Viasat Commercial Aviation Blog

Budget planning for 2017 - What's on the horizon for the aviation sector

Let's meet at an event... It's that time of year again, when we look forward to the possibilities and demands that the next financial and operational year will bring, and all the hopes and expectations that it offers. It's all about planning. If you're finalising your budgets for 2017, ensure that you make an allocation for the Arconics Platform to help solve problems and deliver benefits across your operation. The Arconics Aircraft Software Platform integrates with aircraft data and connectivity networks to deliver the ultimate in nextgen aircraft data management, running a connected suite of Arconics apps, airline apps and even third party apps. 

The aviation sector will continue to see remarkable growth next year, though with some pressures. Enabling the Arconics Aircraft Software Platform across your fleet will help to ensure the best possible outcomes for your operation.

IATA-jet-fuel-price-6.3.2015-to-4.3.2016.pngJet fuel cost savings

The big story for 2016 was low jet fuel prices. At time of writing (04/10/16), jet fuel was down 1% on the same time last year (Source: IATA). The lowest price was achieved in January of this year and it's moving up, but slowly. While pricing is expected to be higher for 2017, it won't be by a huge amount. To put the current low price climate into context, IATA reports that the aviation sector will save $23.6Bn on fuel this year.

Continued passenger growth

Passenger growth is predicted to be 4.5% in 2017 (Source: Airbus), with some regions showing much stronger numbers. Airbus predicts a need for 33,000 new aircraft over the next 20 years. Keeping production up to match demand continues to be a struggle for OEMs.

Greenhouse gas emissions

The ICAO Assembly will commit the global aviation sector to meeting the demands of the Paris Agreement on Climate Change. Aviation will continue to lead the way. Fuel efficiency gains will reduce emissions by 1-2% per year but airlines will continue to seek cost-effective solutions, such as the paperless cockpit and BYOD IFE, to reduce fuel burn. Carbon trading will also become more important as the industry could lose the gains delivered by low jet fuel prices and extra efficiencies with the introduction of emission penalties.

Bloomberg update on potential impact on ticket prices.

India and Asia to see huge growth

SpiceJet_Boeing_737-800_Vyas-2.jpgAviation is seeing its fastest growth in the Asia Pacific region. Indian airlines carried 81Mn passengers domestically in 2015, but expect to carry 100Mn passengers in 2017. India plans to be the world's third largest aviation market by 2020

Arconics is a world leader in the supply of nextgen software to the global airline industry and our production pipeline for 2017 is filling up fast. So please let us know ASAP if you have a delivery deadline you need us to meet, to help your airline capitalise on the immense opportunities for growth. You can contact any member of our sales team for more details, just click here.

Be sure to put us on your preferred vendor list so that you can realise the benefits of Arconics solutions and take full advantage of the possibilities ahead.

Learn more about our upcoming events here: http://www.arconics.com/arconics-events/


Discover our software

Arconics Aircraft Software Platform: http://www.arconics.com/aircraft-software-platform-arconics/

AeroDocs, the Safety and Compliance Document Management System for Aviation: http://www.arconics.com/safety-compliance-document-management-aerodocs/

AeroEFB, the modular electronic flight bag solution: http://www.arconics.com/efb-eff-aerodocs/

CloudStore byod wireless IFEhttp://www.arconics.com/wireless-ife-cloudstore/

PaxApp, the cabin management app for flight attendants: http://www.arconics.com/airline-cabin-management-paxapp/


References

Jet fuel price monitor - IATA/Platts: http://www.iata.org/publications/economics/fuel-monitor/Pages/price-analysis.aspx

India Brand Equity Foundation: http://www.ibef.org/industry/indian-aviation.aspx

Airbus global aviation market forecast: http://www.airbus.com/company/market/global-market-forecast-2016-2035/