Commenting on the aviation industry, André Martins, Partner, Oliver Wyman, said:
“Oliver Wyman believes the global aviation industry will be back to its 2019 levels by the end of 2023, with a faster recovery in North/Central/South America and with the South Pacific, the Middle East and Africa lagging further behind.
As the industry recovers, many challenges need to be addressed. In the next two to three years, it will be particularly relevant to revamp the commercial offer to bring back air traffic, address production and supply chain issues from original equipment manufacturer (OEMs) and key suppliers, whilst also addressing pilot shortages and debt repayments.
In parallel, the industry needs to focus on doubling down the efforts on digital and automation whilst addressing key medium-long term challenges, particularly related to environmental emissions, more strict regulations on CO2 and the need to ensure long term sustainability.
In the regional market, we expect in the short-term strong demand for the UAE and Qatar markets driven by the Expo 2020 and the FIFA World Cup, along with a slow recovery of the long-haul to long-haul connecting model and an increase of Low-Cost Carrier (LCC) regional traffic. Furthermore, we should expect an intensification of the regional competition given new potential airlines, the need to revisit the business model of some of the airlines and airports, and the need to successfully transform some of the carriers in the region into more agile organizations, with the right-size fleets and value proposition.”
Commenting on the Dubai Airshow, Martins said:
“The Dubai Airshow will be a great event to reconnect the key industry leaders. Stakeholders will be keen to understand the latest perspectives on the recovery and rebuild of the aviation industry, along with airline growth and sustainability plans, scale-up production plans from suppliers as well as new innovations.”
The Dubai Airshow will be hosted from November 14-18.