Why Don't Aircraft Manufacturers Produce Jet Engines In-house?
Most aircraft manufacturers do not produce jet engines in-house, opting instead to source engines from established suppliers such as Rolls-Royce, GE, and Pratt Whitney. This decision is driven by a complex combination of legal, economic, and operational factors. In this article, we will explore the key reasons behind this outsourcing trend.
Legal Impediments and Historical Precedents
The groundwork for why aircraft manufacturers do not produce jet engines in-house is often traced back to historical and legal constraints. In the United States, for instance, ownership of both aircraft manufacturers and engine companies is not permitted due to antitrust laws originating from the 1920s and 30s. For example, Boeing owned both TWA and Pratt Whitney during this period. Congress passed laws forcing them to divest, and these regulations remain intact.
Variety in Aircraft Components
Building a modern aircraft involves a staggering number of components, with jet engines representing only one part of the entire assembly. Airframes, avionics systems, safety systems such as oxygen delivery and landing gear, as well as brakes, all have unique manufacturing processes and require specialized machinery and skill sets. Jet engines are just one element of a complex assembly process.
Key Reasons for Outsourcing Jet Engines
Specialization and Expertise
Jet engine design and manufacturing require highly specialized knowledge and technology. Companies such as Rolls-Royce, GE, and Pratt Whitney have decades of experience in developing advanced propulsion systems. It would be extremely challenging and potentially expensive for aircraft manufacturers to develop this level of expertise in-house.
Cost Efficiency
Developing a jet engine in-house would necessitate a significant investment in research and development (RD) facilities, skilled labor, and infrastructure. By outsourcing to specialized engine manufacturers, aircraft companies can avoid these substantial upfront costs and allocate resources more efficiently toward airframe design and assembly. This cost savings is a major factor in the decision-making process.
Economies of Scale
Engine manufacturers produce engines in large quantities, allowing them to achieve economies of scale that reduce per-unit costs. This cost efficiency makes it more cost-effective for aircraft manufacturers to purchase engines than to develop their own. Large-scale production ensures that engines are consistently reliable and perform to high standards.
Regulatory and Certification Challenges
Jet engines must meet stringent safety and performance regulations. The certification process for jet engines can be complex and time-consuming. Engine manufacturers have established, tried, and trusted processes for these certifications. These rigorous standards ensure that the engines are safe and reliable. Sourcing engines from specialized suppliers leverages their existing certifications and reduces the burden on the aircraft manufacturer.
Focus on Core Competencies
Aircraft manufacturers typically focus on airframe design, systems integration, and overall aircraft performance. By outsourcing engine production, they can concentrate on their core competencies and partner with experts in propulsion. This allows for a more streamlined approach and higher quality end-product.
Market Competition and Collaboration
The aerospace industry is highly competitive, and partnerships between aircraft manufacturers and engine suppliers are common. These collaborations can lead to innovations and improvements in both aircraft and engine designs, benefiting both parties. Specialized engine manufacturers often bring cutting-edge technology and design expertise to the table, enhancing the overall capability of the aircraft.
Supply Chain Management
Managing a complex supply chain is crucial in the aerospace industry. Established engine manufacturers have well-developed supply chains for sourcing materials and components. This efficiency can be more cost-effective and productive than building similar capabilities from scratch. Leveraging these established supply chains ensures a steady and reliable source of high-quality components.
In summary, while it is technically possible for aircraft manufacturers to produce jet engines in-house, the combination of specialization, cost efficiency, regulatory challenges, and the desire to focus on core competencies makes outsourcing to specialized engine manufacturers a more practical choice. The aerospace industry's reliance on these partnerships has fostered a symbiotic relationship where both parties benefit from the expertise and resources of specialized suppliers.