![AIM in clean room](https://upload.wikimedia.org/wikipedia/commons/0/06/AIM_in_clean_room.jpg)
An aerospace manufacturer is a
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common p ...
or individual involved in the various aspects of
designing
A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design'' ...
, building, testing, selling, and maintaining
aircraft
An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...
,
aircraft part An aircraft part is an article or component approved for installation on a type-certificated aircraft. Approval for these parts is derived from the jurisdictions of the countries that an aircraft is based. In the United States, the Federal Aviatio ...
s,
missile
In military terminology, a missile is a guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles are thus also called guided missiles or guided rockets (when a previously unguided rocke ...
s,
rocket
A rocket (from it, rocchetto, , bobbin/spool) is a vehicle that uses jet propulsion to accelerate without using the surrounding air. A rocket engine produces thrust by reaction to exhaust expelled at high speed. Rocket engines work entirely fr ...
s, or
spacecraft
A spacecraft is a vehicle or machine designed to fly in outer space. A type of artificial satellite, spacecraft are used for a variety of purposes, including communications, Earth observation, meteorology, navigation, space colonization, p ...
.
Aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
is a
high tech
High technology (high tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or the newest te ...
nology industry.
The aircraft industry is the
industry
Industry may refer to:
Economics
* Industry (economics), a generally categorized branch of economic activity
* Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery
* The wider industrial sector ...
supporting
aviation
Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot air ...
by building
aircraft
An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...
and manufacturing
aircraft parts An aircraft part is an article or component approved for installation on a type-certificated aircraft. Approval for these parts is derived from the jurisdictions of the countries that an aircraft is based. In the United States, the Federal Aviatio ...
for their
maintenance
Maintenance may refer to:
Biological science
* Maintenance of an organism
* Maintenance respiration
Non-technical maintenance
* Alimony, also called ''maintenance'' in British English
* Champerty and maintenance, two related legal doct ...
. This includes aircraft and parts used for
civil aviation
Civil aviation is one of two major categories of flying, representing all non-military and non-state aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization and work ...
and
military aviation
Military aviation comprises military aircraft and other flying machines for the purposes of conducting or enabling aerial warfare, including national airlift ( air cargo) capacity to provide logistical supply to forces stationed in a war the ...
. Most production is done pursuant to
type certificate
A type certificate signifies the airworthiness of a particular category of aircraft, according to its manufacturing design (''type design''). It confirms that the aircraft of a new type intended for serial production, is in compliance with applica ...
s and
Defense Standard
A United States defense standard, often called a military standard, "MIL-STD", "MIL-SPEC", or (informally) "MilSpecs", is used to help achieve standardization objectives by the U.S. Department of Defense.
Standardization is beneficial in achievi ...
s issued by a government body. This term has been largely subsumed by the more encompassing term: "
aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
industry".
Market
In 2015 the aircraft production was worth US$180.3 Billion: 61%
airliners, 14% business and
general aviation
General aviation (GA) is defined by the International Civil Aviation Organization (ICAO) as all civil aviation aircraft operations with the exception of commercial air transport or aerial work, which is defined as specialized aviation services ...
, 12%
Military aircraft
A military aircraft is any fixed-wing or rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat:
* Combat aircraft are designed to destroy enemy equipm ...
, 10% military
rotary wing
A rotorcraft or rotary-wing aircraft is a heavier-than-air aircraft with rotary wings or rotor blades, which generate lift by rotating around a vertical mast. Several rotor blades mounted on a single mast are referred to as a rotor. The Internati ...
and 3% civil rotary wing; while their
MRO was worth $135.1 Bn or $ Bn combined.
The global aerospace industry was worth $838 billion in 2017: Aircraft & Engine
OEM
An original equipment manufacturer (OEM) is generally perceived as a company that produces non-aftermarket parts and equipment that may be marketed by another manufacturer. It is a common industry term recognized and used by many professional or ...
s represented 28% ($ Bn), Civil & Military MRO & Upgrades 27% ($ Bn), Aircraft Systems & Component Manufacturing 26% ($ Bn),
Satellite
A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioisotope ...
s & Space 7% ($ Bn),
Missile
In military terminology, a missile is a guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles are thus also called guided missiles or guided rockets (when a previously unguided rocke ...
s &
UAV
An unmanned aerial vehicle (UAV), commonly known as a drone, is an aircraft without any human pilot, crew, or passengers on board. UAVs are a component of an unmanned aircraft system (UAS), which includes adding a ground-based controlle ...
s 5% ($ Bn) and other activity, including
flight simulator
A flight simulator is a device that artificially re-creates aircraft flight and the environment in which it flies, for pilot training, design, or other purposes. It includes replicating the equations that govern how aircraft fly, how they rea ...
s, defense electronics, public research accounted for 7% ($ Bn).
