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Shortage of Skills in
European Business
Aviation
In cooperation with
Commissioned by:
2 © Copyright 2016, Korn Ferry
1 Table of Contents
1 TERMINOLOGY 5
2 EXECUTIVE SUMMARY 6
3 DYNAMIC, DIVERSE, REGULATED: BUSINESS AVIATION IN
CONTEXT 10
3.1 WHAT IS BUSINESS AVIATION? 11
3.2 TECHNOLOGY TRENDS 17
3.3 THE REGULATORY SITUATION 18
4 BUSINESS AVIATION WORKFORCE: MOSTLY CLEAR, POSSIBLE
STORMS AHEAD 25
4.1 STRENGTHS AND WEAKNESSES 26
4.2 MAPPING THE SECTOR’s KEY ROLES 27
4.3 WORKFORCE SIZE 29
4.4 WORKFORCE STRUCTURE AND SIZE Across Europe 30
4.5 AGE AND DEMOGRAPHIC CHANGES 32
4.6 GENDER BALANCE 34
4.7 LOVE IT OR LEAVE IT: ATTRITION AND MOBILITY 36
4.8 USING EXTERNAL RESOURCES 37
4.9 CAREER OPPORTUNITIES 37
4.10 HR POLICIES AND OPERATIONS 38
4.11 AN ATTRACTIVE SECTOR… IN NEED OF VISIBILITY 39
5 ARE OTHER SECTORS BETTER PREPARED? THE SITUATION IN
COMMERCIAL AVIATION 47
6 BUSINESS AVIATION WORKFORCE: SEGMENT BY SEGMENT 52
6.1 BUSINESS AVIATION WORKFORCE: THE BIG PICTURE 53
6.2 OPERATORS 55
6.3 MROs 61
6.4 FBOs 66
6.5 AIRPORTS 70
6.6 MANUFACTURERS 75
7 COMPETING FOR CAPTAINS, PILOTS AND TECHNICIANS -
CRITICAL ROLE SHORTAGES 79
7.1 IDENTIFICATION OF CRITICAL ROLES AND SKILLS 80
7.2 WORKFORCE DRIVERS 81
7.3 WORKFORCE RISKS 82
8 WEATHERING THE STORM: HOW TO CLOSE WORKFORCE
GAPS 84
8.1 CURRENT PROGRAMMES TO CLOSE WORKFORCE GAPS 85
3 © Copyright 2016, Korn Ferry
8.2 POTENTIAL SOLUTIONS 88
8.3 COST, FUNDING AND IMPACT OF SOLUTIONS 107
9 METHODOLOGY 111
9.1 OVERVIEW OF APPROACH 111
9.2 INTERVIEWS 111
10 APPENDIX 113
10.1 REFERENCES 113
10.2 ACRONYMS 119
10.3 JOB FAMILY FRAMEWORK 120
10.4 BUSINESS AVIATION IN OTHER REGIONS 125
10.5 EDUCATION AND TRAINING IN BUSINESS AVIATION: DEMANDING,
REWARDING – AND HIGHLY SPECIALISED 135
11 CONTACT THE AUTHORS 146
4 © Copyright 2016, Korn Ferry
TIME FOR CHANGE Business Aviation is facing a future workforce shortage that will heavily affect an industry with scant awareness of this fact
5 © Copyright 2016, Korn Ferry
1 TERMINOLOGY
Term Description
Commercial Aviation
Scheduled flights that are performed according to a published timetable and can be booked by individuals.
Dispatcher Role that plans flight routes, schedules and dispatches crews and equipment.
Engineer Professional, chartered, or incorporated engineer with a scientific training and a university engineering degree. Designs and builds complex
products, machines, systems or structures.
Graduate A person who has successfully completed a course of study at a university or other higher education entity.
Job family Roles are incorporated in a job family that includes a number of different levels of the same type of work.
Role Set of jobs that have the same purpose and type of accountabilities, such as an engineer or pilot.
Skill Skills are required competencies (and levels) for specific roles.
(Aircraft Maintenance) Technician
Licensed role for carrying out aircraft maintenance. Technicians perform, supervise, and inspect maintenance; preventive maintenance; and alteration of aircraft and aircraft systems.
6 © Copyright 2016, Korn Ferry
2 EXECUTIVE SUMMARY
Study Parameters
Korn Ferry Hay Group, with the support of Booz Allen Hamilton, conducted
a study on skills shortages in the European Business Aviation sector on
behalf of the European Business Aviation Association (EBAA), between
August 2015 and May 2016.
