Airbus's Secret to Surpassing Boeing: Technological Innovation

The remaining less than 10% of the market is occupied by other manufacturers.

The first jet airliner, the Comet, became a catalyst for changing aviation safety standards due to a series of crashes. Pressure concentrated at the corners of the Comet aircraft's square windows during flight, leading to repeated metal fatigue fractures and cracks in the airframe. After these accidents, all aircraft windows were redesigned into a rounded shape to avoid stress concentration.

Despite its technological prowess, the supersonic Concorde passenger jet did not achieve commercial success. The extreme noise (sonic boom) generated during supersonic flight severely limited its operating routes, primarily to transatlantic routes. Furthermore, high operating costs led to order cancellations from airlines, pushing Concorde's commercial viability to its limits.

To break away from the US-centric aviation industry, European countries formed the Airbus consortium in the 1970s. France, Germany, the UK, Spain, and other nations collaborated to establish a division of labor system for aircraft development. Their first product, the A300, made its debut in the civilian aircraft market through a strategic approach, such as adjusting seat configurations to suit the European market.

When the Airbus A300 was first introduced, major European airlines like Air France and Lufthansa were hesitant to purchase aircraft manufactured in their own countries. There were significant concerns about the safety of aircraft from a new manufacturer, and they worried that a crash would cause fatal damage to their airline's brand image.

In the mid-1970s, the South Korean government pursued missile acquisition but faced difficulties when the US refused to sell Harpoon missiles. At this time, France's Exocet missile was considered, and the French side offered a counter-proposal suggesting the purchase of Airbus A300s. Since South Korea was undertaking various large-scale projects, including nuclear power plants and subway systems, the A300 introduction was finalized due to complex political and economic considerations.

In the late 1950s, the Civilian Aircraft Agreement (TCA) was signed under US leadership. Ostensibly aimed at expanding the civilian aircraft market through tariff abolition, its true intention was to strengthen the market dominance of US aircraft models. By lowering tariff barriers, US companies, which held a technological advantage at the time, sought to gain greater competitiveness in the global market.

After the A300, Airbus focused on technological innovation by segmenting the market with the A320 series. Specifically, by introducing Fly-by-Wire technology and ensuring cockpit commonality across different models, it significantly reduced airlines' operating costs. The shortened training period required for pilots to transition between different aircraft models was a major attraction for airlines, playing a decisive role in Airbus's rise as a market leader.

Fuel efficiency is the most critical issue for airlines, accounting for over 40% of operating costs. Accordingly, aircraft manufacturers have prioritized making aircraft lighter and developing high-efficiency engines. Recently, reinforced environmental regulations have made economic and environmental survival strategies even more important to achieve carbon reduction targets (CORSIA, less than 50% by 2040).

In contrast, Boeing's B787 focuses on operating direct routes between major cities with a point-to-point strategy. Both models use carbon composites for fuel efficiency but employ contrasting route strategies. Currently, Boeing's strategy holds a slight advantage in the market.

Unlike aircraft fuel, batteries do not deplete during flight, continuously maintaining the aircraft's weight, which reduces operational efficiency. Furthermore, battery safety issues in high-altitude environments reaching minus 50 degrees Celsius remain a challenge, requiring significant technological advancement before application to large passenger aircraft.

Several factors contributed to the collapse of major aircraft manufacturers in the past. After the end of the Cold War, military orders plummeted, causing military aircraft producers to lose customers. Companies like Lockheed were eliminated from the civilian aircraft market early due to engine development delays and bribery scandals. Smaller manufacturers were inevitably eliminated due to the burden of enormous development costs and failure to achieve economies of scale.

South Korea's entry into the civilian aircraft industry is more realistic through phased cooperation rather than independent development. Korea Aerospace Industries (KAI) has signed an MOU with Embraer, the world's third-largest civilian aircraft manufacturer in Brazil. Embraer specializes in regional jets, a tier below Boeing and Airbus models, offering opportunities to target replacement demand for aging B737s and A320s and niche markets.

Related ministries, including the Korea AeroSpace Administration and the Ministry of Trade, Industry, and Energy, are collaborating to aim for phased capability building rather than independent development of complete aircraft. The international joint development project for civilian aircraft is also included in the recently announced 7 seed projects of the 3 mega-projects, promoting it as a core driver for the future aviation industry.

Developing aircraft independently carries enormous risks for South Korea, as failure could threaten a company's survival. South Korea possesses high-level component manufacturing capabilities and fighter jet development experience, making a strategy of entering the market through international joint development with major manufacturers more feasible. The priority is to expand the market and accumulate experience through this approach.

A prime example is Japan's Toray supplying carbon composite fibers for the Boeing 787 development, participating 35% in aircraft manufacturing, while simultaneously advancing Japan's materials industry. South Korea, as a manufacturing powerhouse, can also enhance the competitiveness of its overall national industry by making the aviation industry a leading sector.