Aerospace Study En

FWC Sector Competitiveness Studies Competitiveness of the EU Aerospace Industry
with focus on:

Aeronautics Industry
Within the Framework Contract of Sectoral Competitiveness Studies – ENTR/06/054
Final Report

Client: European Commission, Directorate-General Enterprise & Industry

Munich, 15 December 2009

Disclaimer: The views and propositions expressed herein are those of theexperts and do not necessarily represent any official view of the European Commission or any other organisations mentioned in the Report

ECORYS Nederland BV P.O. Box 4175 3006 AD Rotterdam Watermanweg 44 3067 GG Rotterdam The Netherlands

T +31 (0)10 453 88 00 F +31 (0)10 453 07 68 E netherlands@ecorys.com W www.ecorys.com Registration no. 24316726

ECORYS Macro & Sector Policies T +31 (0)10453 87 53 F +31 (0)10 452 36 60

Table of contents

1 Introduction 1.1 Previous Work 1.2 Particularities of the Industry 1.3 Historical Evolution of the Industry 1.3.1 Horizontal Evolution of the Industry 1.3.2 Vertical Evolution 1.4 Business Cycles in the Aerospace Industry 2 The Quantitative Analysis of the European Aerospace Industry 2.1 The Sectoral Analysis of the European AerospaceIndustry 2.1.1 The Development and Performance of the Aerospace Industry 2.1.2 The Structure of the Industry 2.1.3 Performance Comparison to the Total European Economy 2.1.4 The Regional Distribution of the European Aerospace Industry 2.1.5 The Intra-European Trade Relations of the European Aerospace Industry 2.1.6 The Extra-European Trade of the Aerospace Industry 2.1.7 The Performance of the EUAerospace Industry in Global Trade by Subsectors 2.2 The Microeconomic Performance of the European Aerospace Industry 2.2.1 The Intra-European Comparison of the Performance of Aerospace Companies 2.2.2 The Microeconomic Analysis of the Aerospace Industry: comparison of the EU with main competitors 3 The Qualitative Analysis of the European Aerospace Industry 3.1 The Country Reports 3.1.1 France 3.1.2United Kingdom 3.1.3 Germany 3.1.4 Italy 3.1.5 Spain 3.1.6 Poland 3.1.7 Assessment of National Policies dedicated to the Aerospace Industry 3.2 Companies Behaviour 3.2.1 Changing Market Environment 3.2.2 Procurement Strategies of OEMs 3.2.3 Patterns of Interaction in Different Segments of the Supply Chain 3.2.4 Supply Chain Evolution and Sourcing Activities
A/FN97615

19 19 20 23 23 25 26 3132 33 36 37 39 46 50 58 61 61 79 89 89 89 101 111 123 127 135 140 142 142 143 144 146

3.2.5 Extent and Role of Smaller Enterprises in the EU Aerospace Sector 3.3 Subsectors of the Aerospace Industry 3.3.1 Large Civil Aircraft 3.3.2 Regional Aircraft 3.3.3 Business and General Aviation 3.3.4 Helicopters 3.3.5 Engines 3.3.6 Maintenance, Repair and Overhaul 3.4 Products and Technology 3.4.1Technologies and Technological Competitiveness 3.4.2 Aircraft 3.4.3 Aircraft Configuration 3.4.4 Aerodynamics 3.4.5 Structures, Materials and Manufacturing 3.4.6 Propulsion 3.4.7 Fuels 3.4.8 Flight Mechanics, Navigation, Control and Avionics 3.4.9 Cabin 3.4.10 Systems Engineering/Processes 3.4.11 Carbon-Fibre Composites for the Aerospace Industry 4 The Framework Conditions for the European AerospaceIndustry 4.1 Labour Force and Skills 4.1.1 Introduction 4.1.2 Employment Level and Structure 4.1.3 Skilled Labour Force Demand and Supply 4.1.4 Labour Mobility 4.1.5 Labour Force and Qualification in Non-European Countries 4.1.6 Conclusion 4.2 The Openness of Third Markets 4.2.1 Introduction 4.2.2 Safety and Functional Standards 4.2.3 Distorted Competition by Unconcealed and Concealed Support 4.2.4System Integration and the Internationalisation of Subsidy Sourcing 4.2.5 Conclusion 4.3 Access to Finance 4.4 Knowledge: R&D, Innovation and Product Development 4.4.1 European Research Policy 4.4.2 European R&D Funding Schemes 4.4.3 National R&D Funding Schemes 4.5 The Environmental Framework Conditions 4.6 The Operational Environment: Air Traffic Management 5 The Global Aerospace Industry 5.1...