airline industry Archives - Business Intelligence

Tag: airline industry

demand management

Aircraft Parts Market Analysis: Identifying Potential Opportunities and Achieving Workforce Effectiveness

Over the next couple of years, the global aircraft parts manufacturing industry is poised to witness challenges in terms of supply chain, digitalization, and cybersecurity.

Companies in this industry manufacture aircraft, aircraft components, and missiles and space vehicles. The demand for aircraft parts is primarily driven by rising military budgets and the overall economic developments, which affects airline traffic and the demand for new aircraft. The supply chain for aircraft parts often spans the entire globe, and is characterized by the need to meet tight deadlines and high level of digitalization.

Also, within any industry, cybersecurity is one of the biggest challenges, especially with the continuing advances in technology. The airline industry, being strongly linked to the defense industry, has always had a focus on promoting strengthening policies. The cyber threat to the airline industry is real and it is current. The airline industry is continuously under attack by parties who use tools such as cloud computing and viruses. Therefore, the need to ramp up investments in cyber tools will always Request Proposalbe a big challenge for the stakeholders looking to establish themselves in the industry.

Business Issues

  • The client: An aircraft parts manufacturer

To carry out a comprehensive market analysis on pricing models and customer intelligence for competitors operating in the aircraft parts manufacturing space, the client – a leading aircraft parts manufacturer – approached Infiniti to engage in a market analysis engagement. The primary objective of the client was to analyze the pricing strategies of aircraft parts manufacturers across the US and European region.

How Can Infiniti’s Market Analysis Help Aircraft Parts Manufacturers?

Infiniti’s market analysis solution provides aircraft parts manufacturers with the data about the target market, competition, and environment. Market analysis solutions provide companies with a strategic advantage in terms of information and demographic analysis, which can be used to analyze the overall economy and workforce effectiveness.

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Client Journey

Infiniti’s market analysis experts carried out a blended research approach comprising of telephonic interviews, followed by data analysis and insight development to help the client gain an in-depth understanding of the aircraft parts landscape. The market analysis experts also conducted a series of supplier interviews and customer surveys to offer the client a holistic overview of the aircraft industry across the target regions.

Solution Benefits and the Business Impact

With the help of Infiniti’s market analysis engagement, the aircraft parts manufacturing client analyzed the price trends and customer preference for the segment under focus. The engagement also brought to limelight the key influencers and purchase decision makers in the market. Furthermore, the client obtained insights into the competitors’ pricing and customer intelligence strategies.  

The Future

The use of composite materials in aircraft parts has been an ongoing trend and is stimulated by several factors, including material price, fuel price, and innovation in carbon’s properties. The advantages of composites materials have been well understood for decades. Additionally, the rise in aircraft fuel prices is pushing manufacturers to improve aircraft efficiency and increase the use of composites in new aircraft parts development. 

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the global airline industry

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Market Intelligence

Infiniti’s Industry Risk Assessment Helps A Leading Aircraft Parts Manufacturer Identify and Analyze the Potential Factors Impeding the Growth of The Airline Industry

Business Challenge 

A leading manufacturer of airline parts with business centers spread across the globe wanted to develop a new strategy to manage the risks affecting the growth of the airline industry and implement appropriate policies and organizational structures to achieve their strategic objectives. The client, with Infiniti’s risk assessment strategy, also wanted to analyze the risk factors in terms of financial risks, including foreign exchange rates, interest rates, stock prices, and the losses resulting from fluctuations in the interest rates.

Contact us to know more about our industry risk assessment solutions.

Solutions Offered and Value Delivered 

Infiniti’s risk assessment experts carried out extensive research comprising interviews and discussions with leading stakeholders in the airline industry to help the aircraft parts manufacturer to measure and monitor risks. The experts also compiled information from various secondary resources such as paid industry databases, company presentations, and industry forums to help the client assess the complexity of the risks.

