The World of Aviation
On a normal day more than 11 million people travel by air on about 110 000 daily flights. The aviation industry connects the world in a unique way. It adds huge value to the global economy. Despite the world being hit by number of economic crises, air traffic has doubled since 2004. In their market outlook prognoses both Airbus and Boeing confirm the underlaying continued growth. The current world aircraft fleet of about 22 000 is expected to reach about 47 000 in 2038.
Why is this significant for Kongsberg Aeronautical?
Single aisle aircraft serves as the backbone in more or less any nation’s air traffic network. It is particularly important in the increasingly use of point-to-point service. Not only by virtue of the number in service, but also airports served, makes the need for information that is accurate, frequent, and timely increasingly important. Kongsberg Aeronautical’s system particularly targets single aisle aircraft with respect to technology and solution
Currently operating the largest chunk of the worldwide aircraft fleet. There has been a high degree of consolidation among the aircraft operators, thus 5-6 biggest operators hold about 70 - 80 % of the market. In terms of new deliveries over the next years North America retains its position as a major market (for Boeing and Airbus), only to be surpassed by Asia Pacific.
The European airline industry has undergone less consolidation compared to North America, thus comprising of quite a few smaller to mid-sized airlines. Contrary to North America, in Europe some of the larger airline groups, such as Lufthansa, IAG, and KLM Air France tend to retain and differentiate airline brands and operations within the same group. Industry experts expect to see increased consolidation in Europe as well.
Asia Pacific is by far the largest market for new deliveries. New airlines show strong growth. What is particularly interesting is that Chinese airlines represents more than 40% of the current "in order" for single aisle aircraft. Airbus and Boeing have shared this market, with Boeing having an edge in terms of the market share. Chinese aircraft manufacturer Comac is expected to introduc their new development C919 in 2020/21, an aircraft that will compete head to head with Boeing B737 and Airbus A320. Comac has about 300 aircraft in order, options for another 700, all Chinese operators. They anticipate to manufacture 2000 - 2500 of this aircraft