Boeing’s technical and financial woes could see smaller players try to grab some of the US major’s aviation market share, an expert said. Joint ventures such as CRAIC, between Russian and Chinese firms, may grant more weight to such a challenge, Harry Bonham from GlobalData told Al Arabiya English.
The associate analyst suggested that Boeing’s problems could potentially open the market to regional competitors such as Embraer, Sukhoi, Irkut, and COMAC too.
“The current commercial aerospace market is an effective duopoly dominated by Boeing and Airbus, with GlobalData estimating a 2021 market share of 36.5% and 55.5% respectively,” he said.
Although there are other players in the market eyeing Boeing’s predicament closely, Bonham said it is not all bad news for the company.
“Whilst they trail Airbus, they still maintain a strong market position, and are likely to receive ongoing support from the US government,” he said. “Additionally, the COVID-19 pandemic has been kind to no-one in commercial aerospace, with most firms active in the industry suffering,” he explained.
As a result Bonham concluded that the severely depressed market for commercial aircraft may inhibit competitors’ ability to capitalize on this latest problem for Boeing.
This week a United Airlines Boeing 777 suffered engine failure during a flight between Denver International Airport, and Honolulu. The US Federal Aviation Administration said inspections of Boeing 777s using Pratt & Whitney 4000-112 engines “should be stepped up.”
The company grounded its entire fleet of 737 Max aircraft in 2019, after an Ethiopian Airlines crash. This aircraft model is now flying again.