17 Mar The Importance of Forecasting in the Aviation Industry

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Forecasting is an important factor to any businesses because it gives the ability to make informed business decisions and establish data-driven strategies. It allows companies to have the capability to decide on the strategic allocation of resources, decide the need for corrective actions, or to adjust current strategies to reflect new situations. It is vital for companies to be always planning ahead to ensure the readiness to take on future demands as well as challenges and this is no different for companies in the aviation industry, particularly in this pandemic crisis downturn.

The year 2020 was defined by the coronavirus pandemic, arguably the worst pandemic the world has seen in 100 years. The global airline industry faced an unprecedented challenge in the face of COVID-19 and the industry will never be the same after this crisis. Many things have changed and the dramatic drop in demand for passenger air transport (and freight, to a lesser extent) due containment measures is threatening the viability of many firms.

Forecasting and identifying the driving factors through adapting and implementing new measures and industry recommended best practices are essential in every sector of the aviation industry and this underlines the importance of aviation consulting.

Understanding the Inevitable Need for Aviation Forecasting and Consulting

Typically, within a company in the aviation industry, there are a variety of stakeholders, assets owners, and other parties with vested interests involved, many of whom have different goals that are often intertwined with one another. Establishing strategic direction goals can be difficult because more than often, stakeholders and owners would want to evaluate their ideas prior to committing into any decisions.

As mentioned, with the drastic drop in demand for passenger air transport due to the pandemic crisis, the viabilities of many firms are at stake and the concerns of asset owners, airports, airlines, and financial investors in the aviation industry are raising. Prior to the pandemic crisis, the aforementioned parties would want to maximize assets values. However, in the current situation, more than anything else, these parties would want to minimize assets and financial losses by seeking professional independent advices.

Forecasting and identifying the driving factors through adapting and implementing new measures and industry recommended best practices are essential in every sector of the aviation industry and this underlines the importance of aviation consulting.

As much as an organization can be prepared, challenges were bound to be faced during operations, which requires contingency plans and measures for mitigation. At to70 as aviation consultants, we deliver high-quality consulting and market research services to the global aviation community and we believe that the demands of our clients can be achieved in the most effective and efficient manner whilst being economically viable at the same time.

With proper planning and forecast of driving values, companies would be able to have a better sense of direction, especially in the current pandemic situation that we live in. Therefore, forecasting is a key tool for decision making, enabling anticipation to make short term decisions and how to respond to them as well as supporting longer term decisions with regard to future patterns in demand for air travel.

About To70. To70 is one of the world’s leading aviation consultancies, founded in the Netherlands with offices in Europe, Australia, Asia, and Latin America. To70 believes that society’s growing demand for transport and mobility can be met in a safe, efficient, environmentally friendly and economically viable manner. To achieve this, policy and business decisions have to be based on objective information. With our diverse team of specialists and generalists to70 provides pragmatic solutions and expert advice, based on high-quality data-driven analyses. For more information, please refer to www.to70.com.

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GOH Wei Xuan
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Wei Xuan is an associate for To70 Singapore with a strong passion in the aviation industry. Built on a profound theoretical background in Aviation Safety during his tenure with Embry-Riddle Aeronautical University, he is dedicated and driven to striving himself in this field, ensuring that operations are executed in the most efficient manner whilst maintaining the highest standards of civil aviation safety. His area of studies includes, however not restricted to, safety risk management, human factors, and the management of aviation safety programs.
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