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October 2005 edition

Manufacturers run rings around aviation counterparts

Aircraft manufacturers have overflowing order backlogs while airlines and subcontractors seem to be struggling.

The findings of a study carried out by credit insurer Euler Hermes claims that airlines are weakened by low costs competitors and rising oil prices, despite an upturn in air traffic. While growth for subcontractors continues to rise and fall unpredictably.

Despite a sharp fall in business between 2001 and 2004, the main jet makers have succeeded in maintaining satisfactory profit margins due to better cost control, the company has suggested.

Airbus and Boeing are expected to increase aeroplane deliveries by 38% and 48% respectively over the next two years, according to the study.

Equipment manufacturers have good prospects, since they specialise in niche markets and are often bol....

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