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APAC Aerospace Human Resource Industry - Emerging Training Opportunities


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Frost & Sullivan Analyst Briefing on the Emerging Training Opportunities in the Asia Pacific Aerospace Human Resource Industry

Frost & Sullivan Analyst Briefing on the Emerging Training Opportunities in the Asia Pacific Aerospace Human Resource Industry

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  • ERA A&T |V 1 |R SV/AM |E AM |A
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    • 1. APAC Aerospace Human Resource Industry - Emerging Training Opportunities Kunal Sinha, Consultant Aerospace & Defense 12 th May 2010
    • 2. Market Coverage and Definitions Aerospace Human Resource Training Segments covered in this research service 1. Air traffic Control Training : Aerodrome, Area and Approach 2. Pilot Training: PPL (Private Pilot License), CPL (Commercial Pilot License), ATPL (Air Transport Pilot License), MPL (Multi-Crew Pilot License) 3. Aircraft Maintenance Technicians / Engineers : Mechanics. Technicians, Engineers (LAME) (Avionics, Mechanical) Base Year for Calculation - 2009 Period for Forecast - 2010-2020
    • 3. Focus Points
      • Frost & Sullivan Value Proposition
      • Dynamics of the Aviation Education and Training Industry
      • Market Forecast - Outlook for Pilots, Engineers, ATCs in Asia Pacific by 2020
      • Growth Opportunities and Strategies
    • 4. Frost & Sullivan Value Proposition
    • 5. About Us Founded in 1961 10,000+ clients worldwide including emerging companies, the global 1000, and the investment community Over 1,700 Consultants / Analysts across 37 global locations in 21 Countries Offer the exclusive Growth System including: Growth Partnership Services , Growth Consulting and Growth Team Membership On-going involvement in International Research Initiatives in Commercial Aerospace, Defense & Homeland Security Helping clients create and Sustain Competitive Advantage across Military, Civil and Commercial markets
    • 6. Aerospace and Defense Focus Areas Airborne Platforms & Avionics Homeland Security Training & Simulation UAVs & Autonomous Systems Remote Sensing & Satellites Commercial Aviation & MRO ATM & Airports Defense & C4ISR
    • 7. Our Offices around the globe Bangkok Kuala Lumpur Singapore Jakarta Mumbai Beijing Tokyo Toronto Frankfurt New York San Antonio Shanghai Sao Paulo Buenos Aires Sydney Paris London Milan Warsaw Dubai Mexico City Cape Town Bangalore Seoul Delhi Chennai Tel Aviv Bogota Calcutta Mebourne
    • 8. Spread of Consulting Offerings Strategic Tactical Greenfield Brownfield Product/Service Re-Launch Marketing Strategy Rationalization Customer Perception Study Product Benchmarking Research Validation IPO Validation New Product/ Service Launch Market Entry Marketing Plan Formulation Customer Behavior Study Opportunity Analysis New Geographic Market Study New Technology/ Product Study Competitive Benchmarking Analytical Scope Nature of Work BPR
    • 9. Dynamics of the Aviation Education and Training Industry
    • 10. Dynamics of the Aviation Industry The strong growth of aviation activity is the biggest driver of aerospace human resource requirement Asia Pacific becoming the global hub of Aerospace Activities Source: Frost & Sullivan Source: Frost & Sullivan Global Number of Aircrafts Increase in Demand for : - Pilots - Cabin Crew Increase in Demand for : - Air Traffic Controllers - Aviation Management 40% of all aircrafts to be in Asia by 2029
    • 11. Dynamics of the Aviation Industry
      • The Asia Pacific region including Malaysia is going to have high growth in the MRO sector
      • The MRO Industry is expected to get more high tech in the next decade. This will require more skilled manpower to fuel the growth
      For the Asia Pacific region to maintain its competitive advantage in the MRO space, the training should be revamped and be made more skill based Source: Frost & Sullivan
    • 12. Dynamics of the Aviation Industry
      • The rising shortage of human resource is both a threat to the aviation industry & also an opportunity for investment
      • APAC countries can become the global aviation training hub, attracting students around the globe, and also cater to domestic needs
      CNN (news): A shortage of experienced air traffic controllers has resulted in a "staffing emergency" that is jeopardizing safety in the sky and on runways ( Worldwide Pilot Shortage affects flight safety ) As the Garuda Indonesia Boeing 737 approached Jakarta's main airport, veteran Capt. Marwoto Komar instructed his rookie co-pilot to extend the flaps to slow the plane for landing . Seconds later, the Boeing slammed into the runway at double the normal landing speed, careened into a rice paddy and caught fire — killing 21 people. The Hindu (news) Airframe inspections are labour intensive (70 per cent labour and 30 per cent materials) and constitute about 13 per cent of operating costs. At present, this 13 per cent reflects an annual spend of $70 million. The success of any MRO is fully dependent on its human resource , which determines the efficiencies in output . Skill shortages continue to plague the global industry in spite of recession and this trend is set to continue through the next 5-10 years.
