Commercial Aviation: What Does Future Bring?

Acomponent of civil aviation is commercial aviation which is the business of operating aircraft to transport people and goods on hire. The airliners used in the transportation of passengers and cargo range from single-engine freight planes such as the Boeing 747. Commercial aircraft were accepted after the Second World War. Since then, it has been experiencing steady growth. For instance, in the 1950s, most European countries started manufacturing new aircraft such as The Beech and Cessna.

According to Commercial Aviation’s author, Ole Steen Hansen the market share financial analysis is a top-down tool where activity at an airport is regarded as being directly proportional to growth in the combined external measure. “Hence, to produce correct predictions, is vital for the airport activity and the larger aggregate link ratio to remain constant over a specified duration and with the expected change in commercial aviation, the financial analysis forecasting tools that will contribute to analysing the industry can be classified into four classes,” says Commercial Aviation’s author, Ole Steen Hansen.

Majority airport economic forecasts use econometrics, which relies on explanatory variables that discuss the impacts of the demand and supply of commercial aviation activities.

These variables are characterised into macroeconomic and demographic elements, aviation market forces, innovation and production costs, and technology. Other variables include legal factors, capital investment constraints or upgrades, and substitutes for air travel. The third financial tool is the Time Series analysis that involves extrapolating the current data or graph into the future.

In the next five years, commercial aviation is bound to change significantly. The first expected change will revolve around its customer relationship strategies and the rising competition in the airline industry, which is expected to be at peak in the half-a-decade period, bringing the needs for new strategies that commercial aviation should adopt to retain its clientele or attract new ones from its competitors. To implement its Customer Relationship Management (CRM) framework. As commercial aviation ushers in a new era of profit-making planes, it is relying on the manufacturers’ modification of improved performance, fuel-efficient engines, and better maintenance techniques, for instance, longer intervals between checks ups.

They come with an intrinsic safe and secure network file server that undertakes many self-diagnostics functions. Such systems reduce operational costs. Regarding customers and airport security, airplane checkpoints are currently sorting passengers and grouping them through digital screening technology. Risk assessment of travellers is crucial progress towards arresting terrorists and anyone who possesses a security threat.

Nevertheless the industry faces operational expenses, commercial aviation is an important part of the community as a whole, including other stakeholders. These stakeholders include pilots, plane manufacturers, and a reliable workforce. These stakeholder groups are among the factors that drive commercial aviation activity. The airline industry struggles with revenue margins, the current growth rate in most markets in conjunction with advancing innovation and customer preferences present the industry with a real opportunity. Hence, it is likely to advance in the next half a decade.