As Airbus absorbs the C Series and Boeing starts to absorb the E-Jet, we will move from a duopoly to a cartel. Both Airbus and Boeing are even buying up parts of the supply chain. Rather than depend exclusively on third parties, we see the two big OEMs de-risk their supply chain by owning more of it.
A duopoly is where there are two sellers. A cartel is defined as a coalition of political or special-interest groups having a common cause. A cartel is somewhat more sinister than a duopoly. It appears to us that Airbus and Boeing are moving away from a duopoly and making progress to developing into a cartel.
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