[
The countries with the largest industry were led by the ]United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
with $408.4 Bn (%) followed by France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
with $69 Bn (%) then China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
with $61.2 Bn (%), United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
with $48.8 Bn (%), Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
with $46.2 Bn (%), Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
with $27.1 Bn (%), Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
with $24 Bn (%), Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
with $21 Bn (%), Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
with $14 Bn (%) and India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
with $11Bn (%). The top 10 countries represent $731 Bn or % of the whole industry.
In 2018, the new commercial aircraft value is projected for $270.4 billion while business aircraft will amount for $18 billion and civil helicopters for $4 billion.
Largest companies
Geography
In September 2018, PwC
PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounting ...
ranked aerospace manufacturing attractiveness: the most attractive country was the United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
, with $240 billion in sales in 2017, due to the sheer size of the industry (#1) and educated workforce
The workforce or labour force is a concept referring to the Pooling (resource management), pool of human beings either in employment or in unemployment. It is generally used to describe those working for a single types of companies, company or ...
(#1), low geopolitical risk
Geopolitics (from Greek γῆ ''gê'' "earth, land" and πολιτική ''politikḗ'' "politics") is the study of the effects of Earth's geography (human and physical) on politics and international relations. While geopolitics usually refers to ...
(#4, #1 is Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
), strong transportation infrastructure
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
(#5, #1 is Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
), a healthy economy
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...
(#10, #1 is China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
), but high costs
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which ...
(#7, #1 is Denmark
)
, song = ( en, "King Christian stood by the lofty mast")
, song_type = National and royal anthem
, image_map = EU-Denmark.svg
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Danish Realm, Kingdom of Denmark
...
) and average tax policy
Tax policy includes the guidelines developed by a government regarding how taxes are imposed, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspect concerns the overall quantity of taxes t ...
(#36, #1 is Qatar
Qatar (, ; ar, قطر, Qaṭar ; local vernacular pronunciation: ), officially the State of Qatar,) is a country in Western Asia. It occupies the Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it sh ...
).
Following were Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
, Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
and United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
.
Within the US, the most attractive was Washington state
Washington (), officially the State of Washington, is a state in the Pacific Northwest region of the Western United States. Named for George Washington—the first U.S. president—the state was formed from the western part of the Washington ...
, due to the best Industry (#1), leading Infrastructure (#4, New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
is #1) and Economy (#4, Texas
Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
is #1), good labor (#9, is #1), average tax policy (#17, Alaska
Alaska ( ; russian: Аляска, Alyaska; ale, Alax̂sxax̂; ; ems, Alas'kaaq; Yup'ik: ''Alaskaq''; tli, Anáaski) is a state located in the Western United States on the northwest extremity of North America. A semi-exclave of the U.S., ...
is #1) but is costly (#33, Montana
Montana () is a state in the Mountain West division of the Western United States. It is bordered by Idaho to the west, North Dakota and South Dakota to the east, Wyoming to the south, and the Canadian provinces of Alberta, British Columbi ...
is #1).
Washington is tied to Boeing Commercial Airplanes, earning $10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration.
Following are Texas, Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
, Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
and Colorado
Colorado (, other variants) is a state in the Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the western edge of t ...
.[
In the ]European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
, aerospace companies such as Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
, Safran, BAE Systems
BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
, Thales
Thales of Miletus ( ; grc-gre, Θαλῆς; ) was a Greek mathematician, astronomer, statesman, and pre-Socratic philosopher from Miletus in Ionia, Asia Minor. He was one of the Seven Sages of Greece. Many, most notably Aristotle, regarded him ...
, Dassault
Dassault Group (; also GIM Dassault or Groupe Industriel Marcel Dassault SAS) is a French group of companies established in 1929 with the creation of Société des Avions Marcel Bloch (now Dassault Aviation) by Marcel Dassault, and led by son Ser ...
