The aviation value chain consists of a diverse set of sectors that differ in size, structure, and financial performance. These industries generate significant profits, while others struggle to stay profitable. They also differ in the value they create from an investor's perspective.
These industries are primarily aircraft and engine original equipment manufacturers (OEMs); Lessors; airports; air navigation service providers (ANSPs); ground handlers; maintenance, repair, and overhaul (MRO) suppliers; catering companies; airlines; global distribution systems (GDSs); and freight forwarders.
The notable exception was air freight forwarders, where supply/demand imbalances (undersupply combined with sustained demand) led to higher revenues and value creation. Air freight has been a clear and needed area of emergency response during the pandemic. global air freight tonnage in 2021 was about 7 percent higher than in 2019.
“The aviation value chain is only as strong as its weakest link.”
All sectors that make up the chain have an interest in one another's ability to perform. It is important to strengthen the value chain for everyone, enhance performance of the value chain as a whole, and ensure financial sustainability and value creation for all.
To achieve a strong aviation value chain each link should be fortified, managed, and improved to establish and assure a sustainable highest safety level and quality of the air transport system which is the most fundamental Strategic Objective.
Therefore It is of utmost importance to work in a harmonized manner to constantly address and enhance aviation safety through a) policy and standardization, b) monitoring key safety trends and indicators, c) safety analysis, d) specific programs addressing safety issues, and e) implementation support.
With a focus on achieving sustainable development across the entire Aviation Value Chain to break chains of poverty, lack of opportunity, and deliver socio-economic benefits to our citizens, while preserving consumer health, safety, and benefits.
“Key to achieve a strong aviation value chain is political commitment.”
Important is! to establish an effective coordination and collaborative environment between the Dutch Caribbean Territories, based on a 'no country left behind' initiative, a centered approach, strategic partnership and alliance, and the regional and national strategic development goals to restore confidence in civil aviation.
ACTIONS TO EXPAND VALUE CREATION FOR ALL PARTICIPANTS TO ACHIEVE A SUSTAINABLE SUCCESSFUL AVIATION VALUE CHAIN.
Restructuring, Strengthening, and Harmonization of Institutional oversight in aviation.
The main objective is to restructure and strengthen the institutional capacity of the civil aviation regulatory authority to ensure a safe and secure aviation environment through good governance, liberalization, implementation of international standards and recommendations for civil aviation, as well as harmonization with aviation authorities and policy support, and where appropriate agencies and relevant stakeholders.
Aimed at improving compliance capability in accordance with international aviation standards in the areas of aviation safety, security and economic oversight, and socio-economic development in the Dutch Caribbean to improve service and reliability to attract customers.
Airlines do not control end-to-end customer experience, even though they contract directly with the passenger. Enhanced collaboration can benefit all participants in the value chain that depend upon the customers that airlines serve.
For instance, all sectors that influence the customer journey (airlines, airports, handlers, caterers, etc. could jointly map the experience so that it can be improved holistically, rather than by one party at a time.
Pursuing opportunities for greater data and insight sharing across the value chain.
Players within the value chain should establish a data-rich environment to provide more tailored offers to customers, or to engage in predictive maintenance. Sharing of data and insights, for instance between airlines, airports, and handlers about expected volumes, could lead to better short-term projections and enhanced operational planning.
Removing inefficiencies in the value chain
Tackling inefficiencies to enhance performance for the whole chain. For example, longer than necessary flight paths within regions lead to air traffic control inefficiencies, additional fuel burn, and associated climate impact. Improvement initiatives in the flight information region and airport terminal areas shall address these inefficiencies, boost profitability, and reduce CO2 emissions for all participants in the chain.
Working together on decarbonization.
Moving the airline industry to net zero by 2050 will require significant investment as well as innovation and value-chain cooperation.
Collaborating to meet ever-changing demand and customer requirements.
Responding to changing customer demand, airline business models, and liberalization of aviation oversight has become much more hybrid.
Others, few airlines are purely low-cost or network carriers, as both have borrowed from each other to adapt their offering. There is also more fluidity among market segments, as business travelers might opt for economy class and leisure travelers may book business class for their holiday trips. Greater collaboration—as well as competition and innovation—is vital for offering consumers options that suit their needs.
Enhancing resilience and robustness.
The goal must be not only to grow, but to grow profitably and sustainably, in order to limit the impacts on the airline industry and the aviation value chain. Robustness can be enhanced through creating more diverse revenue streams, as well as paying attention to costs. This might involve vertical and horizontal integration when that is possible, and even beyond the aviation value chain.
Aviation has the potential to provide significant economic contributions to our societies.
By working jointly within the Dutch kingdom, enhancing performance across the value chain, all sectors will be able to generate a return to their investors beyond the minimum based on its risk profile. This requires performance improvement within each sector and also requires greater collaboration and fresh ways of working across partners in the value chain.