1. Customized Maintenance in the Cabin Panel Session
Brian Kough
Director of Forecasts & Analysis
Aviation Week
Arlington, VA

2. Forecast 10-Year Demand IFE & Modifications Grow at 4.8% CAGR
Over $26 Billion Worldwide Market
Worldwide, IFE & Interior modifications between 2016 & 2025 are expected to produce $26 billion in requirements according to the new 2016 commercial forecast.
These expense categories grow at a 4.8% annual rate over that period.
Cabin refreshes, historically done to make old new again, have taken on a more strategic significance in the past few years. Carriers are using “slimline” seats to boost capacity, lowering costs by boosting per-trip revenue without adding fixed costs, such as additional departures or crew members. Full-service carriers are investing in premium seating as a way to set themselves apart. The demand has interiors suppliers hopping. In the case of seat supplier Zodiac, Production and supply-chain challenges resulted in a 6,000-seat backlog in March 2015, and led to several new-aircraft delivery delays. The company reorganized and implemented aggressive measures—including flying seats to OEMs for installation—to help clear the backlog.
Zodiac’s challenges—not expected to be cleared up before late 2015 or early 2016—underscore the pressure on supply chains and the potential effects on airlines.

3. Regional Forecast Requirements for IFE & Interior
Western Europe
Demand Ranks 3rd
$4.7 billion total, 18% share of market
IFE = $1.5 billion
Interior = $3.2 billion
Others:
Asia Pacific leads in IFE modifications
Middle East leads in Interior modifications
Aircraft connectivity is another area to watch in the next few years.
While carriers are well on their way to outfitting cabins with Wi-Fi to satisfy inflight entertainment demands, other roles for connectivity—from flight-tracking to providing key operations and maintenance data to the crew and the ground—are emerging to satisfy those needs.
Since we’re at MRO Europe, I thought we’d quickly look at Demand here compared to other regions:
Western Europe ranks 3rd regionally and its 18% share of the market amounts to $4.7 billion over the next 10-years.
Asia Pacific region is the overall leader in IFE requirements $2.4 billion, growing at 5.1% annual rate.
The Middle East leads in Interiors Modifications at $4.3 billion, growing at a whopping 11.3% annual rate.