End of Airbus and Boeing dominance?

Yet another hat tip to A2 student Andrew Larkey for this piece on the challenge to the airline manufacturers duoploly.

The duopoly of Boeing and Airbus appears to be coming under pressure. The Bombardier CSeries seems to be gaining traction amongst commercial carriers and airline customers believe that they now have the ability to negotiate with the two established manufacturers as the Bombardier CSeries and the Comac C919 have become viable options. For Lufthansa the power over suppliers is partly what motivated them to buy the Bombardier.

EasyJet Founder v EasyJet Board
Stelios Haju-Ioannou, the founder of EasyJet, had a disagreement with the easyJet Board over the expansion of the company’s fleet. The Board plans to spend money on the Airbus A320’s but Stelios was thinking about the cost saving by purchasing the CSeries.
In his letter attacking the airline’s decision this year to exercise options fo 15 A320s, Stelios writes that “the board has a duty to benchmark the price with the other suppliers before placing more orders.” He includes a table of list prices and notes that “from the table, it is apparent that based on list prices, a similarly sized Boeing aircraft (737-700) can be purchased for $10 million dollars less than the A319 and a Bombardier CS-300 is even less expensive.”

The Irishman Michael O’Leary, CEO of Ryanair, is also putting pressure on its normal supplier Boeing. Although it is thought that he wouldn’t seriously buy Airbus aircraft he is now using Comac C919 with whom he stuck a deal at the recent Paris air show. It is believed that he would consider the Chinese narrowbody for a future fleet order of at least 200 planes.

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