WHO ARE WE?
As part of the world’s leading industrial firm, our team of knowledgeable aviation professionals combines vast experience in both aircraft development and aircraft operations. This unique industry position and unmatched perspective enable us to understand how aircraft OEMs develop products and services, how airlines grow fleets and networks, and how the aviation market must evolve to meet the needs of an ever-changing world.
MHIRJ Commercial and Aero Advisory Services
A MARKET LOOKING FOR A NEW SET OF SKILLS
Commercial aviation is a complex industry.
In an environment where our customers constantly make long-term strategic and capital-intensive decisions, not only do they need additional capabilities to analyze and understand all the complex data that is becoming available, but they also need to rely on people who can help them see the full aviation sector picture.
Through advanced data analytics interpreted by people who have a 360° view on the business, MHIRJ Aero Advisory Services provides objective perspectives: from analyzing future market requirements to supporting a fleet in service, from understanding airlines’ key success factors to making the right aircraft financing decisions.
All this without being partial.
A STRONG ANALYTICAL EXPERTISE
Our team of aviation experts have an in-depth knowledge of the industry from both an OEM and an airline standpoint, with many years of expertise on how an aircraft OEM develops products and services, how airlines grow fleets and networks, how the aviation market evolves and what trends emerge.
A VAST COMMERCIAL EXPERIENCE
Aircraft transactions may be infrequent and complex, while at the same time carrying a disproportionate impact on airlines’ long-term success. Our aircraft acquisition team members come from OEMs, airlines and lessors, bringing years of seasoned negotiation expertise from both the “buy-side” and “sell-side”.
MITSUBISHI HEAVY INDUSTRIES, A UNIQUE PLAYER
As a major aircraft OEM with an extensive MRO and in-service fleet experience and the backing of one of Japan’s largest industrial groups, MHIRJ is well equipped to support commercial aviation businesses worldwide with all the necessary data, analysis and market knowledge they need to grow and prosper successfully.
AIRLINE NETWORK STRATEGY
The key to every airline’s success and profitability is its network strategy. From developing entirely new networks to optimizing existing ones and more, at MHIRJ Aero Advisory Services, our professionals have developed effective network strategies for airlines worldwide.
By defining or refining a carrier’s network strategy, we’ll also help you form the basis for many other critical strategic decisions, including fleet planning, mergers/acquisitions, restructuring and strategic partnership evaluations such as global alliance membership.
Forecast of the market size development, at country or airport level, for specific or regional markets.
NETWORK STRUCTURE OPTIMIZATION
Design and optimization of a carrier’s network structure (hub vs. point-to-point, frequency policies, etc.).
Number of waves, size and directionality of connecting banks at major hubs.
AIRCRAFT UTILIZATION/ SCHEDULE OPTIMIZATION
Strategic planning and optimization of aircraft rotations.
MARKET STRATEGY EVALUATION
Market and economic assessment of a given commercial strategy.
AIRLINE FLEET & PRODUCT STRATEGY
Although aircraft transactions can be infrequent, they are complex and can substantially impact an airline’s long-term success. For that reason, it’s vital to have an experienced partner on your side. Through an aircraft acquisition team consisting of professionals who come from OEMs, airlines and lessors, we bring seasoned negotiation expertise from both the “buy-side” and “sell-side”. Leveraging our experience and knowledge, we help client management teams make fleet and product acquisition decisions aligned with their financial and strategic goals.
AIRLINE COMPETITIVE ASSESSMENT
Complete assessment of an airline market environment.
AIRCRAFT SELECTION & ACQUISITION
Support for the selection, purchase and financing of aircraft.
AIRCRAFT RE-MARKETING & TRADING
Spotting and negotiating the right aircraft for acquisition or finding the best customers for assets to be disposed of.
AIRCRAFT CABIN LAYOUT OPTIMIZATION
Optimize cabin layout for passengers to generate maximum revenue.
AIRLINE COST & REVENUE OPTIMIZATION
Backed by our proprietary network planning tools, our in-depth understanding of the aviation market dynamics, competitive positionings, underlying market sizes and traffic flows, allows us to deliver immediate short-term and longer-term cost and revenue optimizations as well as comprehensive multi-year revenue forecasts.
FLEET MIX OPTIMIZATION
Flying the right aircraft on the right segment and evaluating the best fleet mix to reduce operating costs for a given network and revenue strategy.
Route profitability assessment and identification of the right-size aircraft to generate maximum revenue and profit.
START-UP BUSINESS PLAN
Design of a 5-year roadmap describing the optimal network (destinations and frequencies) and associated fleet. Evaluation of different scenarios and strategies, including detailed forecasts on traffic, market share, and load factor.
Evaluation of the network and commercial impact of strategic partnerships with other airlines.
BANKS & LESSORS FLEET AND MARKET STRATEGY
Our team is comprised of ex-senior executives of aircraft manufacturers and former executives from well-regarded airlines and aircraft lessors. Their depth of knowledge and past experience enables them to understand the complex interactions between network and fleet strategic planning, and quickly assess the potential implications of various fleet strategies such as the introduction of new and/or replacement aircraft types.
MARKET TRENDS AND BUSINESS OPPORTUNITIES
- Analysis of airlines’ business models evolution.
