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Mon, Feb 02, 2015

Commercial Flight Training, Simulation Market Relies On New Aircraft

Stiffer Training Standards Also Needed To Sustain Market

The commercial flight training and simulation market is witnessing limited growth. Initial pilot training has declined significantly in North America and Europe as interest in a pilot career is low. Even in regions where interest is stronger, the costs of training have kept demand in check. Thus, the supply side of the market for type rating and recurrent training continues to consolidate in the hands of a few companies.

New analysis from Frost & Sullivan's Commercial Flight Training and Simulation Market finds the commercial flight training market earned revenue of $1.44 billion in 2014 and estimates this to reach $1.54 billion in 2020. Similarly, the commercial flight simulation market earned revenue of $1.06 billion in 2014 and this is expected to go up to $1.43 billion by 2020.

"Asia-Pacific and the Middle East are the prime markets for both commercial flight training and simulation services," said Frost & Sullivan Aerospace & Defense Director Wayne Plucker. "However, the advanced pilot training and simulators are mostly provided by North American and European companies."

Across geographies, airlines have witnessed a lack of sustained profitability, which has slowed down market development. In pursuit of a positive cash flow, airlines have not only added fuel surcharges, baggage fees, seat selection fees and other charges, but also treated training as a potential area to cut costs. This, along with airlines' reluctance to purchase new simulators, except for new models, has created challenging market conditions.

"As more fuel-efficient aircraft models have been introduced over the last ten years, airlines will expand its fleet, for which new or modified simulators will be required," noted Plucker. "The commercial flight training segment will also gain traction with civil aviation authorities increasing training requirements as older and more experienced pilots retire."

By 2020, the company says, the bulk of adjustments to spending will have been made and the market will begin to experience actual growth. Overall market dynamics will change as China puts its in-country flight training infrastructure in place and airspace constraints are resolved. While this will boost overall expenditure on training and simulation services, it will decrease the percentage of China's spending in the United States.

(Images from file)

FMI: www.aerospace.frost.com

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