Hello, AIAM Business Community,
After an unprecedented drop, air travel is experiencing a steady rebound. For nearly five decades air travel has doubled every 15 years, despite major global economic factors including the oil crisis of the 1970s, the Gulf War, 9/11, SARS, and the global economic crisis in 2008. At AIAM, we’re not only predicting a comeback but an overall expansion of the industry when advanced air mobility and the commercialization of space are considered.
Air travel in the United States is on pace to reach pre-pandemic levels soon. TSA checkpoint data reveals over 2.1 million travelers took flight in the last days of June. This is compared to the 2.6 million who traveled via air during the same time in 2019, in a pre-COVID-19 world. Remarkably, the 2021 numbers reflect a comeback of over 80% since travel restrictions were implemented in 2020.
Prior to COVID, Airbus and Boeing were forecasting the need for 39,000 and 42,000 new commercial aircraft, respectively, would be required over the next 20 years. It will take time to determine whether these estimated production rates will reach this level. However, it will be sizable. The value is approximately $6.3 – 6.5 trillion USD and roughly 65% of this is in the supply chain. Michigan is the supply chain, which suggests a significant opportunity for companies in our state.
It’s encouraging to see the confidence return in air travel. As trust increases, our state will continue to be positioned as a leader in the industry. And this is great news, as the number of aerospace companies in Michigan continues to grow and support the demand.
AIAM is developing and planning several in-person events as everyday life regains a sense of normal. We hosted our first Aerospace Industry Luncheon since the pandemic shutdown at the Spirit Airlines hangar, the “Spirit of Detroit” on August 3rd, and the Women of AIAM are getting together on September 9th for a networking dinner. An AIAM Legislative Day will be held at the Speaker’s Library within the Michigan Capitol building in Lansing on October 19th. Our Aerospace Technology Expo is returning and will be held at Grand Valley State University’s Eberhard Center on November 3rd.
We hope you will consider participating in one of these premium networking events and take advantage of the opportunity to build meaningful business relationships. As always, I truly appreciate your continued partnership and look forward to working with each of you.
Sincerely,
Tony
