Financial and non-financial support in the aero engine industry: case studies on the European market

Abstract: The aero engine industry is a complex and unique market. The manufacturers co-operates generally in projects because of the high costs and technology that makes it impossible to produce a whole aero engine on its own. When entering a project it is important to have the same prerequisites as the competitors and future partners. A crucial factor for the aero engine manufacturers is the available sources of funding and the non-financial support. No aero engine manufacturer manages without support in different forms and therefore it is even more important to have the same support as competitors. The purpose of this thesis is therefore to find out if the aero engine manufacturers in Europe possess the same conditions of financial and non-financial support both for the military and commercial areas. Future changes of financial support are also investigated from the aero engine manufacturers' perspective. The methods used are mainly literature review and interviews. Empirical results consist of a description of the financial and non-financial support for the manufacturers in Europe and opinions from aero engine manufacturer representatives. Finally, conclusions show that clear differences exist between the European aero engine manufacturers' support conditions, both financial and non-financial.