The Department of Defense released its latest round of selected acquisition reports and tucked away in their review of the biggest program in DoD history was an interesting footnote that said the F-35 is now expected to operate in US service until the year 2088. That’s 11 years later than previously expected. 

The two aerospace giants enter the post-pandemic era in very different positions. Both companies encountered sharp financial impacts from the unprecedented drop in commercial air transportation demand and the resulting decline in aircraft deliveries and new orders. It will take time for the industry to rebound and these two companies will enter the revived marketplace in different ways.

Airbus

Airbus is in an exceptionally strong position and it is embracing its position as a commercial airliner manufacturer. While the COVID pandemic has tempered its generally sustained advance, the company’s fundamentals align well with long-term market requirements.

The biennial Farnborough and Paris air shows are usually the cue civil aircraft manufacturers use to issue their prognostications about the future of the commercial aviation business. And right on cue, Airbus, Boeing, Embraer, and ATR all issued their own takes on what was going to happen in the future.

BAE Systems plc (BAE), Europe’s largest defense contractor and the world's seventh-largest is well positioned to take advantage of increased defense spending by its major customer countries. Early concerns about potential Brexit-related impacts have lessened. Immediately followed the UK’s decision to leave the European Union, there was significant speculation about the potential fallout that might occur as established relationships between BAE and its European continent partners tried to work through the changing trade environment.