Oliver Wyman expert comments on the aviation industry ahead of the Dubai Airshow 2021

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Commenting on the aviation industry, André Martins, Partner, Oliver Wyman, said: 

“Oliver Wyman believes the global aviation industry will be back to its 2019 levels by the end of 2023, with a faster recovery in North/Central/South America and with the South Pacific, the Middle East and Africa lagging further behind.

As the industry recovers, many challenges need to be addressed. In the next two to three years, it will be particularly relevant to revamp the commercial offer to bring back air traffic, address production and supply chain issues from original equipment manufacturer (OEMs) and key suppliers, whilst also addressing pilot shortages and debt repayments.

In parallel, the industry needs to focus on doubling down the efforts on digital and automation whilst addressing key medium-long term challenges, particularly related to environmental emissions, more strict regulations on CO2 and the need to ensure long term sustainability.

In the regional market, we expect in the short-term strong demand for the UAE and Qatar markets driven by the Expo 2020 and the FIFA World Cup, along with a slow recovery of the long-haul to long-haul connecting model and an increase of Low-Cost Carrier (LCC) regional traffic. Furthermore, we should expect an intensification of the regional competition given new potential airlines, the need to revisit the business model of some of the airlines and airports, and the need to successfully transform some of the carriers in the region into more agile organizations, with the right-size fleets and value proposition.”

Commenting on the Dubai Airshow, Martins said: 

“The Dubai Airshow will be a great event to reconnect the key industry leaders. Stakeholders will be keen to understand the latest perspectives on the recovery and rebuild of the aviation industry, along with airline growth and sustainability plans, scale-up production plans from suppliers as well as new innovations.”

The Dubai Airshow will be hosted from November 14-18.

About the survey:

The third edition of our travel sentiment survey involved nearly 5,300 people across nine countries (Australia, Canada, China, France, Germany, Italy, Spain, United Kingdom, United States), all of whom had flown at least once in 2019; nearly 90 percent had been vaccinated against COVID-19 or are planning to be vaccinated.

About Oliver Wyman:

Oliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh & McLennan Companies [NYSE: MMC].