Honeywell Aerospace Goes Independent with Strong Franchise

Honeywell Aerospace has emerged as an independent entity, boasting one of the premiere franchises in aerospace. The company's substantial scale gives it significant negotiating leverage with aircraft manufacturers, allowing it to provide many systems and selectively bid on critical components.

This business model is reminiscent of the 'razor-and-blade' strategy, where original equipment sales are often made at low or no margins, but recurring service and parts revenue can command high margins due to the long service life of these components and the need for regular overhauls.