Smaller manufacturers Embraer and Bombardier are also raising output and bringing new planes to market. As thousands of suppliers gear up, Boeing and Airbus are pitting them against each other in price competitions to drive down supplier prices more than in the past. Boeing says it will put companies that do not cut prices on a "no fly" list that bars them from future work, while rewarding those that do with the chance to bid on more work. Both plane makers are vying for the spare parts market, demanding royalties on parts that are sold directly to airlines and do not enter their factories. Boeing and Airbus make far less money selling finished planes than suppliers earn from selling parts. Boeing's jetliner business, for example, had an operating profit margin of 10.8 percent last year, compared with an average of about 16 percent for suppliers. The profit margin on Airbus's commercial aircraft was 4 percent. – Reuters