I was asked to speak to a group of engineers today. Here were the questions I was asked and my talking points. What did I miss?
- Digital Processors
- Glass Cockpit – moving map, information, crew alerting
- IRS - GPS
- ETOPS 180 twins - turbofan – higher and higher thrust, reliability, efficiency
- Composite aircraft structure
- Lie-flat bed
- Automation – Autopilot/Autothrottle/Flight Management
- Augmentation - Flight Envelope Protection
- Children of the Magenta Line
How have the macro-trends and Industry changed and where do you see Aerospace heading in the next 5-10 years?
- Low-cost carrier
- Rise of the twinjets – 787 & A350 & 777X long range
- Hub to Point-to-Point
- Aircraft Leasing – majority of world-wide fleet
What excites you the most?
- Satellite Communications
- Electronic Flight Bag – EFB - Pandora’s Box
- Sustainable Aviation – Hydrogen (fuel cell) – Electric Thrust
- Urban Air Mobility – Air Taxi
What could be the top 3-4 areas which would see the most amount of innovation in Aerospace in the next decade?
- What is a pilot – sunny day - loss of flying skills – managing non-normal
- Virtualization - Software Defined Functionality
- Walmart model – how to address smaller airport community– small pax aircraft, pilot shortage, feeder airports constrained 50 seat vs larger airplanes
What kind of differentiation would these new innovation areas mean for companies?
- Deep pool of engineering talent, Diverse product portfolio, global footprint
How do you think the Aerospace industry responding to a range of shifts – COVID, Hybrid work, ESG etc.?
- From a passenger perspective
- Air quality
- Hygiene
- From an operator perspective
- Low Load factors but kept the slots
- Government aid– airline just not flexible enough – leasing Vs owning fleet
- Easy to shut down, hard to grow back
- From a supplier perspective
- Staffing – work from home
- Supply chain
What new business opportunities do you see as a result of changing technology landscape in Aerospace?
- Pilot robot for legacy aircraft
- Where do we get the captain of the future
- Machine Learning – modeling expected behaviors – EGPWS data base
- ATC improvements
- HF Voice to Sat voice to the HF radio operator - Routine
- Fix the ground side
- Taxi fuel savings
How should the technology leaders of today adapt their leadership style as compared to before?
- Management by Edict – Fear (don’t listen when they are yelling)
- Management by Committee – Consensus & Coaching (can be hard to make decisions)
- Management by Cost/Profit and Schedule (don’t care what they are hearing)
- Voice of the customer: one airline and 737
- Voice of the customer: 757/767 – 747-400 – 777 working together
- 787 risk sharing – loss of ownership – integration – Open communication
- Recognize and value the internal customers
What should they unlearn and what should they adopt?
- Diversity, Inclusion
- Technical team – engineers are mobile and in-demand – need to retain them – not a commodity
- Global diversified supply chain/ Outsourcing Vs vertically integrated (SpaceX)
- Staff appropriately – don’t build in too many layers between experts
- System Integration Organization – no one understands everything
We see business models evolving and changing around us – we are seeing aggregation -- with the competition coming to serve demands together, consortiums and partnerships around data and market place, subscription based business, no fee business, freemium, ecosystem model, hypermarket , constant-innovation business, data driven business etc.
- Is Motivation in the right direction for everyone
- Service provider upgrades equipment as needed, job starts with installation
- Equipment supplier sells equipment and moves on after installation
What is your opinion around the way Aerospace business will evolve?
- Preserving capital – aircraft leasing – 55% leased – flexibility – risk for loss at resale
- Borrowing – Stock Buybacks – Loss in R&D spending R&D not ROI
- Commonality – captive customer taking advantage – keep them on-edge
- Success is lowest fare and tradeoff experience
- passengers will pay for better experience
- divided up cabins – saver – economy premium – business class
- ancillary revenue
- Consolidation
Stay tuned!
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