Study aims and objectives
Investigate whether there are currently skills shortages within the
European Business Aviation sector
Examine the likelihood of future workforce shortages within Business
Aviation
Evaluate the impact of workforce skills shortages in the present or in
the future
Assess workforce situations on a regional basis, through undertaking a
comparative study of Europe, North America and Asia
Gauge the attractiveness of a career in Business Aviation to students
and graduates
Appraise the validity of proposed solutions to workforce shortages
within the sector
Key Findings
Little awareness of workforce shortages within Business Aviation
Although there is some awareness of current skills shortages within the
Business Aviation sector – particularly concerning pilots and maintenance
technicians – this is not widespread. Smaller companies in particular focus
on their immediate employment needs, showing little concern for key
sectoral skills shortages.
Evidence of increased demand for highly skilled aviation
professionals
Aviation industry statistical data forecasts growth in commercial aviation
with a commensurate increase in demand for specialised aviation
professionals, including those roles most highly sought by European
Business Aviation companies.
Airlines seem more aware of the growing competition for specialised
employees, and so are more likely to take measures to attract pilots and
technicians, who are in great demand.
Smaller Business Aviation operations generally do not have the Human
Resources set-ups to attract those aviation professionals who are in
greatest demand, particularly when facing competition from commercial
and regional airlines.
7 © Copyright 2016, Korn Ferry
Supply of the most highly valued aviation skills likely to tighten in the
coming years
The supply of highly trained, technically specialised employees is
diminishing in Europe. The number of students in STEM (Science,
Technology, Engineering and Mathematics) subjects in higher education
continues to fall in Europe, despite increasing demand for STEM-qualified
graduates in sectors such as aviation.
Low attrition rates and high levels of employee loyalty may be mitigating
awareness of imminent workplace skills shortages in Business Aviation.
Competition for highly skilled aviation professionals set to intensify
Airlines appear more attentive to the fact that competition for highly skilled
aviation professionals is likely to intensify as workforce shortages become
more evident. Technological developments in aviation will mean that the
skillsets and job requirements of key professionals, such as pilots and
technicians, will rise, increasing competition for these highly skilled
professionals as the aviation sector continues to grow.
Regional differences in demand and availability of skilled aviation
professionals
In regions where airlines growth is most rapid, demand for certain skilled
aviation professionals will increase considerably in the coming years.
•Growth in demand by commercial airlines, especially for pilots and technicians
•Stagnant or slightly decreasing demand in Business Aviation
•Rising demand for technical jobs in other sectors
•Regulation leads to additional demand
•Technology development will probably lead to slight decrease in demand
•Shrinking workforce in Europe
•Stagnant student numbers in STEM subjects
•Low female ratio in aviation
•Shrinking supply from military as key source of critical jobs
•Major differences in workforce availability between countries (demographic change, technical education)
Wo
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em
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Wo
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8 © Copyright 2016, Korn Ferry
Creating Solutions
The following proposed solutions focus on the levers that influence skills
acquisition and aviation workforce supply.
Increase awareness of workplace skills shortages in the Business
Aviation Sector
Develop a sectoral-wide campaign throughout Europe’s Business
Aviation sector aimed at increasing awareness of workplace skills
shortages, clearly showing how this issue will have a negative impact
on the industry if not addressed immediately
Raise consciousness of regional dimension of workplace skills
shortages, which will need to be addressed strategically on a regional
basis
Make European Business Aviation sector a more attractive career
option
Launch common employer branding activities with other aviation
stakeholders
Create a package of measures to attract more talented aviation
professionals toward Europe’s Business Aviation sector
Build a compelling sectoral brand, through a programme of branding
and marketing activities, that will make Business Aviation a more
attractive proposition to the highly skilled, technology savvy aviation
professionals who are increasingly going to be in great demand
9 © Copyright 2016, Korn Ferry
Increase in-house training and educational opportunities
Increase the availability of in-house training and educational
programmes to further strengthen employee loyalty
Ensure current employees stay ahead of the curve of technological
developments within aviation
Engage with universities and technical institutes to ensure that highly
skilled STEM graduates are steered toward an attractive career in
Business Aviation
Work towards creating a talent pipeline of motivated young people to
be channelled toward rewarding and challenging jobs within Europe’s
Business Aviation sector
Encourage the development of HR capacities
Help Europe’s Business Aviation companies develop their Human
Resources activities in order to be more proactive in attracting the
highly sought-after, technologically trained professionals to fulfilling
careers in Business Aviation
Encourage and assist HR professionals to make Business Aviation
more attractive to female students and graduates, who are under-
represented in STEM subjects
Promote greater awareness of the potential for increased gender
diversity within Business Aviation as it makes good business sense
Boost good practices within Business Aviation in order to better retain
valuable staff, particularly as competition among the airline sectors for
experienced technicians and pilots will increase significantly in future
10 © Copyright 2016, Korn Ferry
3 DYNAMIC, DIVERSE, REGULATED: BUSINESS AVIATION IN CONTEXT
SUMMARY
Business Aviation in Europe is diverse, in the process of consolidating, and
with new operator business models emerging. Contrary to commercial
aviation, Business Aviation industry stakeholders are expecting low growth
or stagnation. The sector is quite small compared to other aviation
segments and its workforce developments will largely be shaped by the
larger aviation sectors. Business Aviation will have to adapt accordingly.
