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.
This story is from the April 2017 edition of The Stat Trade Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2017 edition of The Stat Trade Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
AVIATION INDUSTRY: FUELING THE FUTURE WITH SUSTAINABILITY
Following rising concerns about climate change and the urgent need to reduce greenhouse gas emissions, the aviation industry is building a well-established strategy for sustainability. Thanks to technological advancements, innovative practices, and a strong commitment to environmental stewardship, sustainable aviation is emerging as the path to a greener future.
WHO IS CHANGING THE GAME FOR AIR CARGO?
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.
WAITING TO BE FILLED AIR CARGO CONTINUES TO BE IN THE DOLDRUMS
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
The surging lobster business in Canada built on the trade war between the US and China shows the capability of Nova Scotia in addressing the supply chain issues of stakeholders, at a time when China demanded more lobster than the province exported earlier. By exporting around 22 tonnes from January-October 2019, one of the three maritime provinces of Canada is confident to face the aftermath if trade war ends, by foraying into new markets.
INDUSTRY RISES AGAINST DANGERS OF ROGUE LITHIUM SHIPMENTS
As the threat of mis-declared or ill-packaged shipments carrying lithium batteries looms large, the aviation industry is joining forces to fight the menace. As e-commerce and demand for cleaner technology grows, the demand for lithium batteries is also seeing an upward trend. It’s time this industry affair got more attention to make aviation safer.
GECAS, IAI Launch The B777 Freighter Conversion Programme, Freighter To Enter Service In 2022
GECAS and Israel Aerospace Industries (IAI) have launched the Boeing 777-300ER freighter conversion programme.
From Booking Middlemen To Strategic Partner
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
Sustainability and need for collaboration dominated the narrative of the latest Flower & Perishable Logistics Africa conferences in Nairobi, Kenya. Attendees discussed the importance of infrastructure development, exploring new markets, and looking beyond the traditional avenues.
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.
Connecting Intelligently For Cargo Mobility
The air freight industry, which has remained traditional in its processes and business models for a very long time has seen a perceptible shift on the back of advances both in operation and information technology in the last few years. For the industry to work more efficiently, the supply chain needs to generate a constant stream of data that can be collected, analysed and used to optimise productivity.
