In today’s global economy, if a general aviation company is to remain viable and competitive it must adapt and diversify. Having all of its resources in one country is dangerous to financial growth and in conflict with an increasingly global world economy.
Whether your GA company is rallying and seeks to take that momentum into new markets or sales are down, and you’re exploring new opportunities, now is an excellent time to begin the global expansion process.
The FAAs Vision for a Global Aviation System
In 2010, the FAA established – Destination 2025 – A vision study identifying goals, challenges, and strategies for transforming the future of the US airspace system and the aviation industry as a whole.
In addition to its mission to provide the safest, most efficient aviation system in the world, The FAA is seeking to lead the way toward a seamless global system where air transport across borders maintains a consistent level of safety, efficiency, and sustainability.
To the extent possible, the FAA is working to assist international partners in meeting critical needs such as cooperation in legislation and regulatory requirements, safety and air navigation procedures, infrastructure upgrades and development of sustainable alternative fuels to name a few.
However, each country and region have unique requirements and resource challenges that often frustrate global airspace planning and development, safety collaboration, and sustainability efforts.
To achieve success, the FAA needs GA companies who will come along side to build capabilities that will allow more countries to participate in a global airspace system.
“To maintain or heighten the role of the United States in the development of a high-performance global system over the long term, we must meet the challenge of investing in relationships with our emerging international partners now.”
Like the FAA, GA companies should seek to invest in the global expansion process.
Aviation in Emerging Markets
Several large emerging economies in Asia, the Middle East, Latin America and India are rapidly increasing in air transport activity and demand for general aviation. In several countries within these regions, GA operations and manufacturing capabilities continue to develop in tandem with significant economic expansion.
According to an Oxford Economics forecast …
Over the next 20 years, air traffic will grow at an average annual rate of 5.2% in developing countries. By 2032, the number of jobs supported by aviation and tourism will rise to 67.7, an 83% increase from 2012. Meanwhile, aviation’s contribution to GDP is forecast to grow to $1.7 trillion in the same period, a 167% increase on 2012 figures.
While the US aviation industry will continue to grow, in coming years it will represent smaller overall growth compared to these emerging markets, making now a great time to begin the global expansion process and align with the goals of the FAA.
The First Step in the Global Expansion Process
Global expansion is no easy task. In fact, the various cultural, government and regulatory differences from country-to-country, make international expansion a complicated and time-consuming process.
Though it may seem overwhelming, global expansion provides benefits and rewards that can be significant! And as the FAA is working to establish a long-term global vision and accommodate the increasing role of fast-growing, emerging partners, GA companies are poised to benefit.
The critical first step to growing your business across borders is to talk with someone who has already done so – successfully. To learn how your GA business can benefit beyond borders and contribute to our increasingly global airspace industry, contact BSI. With over a century of experience in international business development, our team can help streamline the global expansion process and move your company into new markets.
No matter how you look at it … Aviation is more than just a vital part of the global transport system, linking communities and businesses with the world — it is a major employer and stimulant to skills development which is essential to economic growth.
Ana Fontes is the Executive Vice President and co-founder of Blue Sky Innovations Group. Ana is a multilingual native of Brazil and an American citizen. She has been working in cross-cultural markets for 27-years providing marketing and consulting services to many international and US-based companies. Ana can be reached at 972-294-5811.