Technological developments, such as digitization, new production methods
and types of materials, and increased automation, present a mixed picture.
Certain developments will mean fewer people are needed, while some jobs
will require additional people and different skillsets. For example, more IT
jobs will need to be filled moving forward, whereas people with those skills
are relatively scarce in Business Aviation.
Regulations present a mixed picture as well, in that some countries are
more rigorous when it comes to implementing EU EASA standards and
others exploit perceived loopholes. EBAA should continue to advocate less
burdensome regulations for the sector. The growing importance of security
issues means more people may need to be employed in these areas.
11 © Copyright 2016, Korn Ferry
3.1 WHAT IS BUSINESS AVIATION?
Business Aviation is defined as the usage of an aircraft “to carry personnel
and/or property to meet the transport needs of officials of a business, firm,
company, or corporation.”1 Business Aviation competes with commercial
aviation and its services; but what makes Business Aviation unique is that it
takes its passengers ‘where they want to go, when they want to go’. It
offers its users a significantly higher level of flexibility and productivity.
Figure 1: Business Aviation Structure
Commercial Air Transport is a commercial operation whereby aircraft
transport passengers or cargo. It is divided into two subcategories:
Scheduled and Non-Scheduled flights. Scheduled flights take place in line
with a published timetable and can be booked in advance. Non-scheduled
flights are offered by a Business Aviation operator and can be booked on
demand by individuals or a company. In this case, the client has no
ownership of the aircraft. This segment is called Commercial Business
Aviation.2
General Aviation covers all civil aviation operations other than Commercial
Air Transport. Non-commercial Business Aviation has three subcategories:
Fractional Ownership, Owner-Operated, and Corporate Business Aviation.3
1 ICAO (2009)
2 ICAO
3 IBAC & ICAO
“The core offer
of Business
Aviation is a
transformation in
the level of
flexibility and
responsiveness
users gain
compared to
scheduled
airlines.” (Oxford
Economics)
12 © Copyright 2016, Korn Ferry
Fractional Ownership refers to a number of different parties owning and
sharing an aircraft and employing a crew to staff it. Owner-Operated and
Corporate Business Aviation can be categorised as In-House Aviation and
describe all non-aviation companies or individuals operating their own
aircraft to support their daily business.
The above definition of Business Aviation is officially used by the
International Civil Aviation Organization and the International Business
Aviation Council.
For the purpose of this study, Business Aviation is defined as an industry
that “represents on demand, non-scheduled operation of aircraft with less
than 19-seat capacity”4. The study does not regard the Business Aviation
market as only comprising aircraft and the companies and individuals using
them. Other stakeholders are considered in this analysis, as well, as they
play an essential role in Business Aviation, providing aircraft operators with
products and services.
3.1.1 FOCUS ON THE REGIONS
Business Aviation is present in most European countries. However,
distribution of revenue and workforce across the continent is uneven. The
vast majority of Business Aviation employees are based in France,
Germany, UK, Italy, Switzerland, Spain and Poland.
Figure 2: Employment by country size
This study focuses on the markets of the EU9 countries: the UK, France,
Belgium, Germany, Switzerland, Czech Republic, Poland, Portugal and
Italy.
4 EBAA
“Business
Aviation
enables users
to achieve
more in the
same number
of hours or
days,
delivering a
valuable
productivity
boost.” (Oxford
Economics)
13 © Copyright 2016, Korn Ferry
Figure 3: Regional focus of study
3.1.2 FOCUS ON THE SECTORS
The Business Aviation market involves several players who provide goods
and services on a B2B as well as on a B2C level. They are:5
Operators, i.e., all companies that operate an aircraft in the context of
Business Aviation.
