net zero carbon emissions by 2050. Boeing has been a pioneer in making sustainable aviation fuels a reality. Through this agreement we will reduce our carbon footprint and have SAF available for customer deliveries as well as our own operations.Sheila Remes, Vice president of Environmental Sustainability, Boeing

Sheila Remes | mde.harvard.edu

SAF stands for sustainable aviation fuel. It's produced from sustainable feedstocks and is very similar in its chemistry to traditional fossil jet fuel. Sustainably produced jet fuel is touted to slash carbon emissions by as much as 80%, and by 100% in the future, over the fuel's entire life cycle.

Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel. Some emerging SAF pathways even have a net-negative GHG footprint

Honeywell

Sustainable aviation fuel is now certified for commercial use and can be blended with traditional jet fuel without additional modifications to airplanes, engines or the fueling infrastructure.

Today, sustainable aviation fuels are mixed directly with conventional jet fuel up to a 50/50 blend — the maximum allowed under current fuel specifications.

The current purchase agreement with EPIC Fuels includes a SAF product comprising 30% neat SAF with 70% conventional jet fuel. With a current focus on company operations, the fuel is intended to power Boeing commercial production, test, ferry, Dreamlifter and customer flights at facilities in Everett, Renton and Seattle in Washington state and North Charleston, South Carolina.

Additionally, EPIC Fuel will also supply fuel to power the "Boeing ecoDemonstrator"- a Boeing initiative focus on bringing technologies from the lab, out into the real world to take on challenges that rock airlines and passengers alike.

Our focus on environmental stewardship and safety is well known in the industry. EPIC and Boeing have been partners for decades and we are honored to be a part of this procurement. Working together, we are making sustainability more attainable for our customersexpressed Kyle O'Leary, VP and COO of EPIC Fuels, an independent aviation fuel supplier with primary operations throughout the U.S. and Canada

Boeing began SAF-powered test flights back in 2008 which eventually led to the approval for their commercial use in 2011. The company officially commenced airplane delivery flights starting in 2012.

The Boeing 777F ecoDemonstrator, equipped with lasers and cameras, flew for the first time in 2018, entirely on 100% SAF.

Fraport AG

Partnering with airlines, fuel companies, governments and research institutions to expand SAF supply and thereby reduce fuel costs, the purchase with EPIC Fuels highlights Boeing's continued interest in investing to develop SAF around the world.

SOURCE(s)

COVER: Aviation Business News

As many as 23 operational airports in the country do not have night landing facilities. The list of airports not having night landing facility also include Kushinagar International Airport in Uttar Pradesh which was inaugurated in October 2021 giving a major boost to the Buddhist tourism circuit. 

Others in the list are Salem in Tamil Nadu; Shimla, Kullu and Dharamshala in Himachal Pradesh; Kalaburagi in Karnataka, and others. Authorities do not permit the aircraft to land at night at an airport that does not have a night landing facility.

STATE NAME OF THE AIRPORTAndhra PradeshCudappah, KurnoolAssamRupsiArunachal PradeshTezu, PassighatDaman & DiuDiuHaryanaHisarHimachal PradeshDharamshala, Kulu and ShimlaKarnatakaKalaburagiLakshadweepAgattiMaharashtraKolhapur, SindhudurgPunjabLudhianaPuducherryPuducherrySikkim PakyongTamil NaduSalemUttarakhandPantnagar, PithoragarhChattisgarhBilaspur, JagdalpurUttar PradeshKushinagarList of airports with no night-landing facilities

India has over 100 operational airports and officials said that the airports not having night landing facilities are mostly those witnessing lower passenger traffic.

Airports Authority of India, which manages most of the airports in India, takes up a particular one for consideration for providing night landing facilities when airlines show interest during night operations. 

Airlines have to apply with the Airports Authority of India to facilitate night landing facility in a particular airport and then the process of offering the convenience starts.

As many as 23 operational airports in the country do not have night landing facilities.

The upgradation of airports, including the provision of night landing facility is a continuous process, which depends upon operational requirements, commercial feasibility, etc, and varies from airport to airport in the country, said the ministry of civil aviation in a recent Parliament reply.

The main requirement for night landing is that the runway approach lighting system which includes a series of light bars with strobe lights installed at the end of the runway.

Instrument Landing System (ILS)

The runway approach lighting system includes a series of light bars with strobe lights located at the end of the runway, which is the most essential requirement for night landing.

A runway with an Instrument Landing System (ILS) is served by such a system. If pilots cannot establish visual contact with the runway, ILS uses a variety of navigational aids to assist them in landing the plane.

Lighting along the runway edge is also vital for airport managers so that pilots landing at night can make visual contact and align their aircraft with the runway centre.

