Accommodating a changing market

The Aircraft Interiors Expo returns to the Hamburg Messe from 18-20 May this year amid an industry that has been tightening its belt as market forces change the habits of travellers across the globe.

However, this does not necessarily mean the interiors sector will suffer in the same way. The annual Aircraft Interiors Expo is now entering its 11th year, and although smaller events have now been created by organiser Reed Exhibitions in Hong Kong and Los Angeles, the Hamburg event remains the main global meeting point for the airline and the cabin interior industries. Reed claims the event is almost fully booked and on target to achieve the same level of business as in 2009, where it saw 322 exhibitors welcome 8,000 visitors over the three days. The real key to success this year however will be about understanding the effect of the troubled economy for many of its exhibitors and visitors, and although airline investment strategies have changed, this doesn't necessarily mean that people are not still busy.

For quite some time now it has been a cliché to talk about how ‘the difficult economic climate' has affected business and those eager to extol the virtues of their product offering are quick to publicise just how ‘buoyant' business is. In reality, the vast majority of businesses in the aerospace sector will have been impacted in some way, and while involvement in aerospace offers relative security thanks to the long term nature of aircraft products, the recession has changed the manufacturing and purchasing decisions of companies across the aerospace spectrum as airlines and their customers re-evaluate their priorities.

It comes down to a matter of practicality over technology, and while recent innovations such as in-flight internet and mobile phone connectivity are still expected to feature prominently and invade the market given time, short-term demand has waned in favour of more basic solutions to the tightening profit margins of airlines, such as the use of advanced materials and intelligent design applied to core products, equating to weight savings, improved quality and extended product lives.

Group exhibition director Ian Crawford explains: “With all the add-ons that you get in aircraft cabins these days, costs have been going up but on the business side, people are cutting down on travel, and I think that will bring costs back down. For example, several years ago if you travelled within Europe, British Airways or Lufthansa would serve up three course meals. That's all gone now, and the focus has turned to getting the costs of aircraft down to a sensible level again.

“For example there are question marks over the specification of seats in aircraft. A business class seat these days has around 16 servomotors in it, and all of that carries a weight cost. People are actually starting to question if that's necessary now. The old business class is now the new ‘premium economy' class, so there's a lot of thought and technology going into how airlines can configure their cabins. What also seems to be keeping volumes of business high at the moment is the retrofit market as airlines are also looking at reconfiguring aircraft already in use, which boosts demand for new interior products.”

He adds: “Interestingly we've seen very few companies go out of business throughout the supply chain at the moment. We were expecting to see more go but they haven't. It seems that while Airbus and Boeing both still have full order books that need to be fulfilled, the supply chain we have is likely to stay in place.”

Appropriately, the show will operate under the theme of ‘preparing for an upturn' and Reed is keen to push its partnerships further. “We're trying to be positive about what's happening out there,” adds Crawford, “and our research shows that air passenger miles are set to increase by 2-3% for the next 20 years on an annual basis, with a lot of that coming from Asia.” This will also be a factor in the types of products in demand, with many Asian airlines having lower requirements than their European and American counterparts, reinforcing the renewed focus on core products.

As an extension of this and to further boost the level of business conducted at the show and to improve company relations through the supply chain, Reed is working on increasing the worldwide airline presence in Hamburg, especially targeting those that wouldn't ordinarily come. As a result, it is hoped that both visitors and exhibitors will have improved contact with potential and current business partners and improve the level of communication at the show.

As for the attractions beyond the exhibitors, both the well-established Crystal Cabin Awards and the annual World Airline Awards hosted by research advisory company Skytrax will make a return. Going into its fourth year, the Crystal Cabin Awards are designed to motivate companies and research facilities to develop new products and modern designs for aircraft cabin interiors. The ceremony will take place at a reception dinner on the evening of the 18th with participants competing in six categories: Entertainment and Communication; Materials and Components; Greener Cabin, Health and Safety; Passenger Comfort; Industrial Design and Interior Concept; and University. There will also be a Judges Commendation Prize.

The Skytrax World Airline Awards, based on the company's annual World Airline Survey and voted for by over 16 million passengers worldwide, will take place on the show floor on Thursday 20th. The main award, Airline of the Year, was last year won by Cathay Pacific. Other categories will again cover the best low-cost airlines, regional airlines, cabin staff, in-flight entertainment, catering and every passenger class. Crucially, Skytrax prides itself on not being sponsored or influenced by a third party and draws a wide variety of representatives from airlines across the world.

So, while 2010 may not be the most prosperous year for manufacturing, there is at least still a good deal of activity in the interiors industry, and this year's event still promises plenty in terms of new technology and products. Crawford concludes that: “We're very pleased at how the sector seems to be holding up and we're surprised at how well it's doing. All the indications are that it's looking quite good. We've already started talking to some of the primes about the 2011 show and will launch it before this year's event, so it's looking rather promising for next year too.”

www.aircraftinteriorsexpo.com
 

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