Page 60 - World Airnews February Magazine Edition 2021

NEWS DIGITAL

OPINION: HOW THE PURPOSE OF

AIR SHOWS IS MISINTERPRETED

By Richard Aboulafia

changes. These discussions also are far removed from news the
public sees about Airline X ordering another 20 jetliners.
To paraphrase an advertising industry saying, half of all air Perhaps we do know which air show spending might be wasted:
show spending is wasted, but nobody knows which half. those jetliner sales announcements. And they are probably
I am a fan of air shows, but I understand why to some they seem not anything like half of the business actually conducted at air
like lavish relics of a pre-Zoom/pre-COVID-19 age. The Le Bourget shows. But since these announcements serve a greater common
site and other air shows might have an image problem: The public good—celebrating aviation as a mainstay of the world economy
associates them with flashy announcements of jetliner orders and as a fun activity—they are not really wasted, either. Even from
that were negotiated beforehand and followed by expensive, a noncommunal-good standpoint, these events build brand equity,
well-catered receptions. But the perception that this comprises the if only in nonquantifiable ways.
bulk of air show business is incorrect. The debate over air shows mirrors the broader debate over the
In reality, most business is conducted in the enormous halls and future of business travel. Some believe business travel will not
smaller chalets, where system suppliers promote their displays, regain its previous levels or at least its previous growth rates. This
power units and controls for future applications. Or where smaller view posits that new video technologies, along with the stay-at-
suppliers promote their gaskets, fasteners and coolants for those home habits and slashed budgets brought on by the pandemic, will
systems. Or where the world’s states, prefectures and provinces stay in place, perhaps forever.
promote themselves as ideal sites for building all this equipment. But we need to distinguish between intra-company travel and
Or where all the people who maintain these aircraft and systems customer-facing travel. The former might decline as a result of the
promote their services. pandemic and new technologies coming into greater use. But cus-
In short, air shows are primarily about the enormous and tomer-facing travel—the strong majority of all business travel—is
intricate industry that creates ever-improving platforms and different, and air shows are basically 100% customer-facing travel.
systems. Smart people in my line of work focus heavily on the The truth is that competition continues unabated among primes,
supply chain for a good reason. The white-hot competition behind suppliers and people. When there are no air shows and there is
constantly improving avionics, materials, engines and systems little or no business travel, it is easy to say that your company, or
produces most of the technological innovation and value added you, will not travel as much anymore. But when shows resume
in aviation manufacturing. Airbus’ and Boeing’s jetliner revenues and travel starts up again, if your company tries to sell, market or
are just a fraction of the supplier and aftermarket companies’ total network via remote video conferences, and your competitor shows
output. up in person, your rival will have a strong advantage.
All that supplier innovation helps transform old platforms. A 2021 For customer-facing business travel, the future is simple. Many
Airbus A320neo looks a lot like a 1987 A320, but it burns much businesses will explain their plan to cut costs (and enhance profits)
less fuel, is much easier to maintain and pollutes less, too. The by cutting back on travel expenses, including air shows. They then
equipment that made those improvements possible was discussed, will find themselves losing market share. And individuals—exec-
marketed and rolled out at air shows. The industrial partnerships utives, salespeople, consultants—who do not show up in front of
and investments behind this equipment might have been lined up customers or at air shows will lose relevance. As noted philosopher
at air shows, too. and former professional boxer Mike Tyson once said: Everyone has
The supply chain also is where company fortunes (and owner- a plan until they get punched in the mouth.
ship) change most quickly. Air shows provide opportunities for The views expressed are not necessarily those of Aviation Week.
executives and investors to discuss mergers, divestitures and other Article courtesy: www.aviationweek.com . Q

World Airnews | February Extra 2021
— 13 —