Canada’s Aircraft and Aircraft Parts Industry forecasts revenue, costs and profits for the aircraft and aircraft parts industry by analyzing its three key sectors: airframes and structures, propulsion systems, and avionics.
Retreating oil prices and sustained worldwide economic growth will help the commercial airline industry, which will in turn boost Canada’s aircraft and aircraft parts industry. Profits are expected to rise from $989 million in 2004 to $1.3 billion in 2005. Net profit margins are also expected to recover as manufacturers receive higher prices for their export sales in the key U.S. market due to the levelling off in the value of the Canadian dollar.
Once confidence has been restored in the aviation industry, the aircraft industry in Canada should enjoy rising profitability and higher margins over the medium term as well. Profits are forecast to rise to $2.7 billion by 2008.
The outlook includes special features on subsidy battles between Bombardier and Embraer and between Airbus and Boeing. It also looks at how the U.S. airline industry has delayed the restructuring necessary to make it more stable and profitable.