, Saab AB
Saab AB (originally , later just SAAB and Saab Group) is a Swedish aerospace and defence company, founded in 1937. Headquartered in Stockholm, the development and the manufacturing is undertaken in Linköping. Saab produced automobiles from 194 ...
, Terma A/S
Terma A/S is a Danish weapon and aerospace manufacturer for both civilian and military applications, and is owned by the Danish company Thrige Holding A/S. It is Denmark's largest company within the aerospace and weapon industry, employing appro ...
, Patria Plc and Leonardo
Leonardo is a masculine given name, the Italian, Spanish, and Portuguese equivalent of the English, German, and Dutch name, Leonard
Leonard or ''Leo'' is a common English masculine given name and a surname.
The given name and surname originate ...
are participants in the global aerospace industry and research effort.
In Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, large aerospace companies like Oboronprom
OPK Oboronprom (russian: ОПК Оборонпром) was a Russian aerospace holding company. The company was involved in helicopter production, engine production, air-defenсe systems, complex radio-electronic systems and leasing. Russian Helicop ...
and the United Aircraft Corporation
, former_name = OJSC United Aircraft Corporation (2006–2015)
, type = Public, PJSC
, traded_as =
, industry = Aerospace, defense
, predecessor = Ilyushin, Irkut, Mikoyan, Sukhoi, Tupolev, Yakovlev
, founded =
, founder = Vladimir P ...
(encompassing Mikoyan
Russian Aircraft Corporation "MiG" (russian: Российская самолётостроительная корпорация „МиГ“, Rossiyskaya samolyotostroitel'naya korporatsiya "MiG"), commonly known as Mikoyan and MiG, was a Russi ...
, Sukhoi
The JSC Sukhoi Company (russian: ПАО «Компания „Сухой“», ) is a Russian aircraft manufacturer (formerly Soviet), headquartered in Begovoy District, Northern Administrative Okrug, Moscow, that designs both civilian and mili ...
, Ilyushin, Tupolev
Tupolev (russian: Ту́полев, ), officially Joint Stock Company Tupolev, is a Russian aerospace and defence company headquartered in Basmanny District, Moscow.
Tupolev is successor to the Soviet Tupolev Design Bureau ( OKB-156, design off ...
, Yakovlev
The JSC A.S. Yakovlev Design Bureau (russian: ОАО Опытно-конструкторское бюро им. А.С. Яковлева) is a Russian aircraft designer and manufacturer (design office prefix Yak). Its head office is in Aeroport D ...
, and Irkut, which includes Beriev
The PJSC Beriev Aircraft Company (russian: Таганрогский авиационный научно-технический комплекс им. Г. М. Бериева, , Beriev Taganrog Aviation Scientific Technical Complex), formerly Beriev ...
) are among the major global players in this industry.
In the US, the Department of Defense Department of Defence or Department of Defense may refer to:
Current departments of defence
* Department of Defence (Australia)
* Department of National Defence (Canada)
* Department of Defence (Ireland)
* Department of National Defense (Philipp ...
and NASA
The National Aeronautics and Space Administration (NASA ) is an independent agency of the US federal government responsible for the civil space program, aeronautics research, and space research.
NASA was established in 1958, succeeding t ...
are the two biggest consumers of aerospace technology and products. The Bureau of Labor Statistics of the United States reported that the aerospace industry employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California, this marked a steep decline from the peak years during the Reagan Administration
Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Republican from California, took office following a landslide victory over D ...
when total employment exceeded 1,000,000 aerospace industry workers.
During that period of recovery a special program to restore U.S. competitiveness across all U.S. industries, Project Socrates Project Socrates was a classified U.S. Defense Intelligence Agency program established in 1983 within the Reagan administration. It was founded and directed by physicist Michael C. Sekora to determine why the United States was unable to maintain ec ...
, contributed to employment growth as the U.S. aerospace industry captured 72 percent of world aerospace market. By 1999 U.S. share of the world market fell to 52 percent.
Cities
Important locations of the civil aerospace industry worldwide include Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
, Wichita, Kansas
Wichita ( ) is the largest city in the U.S. state of Kansas and the county seat of Sedgwick County, Kansas, Sedgwick County. As of the 2020 United States census, 2020 census, the population of the city was 397,532. The Wichita metro area had ...
