Airbus Forecasts North America’s Commercial Aircraft Services Market Value will be US$45 Billion by 2042

North America’s commercial aircraft services market will grow to US$45 billion from US$31 billion today (a 45% increase) by 2042 according to Airbus’ latest Global Services Forecast (GSF).

North America was the first and one of the strongest regions to bounce back in the post pandemic period. Last year proved that more people want to fly domestically and internationally, and that passenger traffic growth will continue at a steady compound annual growth rate (CAGR) of 2.1% in the region according to Airbus’ latest Global Market Forecast.

Driven by the rise in annual air traffic, fleet growth and the requirement for more digitally-enabled and connected aircraft, the growth in demand for services will be reflected in solutions implemented across all phases of the aircraft from delivery to end-of-life including fleet maintenance, aircraft modernization and training.

The market for training and operations is expected to increase from US$2.5 billion in 2023 to US$3 billion in 2042 (+0.8%), with a plateau period following three years of sharp growth as the industry recovered from employee loss during the pandemic. Airbus anticipates a need for 366,000 new skilled professionals in North America over the next 20 years, comprising 104,000 new pilots, 120,000 new technicians and 142,000 new cabin crew members.

North America is a region of choice when we think about aftermarket services, with many opportunities for additional efficiency, simplification and sustainable operations. Airbus will continue to play an important role in supporting airlines and the aviation industry at large in responding to those opportunities” said Dominik Wacht, Vice President-Customer Services, Airbus North America.

Airbus pioneers sustainable aerospace for a safe and united world. The company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, Airbus designs and manufactures modern and fuel-efficient airliners and associated services.

Source: Airbus
Photo Credit: Airbus (shown as meta image)

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Middle Eastern Airline flynas Receives 50th Airbus A320neo as Part of Order for 120 Aircraft

Flynas proudly celebrated the delivery of its 50th Airbus A320neo aircraft at a reception held at King Khalid International Airport in Riyadh, a milestone within its larger order for 120 A320neo aircraft from Airbus

With an order value exceeding 32 billion riyals, this strategic move represents one of the largest purchases of A320neo aircraft in the Middle East. It reflects the company’s ambitious plans for development and growth, particularly within the aviation sector.

Looking ahead, Flynas is poised for even more substantial growth. The Board of Directors has approved an increase in purchase orders to 250 aircraft, aligning with Flynas’ strategic plan titled “We Connect the World to the Kingdom.” This expansion complements initiatives such as the Pilgrims Experience Program (PEP) and the National Civil Aviation Strategy, aiming to facilitate access to the Two Holy Mosques and connect Saudi Arabia with 250 international destinations.

Furthermore, this milestone isn’t just about aircraft; it’s about creating opportunities. The delivery of these new aircraft has led to the generation of hundreds of quality jobs in the aviation sector, both directly and indirectly. Flynas has recently announced openings in various programs, including the Future Pilots Program, Future Engineers Program, and Cabin Crew Program, welcoming applications from Saudi men and women.

Source: flynas
Photo Credit: Flynas

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Southeast Airline Plans to Invest $450 Million Into Capex for Fleet Expansion

Philippine Airlines (PAL) is gearing up for significant expansion in 2024, with plans to allocate a hefty $450 million, or over P25 billion, for capital expenditures (capex). This substantial investment is aimed at fleet expansion and meeting the rising demand in the market, as revealed by Anna Isabel V. Bengzon, PAL’s Senior Vice-President and Chief Financial Officer.

The capex includes various initiatives such as refurbishing the A321CEOs, aircraft maintenance and upgrades, and the acquisition of new aircraft. PAL’s capex for 2024 surpasses that of the previous year, which was below $170 million, indicating the company’s robust growth trajectory.

Funding for the 2024 spending will be sourced from internally generated funds and debt.

PAL intends to purchase 22 aircraft to bolster its fleet between 2025 and 2029, with plans for nine A350-1000s and 13 A321 New Engine Options (NEOs), enabling nonstop flights to North America, other international destinations, and regional routes in Asia and Australia.

In line with its expansion strategy, PAL is set to inaugurate nonstop Manila-Seattle flights thrice a week commencing October 2. Seattle will become PAL’s sixth destination in the US and eighth in North America, enhancing its extensive network.

PAL President and Chief Operating Officer Stanley K. Ng expressed the airline’s anticipation for the Seattle route, noting the significant influx of US tourists to the Philippines in recent years, “We have been looking into Seattle for a long time already, even before the pandemic. It is always on our radar,” said Ng.

Despite focusing on promising markets like Seattle, PAL remains committed to exploring additional Asian and local destinations. The company is eyeing the revival of previous routes, including Cebu-Osaka flights and operations to Sapporo in Japan, alongside aspirations to resume European flights.

PAL’s ambitious expansion plans are underpinned by its robust financial performance in 2023, where PAL Holdings, Inc. witnessed a notable increase in attributable net income to P16.81 billion. Passenger revenue surged by 37%, reaching P160 billion, driven by heightened passenger volume and route expansions.

Looking ahead, PAL anticipates continued growth in 2024, although at a more moderate pace compared to the exceptional growth seen in recent years. Ms. Bengzon highlighted an expected capacity increase of 10-12%, signaling a shift towards more sustainable growth trajectories.

Source: Philippine Airlines
Photo Credit: Philippine Airlines (shown as meta image)

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Aircraft Manufacturer Forecasts Aviation Fleet Growth in Latin America and the Caribbean

The Airbus Global Market Forecast 2023 has unveiled insights into the anticipated growth of the aviation fleet in Latin America and the Caribbean, showcasing a significant surge in aircraft numbers by 2042.

By 2042, the aviation fleet serving Latin America and the Caribbean is forecasted to increase to 2,630 aircraft, nearly doubling from the 1,440 aircraft recorded in early 2020. This remarkable expansion underscores the region’s burgeoning aviation sector and its increasing importance on the global stage.

The growth of the aviation sector in Latin America and the Caribbean is intricately linked to the region’s economic development. As economic indicators forecast robust growth, including an average annual real GDP growth rate of 2.5%, the demand for air travel is expected to surge, further driving the need for an expanded fleet to cater to burgeoning passenger numbers.

Chile emerges as a key player in this fleet expansion, with its projected GDP nearly doubling by 2042. As the country’s economy flourishes, so too does its demand for air travel, necessitating a doubling of the aircraft fleet serving Chile over the next two decades.

Domestic air travel is anticipated to be a primary driver of fleet expansion, with an annual growth rate of 3.8% expected. Single-aisle aircraft are poised to dominate this segment, comprising over 90% of the total fleet as they cater to the increasing demand for domestic connectivity within the region.

Source: Airbus

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