The administration, maintenance, and optimization of assets owned or controlled by aviation firms, such as airlines, aircraft lessors, and maintenance organizations, is referred to as aviation asset management. It requires various approaches and procedures to guarantee that aviation assets, including aircraft, motors, and components, are efficiently used, properly maintained, and compatible with applicable rules.
The growth of low-cost airlines and the rise in air travel drive aviation asset management's market share. Several companies have been vying with one another to take advantage of the market's potential and win a sizable market share. Airlines are growing their operating fleet to accommodate consumer demand for regional origins. Significant brownfield and greenfield investments are being attracted by regional governments' efforts to increase their manufacturing and operational capacity in the aviation industry, which has a favorable impact on the market’s growth.
Aircraft demand has expanded with air travel, necessitating strong asset management to sustain efficient operations and passenger services. An airline bought more planes to meet rising passenger demand. The airline had trouble integrating the new Aircraft into its fleet due to poor aviation asset management, leading to operational inefficiencies and greater maintenance costs. Passenger traffic has constantly increased, according to IATA. 2022 passenger traffic will exceed 6.7 trillion R.P.K. By 2023, IATA expects passenger traffic to rise and R.P.K. statistics to return to pre-pandemic levels. In its Global Market Forecast 2020-2039, Airbus predicted a need for 39,000 additional aircraft. Rising air passenger traffic necessitates competent aviation asset management to manage the increasing fleet.
However, a minor airline is investigating advanced aviation asset management software to increase fleet performance and reduce maintenance costs. However, software, employee training, and system integration costs are high. The airline's management worries about the initial cost's budget impact. The International Air Transport Association (IATA) reported that the COVID-19 pandemic reduced airline revenues, causing financial problems for several carriers. The pandemic's capital limits have highlighted the importance of careful financial preparation before investing in asset management solutions.
Businesses may combine their systems with the cloud, the Internet of Things (IoT), predictive analysis, and other data management tools, increasing industry competition. I.F.S. labs are integrating blockchain technology into aviation asset management processes. Modern airplanes have two to three million parts that must be managed properly. This necessitated a blockchain-based database protocol that is certified, secure, and traceable. The International Air Transport Association (IATA) issued research on blockchain applications in aviation, including certification, smart contracts, tokenization, digital ID, and provenance. There might be market growth for aviation asset management.
Asia-Pacific will likely acquire market share and grow faster as the aviation sector grows. To satisfy regional demand, airlines are expanding their fleets. Regional governments' aviation production and operational capacity are attracting huge brownfield and greenfield investments, benefiting the market. China Airlines and I.F.S. manage aviation assets together. China Airlines improved management process efficiency by 10%, checks delivery efficiency by 3%, and projected aircraft repair downtime by 30 days with this contract.
North America is expected to expand rapidly. The region has important aircraft lessors, leasing companies, and M.R.O. suppliers. US and Canadian aviation hubs boost market growth. Data analytics and AI help American Airlines manage assets. The airline has reduced costs, improved safety, and increased efficiency. COVID-19 has affected aviation, notably North American aviation asset management. Air travel has decreased, reducing asset management requirements. When air travel demand rises, the sector will recover.
The key players in the global aviation asset management market are GECAS, AerData B.V., Airbus S.A.S., GENERAL ELECTRIC COMPANY, Boeing, BBAM Aircraft Leasing & Management, GA Telesis, L.L.C., AerCap, Acumen, Aviation Asset Management Inc. (AAMI), SkyWorks Holdings, L.L.C., Charles Taylor, AeroTargets International L.L.C., Air Affairs Australia, L3Harris Technologies, Inc., Lockheed Martin Corporation, Saab, Leonardo S.p.A., Raytheon Technologies Corporation, and Thales Group.
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