Airbus 2010 Annual Report Download - page 51

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THE BIG PICTURE
29
MARKETS & PERSPECTIVES
defence suppliers are not easily interchangeable due to
relatively low production volumes and a correspondingly
high level of investment required in intellectual capital and
certifications. Also, expansion into any foreign market
generally increases the risk that protected technology
and manufacturing know-how will be transferred.
Many emerging countries are nurturing their local
aerospace industries. Governments placing large orders
often make it a condition that a proportion
of the related procurement or production is based
in their countries. While this leads to the development of
qualified new industrial partners and suppliers it also leads
to a risk of new competitors.
Aircraft manufacturers from emerging countries have
signalled their ambition to challenge today’s Airbus/Boeing
duopoly. Embraer in Brazil, Commercial Aircraft
Corporation of China (Comac) and Superjet International,
a Russian/Italian joint venture company, are all seeking
to gain market share in the commercial aircraft sector.
While the growing economic power of developing nations
appears to threaten the hegemony of Western aerospace
and defence companies, a more multi-polar world in which
industries form global alliances, could ultimately benefit the
world economy and mitigate risks associated with trade
imbalances and regional commercial cycles.
A380 route proving in Shanghai Security solutions
in US$ (000’s) 2009 GDP per capita
0 5 10 15 20 25 30 35 40 45 50 55
10
1
0.1
0.01
0.001
China
Brazil
Russia
India
USA
Ireland
Japan
UK
France
Germany
Spain
South Korea
Hong Kong
Singapore
Saudi Arabia
Costa Rica
World average
Emerging economies on the edge to strong
travel growth
(in number of trips* per capita in 2009)
Source: IATA PaxIS, Global Insight, Airbus
* Passengers originating from respective country.