    • 13. Drivers & Restraints Reduced interest in the new generation in choosing an aviation career Declining air traffic and freight movement due to the global recession Allied Industry Growth e.g. Aerospace and defense
        • Changing Aviation Structure – GDP growth, Removal of Infrastructure Constraints, Deregulation, Liberalization,
        • LCC’s Changing Business Model
      Aging working population leading to a large number of open positions Industry Drivers Industry Restraints Increasing Operational Cost Regulatory Changes
    • 14. Gaps & Challenges Gap Between Tertiary Education & Aviation Industry Aviation not an attractive sector compared to other industries Lack of simulators and training equipment and facilities in Asia Pacific to meet rising demands Training of qualified personnel takes time, causing a gap between retiring and new aviation personnel Lack of Qualified Instructors Training centers and universities are expanding aviation courses to meet demand Nurture interest in the aviation industry to younger generations Standardization in training syllabus due to the diverse countries in Asia Pacific Integrated training solutions offered by some manufacturers
    • 15. License & Skill Requirement : ATC (Air Traffic Control) Typical Training Structure Theory & Simulator Training (One Year) Training on assigned sector On the Job Training Diploma of Aviation (ATS) Licensing Procedure Diploma of Aviation (ATS) Journeyman Controller (licensed) Full Performance Controller Training with an ATC group Expertise on all the sectors Group Support Specialist Team Leader Safety Specialist Operations Manager
      • Civilian Air Traffic Controllers licensing is standardized
      • by ICAO.
      • There are five ratings which are provided as
      • sub-qualification:
        • Area (Procedural)
        • Area Radar
        • Approach (Procedural),
        • Approach Radar
        • Aerodrome
      • Most ab initio is training is towards licensing for
      • the job of area-en-route controller.
      • Recruitment for tower & airport is done from experienced controllers after proper on the job training.
    • 16. License & Skill Requirement : Pilot Training Current Industry Structure Ab Initio Transition Course MPL IFR - Instrument Flight Rules MCC - Multi Pilot Crew Coordination Training CRM - Crew Resource Management TEM - Threat & Error Management PF/PNF - Pilot Flying/Pilot Non Flying Future Industry Structure ATPL PPL CPL Multi Engine IFR MCC Type Rating Recurrent Training Instructor PF PF/PNF PF PF/PNF
    • 17. License & Skill Requirement : Technicians and Engineers Basic License: For Example EASA, CAAS, ICAO license Specialization B1 License: Specializing in mechanical parts & engines B2 License: Specializing in CRS or avionics systems Type Rating Specialization in a particular aircraft, for example Boeing 747- 400 type rating Familiarization Course Recency Requirement If Stopped working for 2 years on an aircraft Licensing Programme is extensive and require a long time line
      • Aircraft Engineers can be classified into:
      • Licensed Aircraft Engineer
      • Non-Licensed Engineers or Aircraft Mechanics
    • 18. Market Forecast - Outlook for Pilots, Engineers, ATCs in Asia Pacific by 2020
    • 19. ATC Personnel Requirement (2010 – 2020) Yearly Requirement Increase in Demand Retirement/Attrition
      • Air Traffic Controller Requirement is to increase from 2010-2020 at a CAGR of:
        • Malaysia: 6.35%
        • Asia-Pacific: 6.19%
        • Middle East: 4.68%
      • In the period of 2010 to 2020, the total number of additional ATC that require training
        • Malaysia: 860
        • Asia-Pacific: 11858
        • Middle East: 1388
      Total ATC demand in APAC & Middle East Source: Frost & Sullivan Highlights
    • 20. Pilot Requirement (2010 – 2020) Highlights
      • Pilot Requirement is to increase from 2010-2020 at a CAGR of:
        • Malaysia: 6.9%
        • Asia-Pacific: 7.1%
        • Middle East: 5.6%
      • In the period of 2010 to 2020, the total number of additional Pilots that require training
        • Malaysia: 3152
        • Asia-Pacific: 68710
        • Middle East: 7352
      Yearly Requirement Increase in Demand Retirement/Attrition Total Pilot demand in APAC & Middle East Source: Frost & Sullivan
    • 21. Technicians and Engineers Requirement (2010 – 2020) Highlights
      • Maintenance Mechanics and Technicians demand is to increase from 2010-2020 at a CAGR of:
        • Malaysia: 7.70%
        • Asia-Pacific: 6.50%
        • Middle East: 6.14%
      • In the period of 2010-2020, the total number of additional Technicians & Mechanics that require training
        • Malaysia: 7022
        • Asia-Pacific: 107285
        • Middle East:17165
      Yearly Requirement Increase in Demand Retirement/Attrition Total Technicians & Engineers demand in APAC Source: Frost & Sullivan
    • 22. Growth Opportunities and Strategies
    • 23. Training Opportunities: Framework Opportunity Grid Opportunity Grid is based on the mapping of the APAC countries on two parameters – Current Staff Shortage for FY 2009 Vs CAGR (2010-2020) of annual demand. Immediate Gain (High Staff Shortage and High Demand ) Avoidance Zone ( Low Staff Shortage and Low Demand ) Sustained Maximum Opportunity ( High Staff Shortage and High Demand ) Future Market ( Low Staff Shortage and High Demand )
    • 24. Opportunities : ATC Training Immediate Gain Sustained Maximum Opportunity
      • Category A (Malaysia): Air Traffic Controller Training for home students in Malaysia is controlled by DCA. Hence a collaboration with DCA provides a sustained source of students without any competitor.