, Dayton, Ohio
Dayton () is the sixth-largest city in the U.S. state of Ohio and the county seat of Montgomery County. A small part of the city extends into Greene County. The 2020 U.S. census estimate put the city population at 137,644, while Greater Day ...
and St. Louis
St. Louis () is the second-largest city in Missouri, United States. It sits near the confluence of the Mississippi and the Missouri Rivers. In 2020, the city proper had a population of 301,578, while the bi-state metropolitan area, which e ...
in the United States (Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product ...
), Montreal
Montreal ( ; officially Montréal, ) is the List of the largest municipalities in Canada by population, second-most populous city in Canada and List of towns in Quebec, most populous city in the Provinces and territories of Canada, Canadian ...
and Toronto
Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...
in Canada ( Bombardier, Pratt & Whitney Canada), Toulouse
Toulouse ( , ; oc, Tolosa ) is the prefecture of the French department of Haute-Garonne and of the larger region of Occitania. The city is on the banks of the River Garonne, from the Mediterranean Sea, from the Atlantic Ocean and from Par ...
and Bordeaux
Bordeaux ( , ; Gascon oc, Bordèu ; eu, Bordele; it, Bordò; es, Burdeos) is a port city on the river Garonne in the Gironde department, Southwestern France. It is the capital of the Nouvelle-Aquitaine region, as well as the prefectur ...
in France (Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
, Dassault
Dassault Group (; also GIM Dassault or Groupe Industriel Marcel Dassault SAS) is a French group of companies established in 1929 with the creation of Société des Avions Marcel Bloch (now Dassault Aviation) by Marcel Dassault, and led by son Ser ...
, ATR ATR may refer to:
Medicine
* Acute transfusion reaction
* Ataxia telangiectasia and Rad3 related, a protein involved in DNA damage repair
Science and mathematics
* Advanced Test Reactor, nuclear research reactor at the Idaho National Laboratory, ...
), Seville
Seville (; es, Sevilla, ) is the capital and largest city of the Spanish autonomous community of Andalusia and the province of Seville. It is situated on the lower reaches of the River Guadalquivir, in the southwest of the Iberian Peninsula ...
in Spain and Hamburg
(male), (female) en, Hamburger(s),
Hamburgian(s)
, timezone1 = Central (CET)
, utc_offset1 = +1
, timezone1_DST = Central (CEST)
, utc_offset1_DST = +2
, postal ...
in Germany (Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
, EADS), the North-West of England and Bristol
Bristol () is a city, ceremonial county and unitary authority in England. Situated on the River Avon, it is bordered by the ceremonial counties of Gloucestershire to the north and Somerset to the south. Bristol is the most populous city in ...
in Britain (BAE Systems
BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
, Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
and AgustaWestland
AgustaWestland was an Anglo-Italian helicopter design and manufacturing company, which was a wholly owned subsidiary of Finmeccanica (now known as Leonardo). It was formed in July 2000 as an Anglo-Italian multinational company, when Finmeccani ...
), Komsomolsk-on-Amur and Irkutsk
Irkutsk ( ; rus, Иркутск, p=ɪrˈkutsk; Buryat language, Buryat and mn, Эрхүү, ''Erhüü'', ) is the largest city and administrative center of Irkutsk Oblast, Russia. With a population of 617,473 as of the 2010 Census, Irkutsk is ...
in Russia (Sukhoi
The JSC Sukhoi Company (russian: ПАО «Компания „Сухой“», ) is a Russian aircraft manufacturer (formerly Soviet), headquartered in Begovoy District, Northern Administrative Okrug, Moscow, that designs both civilian and mili ...
, Beriev
The PJSC Beriev Aircraft Company (russian: Таганрогский авиационный научно-технический комплекс им. Г. М. Бериева, , Beriev Taganrog Aviation Scientific Technical Complex), formerly Beriev ...
), Kyiv
Kyiv, also spelled Kiev, is the capital and most populous city of Ukraine. It is in north-central Ukraine along the Dnieper, Dnieper River. As of 1 January 2021, its population was 2,962,180, making Kyiv the List of European cities by populat ...
and Kharkiv
Kharkiv ( uk, wikt:Харків, Ха́рків, ), also known as Kharkov (russian: Харькoв, ), is the second-largest List of cities in Ukraine, city and List of hromadas of Ukraine, municipality in Ukraine.[Antonov
Antonov State Enterprise ( uk, Державне підприємство «Антонов»), formerly the Aeronautical Scientific-Technical Complex named after Antonov (Antonov ASTC) ( uk, Авіаційний науково-технічни ...]