With the help of Infiniti’s industry risk assessment solution, the aircraft parts manufacturer was able to profile the key competitors, their product offerings, and identified effective ways to reduce bottlenecks. Additionally, with risk assessment strategy, the client identified and analyzed the potential factors impeding the industry’s growth and also increased their focus on devising a robust risk management strategy to limit the associated risks involved in entering niche market segments.

Develop a risk assessment plan to deal with unexpected risks and stay ahead of your competitors. Request a FREE proposal!

Future of Global Aircrafts Industry

The global aircraft parts and components manufacturing industry includes establishments manufacturing aircraft, aircraft engine, engine parts, other aircraft parts, and auxiliary equipment. The aircraft parts manufacturing industry has changed significantly over the past five years. The industry’s commercial segment witnessed significant growth owing to the increasing instances of global air travel. On the flip side, the defence segment has been impacted by declining US defence spending, partially offsetting strong commercial demand. Nonetheless, due to surging commercial demand, the aircraft parts industry revenue is expected to increase.

However, our analysis of the airline industry trends shows that the aircraft parts manufacturers are facing challenges in terms of:

  • Intense competition and air traffic: Firms within the airline industry constantly face the pressure to understand their actual revenue growth and potential profitability though they compete against low-cost and best-cost carriers.
  • Customer Expectations: One of the most crucial aspects for firms operating across the airline industry space is the ability to manage customer expectations with respect to their experience. Identifying what customers are expecting out of the air transport services becomes decisive.

Many such factors are compelling firms in the aircraft parts manufacturing space to leverage the use of industry risk assessment solutions. Industry risk assessment solutions help firms assess the competition and determine potential sectors for expansion. Risk assessment solutions also help airline industry firms to segment their risks based on priorities effectively.

Why Leverage Infiniti’s Risk Assessment Strategies?

Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies and risk assessment strategies.

With a team of highly skilled market research professionals, we offer customized solutions that will help companies to magnify competitive advantage by improving speed-to-market.

Request a brochure below to know more about our risk assessment solutions.

competitive intelligence

Pricing Strategy Secrets That Airlines Don’t Want You to Know

Have you ever talked to a co-passenger on a flight and been surprised to find out that they have been charged much higher or lower for an airline ticket in the same class as yours? This is a common practice in the aviation industry. As much as it might seem unfair, the aviation industry has one of the most dynamic pricing strategies compared to any other sector. The most common of pricing strategies in the airline industry that most of us might be quite well-aware of is the demand-based pricing. During festive seasons or other times of high demand, the airline prices are often at its peak, and during the off-season, the same tickets are priced at much lesser rates. But do you think this is all that goes into consideration for companies in the aviation industry to tweak their pricing strategies?

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Common pricing strategies of airline companies

Total customization

The standard price division in the aviation industry that we all know of is based on the classes­­ – economy, business, and first-class. But you would be amazed to know that airlines have dozens of subdivisions. The airline carriers usually adjust the number of seats allocated to each fare class. When one class gets sold out, the sale price will leap to the next one. Though this practice is commonly being followed currently, it is still way off from the ultimate goals of carriers. Firms in the aviation industry aim at knowing their customers better through loyalty programs, registered users, and cookie tracking since it would help them to offer personalized pricing.

Our recent engagement is a classic example of how our custom research solutions can help companies operating in the aviation industry. Give it a read.

Additive Manufacturing Challenges in the Aviation Industry

Competitive pricing

Companies in this sector have become increasingly complex and fiercely competitive in the past few decades. The growth of the airline network and the drop in the cost of commuting has taken revenue management to whole new levels of complexity. Airline companies have realized that pricing strategies such as Expected Marginal Seat Revenue (EMSR) offer the best ways to optimize fares in real-time.

This technique is useful not only on a given route but taking into account revenue-generating opportunities across the whole airline network. This is the answer to if you have wondered why flying from London to Dubai costs almost the same as flying all the way to Manila, also via Dubai. Aviation industry companies may prefer to keep seats on the London-Dubai route for higher-value passengers that fly longer onward journeys and will use pricing strategies to discourage those aiming to fly shorter trips.

