Aviation Game Changer Aircraft Management White Paper Web

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White Paper

Aviation Game Changer:


New Technology Aircraft
How E-enablement Will Disrupt
Business as Usual
By Martin Harrison, ICF

A baseline definition of e-enablement:


the strategic connection and integration of business processes,
people, airplanes, information, assets, and knowledge into a single
focused business system
(Boeing, 2006)

The aviation industry is poised for a period of unprecedented technological


change, providing significant opportunities and challenges for airlines and
suppliers alike. E-enablements connectivity solutions are able to transmit data
between e-enabled aircraft and outside sources, but how is the aviation industry
responding to the far-reaching implications of that connectivity?

Unprecedented Change
In this decade, the air transportation fleet will undergo rapid technological change
as airlines introduce six new aircraft types with ramped up production. The
rate of ramp-up and fleet rollover is important because the introduction of new
technology aircraft provides airlines with the unique opportunity to reconsider the
traditional way in which they previously managed their aircraft. A frequent theme
heard from aircraft operators is that the e-enabled 787 and A350 can, are, and will
be managed differently. Forward-thinking airlines are leveraging this opportunity
to seek new and innovative maintenance, repair, and overhaul (MRO) sourcing
strategies. For example, we now see airlines such as ANA, Qantas, Singapore

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Aviation Game Changer: New Technology Aircraft
White Paper

Airlines, British Airways, and JAL outsourcing their 787, A380, or A350 component
maintenance to companies like LH Technik, SR Technics, Air France Industries/KLM
E&M, and now (another change happening in the MRO supply chain) Airbus.
The accelerator effect of incoming technologies and the resulting tsunami of
available data and information that airlines and OEMs will have available to them
is unprecedented. While the 767 offered up to 10,000 aircraft health management
parameters, the 787 offers 100,000. Combine this dramatic increase in per aircraft
data generation with the 45 percent per annum growth rate of the new technology
fleet, and the MRO value chain will see a 1,100 percent increase in available data
being generated. And put bluntly, the majority of operators utilize antiquated MRO
IT systems that can no longer manage the data complexity. Nor do they have the
skillsor necessarily the desireto turn these data into beneficial information.
New technology aircraft will inevitably challenge the competitive landscape and
balance of power in the aftermarket. As the MRO supply chain continues to become
more OEM-centric, there will be a battle for access and control of operational
and maintenance data. Those who have the capacity and capability (financially
and technically) to leverage Big Data will likely benefit the most. Smaller and
less sophisticated players will need to focus their energy and resources on
core competencies where they can win and/or find new ways to access the
opportunities available in this more e-enabled aircraft support environment.

New Technology Creates Opportunities


Commercial Air Transport Fleet The data generation potential of the new technology fleet is not only limited to
Transformation e-related technology impacting aircraft operations and support. Other related
Over the next decade, the global fleet of new developments include the cloud, Big Data analytics, Electronic Tech Log, xml,
new technology aircraft will grow by over and greater electronic data interchange/automation. The impact to operators,
530% to nearly 19,000 aircraft.
suppliers, and investors will be profound.
Source: ICF (excludes turboprops)
First, these new technologies will drive greater operational efficiency and facilitate
improved schedule reliability and passenger services. The interoperability of
systems, Electronic Flight Bag, connectivity, and data analytics will impact air
traffic management, fuel management, and day-to-day operations control (on
the ground and in the air), providing utilization, cost, and service benefits.
Second, e-enabledrelated technologies in the MRO supply chain will drive
significant cost reduction. The integration of technologies such as mobile
maintenance devices, xml, data analytics, and Aircraft Health Management
prognostics offers the opportunity to reduce MRO supply chain costs by
hundreds of millions of dollars. The day will come when aircraft and maintenance
records are not stored in rooms full of paper, but rather in the cloud and
accessible to those who need themthe operators, MRO suppliers, aircraft
owners/lessors, and respective OEMs.
Third, new technology aircraft will provide numerous opportunities to enhance
the passenger experience. Airlines and airports will undoubtedly seek to provide
a seamless experience from ticketing to arrival. Onboard entertainment and cabin

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Aviation Game Changer: New Technology Aircraft
White Paper

systems will be consistent with passengers experiences elsewhere. Passengers


About ICF personal devices will likely become the onboard media and communications
interface of choice. Airlines will no longer be required to provide the individual
ICF (NASDAQ:ICFI) is a global consulting
and technology services provider with seat hardware embedded with In-Flight Entertainment (at least in coach class).
more than 5,000 professionals focused Throughout a flight, passengers will seek to shop, converse, and watch personalized
on making big things possible for our content with reliable, affordable Wi-Fi connectivity. Suppliers will be challenged to
clients. We are business analysts, policy keep up with passenger expectations for constant engagement, faster and more
specialists, technologists, researchers, reliable connection speeds, and of course the latest and greatest content.
digital strategists, social scientists, and
creatives. Since 1969, government and All these opportunities will facilitate disruptive change in aircraft management,
commercial clients have worked with ICF provided supply chain participants embrace, invest in, and manage the transition.
to overcome their toughest challenges
on issues that matter profoundly to their Bottom Line: The Time to Act Is Now
success. Come engage with us at icf.com.
The arrival of thousands of new technology aircraft over the coming decade will
disrupt business as usual for aviation stakeholders and will drive a myriad of
opportunities for new value propositions and innovations. Companies across the
Any views or opinions expressed in this white whole airline and aircraft supply chain are recognizing that significant change
paper are solely those of the author(s) and do is on the way. It is an uncertain world, however, with airlines and suppliers alike
not necessarily represent those of ICF. This white
in only the very early stages of the learning curve for understanding the true
paper is provided for informational purposes only
and the contents are subject to change without potential of these new technologies. There are many risks to be managed. For
notice. No contractual obligations are formed example, will there be adequate standardization to facilitate leveraging and
directly or indirectly by this document. ICF MAKES NO integrating the various technologies across aircraft and IT platforms?
WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO
THE INFORMATION IN THIS DOCUMENT. What is very clearto use an old adageis that the train is leaving the station, or
No part of this document may be reproduced or rather the aircraft is leaving the gate. Now is the time to act to determine the role
transmitted in any form, or by any means (electronic, your company will play in this new world, or it will be determined for you.
mechanical, or otherwise), for any purpose without
prior written permission. About the Author
ICF and ICF INTERNATIONAL are registered trademarks
Martin Harrison joined ICF in 2012. Mr. Harrison has more than
of ICF and/or its affiliates. Other names may be
trademarks of their respective owners. 31 years of experience in the aviation industry. His expertise
primarily lies in airline restructuring, network operations,
maintenance, and crew resource planning.
For more information, contact:
Martin Harrison Having held executive operational positions at Spirit Airlines
[email protected] in the United States and easyJet Airlines in Europe, he offers a
+44 (0) 20 3096 4926
deep understanding of the low-cost carrier business model as well as of regional
and network operations. Prior to joining ICF, Martin was the chief operating officer
at Pluna Airlines in Uruguay, working on a restructuring program for the South
American carrier, which was under public/private ownership. Martin started his
career at British Airways in hands-on maintenance and then engineering roles
before moving on to Total Engine Support Ltd in the United Kingdom, providing
consultancy services that were focused on engine asset management, fleet
management, and off-wing overhaul control.
Mr. Harrison is a Registered Chartered Engineer, CEng, and a member of the
Royal Aeronautical Society. Mr. Harrison has a Global Executive M.B.A. from IESE
University in Spain and an M.Sc. with Commendation in Aerospace
Design, Manufacture and Management from Bristol University UK.

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