Maintenance, Repair and Overhaul (MROs), companies that provide
said services to aircraft of other stakeholders in the Business Aviation
market and are usually based at or near airports.
Fixed Base Operators (FBOs), who provide ground operations to the
aircraft and passengers or crew, such as luggage handling or aircraft
fuelling.
The Business Aviation Airport, where aircraft take off, land and are
parked, as well as providing a base for many MROs and FBOs.
Manufacturers, who produce and assemble all parts of an aircraft.
They need to be in close contact with the rest of the chain to keep
abreast of their clients’ demands. Manufacturers account for around
€9bn in Business Aviation aircraft manufacturing.6
A clear differentiation between these market players is not always possible
as some companies provide services across market segments.
5 This report will elaborate on the different key players in Section 4.
6 Oxford Economics
14 © Copyright 2016, Korn Ferry
3.1.3 MARKET SIZE
There are currently 1826 different Business Aviation players present in the
EU9.7 8 Operators and airports make up the largest stakeholder groups,
with 979 operators and 656 airports in the overall EU9. By comparison, the
numbers of MROs, FBOs and manufacturers are significantly smaller.9
Figure 4: Number of Market Players in Business Aviation
Business Aviation companies employ some 87,000 employees. Compared
with the overall air transport industry (in EU28), which generates about 2m
jobs directly, this is a relatively small number. Therefore, changes in overall
aviation might have a considerable impact on Business Aviation.
Figure 5: Total Business Aviation Workforce in Europe
7 DLR
8 The number of operators includes all unconfirmed operators. For 33 MROs, it is not clear whether they maintain helicopters or fixed wing aircraft. Some manufacturers operate in different countries and are listed multiple times (e.g. Airbus). Data for airports includes
helicopters.
9 DLR
0
200
400
600
800
1000
1200
Operators Airports MROs FBOs Manufacturers
15 © Copyright 2016, Korn Ferry
3.1.4 MARKET TRENDS
The following trends have been identified based on research and
interviews with stakeholders:
Overall Market Stagnation or Low Growth
Growth forecasts in Business Aviation are not consistent, depending on the
regional market or type of company. The worldwide Business Aviation fleet
is forecast to grow in the years 2013 to 2023, from 32,740 to 42,682
aircraft, equalling about 30% of the overall aviation fleet. The North
American fleet is projected to grow by approximately 22%, to a fleet size of
about 24,786 by 2023. By comparison, in 2013 the European fleet share
was 11% of the global market, accounting for 3776 aircraft, and is forecast
to grow by approximately 20% to 4565 aircraft by 2023.
Figure 6: Forecast global and European Business Aviation fleet size changes from 2013 to 2023
In terms of the Compound Annual Growth Rate (CAGR), the European
fleet share is forecast to grow by 2% CAGR through 2023. While Eastern
Europe is forecast to grow by 3.9% CAGR, the impact of political turmoil
could hamper this growth. Western Europe is forecast to grow at a slower
rate of 1.7% CAGR.
Most Business Aviation operators interviewed expect to see fleet
growth rates of less than 2% at best.10
10 Detailed analysis can be found in section 4
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
World North America Rest of World Europe
Num
be
r o
f A
ircra
ft
2013 2023
“Business
Aviation Market
is saturated
and will at its
best stagnate”
(Operator)
“The Business
Aviation
market will be
growing in the
coming years”
(University)
16 © Copyright 2016, Korn Ferry
Market Consolidation
The European Business Aviation market is expected to undergo
consolidation as higher price pressure and an increase in regulations affect
all players. Smaller companies might exit the market due to competitive
pressure and more stringent regulatory requirements. There is a general
trend toward merger & acquisition activities (M&A). These M&As will lead
to market consolidation and several big, pan-European Business Aviation
companies are likely to emerge. Examples of recent M&A activities include:
The acquisition of ExecuJet Aviation Group by Luxaviation (2015)
The merger of Eclipse Aviation and Kestrel Aircraft (2015)
Luxaviation’s acquisition of a large stake in Masterjet (2015)
The merger of Hangar 8 and Gama Aviation (2014)
Luxaviation’s acquisition of a large stake in London Executive Aviation
(2014)
The acquisition of Unijet by Luxaviation (2014)
The acquisition of Abelag by Luxaviation (2013)
The acquisition of Fairjets by Luxaviation (2011)11
In the longer-term, mid-sized companies are still likely to dominate the
market and provide appropriate client relationship management.
