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and aviation uncertainty

Initial pandemic pressures saw onsite work change drastically.
New restrictions, staff shortages due to isolation and stringent
social distancing restrictions have all been challenges for busi-
nesses. In some cases, this has opened new opportunities for
companies who have unlocked the potential—examples are the
boom in freight and the corresponding uptick in ‘preighters’, the
conversion of aircraft from passenger to cargo configuration,
and the FAA using remote working channels in the evolution of
the 737-MAX. There has also been a mixed reaction in reduc-
ing fleet sizes. Cirium reported that large commercial jets saw
a 15 per cent decrease in retirements as replacement orders
became uneconomical—this was as OEMs were hit by worker
and supply shortages. For example, the EU Parliament found
Rob Mather, Vice President, European demand for manufacturing decreased by 43 per cent
Aerospace and Defence Industries at IFS in 2020 primarily due to Airbus order deferrals. Other airlines
accelerated the retirement of costly aircraft with Oliver Wyman’s
THINGS data showing 5,000 aircraft that were in service at the start of
2020 were no longer flying at the beginning of 2021. However,
recovery has begun as passengers once more take to the skies
TO DO with a predicted 47 per cent more passengers flying in 2022
than in 2021—aided by increased vaccination numbers and
lower Covid infection rates. This recovery is projected to only
strengthen through the rest of this decade as worldwide fleet
TECHNOLOGY CAN numbers are due to increase to 36,500 by 2031. This recovery is

HELP AIRLINES AND not without its unforeseen challenges. The airport infrastructure
has significantly hampered travel experiences for both airlines
MROS STRETCH THEIR and frustrated passengers. Staff shortages created by pandem-
WINGS AGAIN ic-induced layoffs have not return to the same levels and the
results have led to flight cancellations and extreme delays at
The commercial aviation sector is beginning to airports globally.
stretch its wings once again as international Technology is on course to deliver transformation
travel resumes. This revival has spotlighted
a few pinch points to be dealt with—such as But there is still opportunity for airlines who invest in future-proof-
reintroducing stored aircraft and converting ing operations through digital transformation to be first off, the
passenger planes to cargo configurations runway—currently, only 10 per cent of the top carriers have
and back again, all while balancing remote invested in technology initiatives such as predictive mainte-
working and financial overheads to secure nance—which would give them a large competitive advantage
a long-term period of renewed growth and in the next few years, and minimise delays caused by aircraft
profitability. Technology is providing the issues. Traditionally airlines run on very fine margins, meaning
answers. As OEMs, airlines, and MROs focus an airline’s value chain is as lean as possible, and as such the
on integrating new technologies into their adoption of a major IT infrastructure project has traditionally
value chains and embracing digital transfor- been seen as a potential operational and financial risk. The
mation, we look at three key areas where industry as a whole typically has no slack that can be used for
new advancements can be most valuable and resource investment, and any threat of a disruption to normal
easily integrated to help gain competitive service caused by an IT project can be very costly. But the pan-
advantages in a sector where there is a fine demic changed all that.
line between profit and loss. Rob Mather, Vice
President Aerospace & Defence Industries, The technologies that are enabling aviation to taxi
IFS, explains. Since 2020 the aviation industry for take-off
has faced unprecedented change, instability,
and shock which has rippled throughout the However, this increase in IT spending does not have to be ded-
entire sector—from flight restrictions and a icated to large-scale or business-wide overhauls. IFS has found
host of quarantine regulations to complete that both MROs and airlines are benefitting from tools that can
state-wide commercial shutdowns that OEMs, open transformative new areas of potential such as investing in
airlines and MROs are still recovering from. predictive maintenance and the efficiencies it offers. There are
several operational areas that will allow for a competitive advan-
Cancelled flights, mothballed planes, tage to be created or maintained in this new aviation reality of

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