It is also important for airport operators to have lighting along the runway edge so that pilots landing at night can make visual contact and align the aircraft with the centre of the runway.

However, simply putting the technology in airports is insufficient. Airlines must also employ qualified pilots to make instrument-based landings and use aircraft that are compliant with the latest technologies. Most large airlines that often fly out of airports with low visibility do have the appropriate aircraft. However, they usually only train pilots who will be flying to these airports regularly.

After almost eight years since Tata Group’s AirAsia India (AAIPL) began operations, it has received a nod to carry out its first international flight this month. Tata Group owns an 83.6% stake in the low-cost airline and is expected to acquire the remaining 16.4% from Malaysian AirAsia Berhad.

AirAsia India will be operating a non-scheduled cargo flight on the Kochi-Dubai-Kochi route. The airline operated its first flight back in June 2014 and reached a fleet size of 20 aircraft in December 2018.

As per a report by Times of India, the airline’s first flight was operated in June 2014 and it achieved a fleet size of 20 aircraft in December 2018.

AirAsia India receives approval for its first international flight in 8 years

Then, the airline met the 0/20 rule — no minimum requirement on the number of years in operation and at least 20 aircraft in fleet — to fly abroad. However, several cases over the airline’s effective control prevented the Centre from giving that clearance. 

Furthermore, AirAsia India had announced recently that its passengers can now pre-book lounge facilities on its website and mobile app. The airline offers these services across 13 airports including at its all four hubs, AirAsia India said in a statement.

AirAsia India had announced that its passengers can now pre-book lounge facilities on its website and mobile app.

The services are available at Bengaluru, Bhubaneswar, Chennai, Kochi, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kolkata, Mumbai, Pune and Ranchi, it said. Airport lounge services can be purchased at a nominal fee, starting at Rs 800, while making a flight booking or even post-booking, AirAsia India said.

"Extending easy access to airport lounges and offering these facilities to our guests enhances and ensures a more holistic and pleasurable travel experience. As an innovative, digital-first brand, we have taken every opportunity to differentiate our service experience with distinctive offerings."Siddhartha Butalia, Chief Marketing Officer, AirAsia India

The airport lounge services allow passengers avail access to amenities like high-speed Wi-Fi, hot food and beverages, snacks, newspapers and magazines, charging stations for laptops and mobiles, wash and change facilities, business centre facilities and lounge bars, the airline said.

The government on Wednesday, February 9 banned the import of foreign drones with certain exceptions as part of efforts to promote the domestic manufacturing of drones in the country.

The import of drones for R&D, defence and security purposes have been exempted from the ban but such imports will require due clearances.

"Import of drone components, however, shall not require any approvals," the civil aviation ministry said in a release. The Directorate General of Foreign Trade (DGFT) under the commerce and industry ministry has issued a notification banning the import of foreign drones.

India bans import of foreign drones to boost domestic manufacturing

"Import policy for drones in CBU (Completely Built-Up)/CKD (Completely Knocked Down)/SKD (Semi Knocked Down ) form... is prohibited with exceptions provided for R and D, defence and security purposes," DGFT said.

Import of drones by government entities, educational institutions recognised by central or state government, the government recognised R&D entities and drone manufacturers for R&D purposes will be allowed in CBU, SKD or CKD form. This will be subject to import authorisation issued by DGFT in consultation with concerned line ministries.

Import of drones for defence and security purposes will be allowed in CBU, SKD or CKD form subject to import authorisation issued by DGFT in consultation with concerned line ministries.

Import of drones for defence and security purposes will be allowed

The civil aviation ministry said that to promote Made in India drones, the import of foreign drones has been prohibited with effect from February 9, 2022. The ministry came out with liberalised drone rules in August 2021.

After the rules, the ministry issued the drone airspace map and PLI scheme in September 2021, the UTM policy framework in October 2021. Besides, the drone certification scheme and single window DigitalSky Platform were put in place last month. Union Cabinet cleared a production-linked incentive (PLI) scheme to make India a drone hub by 2030.

The PLI scheme provides up to a 20% incentive to manufacturers of drones and drone components. It came close on the heels of the recent liberalisation of rules, which has made owning and operating drones easier.

Union Cabinet cleared a production-linked incentive (PLI) scheme to make India a drone hub by 2030.

The government allocated INR 120 crore for the scheme and it will be spread over three years. This amount is nearly double the combined turnover of all domestic drone manufacturers in FY21, the ministry of civil aviation had said in a press release.

The government, in turn, expects to generate investments of up to or more than INR 5,000 crore from the sector. The target, set for the financial year 2024, also includes the establishment of over 10,000 jobs in the sector in India.