GE Aerospace

GE Aerospace’s moat is built on multiple, reinforcing advantages. Intangible assets: FAA/EASA certifications, decades of proprietary materials science (e.g., CMCs) and engine IP, and a world‑class brand in safety and reliability across ~70,000 commercial and defense engines.

The company states roughly 70% of adjusted revenue is services, reflecting life‑cycle contracts on an installed base that powers three out of four commercial flights.

Switching costs: Engine selection is typically locked at aircraft purchase and airlines enter long‑term service agreements (TrueChoice/Rate‑Per‑Flight‑Hour), making switching prohibitively costly and operationally complex.

Efficient scale: Large commercial and defense engines are an oligopoly dominated by GE/CFM, Pratt & Whitney, and Rolls‑Royce; duplicating global MRO networks and installed‑base data is uneconomic for new entrants.

Cost advantages: scale in sourcing, MRO, and parts, plus learning‑curve benefits and field data that improve reliability and predict maintenance.

Evidence of durability includes a services‑heavy backlog and remaining performance obligations of ~$176.3 billion with revenue expected to be recognized largely over the next 10–15+ years, supporting long‑run visibility.

Recent LEAP durability kits gained FAA/EASA certification to extend time‑on‑wing in harsh environments, addressing a key reliability vector and strengthening the moat. Weighted component view: switching costs (95), efficient scale (95), intangible assets (90), cost advantage (80), network/data effects (60), yielding a high‑confidence composite.