), Nagoya
is the largest city in the Chūbu region, the fourth-most populous city and third most populous urban area in Japan, with a population of 2.3million in 2020. Located on the Pacific coast in central Honshu, it is the capital and the most pop ...
in Japan (Mitsubishi Heavy Industries Aerospace
is a Japanese multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Motor ...
and Kawasaki Heavy Industries Aerospace
is the aerospace division of Kawasaki Heavy Industries (KHI). It produces aircraft, space systems, simulators, jet engines, missiles, and electronic equipment.
During the 1930s and 1940s, Kawasaki Aircraft Industries developed numerous types o ...
), as well as São José dos Campos
São José dos Campos (, meaning Saint Joseph of the Fields) is a major city and the seat of the Municipalities of Brazil, municipality of the same name in the state of São Paulo (state), São Paulo, Brazil. One of the leading industrial and res ...
in Brazil where Embraer
Embraer S.A. () is a Brazilian multinational aerospace manufacturer that produces commercial, military, executive and agricultural aircraft, and provides aeronautical services. It was founded in 1969 in São José dos Campos, São Paulo, where i ...
is based.
Consolidation
Several consolidations took place in the aerospace and defense industries over the last few decades.
BAE Systems
BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
is the successor company to numerous British aircraft manufacturers which merged throughout the second half of the 20th century. Many of these mergers followed the 1957 Defence White Paper.
Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
prominently illustrated the European airliner manufacturing consolidation in the late 1960s.[
Between 1988 and 2010, more than 5,452 ]mergers and acquisitions
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
with a total known-value of US$579 billion were announced worldwide.
In 1993, then United States Secretary of Defense
The United States secretary of defense (SecDef) is the head of the United States Department of Defense, the executive department of the U.S. Armed Forces, and is a high ranking member of the federal cabinet. DoDD 5100.1: Enclosure 2: a The ...
Les Aspin
Leslie Aspin Jr. (July 21, 1938 – May 21, 1995) was an American Democratic Party politician who served as the U.S. representative for Wisconsin's 1st congressional district from 1971 to 1993 and as the 18th United States Secretary of Defe ...
and his deputy William J. Perry
William James Perry (born October 11, 1927) is an American mathematician, engineer, businessman, and civil servant who was the United States Secretary of Defense from February 3, 1994, to January 23, 1997, under President Bill Clinton. He also ...
held the "Last Supper" at the Pentagon
The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...
with contractors executives who were told that there were twice as many military suppliers as he wanted to see: $55 billion in military–industry mergers took place from 1992 to 1997, leaving mainly Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product ...
, Lockheed Martin
The Lockheed Martin Corporation is an American aerospace, arms, defense, information security, and technology corporation with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It ...
, Northrop Grumman
Northrop Grumman Corporation is an American multinational aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military techn ...
and Raytheon
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliza ...
.
Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product ...
bought McDonnell Douglas
McDonnell Douglas was a major American aerospace manufacturing corporation and defense contractor, formed by the merger of McDonnell Aircraft and the Douglas Aircraft Company in 1967. Between then and its own merger with Boeing in 1997, it pro ...
for US$13.3 billion in 1996.
Raytheon
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliza ...
acquired Hughes Aircraft Company for $9.5 billion in 1997.
Marconi Electronic Systems
Marconi Electronic Systems (MES), or GEC-Marconi as it was until 1998, was the defence arm of General Electric Company (GEC). It was demerged from GEC and bought by British Aerospace (BAe) on 30 November 1999 to form BAE Systems. GEC then renam ...
, a subsidiary of the General Electric Company plc
The General Electric Company (GEC) was a major British industrial conglomerate involved in consumer and defence electronics, communications, and engineering. The company was founded in 1886, was Britain's largest private employer with over 25 ...
, was acquired by British Aerospace
British Aerospace plc (BAe) was a British aircraft, munitions and defence-systems manufacturer. Its head office was at Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire. Formed in 1977, in 1999 it purchased Marcon ...
for US$12.3 billion in 1999 merger, to form BAE Systems
BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...
.
In 2002, when Fairchild Dornier
Fairchild was an American aircraft and aerospace manufacturing company based at various times in Farmingdale, New York; Hagerstown, Maryland; and San Antonio, Texas.
