Airbus Is Busy Building Capacity To Catch Up With Strong Demand for Its Jets
Airbus primarily generates revenue by manufacturing commercial airliners. It benefits immensely from being in a duopoly with Boeing in the market for aircraft with more than 130 seats; the companies act as a funnel through which practically all such commercial aircraft demand must flow. This allows both companies to actively manage their order backlogs to reduce cyclicality despite the intense cyclicality experienced by their customers, airlines around the world.
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