What Is Aviation Management and where is This Industry Headed in the Next Few Years?
Aviation Management – A Brief Introduction
Aviation management deals with different aspects of an aviation based company. These aspects include finance, marketing, human resource management, logistics, operations, and revenue. In addition to that, maintenance management and technical nature, along with other factors such as scheduling issues, security, safety etc., of aircraft systems are also dealt in aviation management.
The Future of Aviation Industry
The aviation industry has evolved in the recent past, and it is expected to do so in the years to come. It is known as one of those industries that are vulnerable to global shocks such as an increase in oil prices etc. Therefore, effective strategies are need of the hour to be formed and implemented to reduce the risks that are associated with not only global but local shocks as well.
As per The Bombardier Commercial Aircraft Market, the aviation industry is going to witness a change in the next two decades. These changes are:
- Improved capacity management
- Growth in the largest traffic flow segment – intra-regional routes
- New routes will be explored with the emergence of smaller aircrafts
- More focus on profit per passenger as compared to the cost per seat
- Latest fuel-efficient, ideal-sized fleets will replace the aging fleets
These changes will occur due to numerous factors. However, economic conditions globally cannot be predicted. Thus, the companies need to form their policies keeping economic uncertainties in consideration.
It is assumed that global economy will witness a growth, albeit at a moderate pace, in the next two decades. Furthermore, the focus of airline companies will be on making more profit per passenger. Thus, ideal-sized aircraft will be purchased to meet the market demand.
Simply put, the future looks bright for the aviation industry as it is going to evolve more in the years to come. Financially-driven policies will be implemented, which will reduce the chances of loss.
Some of the changes expected to surface in the aviation industry in the years to come are:
As stated above, aviation experts are figuring out ways for improved occupancy management. More occupancy implies more profit. A plane flying with half empty seats is a major waste of fuel. Therefore, with better occupancy expected in the near future, fuel will be used in an optimal way and airline companies can expect a better profit.
One of the biggest issues associated with aviation industry or aircraft, in general, is emissions. Reports suggest that 3.5% of Co2 globally is released by aircraft. The increased number of passengers in the last few years has resulted in more number of aircraft in the sky, which has further surged the emission. The rate of emissions is growing by 1 to 2% every year.
This issue is being looked upon by the aviation management experts. They are now looking for shifting their dependency on latest aircraft that offer sustainable flying, posing minimum risk to the global environment. Thus, it can be expected in the years to come that these adverse effects associated with flying will be tackled.
Improved Air Traffic Control
Another positive change, which is expected to surge up in the years to come is improved air traffic control. This will result in fewer emissions, better energy efficiency, and improved profits. Improved aircraft routing by major airports is being planned for the purpose of improved air traffic control.
Fuel consumption is another major issue that eats up the major chunk (almost 40%) of the budget of an aviation company. As per BP’s annual statistical review, according to the current rate of production and usage, the oil reserves in the world are left to be used for only 53.3 years. This is an alarming situation, particularly for the aviation industry.
Even though fuel purchased by aviation companies is untaxed. It is a major expense which they have to bear. This is due to aging aircraft still flying. They tend to be more fuel consuming. However, with latest the availability of latest aircraft, fuel efficiency is expected to increase. New planes can help to save 25% more energy by 2025. It is expected that airline efficiency will see an improvement at the rate of 1.5% per year until 2020 with the use of these modern planes.
The biggest hindrance here is the increased lifespan of planes. This is the major reason why 30 years old planes are still flying and consuming a lot of fuel. Therefore, the fuel efficiency will take time to come into the picture. Once the dependency is completely shifted to newer and modern planes, the fuel consumption will reduce and efficiency of planes will increase.
Another option here is to replace the old planes with the newer ones for immediate action. This certainly is a viable action; however, the question here arises that what will be done to the old planes that are still capable of flying. Records suggest that these plans are often sold to other airlines located in some other countries. Typically, these are airlines that cannot purchase latest airplanes.
This takes the situation back to square one i.e. inefficient planes being used. One way which aviation experts are working on to combat this issue is to improve the condition and certain features of these planes to enhance their fuel-efficiency. The option of replacing their engines is also under consideration for this purpose.
These proposed changes can really do wonders for the aviation industry. Not only will the aviation industry benefit from these changes but also the global market. Fuel efficiency, reduction in emissions, and sustainable flying; these changes are surely going to make aviation industry a more profitable sector in the years to come. However, the need of the hour is the use of latest planes that are fuel-efficient and effective strategies that are formed with the focus to improve air traffic control.
Veronika Bulava is a team member of a leading private jet charter company called Largent Fuels. She has been working in aviation for more than two years. LARGENT specializes in aviation management for cargo, commercial, and general aviation. Our role is to determine the most cost-efficient options for our clients in all aviation related services such as fuel pricing, handling coordination, charter services, aircraft sales, among others. We take pride in our access to high quality products and services that meet the most demanding international standards.