Now is the time that airline companies should be planning and budgeting for 2017.
Much will happen in the year ahead that just can’t be predicted. But, we already know a little about the major trends that should play a crucial role in the budgeting process. Here are our top three:
What are the main factors aviation companies should consider when budgeting for 2017?
According to Airbus’ ‘Global Market Forecast‘, passenger numbers are set to grow by 4.5% during 2017.
Passenger growth is set to be even higher in certain areas, most notably in the Asia-Pacific region.
India has set out its intention to become the third largest aviation market in the world by 2020. The latest figures suggest that this is an achievable goal. Officials expect domestic passenger numbers in India to have increased from 81m in 2015 to 100m in 2017.
Airbus estimates that the aviation industry will require an additional 33,000 new aircrafts to meet passenger demand over the next 20 years.
Jet fuel costs
The IATA’s latest report estimates that aviation companies will save around £19bn on fuel during 2017.
While prices have risen slightly since bottoming out in January 2016, jet fuel is still down around 1% on 2015 (figures recorded October 2016).
Aviation companies are already restructuring financially to take stock of fuel prices that have broadly fallen. The recent fuel price increase isn’t predicted to be sufficient enough to buck this trend.
The aviation industry – already a pioneer in terms of ecotechnology development – will continue to play a key role in reducing carbon emissions.
Representatives from government, industry and civil society confirmed a new global market-based measure (GMBM) at the end of 2016.
As part of this, ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will act as the model for cutting carbon emissions, with a view to abiding by targets set out in the Paris Agreement on Climate Change.
The ‘paperless cockpit’ and ‘bring your own device in-flight entertainment’ (BYOD IFE) are just some of the measures set to reduce fuel consumption and support aviation in reducing emissions by around 1 – 2% per year.
With the prospect of emissions penalties looming, carbon trading will also come to the fore as a means of withholding gains accrued from low fuel prices and increasingly efficient aircraft.
All signs point to another bumper year for aviation worldwide. If you consider these trends when drawing up your budget and build in enough contingency to ride out as yet unknown factors, you can’t go too far wrong.
And, when it comes to making sure you have the right staff in the right places, you can call on AeroProfessional’s talent pool of highly qualified and motivated engineers, head office and flight deck staff.
Contact AeroProfessional for more expert insight into the trends set to impact on aviation industry hiring during 2017.