- Analysis of fleet & network evolution and market trends.
AIRCRAFT AND ENGINE SELECTIONS
- OEM Analysis: evaluation of aircraft types, supply/demand of aircraft, lessor positions, production rates, gathering of market intelligence.
- Monitoring of OEMs’ technology roadmap and impact on future fleet development.
COMMERCIAL & OPERATIONAL FIT INDEX (COFI)
- Best Aircraft type to fit into an Airline Strategy and Planning.
- Assessment of the adequacy between an aircraft type and an airline network, providing a view on the operational contribution and importance of an airline fleet.
AIRPORT DEVELOPMENT STRATEGY
Air service development has become one of the most competitive segments in the aviation industry. As a result, more airports and their communities today find themselves vying for business from airlines with greater intensity than ever before.
Airports of all sizes understand the need to pro-actively communicate with airlines in their efforts to attract new flights and maintain existing services. We can help airports create and implement successful air service development strategies through our depth of airline experience and detailed knowledge of how airlines make route decisions.
Analysis of strategic developments in the areas of privatization/concession, capacity development, financing, new airport site selection, airport fees policy, and airport slot policy.
MARKET AND AIRLINES INSIGHT
Creation of market studies for air traffic development report as well as passenger flows, route dependency and contribution to external network assets (hub, sub-fleet, other routes), feed analysis, etc.
AIR SERVICE DEVELOPMENT
Identification on a case by case basis of potential route openings, and creation of business cases for each route/airline candidate pair (traffic, load factor, cost and revenue projection, frequency and aircraft type requirement).
Elaboration of argumentation to convince airline customers and secure their business.
Creation of market potential analysis, establishment of traffic forecast and definition of infrastructure requirements.
Different levels of segmentation possible (International /Domestic, by aircraft category/ ICAO Cat.).
OEM AND AVIATION VENDORS MARKET STRATEGY
To say that launching a new aircraft program or a derivative is a complicated and costly endeavour is an understatement. These types of decisions are critical and will have a lasting impact up and down the value chain.
That is where we can leverage our vast experience and understanding of the market to help aircraft supplier management teams make the best product development decisions.
MARKET TRENDS & STRATEGIC MARKET DEVELOPMENTS
Forecast of market evolutions such as scope clause agreements, new regulations, governmental policies. Fleet and network evolutions analysis, impact of crises and upturns, identification of market challenges and opportunities, market potentials linked to fleet developments.
Identification of product / aircraft strengths and weaknesses relative to competition and market needs, evaluation of market potential for new aviation products or services.
PRODUCT STRATEGY ADVISORY
Consolidation of customer requirements to adapt services and product features, analysis of product positioning, definition of top-level aircraft requirements, elaboration of business cases for new developments. Evaluation of product development processes and identification of solutions to better achieve market-matched products or services.
Development of value-selling argumentations and impactful presentations to your customers.
TRAINING & EXECUTIVE SEMINARS
With a 360º view of commercial aviation that covers all stages of an aircraft’s lifecycle, our team of experts at MHIRJ Aero Advisory Services can provide your company with a holistic as well as a regionally focused perspective on the aviation landscape. Our commercial aviation seminars offer a deep understanding of how an aircraft OEM develops products and services, how airlines develop their fleet & networks, and what trends have emerged in commercial aviation in recent years.
AIRLINES’ BUSINESS MODELS EVOLUTION
The core business of an airline is not to carry passengers; it is to make profit by carrying passengers. How do airlines maximize profitability? Does lower seat cost imply higher profit per pax? Which corporate culture is better suited to ensure a clear path to profitability?
AIRLINES’ FLEET & NETWORK EVOLUTION AND MARKET TRENDS
A network reflects an airline’s product positioning and aircraft fleet mix.
OEMs provide aircraft. Airlines provide networks.
But what comes first, the aircraft or the network? How do airlines grow and optimize their fleets and networks? How do they adapt, leverage, anticipate continuously evolving market conditions?
AIRCRAFT & ENGINE OEM COMPETITIVE BENCHMARK
Launching a new aircraft program or a new engine is a complex and costly endeavour. What lessons have been learned from the most recent program developments, what are the different technology roadmaps proposed today by the aircraft and engine OEMs, and what will be the impact on future fleet developments?
With a unique blend of consulting skills, market and OEM data and aircraft trading expertise, MHIRJ Aero Advisory Services brings advanced yet practical expertise to airlines, airport authorities, equipment manufacturers and others in the commercial aviation industry.
MHIRJ Aero Advisory Services helps its aviation clients react quickly and accurately to changing industry conditions and implement the most effective strategies and tactics in the world.
TRANSFER OF KNOWLEDGE AND EXPERIENCE
MHIRJ Aero Advisory Services has a unique positioning in the industry as a major aircraft OEM, a key aircraft financing player but also as an MRO with a vast in-service fleet, providing all the necessary data and market knowledge needed to develop new businesses in commercial aviation and to deliver value long after the project is complete.
Such extensive experience allows us to quickly identify critical challenges and opportunities and provide the best solutions using the right data, tools, techniques and strategies. Our unique set of tools will help our customers predict and monitor the impact of crises and upturns, identify fleet and network requirements or product development opportunities, and quickly determine market potentials linked to fleet developments or future market trends.