This Decennial Strategy Dossier, published at the turn of the decade, reviews the strategy evolution & progression for the Global Top 4 Commercial Aircraft Turbofan Engine Manufacturers through one of the most profitable decades for Commercial Aviation with the market continuing with its unbroken supercycle. The rally has been driven by strong tailwinds emanating from a multitude of favorable, demand side factors led by robust growth in passenger air traffic, decent global macroeconomic growth and a favorable crude oil price environment prevailing through most of the decade which has bolstered airlines profitability as well as driven fleet expansion led by the LCC segment. Supply side factors, led by the development & introduction of new & re-engined aircrafts by the industry OEMs, incorporating new, high bypass turbofan engines have stimulated replacement demand with technological evolution by the industry, focused on performance, safety, comfort and optimized operating economics, further catalyzing fleet replacement activity across airlines groups globally.
The report analyzes and reviews the strategic path taken by the engine manufacturers through the decade ending in 2019 led by the development & introduction of next generation aviation turbofan engines, featuring a high bypass ratio and extensive usage of technological innovations from the competing engine powerhouses, which entered service over the recent years, and are proving their mettle in grueling, active duty service. However, going forward, managing things in a very difficult & challenging market environment for commercial aviation post the outbreak of COVID-19 pandemic, with most key global economies projected to go into recession for 2020, will be critical for the industry over near term. This decennial review, thus, takes a macro view of the strategic developments and reviews the strategy pursuits & execution by these engine manufacturers over the 2010-2019 period and assesses their strategic significance as well as business impact & outcome for the companies at the turn of the decade with a look at the road ahead.
The trend towards next generation, high bypass ratio turbofan engines has been led by Pratt & Whitney which has re-entered the Global Commercial Aircraft propulsion market after a long gap with the development of the PW1000G Geared Turbofan Engines Family for the twenty fist century commercial aviation market backed by a massive $10 billion investment. GE’s story can’t be scripted without mentioning the success of CFM International, its JV with Safran, which has literally dominated the global medium aircraft propulsion market for decades now with its iconic CFM56 engine program and the latest LEAP engine family, which made a splendid debut around the middle of the decade and faces a direct head off with the Pratt & Whitney’s PW1000G GTF engine family in the narrow body market. 2020 will be another key year for GE as GE’s 9X engine, the largest jet engine in the history ever, will power the Boeing’s 777X for its test flight phase ultimately paving the way for certification and entry into service scheduled for 2021 now. GE Vs. Rolls Royce has been the Mother of all Engine battles in the global wide body aircraft market for some time now. Rolls Royce has made a decent comeback in the global wide body aircraft market through the decade with the winning of two key wide body aircraft programs as the sole source engine supplier over the recent years, namely, the A350XWB & the A330neo, which are going to be the key pivots for Rolls in its perennial battle against arch rival GE for market shares.
The report is a niche, key and vital information resource on the covered industry players with its unique disposition & strategy focus and provides a macro view and longitudinal analysis from a strategy perspective quickly. The report would be quintessential for those having strategic interest in the Companies, Commercial Aviation sector and will be especially useful for Key Decision-Makers, Program & Project Managers, Procurement Managers, Top Management of Industry Players & Other Companies, Industry OEMs, Suppliers, Vendors, MRO Services Providers and other Key Players in the Industry Value Chain. The report will also be useful for existing & potential Investors, Industry & Company Analysts, M&A Advisory Firms, Strategy & Management Consulting Firms, PE Firms, Venture Capitalists, Financing & Leasing Companies, Researchers and all those associated with the industry.