New Operator Business Models
At the same time, new business models have arisen, including NetJets and
VistaJet, providing a different kind of service and operating in a different
way, for instance with different rosters.
Competition from Other Regions
Experts also forecast increased competition coming from Eastern Europe
and non-European regions. MROs might be tempted to move some
maintenance work to low-cost locations.
Changes in Airport Landscape
The airport market differs considerably between countries. Due to
regulation and cost issues, the number of airports is likely to decrease.
11 Hay Group analysis of market data.
17 © Copyright 2016, Korn Ferry
3.2 TECHNOLOGY TRENDS
3.2.1 KEY TRENDS
Business Aviation experts agree on a number of fundamental technology
trends that will affect the workforce, directly or indirectly.
Digitalization will affect Business Aviation heavily, with Avionics
gaining in importance
Big Data, which supports predictive analytics, inventory optimization,
monitoring of usage patterns and tracking of equipment health
Mobile technology, which leads to the integration of mobile apps in
the information system across all MRO operations
Systems integration, leading to consolidation of MRO databases, for
instance12
Production methods, with additive manufacturing and 3-D printing
potentially revolutionizing the supply chain for spare parts for MROs
and manufacturers
New types of materials, with composites being introduced into the
aviation sector
Standardized processes in flight operations and maintenance
through increased automation, thus increasing safety and efficiency
More complex technology will require increased investment by
MROs and operators in highly trained employees to handle specific
needs13
Figure 7: Key technology drivers
12 Hay Group analysis based on various sources
13 Hay Group analysis based on market data.
Standardisation
Digitalisation &
automation
Production methods &
material
18 © Copyright 2016, Korn Ferry
3.2.2 WHAT IMPACT ON THE WORKFORCE?
Workforce Size
Technology will not ease the workforce shortage considerably. Some
trends will lead to lower workforce demand due to automation. Different
jobs in Business Aviation will feel the impact differently, with higher
demand for IT skills and lower demand for administrative personnel.
Growth of aircraft size might have an adverse impact on the demand for
technicians at manufacturers, MROs and FBOs.
Workforce Skills
The impact of technology trends on required skillsets will be more
significant. Digitalization will lead to an increased demand for employees
with technological expertise at MROs, operators and manufacturers.
Advances in avionics and new aircraft materials, as well as changes to type
ratings, will also have an impact.
3.3 THE REGULATORY SITUATION
3.3.1 CURRENT REGULATORY ENVIRONMENT AND
IMPACT ON THE WORKFORCE
Regulatory Environment in Europe
Business Aviation is bound by the regulations relating to civil aviation
safety within the EU, which are based on requirements stipulated in
Regulation (EC) 216/2008, known as the Basic Regulation. The main goal
of this regulatory framework is to ensure a uniform level of civil aviation
safety and environmental protection across Europe. To achieve this, the
European Aviation Safety Agency (EASA) was established as the
European Union authority for aviation safety. It works with the National
Aviation Authorities of the EU member states as well as with Lichtenstein,
Norway, Switzerland, and Iceland.
Key Regulations that Affect the Business Aviation Workforce by
Sector Segment
The impact of existing regulations on the workforce depends on four key
factors:
19 © Copyright 2016, Korn Ferry
Figure 8: EASA identifies four factors to be considered when determining the impact of regulations on the workforce of the member states.
These four factors are used by EASA as differentiators between
operations, companies and aircraft, in order to apply a proportional
approach when developing new regulations. As a consequence, the
effects on the Business Aviation workforce are expected to be mitigated.
The existing regulation with potential impact on the European Business
Aviation workforce encompasses four areas:
Figure 9: Key EASA regulations affecting the aviation workforce including Airworthiness, Air Operations, Air Crew and Rules of the Air.
The regulations apply to airspace users and aircraft engaged in general air
traffic operating into, within or out of the EU, bearing the nationality and
registration ID of any member state of the Union, and operating in any
airspace to the extent that they do not conflict with the rules issued by the
country having jurisdiction over the territory entered.
Airworthiness
Air Operations
Air Crew
Rules of Engagement off-ground
•Complex motor-powered aircraft
•European Light Aircraft (ELA) of type 1 or 2Aircraft Type
• In a member state
• In a third countryRegistration of Aircraft
•Commercial/other than commercial
•Specialized commercial operationsType of Operations
•Complex organization/operator
•Non-complex organization/operatorComplexity of the
Organization
20 © Copyright 2016, Korn Ferry
Impact on the Workforce
We can differentiate the effects of EASA regulations on the Business
Aviation workforce in function of its size, skills, and location.
