Lably
Skip to content

Aircraft engine

Engine designed for use in powered aircraft

  • 8 min read
  • 6 chapters
Rolls-Royce Merlin installed in a preserved Avro York, IWM Duxford.
Self · Public domain

Related on Lably

Through Propulsion, Electric motor and Jet engine

Manufacturing industry

As of 2025, five European and American manufacturers dominate the global market for aircraft engines:

The market for aircraft engines, especially jet engines, has very high barriers to entry. Aircraft engines use highly advanced technology and materials, take around eight years and billions of dollars or euros to develop, and must pass exacting safety certifications by aviation safety authorities.

Consequently, entering the engine market is extremely capital- and time-intensive, which helps protect existing manufacturers from competition. The last successful entry in the global market for jet engines was General Electric in the 1970s. These barriers to entry make the market very lucrative for existing manufacturers. As of 2025, the leading jet engine manufacturers reported shareholder returns from between 100 and 1,000 percent over the last five years, compared to small or negative returns for their principal clients, Airbus and Boeing.

The engines themselves are typically sold at a loss, but manufacturers derive their profits from the sale of maintenance services and parts over the roughly thirty-year lifespan of an engine, following the razor and blades business model. This creates a perverse incentive for manufacturers to slow the production or delay the delivery of new engines, because they profit most from the use of old engines, which need more service and parts than new ones. This contributes to the unavailability of new engines, creating a bottleneck for Airbus and Boeing's efforts to increase aircraft production in the post-COVID resurgence of aviation after 2023.

Sign in to keep reading

5 more chapters are free with a Lably account.

More in Transportation