Aviation Market Case Studies

New Market Assessment Maintenance Repair and Overhaul (MRO)- Cargo Conversion

STS client, a leading provider of structural and prefabricated solutions for commercial aircraft, was seeking to broaden its business into the growing third-party MRO (Maintenance, Repair, and Overhaul) market. Its goal was to provide passenger-to-freighter conversion of certain airframes, and related heavy airframe maintenance. Client had many questions including feasibility and sustainability of its business model; logical, adjacent MRO segments to include in its offering mix; competitive capacity and profitability; industry perceptions of Client; and key requirements for success, growth options, and profitability associated with logical roll out and expansion scenarios.

STS conducted a detailed analysis of key airframes, major MRO segments, characteristics of existing third party MRO business models, and most important factors driving airlines to outsource MRO. STS approach involved connecting prior in-house STS project experience, analyzing published data on the emerging MRO market, and conducting extensive primary research interviews with key STS aviation contacts to truly understand customer requirements, competitive offerings and experience, and best growth pathways for client. STS ultimately recommended that client expand beyond an aircraft-conversion business to include several related MRO enterprise offerings.

Client was able accelerate its strategic planning timetable by nearly eight months. This was a direct result of STS final report which simplified a highly complicated and multifaceted market. Client in turn greatly accelerated its knowledge and understanding of key options, making supportable choices on business directions, which today are the foundation of a very successful business.

Technology Trend Evaluation- Aviation Maintenance Composite Aerostructures

A leading provider of non-composite aerostructures was interested in assembling detailed research and analysis regarding market reaction to a specific new passenger aircraft in development by a major aircraft manufacturer. This new design utilized a much larger proportion of composite material compared to traditional airframes. Client needed to better understand airline maintenance and third party MRO expert views of composites. Client also asked STS to develop its own original comparative life-cycle maintenance cost calculation for the new airframe in comparison with an existing 767 airframe built with traditional non-composite aerostructure materials.

STS conducted a detailed research assessment among key contacts at leading airlines worldwide regarding their views on composite material advantages and disadvantages. At the same time, STS built a side-by-side trade-off examination analysis comparing this new airframe to the average useful life of a 767 aircraft. 25 key measures were isolated out related to aircraft dynamics, weight, flight operations, comfort, and other operating and cost issues.

With STS detailed analysis, backed by direct and detailed comments from leading maintenance experts at leading world airlines, STS client was able to better understand the nature and potential impact of this change at a critical early stage. This vital "reality check" enabled the client to immediately utilize this STS direction to plan future choices, define where it should concentrate, and shift its focus.

Technology Trend Evaluation- Aftermarket Avionics Market Analysis-Business Jets

Aviation electronics client, with dominant share in a number of product areas, required a detailed update from a cross-section of key customers on adoption and timing associated with aftermarket add-ons required by regulatory mandates. Client was seriously concerned about emerging competitors who were positioning to take market share with new products and configurations designed to be direct upgrade substitutes for STS client offerings.

STS assembled client areas of interest into a segmented spreadsheet, identified a list of ten key experts in sector, and completed extensive primary research on a number of key topics to accurately and reliably understand market and competitive drivers and changes. This included key factors such as aftermarket size, adoption rates, timing, decision process, product preferences, and other key metrics.

STS client was able to quickly and reliably identify areas of potential weakness, better understand competitive threats, and take both offensive and defensive action from a sales and marketing standpoint to protect and grow its business.

New Market Assessment-Aviation Market Convergence-Aircraft Systems Impact

A leading supplier of commercial aircraft systems in all segments (Air Transport, Regional, Business) required a detailed assessment of the emerging "point to point" trend compared to traditional "hub and spokes". This trend was significant to which airframes would be in demand for future airline fleet acquisitions, and STS client required a clear assessment of the extent to which "point to point" air travel would drive major airline service strategy.

STS assembled a wide variety of research data by world region, and airline operating routes, conducting primary research with key individuals responsible for airline planning and aircraft acquisition. Reliable statistics were gathered in combination with direct feedback on key issues from airline operators, airports, major OEMs, and leading air travel trade associations. This allowed STS to statistically quantify future market changes, growth, and segmentation; predict most-likely fleet planning and aircraft acquisition outcomes, and relate this back to strategic business implications for STS aircraft systems client.

STS client was able to finish its "point to point" strategic assessment-implications segment of its annual strategy plan one month ahead of schedule. Based on STS research, client had greater confidence in making decisions regarding both offerings and sales strategies in its total plan for that year.

New Product Acceptance-Aviation-Flight Management System

A major provider of integrated systems for large passenger aircraft was concerned about slowness of sales and lack of customer interest in a new upgrade-replacement flight-management system launched 18 months prior. Customers appeared reluctant to adopt this new offering, and sales achievement was significantly below plan. STS client had some suspicions resulting from sales force input, but needed third-party validation from an outside aviation market research expert.

STS independently assembled its own secondary statistics on current installations, competitive share, and other data to recalculate available market size and growth estimates. STS also interviewed 35 key airline decision makers in various functional roles (maintenance, flight ops, engineering) to assess market conditions, changing needs, and reactions to this system and similar offerings.

Based on STS research, client discovered several key drawbacks in its design and sales strategy, and was able to make necessary modifications to restore critical sales momentum. Detailed, independent feedback from STS research enabled client to better understand the problem, and ultimately help reassure customers who had purchased that client was sincere about addressing the total problem. Result: Client was able to recover and achieve 90% of its original sales projection after making key changes.

New Market Assessment-Aviation-Owner-Flown Aircraft Avionics

Leading provider of avionics solutions for Air Transport, Regional, and Business aircraft required an update assessment of available market size and competition in the general aviation, owner-flown segment. This included light singles, heavy-performance singles, and twin airframes. Increasing sophistication of small aircraft avionics was creating a larger, higher margin opportunity in this segment, and STS client needed to better understand key underlying factors.

STS developed a logical partitioning of the market within six key private aircraft segments, broke this further into seven avionics categories, and developed a detailed roadmap report based on available statistics and direct interviews with aircraft OEMs, installation and mod houses, and other aftermarket experts. Final report included a detailed summary of current and future market size, underlying market drivers and constraints, competitive positions within both products and segments, and relevant conclusions.

STS client was able to quickly define the highest opportunity spaces where it should place greater or less emphasis, and directly inserted STS analysis into its business sector strategic planning, thus accelerating its internal process by over two months.

New Product-New Service Acceptance Research-Aviation In-Flight Information and Entertainment System

A major manufacturer of aerospace electronics and display systems was seeking to diversify its business in the advanced passenger airline systems' market. Internal marketing and engineering had developed a preliminary system concept which incorporated GPS, SATCOM, Internet, and other airborne and ground-based links to both passenger and aircraft management applications. Client management however was resisting further internal investment until a detailed market assessment was conducted to determine potential acceptance STS worked with client to compose a detailed illustration of its system concept, covering features, functionalities and benefits to the user. STS then conducted in-depth market research with 50+ key decision makers to gain insight on potential purchase interest at several levels.

STS research assessment directly helped to guide client's decision making behind this potential entry at a critical development stage. Several key design features were modified as a result of the input, specific customer target segments were spotlighted as having greatest purchase interest, and feedback on pricing and other revenue stream potential greatly assisted internal client efforts.

Project provided critical guidance for company's diversification and set stage for new business expansion beyond traditional core avionics market.