Advanced Aviation Economics

Running head: ADVANCED AVIATION ECONOMICS
ADVANCED AVIATION ECONOMICS
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ADVANCED AVIATION ECONOMICS
Introduction
This report aims to discuss the Boeing Current Market Outlook (CMO) and the
Airbus Global Market Forecast (GMF) and an overview is provided about these aspects along
with the use by the manufacturers by broader aviation industry. The most important factors
that is believed by the Airbus and Boeing would help in driving the air travel growth.
Connection with the microeconomic theory of the supply as well as the demand is detailed in
the report. At last an appropriate conclusion is provided for the report.
Discussion
Overview and explanation of the use
 The forecasts that have been made by the Boeing Current Market Outlook (CMO) and
the Airbus Global Market Forecast (GMF) has been anticipated to register almost
CAGR of increasingly 3% while the forecast period (Petrescu et al., 2017).
 The Airbus GMF estimates that fleet would be more than the double from than
present times that means 21,500 aircraft to almost 48,000 in almost 20 years time
period. Growth in this group would help in the growth of the services business that
would become double over 20 years from almost US$150 billion in 2018 to 330
billion a year by 2037 that makes it a total of US$4.6 trillion (Nair & Paulose, 2014).
 Along this phase, the modern technological development that includes the rise in the
number of the linked aircraft would result in the growth of the e-enabled services. The
technological development is predicted towards introduction of the modern
opportunities for delivering the facilities that would profit not only the customers of
the organisation nonetheless the passengers also (Comitz & Kersch, 2016). The
analysis and the access to the data from the aircraft and the operations would be at
core of the innovations.

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ADVANCED AVIATION ECONOMICS
 As per the Boeing Current Market Outlook (CMO), the airlines have made significant
strides towards the maximisation of the efficiency of the operations using the
techniques and the tools for minimising the cost, then maximise the load factors and
utilisation of the aircraft (Helmreich & Merritt, 2017).
 The increase in the outsourcing would impact significantly in future as the pressure
from the competition and it might help in lowering the yields.
 For reflecting the new opportunities and the trends, the service forecast of the
company has expanded their scope in comparison to the last year (Peeters et al. 2016).
These forecasts are utilised by the manufacturers and the broader industry of aviation for
predicting the passengers increase and then manage the services accordingly that would
help in providing personalised services to the customers (Rhoades, 2016).
Purpose of investment
The aviation industry implements the increased investment in the forecasting as it
would help in the efficient prediction of the future state of the airline. The aviation industry
utilises the forecasting for the both short term decisions like the whether to hope for the
adverse weather conditions and the methods by which the effective response could be
provided and for supporting the longer term decisions respected to the future patterns in the
demand for any air travel (Wagner & Walton, 2016). The scope and the use of the aviation
forecasts could vary significantly. The companies significantly invest in the forecasting to
understand the passengers behaviour and the availability of the resources in the present times.
Factor driving the air travel growth
There are several factors that are expected to have significant impact on the growth of
the air travel. Some of the factors of the growth of the air travel are: