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INDUSTRY OUTLOOK 12 JANUARY/FEBRUARY 2017 AIRCRAFT MAINTENANCE TECHNOLOGY buyers to enter into all-inclusive 'aftercare' packages, rather than engage with different MROs on a case- by-case basis. While OEMs see a positive long-term revenue outlook here and are breaking even on new platforms faster, the buyer must accept that, given the level of IP protected technologies on-board, the OEM is better placed to manage this than any third- party MRO. While for the older programs, OEMs are disrupting the direct component/part supplier chain by trying to become super suppliers. If we try to understand the effect based on the "type of the operator": smaller and newer ones will be more willing to be a part of OEM 'aftercare' packages, so they focus on their operational efficiencies and save their base maintenance CAPEX. Larger ones, who tend to have their own MROs for component and base maintenance and drive their operational costs down through direct component/ part supplier sourcing, will now look toward OEMs for part supplies. With the newer platforms still set- tling in, it will be interesting to see how traditional third-party independent MROs face this disruption. THE TECHNOLOGICAL REVOLUTION IN THE AFTERMARKET The aftermarket is also where we are going to see digital transformation have the most impact. In 2017 we will continue to see sizable investments going into big data and analytics. This will focus on developments in health monitoring, predictive maintenance, and driving efficiencies throughout the MRO ecosystem, as Tier 1 suppliers look to improve reliability, reduce main- tenance costs, and increase business visibility across their network. Digital solutions are at the center of this, with mod- ern aircraft producing upwards of half a terabyte of data per flight. Sifting through this information to uncover useful, actionable intelligence is crucial. This is because data-driven decision making, when applied to traditional maintenance procedures, drives efficien- cies, improving and even preventing costly operations as a result. A practical example of this is seen in predicting maintenance requirements. Using data transmitted from sensors throughout the aircraft systems and subsys- tems, in line with preprogrammed safety parameters, maintenance crews can foresee the requirements of an asset before an incident occurs. As this technology develops, we'll soon have the ability to stream this information in real-time, while the plane is in flight, so teams on the ground will have access to immediate maintenance requirements, and can be ready with the appropriate solution before the plane has even landed for inspection. New players are breaking into the market and the search for real-time health monitoring of the entire aircraft and predicting unforeseen maintenance require- ments could dramatically reduce costly aircraft on ground incidents and maintenance costs. THE RISING CHALLENGE FROM THE EAST Though not an immediate concern, the industry is keeping a careful watch on new entrants to the market and the customer receptiveness to newer platforms like the Bombardier C-Series. However, the question on everyone's minds moving beyond 2017 to the next 10 to 20 years, is "What plans does China have for the aerospace market?" While the introduction of Asian platforms like MRJ, ARJ, Comac (C919, C929), and CJ series of high bypass turbofans bring some fresh air, sooner or later we could soon see China raising its head above the parapet with genuine contenders to challenge traditional Tier 1 supplier platforms. If executed correctly, new entrants from China have the potential to transform the way that planes are sold and disrupt the entire lifestyle of the aircraft — from manufacture through to delivery and maintenance. With aggressive pricing, and by leveraging their large cash surplus to upend current leasing models, Asian aerospace companies could pose a threat in new markets like Africa, using this base to launch into the more established European and American markets. As technology continues to transform the way the aerospace industry manufactures, sells, and main- tains its aircraft, companies throughout the supply chain must evolve, and fast! One thing is for sure, 2017 is set to be an exciting and turbulent year, and it will be fascinating to see how the race for aircraft production unfolds. ANAND PARAMESWARAN, Sr. Vice President Aerospace & Defense, Cyient. Anand heads the Aerospace and Defense business unit. Anand received a degree from Birla Institute of Technology and Science (BITS), Pilani, India. In 2017 we will continue to see sizable investments going into big data and analytics.