GE employs a razor-and-blades model on an industrial scale, accepting losses on initial engine sales to powerful airframers like Boeing. This secures a multi-decade, high-margin stream of mandated service and parts revenue from a fragmented base of airline customers, where aftermarket sales can be 3-5 times the original engine price.

When major infrastructure like AWS or Cloudflare goes down, it affects many companies simultaneously. This creates a collective "mulligan," meaning individual startups aren't heavily penalized by users for the downtime, as the issue is widespread. The exception is for mission-critical services like finance or live events.

Despite attractive growth, new airlines struggle to enter the Mexican market due to the incumbents' scale. Volaris and Viva, controlling a large portion of domestic capacity, can strategically add flights and slash prices on any route a new entrant attempts to serve. This pricing power ensures any startup would be driven to bankruptcy within months.

GE serves two distinct customers: powerful airframers for the initial sale and a fragmented base of hundreds of airlines for aftermarket services. This split forces new entrants to solve a '3D puzzle' of satisfying both technically demanding OEMs and a global user base simultaneously, creating an immense and durable barrier to entry.

Volaris and Viva can likely win regulatory approval for their merger by offering a political quid pro quo. By shifting capacity to the former president's underutilized, military-run Felipe Ángeles airport (AIFA), they allow the government to declare its controversial infrastructure project a success, creating a powerful non-economic incentive for approval.

Beyond low fares, Ryanair's long-term dominance stems from its financial strategy of investing when the industry is weak. The airline uses its large cash reserves to place massive, discounted aircraft orders with manufacturers like Boeing during slumps and opportunistically seizes market share when legacy carriers falter. This turns competitors' crises into major growth opportunities.

Unlike the broader aircraft parts market, the engine aftermarket is highly resistant to third-party 'PMA' parts. Even credible players like Pratt & Whitney have failed to copy GE parts. Technical complexity, voided warranties, and leasing company policies create a strong defense that protects lucrative service revenues.

The primary growth driver for Mexican airlines like Volaris is not taking share from rivals, but converting travelers from the country's massive long-range bus industry. With 3 billion annual bus passengers, airlines tap a huge, underpenetrated market by offering a superior value proposition on a dollar-per-hour basis, fueling structural demand growth.

The jet engine market is not a simple free-for-all. Competition is first structured by airframers like Boeing and Airbus, who decide whether to offer a single 'sole source' engine or 'dual source' options on a new aircraft. This initial strategic decision dictates the competitive landscape before airlines ever make their choice.