DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
June 17, 2024
The growing Middle of Market segment and a more unstable duopoly
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Several times we have put out notes about the MoM segment. In every case, we noted the strength at Airbus and the weakness at Boeing. The issue is getting worse and, by all appearances, the Boeing situation is getting worse.  This is deeply troubling. Not because we have a horse in the race – we don’t.  The reason for concern is quite simply that for a duopoly to function there has to be a balance. Once a duopoly goes unstable, the risk for both firms rises grows.  In the case of Airbus and Boeing, such a growing risk will probably destabilize most of the world’s commercial aviation.  

The pandemic provided clear evidence of the crucial role played by commercial aviation in global economic stability, moving vaccines when it could not move people.  Even then, many aircraft were parked and tens of thousands of highly skilled people lost their jobs.  No, as we emerge from the pandemic, airlines are struggling to restaff.  Commercial aviation is a finely balanced system that suffers shocks regularly.  But an unstable duopoly would be a new level of shock not seen before.

 


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author avatar
Addison Schonland
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.