ALTA and ICF SH&E bring you the Second Quarter 2014 Briefing on Aviation Industry Insights

Country Profile: Panama
When Juan Carlos Varela took office as President of Panama on July 1, 2014, he inherited not only Latin America’s fastest growing economy but also one of the region’s most dynamic aviation markets. During the past decade, Panama’s econo- my has expanded at an average annual rate of 8.6 percent, spurred by government investment in major infrastructure projects, such as the Panama Canal expansion, and the growth of key sectors, including financial intermediation, mining, and transport and communications. Panama’s air passenger traffic also has registered significant growth in the past decade, increasing by 14 percent per year on average since 2004.

The Connected Aircraft and Related Opportunities
The aviation industry is about to go through an unprecedented period of time in which the air transport fleet will undergo rapid change, providing significant opportunity and challenge for airlines and suppliers alike. Today, few “connected” aircraft are in operation. Some might define the term as “aircraft that are continuously connected the to the ground during flight” (about 3,000); others might use “next generation IP (Internet protocol)-enabled” (less than 500). Under the latter definition, in the coming decade, the next generation fleet will grow to 11,300 aircraft at 45 percent per year. Why is the next decade unprecedented? Because, during the next 10 years, airlines will be introducing five new aircraft types with, in the main, a rapid ramp-up of production Even further out into the future, this next generation fleet will account for 29,000 aircraft or 75 percent of the total fleet by 2033.

Boeing 737-800 Values and Lease Rates
Launched in 1994, the Boeing 737-800 entered service in 1998 with Hapag-Lloyd Flug as the second of five models in the 737NG (next generation) family. Succeeding the 737-400, the stretched 737-800 incorporated a new larger wing with increased fuel capacity and optional winglets, upgraded electronic flight instrument system (EFIS) flight deck avionics and aircraft systems, and new CFM International (CFM) CFM56-7B series engines. The Boeing 737-800 has a MTOW ranging from 155,500 pounds to 174,000 pounds, and accommodates between 162 passengers in a two-class layout and up to 189 passengers in a one-class configuration. With winglets fitted, the aircraft has a maximum range of 3,115 nautical miles (nm).

ICF International’s 2013 Fleet and MRO Forecast
The 2013 civil air transport fleet consists of over 26K aircraft generating a global maintenance, repair, and overhaul (MRO) spend of USD 60.7 billion. More than 50 percent of the world operators fly narrowbody aircraft, with the remaining aircraft almost evenly split between widebody, turboprop, and regional jets. The majority of MRO spend is for engine maintenance at 40 percent of the total, with component, line, and airframe maintenance nearly equal and modifications accounting for the least amount at 6 percent of total spend.

http://www.alta.aero/aura/content/IndustryInsights/ALTA_Industry_Insights_2Q_2014_EN.pdf