History
Early aircraft
The company was founded by Sherman Fairchild in ...
was bankrupt
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debt ...
, Airbus, Boeing or Bombardier declined to take the 728JET
The Fairchild Dornier 728/928 family was a series of jet-powered regional airliners that was being developed by German-American aviation conglomerate Fairchild Dornier.
It was a relatively ambitious bid to develop a group of aircraft that woul ...
/928JET large regional jet
A regional jet (RJ) is a jet-powered regional airliner with fewer than 100 seats. The first one was the Sud-Aviation Caravelle in 1959, followed by the widespread Yakovlev Yak-40, Fokker F-28, and BAe 146. The 1990s saw the emergence of ...
program as mainline and regional aircraft manufacturers were split and Airbus was digesting its ill-fated Fokker acquisition a decade earlier.[
On September 4, 2017, ]United Technologies
United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous areas, including aircraft engines, aerospace systems, ...
acquired Rockwell Collins
Rockwell Collins was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radio Comp ...
in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.
The Oct. 16, 2017 announcement of the CSeries
The Airbus A220 is a family of five-abreast narrow-body airliners by Airbus Canada Limited Partnership. It was originally designed by Bombardier and had two years in service as the Bombardier CSeries.
The program was launched on 13 July 2 ...
partnership between Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
and Bombardier Aerospace
Bombardier Aviation is a division of Bombardier Inc. It is headquartered in Dorval, Quebec, Canada. Its most popular aircraft included the Dash 8 Series 400, CRJ100/200/440, and CRJ700/900/1000 lines of regional airliners, and the newer CS ...
could trigger a daisy chain of reactions towards a new order.
Airbus gets a new, efficient model at the lower end of the narrowbody market which provides the bulk of airliner profits and can abandon the slow selling A319 while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake.
Boeing could forge a similar alliance with either Embraer
Embraer S.A. () is a Brazilian multinational aerospace manufacturer that produces commercial, military, executive and agricultural aircraft, and provides aeronautical services. It was founded in 1969 in São José dos Campos, São Paulo, where i ...
with its E-jet E2
The Embraer E-Jet E2 family are medium- range jet airliners developed by Embraer, succeeding the original E-Jet. The program was launched at the Paris Air Show in 2013. The first variant, the E190-E2, took its first flight on 23 May 2016 and ...
or Mitsubishi Heavy Industries
is a Japanese multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Mo ...
and its MRJ.
On 21 December, Boeing and Embraer confirmed to be discussing a potential combination with a transaction subject to Brazilian government regulators, the companies' boards and shareholders approvals.
The weight of Airbus and Boeing
The competition between Airbus and Boeing has been characterized as a duopoly in the large jet airliner market since the 1990s.
This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a pan-Europea ...
could help E2 and CSeries sales but the 100-150 seats market seems slow.
As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the narrowbodies.
In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $3.8 billion on July 5.
On April 3, 2020, Raytheon
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliza ...
and United Technologies Corporation
United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous areas, including aircraft engines, aerospace systems ...
(except Otis Worldwide
Otis Worldwide Corporation ( branded as the Otis Elevator Company, its former legal name) is an American company that develops, manufactures and markets elevators, escalators, moving walkways, and related equipment.
Based in Farmington, Connec ...
, leaving Rockwell Collins
Rockwell Collins was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radio Comp ...
and engine maker Pratt and Whitney
Pratt & Whitney is an American aerospace manufacturer with global service operations. It is a subsidiary of Raytheon Technologies. Pratt & Whitney's aircraft engines are widely used in both civil aviation (especially airlines) and military av ...
) merged to form Raytheon Technologies Corporation
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitali ...
, with combined sales of $79 billion in 2019.
The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman.
