Will the sustainable transformation of the aerospace industry succeed?

The aviation industry is facing the biggest challenge of its time with the urgent need to decarbonize. Increasing pressure to curb climate change is forcing the industry to rethink its dependence on fossil fuels. The fuel consumption of the current generation of aircraft must be reduced by 50% through lightweight construction, digitalization and innovative materials. Even though aviation only accounts for 5% of global CO2 emissions, global passenger air traffic will increase rapidly by 2041 (see figure). Can the industry cope with this development?

Aviation faces the challenge of not only reducing its emissions, but also developing innovative technologies to minimize the ecological footprint of air travel in the long term.

At the same time, solving this environmental problem involves a financial balancing act. Investing in new technologies is not only a quest for progress, but also a necessary response to environmental regulations. Airlines and manufacturers must invest in innovative engines, advanced avionics systems and sustainable fuels to transform the aviation industry. These investments are not just a means to an end, but a crucial response to the challenges of the time. As such, financial investment in new technologies is becoming key to tackling the environmental and economic challenges that are driving the industry.

On the other hand, there is its powerful core, which is based on its exceptional technological position in international competition. Almost 850,000 direct and indirect employees in the German aviation industry are actively involved in the transformation. However, the industry is still being held back by a lack of components and a shortage of skilled workers. According to recent studies, the industry will need over a million new skilled workers in the coming years to meet the growing demand. All companies in the value chain, from manufacturers of efficient drives to aircraft manufacturers, system suppliers and operators of efficient fleets, are in demand to achieve the ambitious goals.

The aviation market is highly competitive. In addition to the established aviation nations, highly competitive countries such as China, India and Brazil are entering the international market and putting German companies under pressure. The latter can only survive in this competitive environment in the long term if they defend and constantly expand their technological leadership in their core fields.

"Climate change will not wait for mankind to intervene to catch up. Rather, we must act together now if we are to unlock the potential of sustainable aviation fuel within an acceptable and effective timeframe."

The German aviation industry must drastically shorten its innovation cycles in order to stay one step ahead of the competition in terms of technology. It is clear that this can only be done together. At the 31st Munich Management Colloquium, we are creating the space to develop joint solution concepts for the German aviation industry.

Airbus

With 661 commercial aircraft delivered in 2022, Airbus is the largest aircraft manufacturer in the world. It is also Europe's largest aerospace and second-largest defense company.

The order situation could not be better for the Franco-German group, but the company is still under pressure. The transformation to green aviation is being pushed by politicians and production is falling short of its targets. The management therefore wants to increase the production rate for the bread-and-butter model A320neo to 75 aircraft per month by 2025. The first hydrogen-powered aircraft is to be developed by 2035. Big plans that can only succeed together with the suppliers.

Diehl

Diehl Aviation, one of the leading aviation suppliers offering aircraft system and cabin solutions as an original equipment manufacturer and upgrades for eco-efficient flying. The order books are well filled for years to come, but production could nevertheless come to a standstill. Supply chain disruptions and a shortage of skilled workers are forcing the company to take action. The Hamburg aviation cluster is working together to find solutions. A new type of production line is to achieve a higher output with the same number of employees. The lightweight construction and efficiency concept runs through all of Diehl's product lines and is a unique selling point for the company. The company is also working on the future: Making hybrid-electric flying more efficient, safer and therefore commercially viable. This can only be achieved together: Diehl is involved in the EnaBle research association in order to research technologies with partners that will ensure the competitiveness of tomorrow.

Rohde and Schwarz

The Rohde & Schwarz technology group is available to its customers worldwide with its product and solution expertise and almost 14,000 employees. With sales of 2.53 billion euros, Rohde & Schwarz has once again reached its pre-corona level. All three divisions, Metrology, Technology Systems and Networks & Cybersecurity, contributed to this positive development.

Innovation and technology have been an integral part of our DNA since the company was founded. This key expertise enables us to push the boundaries of what is possible in cutting-edge technologies such as artificial intelligence, 6G and quantum technology and develop new competitive solutions. Private individuals are also benefiting from the technology. New security scanners at airports are intended to compensate for staff shortages and increase convenience for travelers. Efficient technology - made in Germany - as an answer to the challenges of our time.

Rolls-Royce

Rolls-Royce Deutschland is the only officially approved engine manufacturer in Germany for modern civil and military turbine engines. As an engine manufacturer, Rolls-Royce's aircraft engines have a direct impact on the aviation industry's net-zero emissions targets. On the one hand, fuel consumption can be reduced by double-digit percentages with modern engines and, on the other, engines can be made capable of operating with 100% SAF. The industry, consisting of major airlines, airports, aircraft and engine manufacturers, has joined forces to meet this challenge.

With the UltraFan technology demonstrator, Rolls-Royce delivers a foretaste of the engine generation of tomorrow. With carbon-titanium fan blades, a new architecture and a revolutionary design, one engine delivers the power of up to 500 mid-size cars. A joint venture between the German companies Liebherr Aerospace and Rolls Royce Deutschland has made it possible to develop a new type of power transmission as the heart of the new engine. By working together, the technological expertise of the two companies could be applied at a higher level. Strong together - technology leadership in Germany through networking and cooperation! According to the manufacturer, a combination of highly efficient engines such as the UltraFan and 100% SAF contribute to 80% achieving the Net-Zero target by 2050.

The order of the day is speed instead of stagnation, action instead of sitting it out, cooperation instead of squabbling. How do companies deal with the challenges of today? We will discuss tomorrow's solutions together and you will make important contacts in your professional network. The Munich Management Colloquium is the meeting place for all decision-makers from the DACH region!

Secure your ticket today to be part of the Munich Management Colloquium in March 2024, where managers will discuss and present best practices to ensure the long-term competitiveness of Germany as an industrial location. Participation is free of charge for journalists.