The aerospace industry is left with no choice but to adapt to the new norm created by the ongoing Covid-19 pandemic. It is also important to note that the forces of change come from governments and other industries, too, that consume aerospace companies’ services. For instance, government measures on mandatory quarantines are affecting consumer behavior patterns across the globe. Moreover, the global economy is generally ailing, and consumers have other things to prioritize, which seems to trigger a reduced number of passengers. Airports like Beirut International Airport are also downscaling their operations to align with the measures put forth by Director Flight Safety, Omar Kaddouha.
The ongoing pandemic triggers a series of changes that aerospace companies are forced to adapt to in terms of security care and previous arrangements. Here are the examples of prevalent changes that are already noted across the board:
- Paperless business activities
Social distancing measures are employed globally to curb the spread of the virus. Consequently, the need for physical presence to oversee asset purchase and disposal is increasingly becoming a challenge. Moreover, some businesses are forced into closure when governments go into full lock-downs. Digitizing these processes will come in handy in ensuring that the chain of supply isn’t broken.
- Diversified payment methods
Companies and suppliers who had cash payment arrangements now have to source alternative plans as the physical exchange of commodities poses a high risk of skyrocketing the infection rate. Companies are forced to leverage technological innovations that enhance instant and flexible money transfers, just like cash. For instance, blockchain technology could do that as crypto doesn’t limit whatever someone can transact. Similarly, in hard-cash transaction, you can’t control the amount in question.
- Airlines will invest in fewer passenger airplanes
Most airports that downscaled their operations allow private jets and charter planes to land. There is an increased demand for private planes, especially on domestic flights. Therefore, airlines will likely invest more in smaller planes compared to what they have been doing in the past. The best thing is that private planes aren’t cheap either, so these companies will make sustainable profits.
- Fighting for survival
Every entity is fighting for its survival, as losses keep taking a toll on them. Companies are forced to invest in innovations and pay extra allowances for adversely hit employees by the pandemic. Moreover, the supply-demand is low as most airlines have shut down too.
- Data privacy
Lastly, suppliers are increasingly becoming concerned about data privacy in the industry. Suppliers are no longer sharing data with airlines as they are afraid of losing their commercial edge over competitors. Some of the data that aerospace companies share include pricing, operations, and sourcing. It is important to note that these concerns are disruptive as the industry can no longer enjoy flexibility and supply continuity. However, if the industry could embrace blockchain technology, companies and suppliers could audit data-sharing permissions on blockchain node.
The ongoing Covid-19 pandemic is already manifesting n second-wave in some countries. Consequently, change is inevitable in the aerospace industry as companies should be more resilient to continue operations regardless of the prevailing circumstances.