Challenges and Opportunities in Aviation Industry

The aviation industry is facing a number of challenges and opportunities in the current global landscape. On one hand, the industry is experiencing rapid growth and expansion, with increasing demand for air travel and new markets opening up around the world. On the other hand, the industry is also facing a number of challenges, including rising fuel costs, environmental concerns, and changing consumer preferences.

One of the biggest challenges facing the aviation industry is rising fuel costs. As the price of oil continues to fluctuate, airlines are struggling to keep up with the rising costs of fuel. This has led to increased pressure on airlines to find ways to reduce fuel consumption and improve efficiency in order to remain competitive.

Another challenge facing the aviation industry is environmental concerns. As air travel continues to grow, so too does the industry's impact on the environment. This has led to increased pressure on airlines to reduce their carbon footprint and adopt more sustainable practices, such as investing in alternative fuels and improving aircraft design.

Despite these challenges, the aviation industry also presents a number of opportunities for growth and innovation. For example, the rise of low-cost carriers has opened up new markets and made air travel more accessible to a wider range of consumers. Additionally, advances in technology are enabling airlines to improve efficiency and reduce costs, such as through the use of data analytics and automation.

Another opportunity for the aviation industry is the growing demand for air travel in emerging markets. As more people around the world gain access to air travel, airlines have the opportunity to expand their operations and tap into new markets.

1. The Challenges and the Opportunities in the Aviation Industry © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

2. Challenges facing the Aviation Industry The Aviation industry is one of the many sectors the constitute an important part towards global economic development. It enables the movement of people, capital and goods between places. With this comes numerous challenges. Some of the challenges facing Aviation are Fuel cost Covid-19 and its aftermath Russia-Ukraine conflict Sector-wide unemployment Airline Infrastructure Global congestion Cyber-Attacks Climate change © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

3. Fuel Cost Availability and cost of Aviation fuel is one of the major factors that affects the airline industry. A rise in fuel prices has a direct impact on the financial profitability of an Airline. Prevailing global conditions have resulted in fluctuation in fuel cost due to which operation costs have increased. Covid-19 and its aftermath The Pandemic has been one of the greatest challenges that the industry has faced. As per IATA it erased 20 years of gains recorded in pax traffic Shut downs Travel restrictions and precautions. The report says that by 2040 air traffic would be 6% below pre-pandemic forecast © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

4. Russia-Ukraine conflict Sanctions No fly zones Trade Rise in fuel cost Sector-wide unemployment As per IATA the employment opportunities will increase as traffic picks up. Airlines need to rebuild their workforce fast due to job losses caused by the pandemic. Employment levels are still below pre pandemic levels due to the time required to recruit and train new personnel. © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

5. Airline Infrastructure Airport infrastructure like runways, terminals , hotels , communication systems needs consistent upgrades to cope up with the rise in air travel. Which requires huge capital Airlines need to periodically upgrade ground handling systems, aircrafts and other amenities to stay ahead of competition. Frequent upgrades results in increased costs. Global congestion Air congestion and increase in pax traffic are challenges that do not have a quick fix solution which has resulted in airport congestion and flight delays. Cyber-Attacks Cybercrime is a threat which cannot be ignored. There has been a rise in cyber attacks which has resulted in causing losses to the Airline and pax. There has been a rise in fraudulent websites © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

6. Climate change The aviation industry is under constant pressure to decrease its carbon emissions. Frequent weather changes and patterns result in flight delays and disruptions increasing costs. The commitment of International agencies towards net-zero CO2 emissions by 2050 puts a lot of pressure on the industry. © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

7. AI and the Aviation Industry AI is expected to significantly advance the aviation sector in the future. It will revolutionize the industry by enhancing safety , efficiency and overall pax experience. Advantages : Process automation Air traffic optimization Advanced training simulators Improved decision making Disadvantages Higher costs and lack of creativity Absence of empathy and ethical challenges Job loss and displacement Over-reliance on technology which results in laziness © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

8. Is Aviation a good career option ? YES !!! There are many opportunities in the Aviation industry. The foremost reason why a person pursues a career aviation is that regardless of where they are in their career or what credentials they possess or what work experience they have - there are multiple career options The aviation industry encompasses the entire Airline Industry, Aircraft manufacturing and maintenance, research institutions and Military aviation etc. © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

9. The Aviation industry is labour intensive which employs a multitude of staff in different roles Pilots Cabin crew Internal auditors Ramp staff Loading staff and baggage handlers Reservation staff Passenger service staff at the airport Security staff Catering staff Cleaners Aircraft fueler Flight Paramedic © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

10. Managers Accountants Sales and Marketing HR services Lawyers Trainers for Flight Crew and Ground staff Cargo staff Groomers Aircraft maintenance engineers and technician Aerospace engineer Air traffic controller Metrological staff IT Avionics engineer Flight instructor © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

11. Future of Aviation The Aviation sector holds a lot of potential for expansion and advancement as demand for air travel increases. Future Trends : Use of Alternate fuel : Electricity SAF ( Sustainable Aviation Fuel ) – a bio fuel made from algae and waste material. To reduce Carbon foot print Development of new type of Aircraft : E-Fan X designed by Air bus ( electric Aircraft ) Boeing 787 Dreamliner – traditional fuel and electricity Rolls Royce is developing an aircraft with vertical take off and landing using electricity © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

12. AI , Robotics and Data analytics : Automated planes – without human pilots Automatic planes are being evaluated for transporting pax and freighter by companies like Airbus and Boeing Advanced monitoring systems , Accurate met predictions , Analyzing data to predict trends New Businesses and Low cost carriers Uber and Airbus are developing flying taxis More low cost carriers Drones Enhanced inflight services – Wi-Fi, streaming of latest TV and Music options Self service and development of New Apps Development of new Airports Single token travel – Pax identity is verified and authenticated by matching their passport and bio metrics only once thought their travel Face Recognition technology -   matching the faces of people walking past special cameras, to images of people on a watch list. The watch lists can contain pictures of anyone, including people who are not suspected of any wrongdoing © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

13. Future of Aviation in India The Indian Aviation industry hold a lot of promise. As per IATA estimates India is set to overtake USA and China to become the third largest Air PAX market by 2030. New Aircraft orders Growth of low cost carriers Investment in Airport infrastructure Impetus on technology – AI, AR/VR (training ), Machine learning © 2023 Sasidharan Murugan IND, Inc. All rights reserved.

14. © 2023 Sasidharan Murugan IND, Inc. All rights reserved.