Here is an excellent example of an absolute monopoly. As you know, producing commercial airliners is an expensive and hazardous business. For these reasons, the world market is actually divided between two companies: Boeing and Airbus.
For decades, outsiders have been prevented from entering. The only real competitor of these giants is the Chinese company COMAC. However, this company only operates in China, and it is not known whether it will be able to expand its business worldwide.
Who tried to break the monopoly?
Russian Sukhoi Superjet, Canadian Bombardier, Brazilian Embraer, Japanese Mitsubishi — none of them have managed to break into the market for large commercial airliners these days, although they tried hard.
It seems that Airbus is now swamped with orders and thriving, while Boeing is on the verge of collapse. But do not rush to conclusions.
In fact, Boeing will not disappear since these two companies have a shared future.
Why will the monopoly continue to exist?
Meet the CFM RISE, a promising jet engine with open rotor blades. Its design significantly improves efficiency. It is similar to a turboprop engine, but that is all they have in common. This is a new-generation engine, and its introduction will easily finish off all competitors. Serial production is planned to begin between 2030 and 2035.
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The RISE program is a development of CFM International, a joint venture between GE Aviation (USA) and Safran (France). This engine is intended for promising aircraft models from both Airbus and Boeing. The only difference is that these companies plan to use different fuel types. Europeans consider using hydrogen fuel, while Americans prefer environmentally friendly SAF fuel.
So what?
This story shows how monopolists divide the market for decades to come. To follow these companies' stocks, use the tickers: BA (Boeing, stocks are flat), AIR (Airbus, stocks are rising), SAF (Safran, stocks are rising), GE (General Electric, stocks are rising).
Here you can see a video from CFM International showing a visualization of this engine.
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