India’s aerospace and aviation sector stands at a pivotal juncture, characterized by unprecedented growth, technological innovation, and global integration. As the nation aspires to ascend the global aerospace value chain, strategic management becomes paramount to harness opportunities and address emerging challenges.
Scaling Human Capital to Meet Expanding Demands
The Indian aviation industry is experiencing a significant surge, with domestic airlines placing orders for over 1,700 aircraft to expand their networks. This expansion necessitates a substantial increase in skilled manpower. Projections from articles of The Economic Times indicate that India will require approximately 30,000 new pilots over the next 15-20 years to accommodate this growth.
To meet this demand, a multifaceted approach is essential, which includes:
- Enhanced Training Infrastructure: Investing in state-of-the-art training facilities and simulators to provide comprehensive pilot training.
- Curriculum Modernization: Updating training curricula to include emerging technologies such as AI and advanced avionics.
- International Collaborations: Partnering with global aviation academies to adopt best practices and ensure standardized training.
Transitioning from ‘Build-to-Print’ to ‘Build-to-Spec’
Historically, India’s aerospace manufacturing has operated under a ‘build-to-print’ model, focusing on producing components based on detailed customer specifications. However, to foster innovation and move up the value chain, a shift towards a ‘build-to-spec’ approach is imperative, as discussed by this year’s FOAA panel speakers.
FOAA is an annual flagship event that brings together industry experts, researchers, and academic leaders to discuss the evolving landscape of Aviation and Aerospace. This conference is a must-attend for professionals and enthusiasts looking to gain cutting-edge insights, network with industry pioneers, and explore the future of this transformative sector.
In the aerospace industry, the terms "Build to Print" (BTP) and "Build to Spec" (BTS) refer to two different approaches to manufacturing and procurement. Here's how they differ:-
| Feature | Build to Print (BTP) | Build to Spec (BTS) |
|---|---|---|
| Design ownership | OEM | Supplier (or shared) |
| Supplier responsibility | Manufacture only | Design + Manufacture |
| Flexibility | Low (follow exact design) | High (meet the spec using own design) |
| Engineering effort | Minimal | High |
| Risk burden | On OEM | On supplier |
The BTS model allows manufacturers to design and develop products based on performance requirements, promoting indigenous innovation and design capabilities.
Key points to accelerate the evolution from BTP to BTS include:
- Investment in R&D: Allocating resources towards research and development to drive innovation.
- Skill Development: Training engineers and designers in advanced aerospace technologies and design methodologies.
- Policy Support: Implementing government policies that encourage indigenous design and protect intellectual property rights.
Embracing Emerging Technologies: eVTOL and Urban Air Mobility
The advent of electric Vertical Take-Off and Landing (eVTOL) aircraft presents a transformative opportunity for urban mobility in India. As per reports from Reuters, companies like Archer Aviation are planning to commence electric air taxi trials in India, with a commercial launch targeted for 2026.
To capitalize on this emerging sector, the following points take the spotlight:
- Regulatory Framework: Developing comprehensive regulations to ensure safety and integration of eVTOLs into existing airspace.
- Infrastructure Development: Establishing vertiports and charging stations to support eVTOL operations.
- Public Acceptance: Conducting awareness campaigns to familiarize the public with eVTOL technology and its benefits.
Leveraging Artificial Intelligence for Operational Excellence
Artificial Intelligence (AI) is revolutionizing aerospace manufacturing by enhancing efficiency and maintaining stringent quality standards. AI tools assist in optimizing production processes, predictive maintenance, and supply chain management, thereby reducing costs and improving product reliability.
Opportunities to maximize the operational effectiveness & efficiency:
- Data Analytics: Utilizing AI-driven analytics to monitor and improve manufacturing processes.
- Predictive Maintenance: Employing AI to predict equipment failures and schedule timely maintenance, reducing downtime.
- Quality Control: Integrating AI in quality assurance processes to detect defects and ensure compliance with standards.
Strengthening Global Supply Chain Integration
Even amongst the tariff wars, India’s role in the global aerospace supply chain is expanding, with companies like Airbus sourcing over €1 billion annually in components and services from India, as per reports from Reuters. This contribution is expected to double, highlighting India’s growing significance in the global aerospace industry.
An integrated and fortified supply chain requires the key enhancements:
- Quality Standards: Adhering to international quality and certification standards to meet global requirements.
- Collaborative Partnerships: Fostering partnerships with global aerospace firms for technology transfer and joint ventures.
- Infrastructure Investment: Developing advanced manufacturing facilities and logistics networks to support increased production.
Strategic Management Education
As the aerospace and aviation sectors evolve, there is a pressing need for strategic leadership equipped to navigate complex challenges. Executive education programs, such as the General Management Programme for Aerospace and Aviation Executives (GMAE) offered by IIM Bangalore, are instrumental in developing such leadership.
The GMAE programme provides a comprehensive curriculum, covering key areas in Strategy, Finance, Operations and Innovation management – tailored for the Aerospace, Aviation and its allied industries.