A record number of new aircraft deliveries are set to keep the supply chain extremely busy during the next 8-10 years.To meet the demand, the entire supply chain must ramp up their efforts and investments, ensuring timely deliveries while, at the same time, maintaining high quality and keeping costs somewhat controlled; a challenging task that could leave many suppliers financially vulnerable. How to avoid them and their associated costs..... These regulations are critical for operators and passenger safety and hold the products and services of the OEMs and suppliers to the highest standard.One of the problems that the aviation industry is facing is its incapacity to be truly agile in terms of new business paradigmes.
The ninth biggest challenge in the aviation industry in 2019 is failure to have appropriate cybersecurity measures in place. March 11, 2020 On March 11, the ARSA released its 2020 Global Fleet & MRO Market Assessment.The report, which was prepared for the association by aviation management consulting firm Oliver Wyman assesses the current state of the global aviation maintenance market and projects continued industry growth through 2030. The issue of work-force shortages in the aviation industry is very real indeed and it will be a challenge for the industry in the future as well. Fluctuations in currency exchange rates is the tenth and final type of risk that the aviation industry is facing. As computers do more, human skills erode. Southwest's maintenance problems are costing it millions a week, CEO says Published Tue, Mar 5 2019 10:41 AM EST Updated Tue, Mar 5 2019 4:50 PM EST Leslie Josephs @lesliejosephs In the case of the commercial aviation sector, political stability and sustained economic growth are, according to Ernst & Young, major underlying factors driving long-term growth in air traffic. 3. Over the course of the next 20 years, the global commercial aircraft fleet is expected to double to approximately 45.000 aircraft, a growth particularly driven by increased air travel due to an expanding middle class in emerging economies.Meanwhile, new aircraft platforms and engines are emerging as a result of changing customer demand and the industry’s relentless pursuit of cost reduction; an entry-into-service period which has been characterised by a According to Ernst & Young, a multinational professional services firm, understanding the aviation industry's biggest challenges and issues in 2019, and in the future, will enable companies to gain a competitive edge in the race for sustainable, profitable growth.Below, we’ll take a deep dive into the findings of the report and present the 10 biggest challenges in the airline industry in 2019.Most airlines have a global footprint and are, thus, vulnerable to external factors, such as political tension and economic conjunctures. Failure to deliver on major programmes can lead to significant negative implications affecting the financial performance as well as brand value.For instance, Ernst & Young notes, one airline has refused the delivery of a series of Airbus A320 NEOs since December 2015 due to performance issues with the engines of the aircraft.
nspiration and lots of aviation knowledge, great industry insights and market trends right in your inbox Safety concerns are the most relevant in all aviation establishments. The cost to develop new initiatives, such as additive manufacturing, must be recouped on volume production, but the investment might initially leave companies more financially exposed, thus posing a risk to the entire aviation supply chain. As the demand for air travel rises in emerging economies, OEMs, airlines and MROs are establishing new connections with local suppliers. Documentation and procedures Technical documentation and procedures are a big challenge for everyone! It is the No. Airline mechanics say they feel pressured by management to look the other way when they see potential safety problems on airplanes, an eight-month-long CBS News investigation reveals. With such a vast network of suppliers, small mistakes and delays can cause a chain reaction and, as a result, budgets and schedules could spin out of control.
Airbus and Boeing are the only players in the wide-body market, and they dominate the narrow-body-segment as well. Table 1. Implementation of new programmes and technologies ties up significant capital.
fuel consumption systems, maintenance computers, are the potential points of cyber vulnerability in aviation and many more may be growing.
The two parties are now negotiating to change the initial order for a different aircraft and another engine option. As more airlines, OEMs and MROs pursue big data analytics and predictive maintenance, the risk of cyber breaches increases.
The demand from passengers is evolving constantly, pushing the aviation industry to adopt new work processes and technologies, but, due to the conservative nature of the industry, it’s proving to be a hard race to win. »Because of the highly specialised nature of the industry, companies must hire and retain the skilled and qualified personnel necessary to perform the business-critical processes,« notes Ernst & Young … Knowing and monitoring the potential problem areas on your aircraft can help reduce unnecessary maintenance costs. Ineffective succession planning, a lack of diversity and limited options for talent mobility are, according to the study, the major challenges for talent management in the aviation industry. For more information view our updated In the medium-term, opportunities for new players in this market are unlikely, due to the duopoly of Boeing and Airbus.Due to the influx of new technologies and processes and the relentless focus on cost reduction, companies in the aviation industry will require, perhaps more than any other industries, a talented, engaged and increasingly specialised workforce in the future. The issue of work-force shortages in the aviation industry is very real indeed and it will be a challenge for the industry in the future as well. The commercial aerospace industry has to comply with a long list of requirements for aircraft design, maintenance, pilot training activities and safety regulations.