The two aerospace giants enter the post-pandemic era in very different positions. Both companies encountered sharp financial impacts from the unprecedented drop in commercial air transportation demand and the resulting decline in aircraft deliveries and new orders. It will take time for the industry to rebound and these two companies will enter the revived marketplace in different ways.
Airbus
Airbus is in an exceptionally strong position and it is embracing its position as a commercial airliner manufacturer. While the COVID pandemic has tempered its generally sustained advance, the company’s fundamentals align well with long-term market requirements.
The biennial Farnborough and Paris air shows are usually the cue civil aircraft manufacturers use to issue their prognostications about the future of the commercial aviation business. And right on cue, Airbus, Boeing, Embraer, and ATR all issued their own takes on what was going to happen in the future.
BAE Systems plc (BAE), Europe’s largest defense contractor and the world's seventh-largest is well positioned to take advantage of increased defense spending by its major customer countries. Early concerns about potential Brexit-related impacts have lessened. Immediately followed the UK’s decision to leave the European Union, there was significant speculation about the potential fallout that might occur as established relationships between BAE and its European continent partners tried to work through the changing trade environment.
Here’s a new company to track: PredaSAR. The company, which is based in Boca Raton, FL, builds synthetic aperture radar (SAR) satellites. It has just received a contract from DARPA to develop a prototype SAR satellite, and it is also preparing to begin launching a constellation of 96 commercial SAR satellites.
It now looks like the Russians will continue to participate in the International Space Station (ISS) past 2024. As you may recall, on July 21 it was reported that Yuri Borisov, the director of Russia’s national space agency (Rosaviacosmos), said that Russia would pull out of the ISS in 2024. This caused a minor stir in the West because the station depends on the Zvezda Service Module for a lot of important stuff, including living quarters, life support systems, electrical power distribution, data processing systems, flight control systems and propulsion systems.
A lot of attention has understandably accrued to the US Department of Defense’s FY 2023 request for 61 F-35s, 33 (15 As, 5 Bs, and 13 Cs) below the number previously projected for that year. Let’s talk about that just a little bit. First, the Department of Defense has been accused of using the F-35 program as a source for funding other priorities. There’s some reason to believe that’s true. But we don’t believe that’s what’s at work here.
Recent actions by Rolls-Royce suggest that it is moving forward in its effort to materially reposition the company and return it to long-term profitability. Several factors had drastically impacted demand for Rolls-Royce products and services, causing a substantial decline in company revenues.
The pandemic driven decline in commercial aerospace had a dramatic impact on Safran’s operations and financial performance. The pandemic and delivery suspension of the 737 MAX cut revenues by almost one-third in 2020. By the close of 2021 total company revenues declined even further, resulting in a 38% drop from pre-pandemic 2019 to end of year 2021.
Highly respected analysis and opinions on global aircraft supply and demand and the competitive profiles of leading manufacturers.
UAS/UAV Authority
The leading authority on the global markets for Unmanned Aerial Systems (UAS) and Unmanned Aerial Vehicles (UAV), including military, government and commercial markets.
Comprehensive Coverage
The industry’s most comprehensive coverage of the global aerospace sector, including military and civilian markets.
3900 University Drive, Suite 220 Fairfax, Virginia 22030 Send Email Message