Developments and outlook for the Dutch aviation industry

In addition to air traffic, the aviation industry creates many jobs on the back of Dutch and foreign orders. For these jobs, the introduction of new aircraft (including the Boeing 787 and the Airbus A380 and A350) is an important development. These new generation aircraft are bigger, lighter, quieter and more fuel-efficient, as shown in Figure 15, in response to ever-rising fuel prices.

Figure 15 arbeidsmarktanlyse sectorplan luchtvaart
Figure 15: U.S. Gulf Coast Kerosene-Type Jet Fuel Spot Price FOB (per Gallon). Source: U.S. Energy Information Administration – http://www.eia.gov/).

The race to reduce fuel costs has intensified over the past few years, partly given the outlook for future fuel prices, as shown in Table 16. 

YearJet fuel prices
2010$ 2.19
2011$ 3.04
2020$ 3.35
2025$ 4.04
2030$ 4.85
2035$ 5.82
2040$ 6.92
Annual growth2.90%
Table 16: Expected development of aircraft fuel prices (kerosene only). Source: Energy Information Agency (US government)
The emergence of larger and more fuel-efficient aircraft is already visible in the development of air transport movements (5.7%), passengers (32.5%) and cargo (20%) between 2002 and 2012. The replacement of the current fleet with new, more fuel-efficient aircraft is set to continue in the next few years because airlines prefer to use aircraft with a low cost per passenger kilometre.

However, larger, lighter and more fuel-efficient aircraft call for different solutions in terms of design, maintenance and repair (methods) while imposing different qualification and training requirements on staff. For example, the increasing use of actuators, sensors and composites in new generation aircraft requires very different skills and qualifications of employees, as does the continuing evolution of turbines and the development of new service models and in-flight entertainment systems.

All of the above suggest that there is an urgent need for training in the aviation industry. And there are new developments in store for the distant future. For example, concepts that affect structure and propulsion are being considered. Moving forward, this presents an excellent opportunity for the Dutch industry to develop new business activities and employment. The Dutch aviation industry occupies a strong position on the market, developing and supplying among other things the following innovative products that are necessary for the new generation of aircraft.

Product categoryProducts
AerostructuresTails
Moving wing parts
Fuselage panels
MaterialsCoating systems
Thermoplastic composites
Fibre-metal laminates
High-temperature coatings
High-tech aircraft systems
(new aircraft and maintenance)
Electrical wiring
Interior/catering parts
Landing gear components
Sensors
Actuators
Fuel systems
Engine components and subsystems
(new aircraft and maintenance)
Subassembly high-pressure compressor
Blisks and impellers
Casings, seals, shrouds
Turbine blades
Auxiliary jet engines
Engine starters
Table 17: Source: College Lucht- en Ruimtevaart Nederland. http://www.luchtenruimtevaart.nl  As a major supplier, Fokker will provide many of the innovative components and products. In addition to using the Boeing 787, for example, KLM is also a leading developer and repairer of new aircraft, as much for itself as for other airlines. The market outlook for the development, supply and maintenance of these new aircraft is very optimistic. For example, Boeing expects no fewer than 35,280 new aircraft to be built worldwide by 2032, coupled with a US$ 4.840 billion investment, part of which will also reach various Dutch suppliers to Boeing.

Tabel 18 arbeidsmarktanlyse sectorplan luchtvaart
Table 18: Source: Boeing (2013) http://www.boeing.com/boeing/commercial/cmo

Airbus expects 29,226 new aircraft to be built worldwide by 2032, which is a slightly lower estimate than that of Boeing. Airbus predicts that future cargo and passenger flows will be handled mainly by large to very large aircraft.

As a result of faster and advancing fleet renewal, there will be a turning point in the next few years, with new generation aircraft types taking centre stage.

Tabek 19 arbeidsmarktanlyse sectorplan luchtvaart
Table 19: Source: Boeing (2013) http://www.boeing.com/boeing/commercial/cmo/europe.page

It is expected that, in the next 20 years, 7,460 aircraft, predominantly new generation ones, will be supplied to the European market. However, type and scale of work expectations suggest that there will be a lack of technicians with the relevant skills. We will need more technicians, ready to master new technologies through training and retraining. That, on the other hand, presents opportunities for new foreign orders and for new, sustainable jobs in the Netherlands. 

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