Asia-Pacific Region’s Aircraft Design and Development Strategy for Single-Aisle Aircraft in the Oligopoly Market of Boeing and Airbus

Abstract

There have been severe supply and demand imbalances in the global aircraft operation situation, but various factors make it difficult to address this market imbalance. Considering the number of commercial jet flights in December 2019, Asia?Pacific (AP) countries operate 34%, but supply is 0%. North America operates 25%, while Boeing supplies 55%. Europe operates 21%, while Airbus supplies 44%. Why this imbalance happened, how to address it, and how to develop aircraft will be suggested. In the 1960s, European countries had tried to correct the severe mismatch between aircraft supply and demand. France and Germany agreed to design and develop aircraft for the development of the European aerospace industry by international joint development and established Airbus in 1970. The A320 was designed and developed, and was finally launched in 1988. Airbus outperformed Boeing by taking a 52% market share with 305 units in 2003, which contributed significantly to the European economy. Europe established EADS in 2000 and integrated the European aeronautical defence industry, which contributed greatly to European peace. In 2020, Airbus delivered 566 units, occupying a 78% market share (Boeing 162), remaining the world’s No. 1 aircraft supplier and maintaining Europe’s economy and peace. Regional Comprehensive Economic Partnership (RCEP) countries should benchmark the Airbus A320 success stories to correct AP aircraft demand?supply distortions and lay the groundwork for Asia?Pacific aerospace industry development. To achieve long-term goals, it is effective to divide international joint development into three stages. In the first stage, individual companies (company-company) promote international co-development, and it is similar to the current environment of AP countries. The second stage is the case of Japan-promoted international joint development (JADC-Boeing) (companies consortium-company), and the third is international joint development between countries, as in the case of Airbus. This study is based on a quantitative approach to provide clear findings. AP aircraft manufacturers should secure the basis for the RSP international joint development project. ? 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.