The Daily Brief The sky’s the limit — for only two aircraft makers
Oct 10, 2025
Discover the riveting dynamics of the passenger aircraft duopoly dominated by Airbus and Boeing, exploring the hefty costs and long timelines of aircraft development. Delve into why new entrants continually face hurdles and the importance of a stable supplier network. Transitioning to India's ambitions, learn about its strategic focus on critical minerals, the significance of processing over mere mining, and how it aims to reduce import reliance through policy interventions. Exciting insights on geopolitical economics await!
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Long Cycles Lock In Few Players
- Commercial passenger aviation combines very long product and sales cycles, making entry extremely hard.
- High R&D, decade-long development and heavy certification lock the market into few incumbents.
Aircraft Development Is Incredibly Costly
- Designing a new airliner routinely costs $20–30 billion and takes nearly a decade.
- Safety testing and recertification add years and billions with zero revenue, making iterations costly.
Supply Networks Are A Major Barrier
- Modern airliners rely on a vast, sticky supplier ecosystem built over decades.
- Suppliers and engine makers commit to programs, making it near-impossible for new entrants to replicate value chains.