By TTA Blog
The overall aviation industry may not be entirely clear of the pandemic, but there are mounting signs the business aviation sector is trending in a much more positive direction. Going into the third quarter of 2021, Thrust Tech Accessories (TTA) is well positioned now to respond to the growing demand for service among its business aviation clients, and at the same time is also anticipating an even brighter future as the year progresses.
So just how does this translate into increased business for the MRO sector? Let’s take a look.
Soaring Business Jet Sales
A recent Global Business Jet Industry Outlook by Beroe, a data intelligence firm projects deliveries of 8,750 business jets over the next 10 years, a six percent average compound annual growth rate (CAGR) increase. Overall, the business jet market is expected to reach $37.5 billion annually by 2030, expanding at a CAGR of 7.3 percent.
North America will get the lion’s share of the forecasted business jet deliveries or 5,250 aircraft, valued at $150 billion. Europe and Asia-Pacific will follow, each with 1,575 aircraft valued at $54 billion. The remaining business jets are expected to be delivered to the Latin America, Middle East, and Africa regions.
Fueling the expected growth in the business aircraft market are such factors as trade globalization, rapid technological advancements in avionics, the entry of new players into the market and improving economies.
Importance of Regional Airlines
“One positive and newly emerging trend that we’re seeing this year is that it appears the regional airline industry is starting to see an upswing in business,” said Stanley Kowlessar, TTA’s President and General Manager.
That’s critical, as regional airlines operate at least 40 percent of U.S. airline flights, serve more than 160 million passengers annually, and provide the only scheduled service to nearly two-thirds of U.S. airports, according to the Regional Airline Association (RAA).
Case in Point
In its first quarter 2021 earnings report, SkyWest, which operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines, reported net income of $36 million, up from $30 million from the same quarter a year ago.
As an FAA/EASA-Certified 145 Repair Station based near Fort Lauderdale Executive Airport in South Florida, TTA is seeing the regional industry’s improvements first-hand.
Improvements in regional carriers’ earnings will benefit both smaller repair stations that have been waiting for the marketplace to improve as well as larger, more fully staffed companies that endured 2020 layoffs. The latter are now rehiring and working to catch up to the burgeoning demand.
Healthy Hiring Trends
Pointing to JSfirm.com’s 2021 Hiring Trends Survey, Kowlessar stresses, “Hiring trends are looking more positive by the day, which bodes well for the industry as a whole, and for successful MROs like Thrust Tech, in particular.”
The report shows that more than 50 percent of hiring professionals, executives, and business owners in 200 companies across various aviation industry sectors are projecting growth in 2021. Nearly 33 percent are expecting to hire in the second quarter of 2021. And maintenance and avionics technicians, along with pilots, are in the highest demand – “all good indicators that the industry is on the right path,” he says.
One factor influencing hiring growth may be that regional airlines’ “decision timelines” for rapidly changing schedules, replacement of mainline air carriers on some routes, and restoration of air service in certain airports as the public’s demand for air travel grows, have been accelerated. RAA says that requires quick reactions and movement of aircraft.
The Domino Effect
And when regional airlines need more people and make operational shifts, their aircraft maintenance and repair needs accelerate too. It’s a “domino effect” infusing economic benefits across the aviation industry.
“In our own operation, we’re currently experiencing strong demand by regional airlines for parts,” said Kowlessar. That includes rising sales for everything from PN: 848847 Pumps & Motor Packages to PN:226114-3 Fuel Boost Pumps, as well as PN:808440-2 Dual By-Pass Valves, PN:887055 Pumps, PN:10-381550-Series Ignition Exciters, and many other parts.
At a moment’s notice, fortunately, TTA can provide business aviation customers with overhaul, repair, testing, exchange and outright purchase services. “Given our efficient size, we’ve actually done well in these challenging past months,” Kowlessar says, noting that in 2020 and early 2021, we were able to pivot in a positive direction as demand rose for our services.
As the year progresses, in medium and large air service markets, regionals are invaluable in adding frequency to rebuild hub operations. In a second quarter 2021 Issues Update, RAA also cites the potential for smaller air markets to benefit from an evolving lifestyle trend: “People are increasingly open to living in smaller market communities. Resettling trends could drive new air service needs to smaller cities and towns, where demand is best met by regional aircraft.”
As recovery continues, RAA stresses that government backed programs like Essential Air Service (EAS) will be needed to restore and maintain service to smaller communities, and it’s important they are appropriately funded.
Moving the Needle
“But, yes, while there are challenges to be tackled, we at Thrust Tech Accessories are certainly happy to see the needle beginning to shift in the right direction on a number of fronts,” said Kowlessar.
One recent analysis shows that business aviation traffic is up 5 percent since the beginning of 2021, compared with the same period a year ago. Business jet hours in the U.S. are reportedly up 15 percent year-to-date from a year ago, with branded charter flights up 20 percent.
In a recent Global Traffic Market Report, WingX also reports that North America accounted for 80 percent of the global business jet and turboprop activity, with 285,000 flights in March, up 31 percent from a year ago. Most notably, the U.S. specifically is recovering faster, with activity up 36 percent from a year ago and moving to within 10 percent of March 2019’s level.
It all speaks to a shift toward recovery, said Kowlessar, who believes the year has the potential for shaping into a good year for many aviation businesses – and, at the very least, a much better performance than in 2020.
As for TTA, says Kowlessar, “While the aviation business continues to improve, we will remain on course with our 2021 mission – to continue providing the full range of required services for our aviation clients, while maintaining the highest quality standards – all at competitive prices.”
About Thrust Tech Accessories
Thrust Tech Accessories is a Veteran owned and operated FAA/EASA Certified 145 Repair Station located in Ft. Lauderdale, Fla. TTA supports a number of regional airlines across the U.S., along with overseas air carriers in numerous countries around the globe.
Ask us today about our wide-ranging capabilities to support your fleet and to obtain competitive program bids, please send us an email at email or call 954-984-0450. Also be sure to visit the TTA website.
