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0 pointssonthonax3y ago0 comments

Why aren't the Chinese and Russians successful at building airliners? International politics aside, they have workable products, so why can't they break into the duopoly.

0 comments

octodog3y ago

Duopoly markets can be surprisingly efficient in some circumstances, so it may not be profitable for other firms to enter the market.

https://inomics.com/terms/bertrand-competition-1504578

jseliger3y ago

There is an excellent book on this subject: https://www.amazon.com/China-Airborne-James-Fallows/dp/14000...

everybodyknows3y ago

> they have workable products

Not so, not for Russia anyway:

https://en.m.wikipedia.org/wiki/Sukhoi_Superjet_100

hef198983y ago

And that was a very promising program.

bobthepanda3y ago

Workable != competitive, and in an industry as cutthroat in aviation airlines want the absolute best in fuel efficiency and reliability to undercut their competitors by $5.

There are other commercial aircraft manufacturers but essentially in each size segment you will only see two players. Embraer doesn‘t make any direct competitors with Airbus or Boeing, as an example.

hef198983y ago

Embraer jets got rebranded as A220s not that long ago, great planes that took over the market that served by short 737s and A319/18s. No competition for the bigger planes, that is true.

bobthepanda3y ago

The A220s were Bombardier.

Them selling out to Airbus had more to do with general issues at the parent conglomerate (they also exited trains and snowmobiles to raise cash). But they still make corporate jets.

hef198983y ago

Ha, I always mix up Bombardier, Embraer, Boeing and Airbus when it comes to whom bought whom. And yes, Bombardier always made great aircraft. Embraer as well, by the way.

j / k navigate · click thread line to collapse

0 comments

octodog3y ago

Duopoly markets can be surprisingly efficient in some circumstances, so it may not be profitable for other firms to enter the market.

https://inomics.com/terms/bertrand-competition-1504578

jseliger3y ago

There is an excellent book on this subject: https://www.amazon.com/China-Airborne-James-Fallows/dp/14000...

everybodyknows3y ago

> they have workable products

Not so, not for Russia anyway:

https://en.m.wikipedia.org/wiki/Sukhoi_Superjet_100

hef198983y ago

And that was a very promising program.

bobthepanda3y ago

Workable != competitive, and in an industry as cutthroat in aviation airlines want the absolute best in fuel efficiency and reliability to undercut their competitors by $5.

hef198983y ago

Embraer jets got rebranded as A220s not that long ago, great planes that took over the market that served by short 737s and A319/18s. No competition for the bigger planes, that is true.

bobthepanda3y ago

The A220s were Bombardier.

Them selling out to Airbus had more to do with general issues at the parent conglomerate (they also exited trains and snowmobiles to raise cash). But they still make corporate jets.

hef198983y ago

Ha, I always mix up Bombardier, Embraer, Boeing and Airbus when it comes to whom bought whom. And yes, Bombardier always made great aircraft. Embraer as well, by the way.

j / k navigate · click thread line to collapse