Many insights can be drawn from Aviation Week’s Top-Performing Companies (TPC) rankings, but let me jump straight to a conclusion: As far as continental Europe is concerned, the time has come to shake things up and let a new generation of aerospace & defense (A&D) players emerge. For this to happen, Europe badly needs fresh ideas and money, and this can only come from private equity. What has already happened in the U.S. in that respect should encourage those who want Europe to regain competitiveness and should reassure those who fear private equity greed.

A major theme in this year's Top-Performing Companies study is that the European aerospace/defense industry is ripe for a major restructuring, and early signs of it are here. Large, traditional European companies are increasingly challenged, while a few smaller, high-performing players are breaking through, capturing and creating value through swift and well-executed business strategies and the exploitation of new sources of competitive advantage.