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Commercial Aircraft Use Jumps

Higher demand from countries experiencing greater wealth is driving growth in the commercial airline sector, where passenger travel demand skyrocketed 396% from 1981 to 2012, according to a report from Deloitte. Utilization of commercial aircraft rose 15.4% during that period.

According to Deloitte’s “2014 Global Aerospace and Defense Industry Outlook,” Airline travel in China, India, the Middle East and other Asia-Pacific region countries contributed to an increased demand for leisure and business travel, also encouraged by lower fares and more available routes.

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In 2014, revenue growth is predicted at about 5%, similar to 2012 and 2013, Deloitte said.

Aircraft demand is also rising, as improvements such as fuel efficiency creates a need for upgrading and replacing aircraft.

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Commercial aircraft annual production levels are expected to increase by about 25%, the study found. Because there are few competitors in production, it is expected there will be more competition in the future, which could impact pricing. The aerospace supply chain will also be challenged to keep pace with the increased rate of production, Deloitte said.

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