People have an insatiable desire to travel and demand for air travel is on the rise. This is creating massive demand for new planes. This calls for new ideas in supply chain improvements and specialised logistics services to keep the aerospace industry flying high. REJI JOHN finds how aerospace logistics is set for big growth going forward.
The world has an insatiable appetite for air travel, which is creating massive demand for new planes. According to the International Air Transport Association (IATA) the full-year global passenger traffic results for 2016 showed demand increase by 6.3 percent compared to 2015. This strong performance was well ahead of the ten-year average annual growth rate of 5.5 percent.
“Connectivity increased with the establishment of more than 700 new routes. And a $44 fall in average return fares helped to make air travel even more accessible. demand for air travel is still expanding,” said Alexandre de Juniac, IATA’s director General and CEO.
According to the recent Airbus’ Global Market Forecast for 2016-2035 air traffic will grow at 4.5 percent annually, requiring some 33,000 new passenger and dedicated freighter aircraft at a value of $5.2 trillion over the next 20 years. For the first time Airbus has released results from its “Global Services Forecast” which shows a Maintenance Repair & Overhaul (MRO) business totalling $1.8 trillion and the need for in excess of a 500,000 new pilots over the next 20 years.
With so much demand in the market for planes there is a pressure on the aerospace industry to produce planes more quickly, efficiently, and profitably. Aircraft manufacturers are challenged to make lighter aircraft with lower fuel consumption, using materials sourced from a geographically diverse supplier base. Technical challenges are also delaying some production timetables, causing a ripple effect through a carefully planned schedule of costly incoming parts timed to keep inventories low.
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AVIATION INDUSTRY: FUELING THE FUTURE WITH SUSTAINABILITY
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Up until five years ago, the air cargo industry was considered less digitally mature than other sectors marked by rigid legacy systems. But with the onset of Industry 4.0, innovation is on every business manager’s agenda and exciting changes are transforming this industry. Also, as consumer habits change and customer expectations grow, clients demand end-to-end visibility of their delivery. With emerging technologies like Blockchain, Artificial Intelligence and IATA’s initiatives One Record and Interactive Cargo, technology is definitely making changes to efficiency.
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Global air cargo industry continues to suffer across all regions and the demand decline experienced in 2019 is the steepest drop since 2009 during the global financial crisis. Airline association IATA predicts that air cargo demand will increase by two percent in 2020; however there are several ifs and buts for the industry to get back to growth momentum.
TRADE WAR ADDS CANADIAN FLAVOUR INTO CHINESE CUISINE
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Founded in the united kingdom in 1994, Air Logistics Group (ALG) has developed significantly from the traditional ‘general sales agent’ to a strategic partner offering the highest level of value added services to its airline and forwarding partners. As ALG completes 25 years, Stephen Dawkins, founder & chief executive officer of ALG, speaks to Reji John, about many more exciting years ahead providing airlines and forwarders with a reputable, financially sound partnership that can deliver in terms of revenue, network coverage, digitalisation and manpower. Edited excerpts.
FLA-PLA 2019 Call For Embracing Technology, Sustainability, Better Infrastructure
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Raising The Stakes On Perishable Logistics
When dealing with fresh produce and other food items intended for human consumption, there is no wiggle room when it comes to freshness and quality. For the food to reach one’s plate, there is a lot that happens along the way – this includes harvesting crops at the right time, maintaining proper temperatures, and of course, on-time delivery from farm to fork. As consumption patterns change, regulations vary, customer expectations rise, industry players are converging to create a seamless supply chain.
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