Paul Everitt speech to Shannon International Leasing Conference
Today ADS Chief Executive Paul Everitt spoke at the Shannon International Leasing Conference 2019 in Limerick, alongside speakers drawn from the international aviation industry.
Covering a range of important issues for the aerospace industry, he set out the sector’s confidence for continued long-term growth, the importance of addressing environmental challenges and opportunities, and ADS priorities for the new UK Government after next month’s General Election.
On global demand and aviation industry growth, Paul Everitt said:
“The global aviation industry continues to grow. Passenger growth remains very strong, with the International Air Transport Association (IATA) forecasting passenger demand will double during the next 20 years.
“Whilst this year we will see the total number of new large aircraft deliveries fall for the first time for more than a decade, this is wholly down to the grounding of the 737Max. We expect volumes to rebound in 2020 and deliveries to continue on an upward trajectory, and as the number of aircraft in operation increases and the intensity of use increases, so does demand for maintenance repair and overhaul (MRO), cabin refits and upgrades.
“But for us all, as volumes grow, margins are squeezed. All companies must focus on their own productivity and competitiveness, and seek advantage through innovation. Aviation and aerospace are lucky because we are in a global growth market and there is little sign this will end anytime soon.”
On Environmental challenges and opportunities:
“As demand grows the industry faces significant environmental pressures. ADS and the global aerospace industry recognise the challenge and are committed to delivering solutions. Earlier this year the Chief Technology Officers of seven major aerospace companies set out the industry’s strategy:
- Continuing to develop and introduce incremental improvements to our current products
- To invest in Sustainable Aviation Fuels to deliver significant carbon reduction
- To invest in the electrification of aircraft (electric hybrid, role of hydrogen)
- Improvements in Air Traffic Management
“We recognise that aviation will probably not be able to deliver net zero itself by 2050 and will need to invest in sustainable carbon offset projects. It is important we manage expectations about the how quickly we can introduce new technology and demonstrate the progress being made.
“The net zero challenge is a great opportunity for the aviation and aerospace communities. Delivering the technology and capability that helps deliver the net zero target is an industrial opportunity, that can see us increase the number of high-value, long-term jobs and attract the next generation of engineering talent.”
Priorities for the next UK Government:
“On Brexit we want the closest possible relationship with our EU partners. We want to remain within the European Aviation Safety Agency (EASA) regulatory regime, we want to sustain frictionless trade, we want to continue to participate in important R&D programmes and we want to establish a defence & security relationship that helps keep us safe and secure. Perhaps more importantly we believe all of these are deliverable and in the interest of the UK, Ireland and the rest of the EU.
“We want to continue our successful growth partnerships and step up the investment in productivity improvement, R&D and support for exports.
“We want to see a strong national space programme that brings together our investment in the European Space Agency, new defence & security capabilities, low cost launch and our expertise in satellites.
“And finally, an approach to defence and security procurement that supports value for money for the tax payer and UK industrial and economic success.”