Customer profiling

Companies in the aviation industry usually make some reasonable assumptions about the profile of traffic on a particular route and then alter their prices accordingly.  For example, London to the Maldives has a marked leisure profile; this has an impact not only on the ticket prices but also on the way pricing strategies change over time depending on the on and off-seasons. If the airline assumes that passengers traveling to leisure destinations will tend to book relatively before their holidays, it may start pricing seats on that route relatively high. Based on the market response, the prices would then be altered accordingly.

Brand image

The rising competition in the aviation industry gives carriers good enough reasons to not overcharge customers. However, they must be careful not to undercharge customers as well. Airlines tend to aggressively lower prices when there are still empty seats left before a flight departs. However, if this becomes the norm, there could be a serious risk of undermining the brand and alienating higher-value passengers. Applications such as Bidflyer and Plusgrade have developed applications that allow airlines to sell upgrades to the highest bidder through an auction mechanism. This acts as an anonymous way to get passengers to tell the airline how much they’re willing to pay for premium services.

To know more about the pricing strategies in the aviation industry, request more information from our experts.

IPTV Service

Competitive Intelligence Solution Helps an Airline Industry Major Enhance Risk Management Capabilities

According to a recent survey, consumers benefit from lower fuel prices with lesser fares, more routes, and are expected to spend 1% of world’s GDP on air transport.

The airline industry typically includes transport service providers of cargo and passenger. The primary customers of the airline industry services include governments, individuals, and businesses across the globe. The industry is marked by high growth compared to the (gross national product) GNP trend and continuous productivity increases since the start of commercial air traffic. The constant demand for new low-cost carriers, increasing demand from emerging economies, deregulation, and rising middle-class populations are some of the factors responsible for the growth of the airline industry. The airline industry is also characterized by intense competition and price pressure that involves a continuous requirement to boost efficiency. In the hassle to boost efficiency, several factors are hampering the growth of the airline industry. These factors include:

  • Customer Expectations: One of the most crucial aspects for firms operating in the airline industry is the ability to manage customers’ expectations with relation to their experience. Identifying what customers are expecting out of the air transport services becomes crucial.
  • Air Traffic and Competition: Firms within the airline sector constantly face pressure to comprehend their actual revenue growth and potential profitability although they compete against low-cost and best-cost carriers.

To counter these factors, firms are leveraging competitive intelligence solutions. The competitive intelligence solutions help firms increase focus on benchmarking the products and services offered with that of their direct competitors. These solutions also assist companies in identifying competitive opportunities and trends to discover any potential functionality gaps to enhance their business performance.IR_Brochure

The Business Challenge

  • The Client: Airline industry firm
  • Area of Engagement: Competitive intelligence

The client, a leading provider of airline services, wanted to minimize their exposure to risk and improve their overall commercial performance. The client wanted to gain a clear understanding of the business process and competitor protocols and strategically position customized product and service offerings. They also wanted to gain recommendations on devising robust marketing strategies and look for promising solutions to achieve continuous growth and increase profits. Additionally, they wanted to fend off the competition across niche markets by profiling their direct competitors across the industry.

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The Journey

The competitive intelligence specialists at Infiniti Research carried out extensive interviews and research with prominent stakeholders across the airline industry to analyze the competitive structures and market environments. The experts also collected information from various secondary sources such as company presentations, industry forums, and paid industry databases to refine the current product groups.

The Solution Offered and the Business Impact

With the help of Infiniti’s competitive intelligence solution, the airline industry client gained an accurate view of the competitors and their product and service offerings. The solution also helped the client keep track of the competition and offer tailored services to their customers. The engagement further helped the client gain insights into the competitive scene to stay ahead of the competitors and cement their market presence.

The Future

The future of the airline industry is likely to be more turbulent, as a new wave of technological change and innovation unfurls. Some see this wave sweeping the airline industry away, citing as precedents the printing industry before computer design software, the music industry before internet downloads, and, the taxi industry before Uber arrived.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the airline industry 



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