      • Category B (Brunei, Cambodia, Laos, Vietnam): High growth in ATC demand in these countries provides future market potential. First mover advantage provides market opportunity.
      • Category C (Indonesia, Thailand, Philippines) & Category D (Middle East): These are the regions of high growth and also huge shortage in air traffic controllers. Potential countries with sustained market opportunity.
      Air Traffic Controllers Demand Opportunity Grid Avoidance Zone Future Market Source: Frost & Sullivan Category A Category B Category C Category D
    • 25. Opportunities : Pilot Training
      • Category A (Malaysia): Pilot training demand is high but shortage is minimal. Tapping this market requires acquiring one of the existing schools.
      • Category B (Brunei, Cambodia, Laos): High growth as Pilot demand in these countries provide future market potential. European Flying Training schools are already entering the market.
      • Category C (Indonesia, India, Vietnam): Provides the maximum opportunity due to the huge demand from India & high shortage.
      • Category D (Middle East): Large number of foreign pilots in the Middle East region provides opportunity to train homegrown pilots.
      Pilot Demand Opportunity Grid Source: Frost & Sullivan Immediate Gain Avoidance Zone Sustained Maximum Opportunity Future Market Category A Category B Category C Category D
    • 26. Opportunities : Technicians Training
      • Category A (Malaysia): Aircraft Maintenance Future Demand is high but the current shortage is low. This requires expanding the skilled manpower supply to cater to rising demand. Acquire training schools.
      • Category B (India, Singapore and Australia): Existing MRO hubs. Heavy future demand and high shortage provides maximum training opportunity. But category B is adding sufficient capacity.
      • Category C (Other APAC Countries) : They represent the Highest future demand but low shortage currently. They should be the target market for growth.
      • Category D (Middle East): Though the Middle East countries have high demand and minimal current shortage, the requirement is expected to increase. Chances of attracting students from the region is bleak but provides an excellent job market.
      Technicians Demand Opportunity Grid Source: Frost & Sullivan Immediate Gain Avoidance Zone Sustained Maximum Opportunity Future Market Category A Category B Category C Category D
    • 27. Aviation Personnel Requirement Opportunity : Summary
      • Aircraft Maintenance and Air traffic control training seems to be most lucrative for training investment.
      • If proper synergy can be created between the training schools, a lot of investment costs can be saved or optimized.
        Training Segments Growth % Fixed Investment Variable Cost Career Lucrative Cost Saving through Synergy Aircraft Technician > 6.4% Medium High Low-Medium Low Air Traffic Control > 6.1% High Low High High Pilots > 5.8% High High High Medium Cabin Crew > 6.7% Low Medium Medium Medium Bottom-line
    • 28. Next Steps
      • Request a strategic approach document for a Growth Partnership Service or Growth Consulting Service to support you and your team to accelerate the growth of your company. ( [email_address] )
      • Join us at our annual Growth, Innovation, and Leadership 2010 , 19-20 October 2010, Kuala Lumpur ( )
      • Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( /news )
    • 29. Your Feedback is Important to Us
      • Growth Forecasts?
      • Competitive Structure?
      • Emerging Trends?
      • Strategic Recommendations?
      • Other?
      Please inform us by taking our survey. What would you like to see from Frost & Sullivan?
    • 30. For Additional Information Donna Jeremiah Corporate Communications Asia Pacific 603 6204 5832 [email_address] Subhranshu Sekhar Das Director Aerospace & Defense 603 6207 1032 [email_address] Kunal Sinha Consultant Aerospace & Defense 603 6207 1017 [email_address]