Suppliers
The largest aerospace suppliers are United Technologies
United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous areas, including aircraft engines, aerospace systems, ...
with $28.2 Billion of revenue, followed by GE Aviation
GE Aviation, a subsidiary of General Electric, is headquartered in Evendale, Ohio, outside Cincinnati. GE Aviation is among the top aircraft engine suppliers, and offers engines for the majority of commercial aircraft. GE Aviation is part of t ...
with $24.7 Billion, Safran with $22.5 Billion, Rolls-Royce Holdings
Rolls-Royce Holdings plc is a British multinational aerospace and defence company incorporated in February 2011. The company owns Rolls-Royce, a business established in 1904 which today designs, manufactures and distributes power systems for ...
with $16.9 Billion, Honeywell Aerospace
Honeywell Aerospace is a manufacturer of aircraft engines and avionics, as well as a producer of auxiliary power units (APUs) and other aviation products. Headquartered in Phoenix, Arizona, it is a division of the Honeywell International conglom ...
with $15.2 Billion and Rockwell Collins
Rockwell Collins was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radio Comp ...
including B/E Aerospace
B/E Aerospace, Inc. was a manufacturer of aircraft passenger cabin interior products for the commercial and business jet aircraft markets. B/E Aerospace had leading worldwide market shares in all of its major product lines and served virtually al ...
with $8.1 Billion.
The electric aircraft development could generate large changes for the aerospace suppliers.
On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as Collins Aerospace, for $23 billion of sales in 2017 and 70,000 employees, and $39.0 billion of sales in 2017 combined with engine manufacturer Pratt & Whitney.
Supply chain
Before the 1980s/1990s, aircraft and aeroengine manufacturers were vertically integrated
In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply ...
.
Then Douglas aircraft
The Douglas Aircraft Company was an American aerospace manufacturer based in Southern California. It was founded in 1921 by Donald Wills Douglas Sr. and later merged with McDonnell Aircraft in 1967 to form McDonnell Douglas; it then operated as ...
outsourced large aerostructure
An aerostructure is a component of an aircraft's airframe. This may include all or part of the fuselage, wings, or flight control surfaces. Companies that specialize in constructing these components are referred to as "aerostructures manufacturer ...
s and the Bombardier Global Express
The Bombardier Global Express is a large cabin, 6,000 nmi / 11,100 km range business jet designed and manufactured by Bombardier Aviation (formerly Bombardier Aerospace).
Announced in October 1991, it first flew on 13 October 1996, receiv ...
pioneered the "Tier 1" supply chain model inspired by automotive industry
The automotive industry comprises a wide range of company, companies and organizations involved in the design, Business development, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industry ...
, with 10-12 risk-sharing limited partners
A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...
funding around half of the development costs.
The Embraer E-Jet
The Embraer E-Jet family is a series of four-abreast narrow-body short- to medium-range twin-engine jet airliners designed and produced by the Brazilian aerospace manufacturer Embraer.
The E-Jet was designed as a complement to the preceding E ...
followed in the late 1990s with fewer than 40 primary suppliers.
Tier 1 suppliers were led by Honeywell
Honeywell International Inc. is an American publicly traded, multinational conglomerate corporation headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance ma ...
, Safran, Goodrich Corporation
The Goodrich Corporation, formerly the B.F. Goodrich Company, was an American manufacturing company based in Charlotte, North Carolina. Founded in Akron, Ohio in 1870 as Goodrich, Tew & Co. by Benjamin Goodrich, the company name was ch ...
and Hamilton Sundstrand
Hamilton Sundstrand was an American globally active corporation that manufactured and supported aerospace and industrial products for worldwide markets. A subsidiary of United Technologies Corporation, it was headquartered in Windsor Locks, Con ...
.[
In the 2000s, Rolls-Royce reduced its supplier count after bringing in automotive supply chain executives.
On the ]Airbus A380
The Airbus A380 is a large wide-body airliner that was developed and produced by Airbus. It is the world's largest passenger airliner and only full-length double-deck jet airliner.
Airbus studies started in 1988, and the project was annou ...
, less than 100 major suppliers outsource 60% of its value, even 80% on the A350XWB A35 or A-35 may refer to:
* A-35 anti-ballistic missile system, a system deployed around Moscow, currently upgraded to the A-135 system
* Aero A.35, a Czech airliner of the 1930s
* Archambault A35, a French sailboat design
* Archambault A35R, a F ...
.
Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product ...
embraced an aggressive Tier 1 model for the B787
The Boeing 787 Dreamliner is an American wide-body jet airliner developed and manufactured by Boeing Commercial Airplanes.
After dropping its unconventional Sonic Cruiser project, Boeing announced the conventional 7E7 on January 29, 2003, ...
but with its difficulties began to question why it was earning lower margins than its suppliers while it seemed to take all the risk, ensuing its 2011 ''Partnering for Success'' initiative, as Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
initiated its own ''Scope+'' initiative for the A320
The Airbus A320 family is a series of narrow-body airliners developed and produced by Airbus.
