Challenges of the Aviation Industry
Changes and challenges in the Aviation Industry: What to expect in the near future of air travel
From constant fluctuations in the price of oil to unstable geopolitical climates throughout the world, you might be surprised with just how many different factors influence the success and trajectory of the aviation industry. Earlier this month at the 5th annual Global Airport Leaders Forum (GALF), aviation industry experts from around the world gathered to discuss several of the challenges and potential opportunities arising as a result of those challenges.
Key issues discussed include oil prices, the economy, and facilitation of new technology
Hosted in Dubai at the same time at the Airport Show just two weeks ago, the two-day event covered a range of topics related to the global strategic challenges facing aviation businesses, mainly airports and their suppliers, and how those in the industry can adapt to these changes. Attendees of the event were treated to a host of interesting speeches and forums from a variety of aviation experts and professionals in the field.
Other aviation issues discussed at the GALF, include:
– Vision and outlook for airports, including aviation trends and the market’s outlook
-Financing airport projects and privatization implications
-Rethinking the traditional airport model
-NextGen facilitation and technology
-Solving airport capacity issues
Short term and long term factors both at play for aviation industry
One key-note speaker, Paul Griffiths, the chief executive officer of Dubai Airports, explained how the short term factors such as changing oil prices and global economic conditions as examples, can have short-term negative impacts on how strong the aviation industry is running, at least from a numbers perspective. Believe it or not, customer confidence is also considered by industry experts to be a short term factor (think: United Airlines).
Long-term factors affecting the airlines industry however, tend to present a little differently, such as resource scarcity, urbanization, imbalances in economic power structures, and technology-all of which can affect how airlines, airports, and their suppliers perform on an economic scale.
Despite challenges, strong future predicted for aviation industry
In fact, according to the most recent IATA (International Air Transport Association) Global Passenger Survey, “The respondents remain very positive about demand prospects for the year ahead: more than three-quarters expect passenger volumes to rise, while the forward-looking weighted-average score for freight has now risen in each of the past four quarterly survey” (IATA Global Passenger Survey, 2016).
In other words, industry experts remain confident that the current economic climate coupled with low oil prices and low interest rates are likely to maintain the healthy competition in the airline industry, as well as propel further development in the area of infrastructure. And an expansion in airport infrastructure couldn’t come a moment too soon, since the aviation industries in China and India are expected to grow substantially over the next several years due to new equipment and very low domestic costs.
All in all, what this means for the everyday aircraft enthusiast, supplier or mechanic, is that the future is looking bright and opportunity-filled for the aviation industry as a whole.