Drivers in Aircraft Industry

Topics: Airline, Manufacturing, Industry Pages: 4 (1497 words) Published: June 17, 2011
What do you consider as the most important drivers for the development and technology in the aircraft-manufacturing industry? Introduction
The current aircraft manufacturing industry is lead by three or four main manufacturing companies. The European company Airbus based in France, the US American Company Boeing based on the West Coast of the US and not to forget Embraer with its Headquarters in South America and Bombadier, homebased in Quebec, Canada. Reading that there are only three companies in the marked, it could seem that there is hard but less competition as there is lots of demand. The past few years have proven us wrong. The competition is very tough and each of those named companies is fighting hard to acquire new customers or keep the existing ones.

Economy and Infrastructure
The aircraft manufacturing industry is very much depending on the growth of the GDP with effects the demand on the airline industry. Given the fact that the airline industry is a very sensitive industry a very reliable forecast for a manufacturing company is very hard. The airline industry grows if the world economy rises. Best case scenario is that the economy grows and airlines stuck up their fleet as their demand is growing. The reality looks totally different. Tragedies like the terror attacks, the tsunami, wars have negative impacts on growth and on the travel habits of the airlines customer. Don’t forget the financial crises, which occurred 2008. The world has not 100% recovered yet. Still, I think that there was a shift in demand. Due to the financial crises the behaviour of customer has changed as the focus is now in cost reduction instead of comfort and flexibility. The result was a drop in business class demand and an increase in the demand of economy class and even a rise in the demand of using a Low cost carrier. Deregulation and GDP growth will result in rapidly increasing passenger traffic. Especially in Asia where there is still a lot of regulation the...
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