The A320 was launched in March 1984, first flew on 22 February 1987, and was introduced in April 1988 by Air France.
The first member of the famil ...
.
Tier 1 consolidation also affects engine manufacturers : GE Aviation
GE Aviation, a subsidiary of General Electric, is headquartered in Evendale, Ohio, outside Cincinnati. GE Aviation is among the top aircraft engine suppliers, and offers engines for the majority of commercial aircraft. GE Aviation is part of t ...
acquired Avio
Avio S.p.A. is an Italian company operating in the aerospace sector with its head office in Colleferro near Rome, Italy. Founded in 1908, it is present in Italy and abroad with different commercial offices and 10 production sites. Avio operates ...
in 2013 and Rolls-Royce plc
Rolls-Royce Holdings plc is a British multinational aerospace and defence company incorporated in February 2011. The company owns Rolls-Royce, a business established in 1904 which today designs, manufactures and distributes power systems for ...
is taking control of Industria de Turbo Propulsores
ITP Aero (Industria de Turbo Propulsores) is a Spanish aero engine and gas turbine manufacturer.
It was established in 1989 as a joint venture between Spanish engineering conglomerate SENER and Rolls-Royce Plc. By 2015, it had grown to become a ...
.
See also
* Aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
* Aerospace industry in the United Kingdom
The aerospace industry of the United Kingdom is the second-largest national aerospace industry in the world (after the United States) and the largest in Europe by turnover, with a global market share of 17% in 2019. In 2020, the industry employe ...
* Military–industrial complex
The expression military–industrial complex (MIC) describes the relationship between a country's military and the defense industry that supplies it, seen together as a vested interest which influences public policy. A driving factor behind the r ...
* Aircraft industry
** Aircraft industry of Russia
Aircraft manufacturing is an important industrial sector in Russia, employing around 355,300 people. The dissolution of the Soviet Union led to a deep crisis for the industry, especially for the civilian aircraft segment. The situation started im ...
** Aircraft parts industry An aircraft part is an article or component approved for installation on a type-certificated aircraft. Approval for these parts is derived from the jurisdictions of the countries that an aircraft is based. In the United States, the Federal Aviatio ...
** List of aircraft manufacturers
This is a list of aircraft manufacturers sorted alphabetically by International Civil Aviation Organization (ICAO)/common name. It contains the ICAO/common name, manufacturers name(s), country and other data, with the known years of operation in pa ...
* Space industry
Space industry refers to economic activities related to manufacturing components that go into Earth's orbit or beyond, delivering them to those regions, and related services. Owing to the prominence of the satellite-related activities, some sour ...
** Space industry of India
India's Space Industry is predominantly driven by the national Indian Space Research Organisation (ISRO). The industry includes over 500 private suppliers and other various bodies of the Department of Space in all commercial, research and arbitra ...
** Space industry of Russia
Russia's space industry comprises more than 100 companies and employs 250,000 people. Most of the companies are descendants of Soviet design bureaux and state production companies. The industry entered a deep crisis following the dissolution of t ...
** Commercial Spaceflight Federation
The Commercial Spaceflight Federation is a private spaceflight industry group, incorporated as an industry association for the purposes of establishing ever higher levels of safety for the commercial human spaceflight industry, sharing best pract ...
(US)
** List of spacecraft manufacturers
History
During the early years of spaceflight only nation states had the resources to develop and fly spacecraft. Both the U.S. space program and Soviet space program were operated using mainly military pilots as astronauts. During this perio ...
* Supplier-furnished equipment
References
Further reading
* Hartley, Keith. '' The Political Economy Of Aerospace Industries: A Key Driver of Growth and International Competitiveness? (Edward Elgar, 2014); 288 pages; the industry in Britain, continental Europe, and the US with a case study of BAE Systems.
* Newhouse, John. ''The Sporty Game: The High-Risk Competitive Business of Making and Selling Commercial Airliners.'' New York: Alfred A. Knopf, 1982. .
External links
*
*
*
Aerospace Craft & Structural Components
{{DEFAULTSORT:Aerospace Manufacturer
Manufacturer
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
*Manufacturer
Aircraft industry
Aerospace