Global Airport News

Commercial aircraft makers will have to form alliances to share insufficient demand in the sector in the future, the chief executive of European aerospace group EADS said.

There will be six large commercial aircraft makers in the future as manufacturers from China, Russia, Canada and Brazil break Airbus and Boeing's duopoly in the sector, Louis Gallois said in an interview published in Spanish paper Expansion.

"There won't be enough demand for everyone and this will force alliances. Competition among these giants to seal strategic agreements will be even harder and more aggressive than competition to sell their products," the CEO said.

Gallois sees Brazil's Embraer, China's Comac, Canada's Bombardier and Russia's UAC competing with Airbus and Boeing for medium- to long- range aircraft.

Deals such as Bombardier and Comac's alliance to work on commercial aircraft, announced in March, could spur component manufacturers to forge alliances in an oversupplied market.

"It could be a good idea, there are too many of them (auxiliary companies) and a tie up could reinforce their positions in an increasingly competitive world."

Aircraft makers face an uncertain future despite the recent recovery in commercial air transport, as rising oil prices eat into the profits of their customers.

Gallois, who is due to leave his post in a year, did not rule out the possibility of a Spaniard taking over the post, despite Germany and France holding about 22 percent of EADS each and Spain only having 5.5 percent.

"The company should forget nationalities when it comes to forming its management team," the CEO said.