Figure 10: The effects of key regulations on the Business Aviation workforce concern three aspects of the workforce landscape: size, skills, and location.
Workforce size
The proportional approach to aircraft maintenance requirements,
which differentiates between complex motor-powered aircraft used
for commercial air transport, aircraft used for less complex
operations, and non-complex aircraft used outside of commercial
activities, was introduced to afford aircraft owners greater
flexibility and lower cost.
The introduction of formal management systems like the Safety
Management System (SMS) requires additional competent staff
in the Business Aviation sector.
Increased security requirements introduced by regulations tend
to call for increases in the workforce responsible for passengers,
airport, and aircraft security.
According to Business Aviation operators, the more uniform and
standardised aviation landscape in Europe tends to mean an
increase in the number of people, particularly inspectors, required
to perform a task.
Compliance with Part-147 of Regulation (EU) 748/2012 is proving
to be extremely costly to small companies providing maintenance
and repair services (MROs) in Business Aviation. Small
companies in Europe are finding it challenging to implement the
regulation and still stay in business. Consolidations of larger
MRO companies as the small ones leave the market or fail to
enter it are also anticipated.
SK
ILL
S
21 © Copyright 2016, Korn Ferry
Workforce skills
In order to fully leverage the skills of the current workforce and
allow for a smooth transition to a standardised system of
certification in the EU, the use of ‘grandfathering’ has been
maximised. Regulations allowing the conversion of existing
national pilot licenses and medical certificates, as well as the
conversion of existing flight engineer licenses, are now in place.
Meanwhile, the conditions for accepting licenses from other
countries and for the conversion of flight test qualifications, are
also prevalent.
EASA regulations introduce more training requirements for
technicians whose skillsets are expected to reach specific
standards.
Workforce location
The requirements to become a certified technician in the EU, the
cost and duration of the maintenance training programmes, and
the perspective of low pay and long working hours result in a
growing number of workers deciding to relocate to the Middle
East, where the cost of training is lower. This affects both training
providers and employees operating in the aircraft maintenance
sector.
Because of the recession in Europe, pilots have been moving
from Europe to Asia. The high cost of training compared to the
average entry-level salary in Business Aviation does not seem to
represent enough ROI for young pilots.
Collective agreements are another significant regulatory aspect.
Differing levels of regulation have an impact on the flexibility to
manage and reward the workforce.
Differences in Regulation Between Countries in Europe
EASA regulations are mandated at EU level while implementation in each
member state is the responsibility of national authorities. Current EU safety
regulations cover all domains of aviation safety and establish binding rules,
leaving no room for national differences across Europe.
Despite this, interviewees reported differences between European
countries in terms of the rigour with which binding rules are implemented.
In order to avoid issues with aircraft registration, some countries require
aircraft to be registered with the country’s Aircraft Registry within the first
six months following initial operation in the country. However, this is only
required in a few EASA member states.
Derogations
To ensure a smooth transition from one regulation to another, EASA fixes
an entry-into-force date for each regulation accompanied by a time plan of
potential derogations each member state can decide to make use of.
22 © Copyright 2016, Korn Ferry
Figure 11: A high percentage of EU and EFTA countries make use of derogations of EASA regulations (updated on 01/25/2016 from http:// easa.europa.edu).
3.3.2 FUTURE TRENDS IN REGULATION AND THEIR
IMPACT ON THE WORKFORCE
Implementation Plan of Key Regulations that Affect the
Workforce
Table 1 below shows the dates and Acceptable Means of Compliance for
each of the four key regulations affecting the workforce in Business
Aviation in effect in the European Union. Table 2 lists the derogations
allowed by EASA to mitigate the effects of the introduction of new
regulations on the workforce.
Area Number Date Acceptable Means Of Compliance
Airworthiness (EU) 1321/2014
26/11/2014 Part-M, Part-145, Part-66, Part-147
Air Operations
(EU) 965/2012
05/10/2012 Part-ARA, Part-CC, Part-FCL, Part-MED, Part-ORA
Aircrew (EU) 1178/2011
03/11/2011 GM, DEF, Part-ARO, Part-ORO, Part-CAT, Part-SPA, Part-NCC, Part-NCO, Part-SPO
Rules of the Air
(EU) 923/2012
26/09/2012 Remote Tower Operations, Rules of the Air
Table 1: Entry into force of key regulations affecting the workforce.
Derogations from (EU) 923/2012
Applying Pending
Derogations from (EU) 1178/2011
Applying
Not Applying
Pending
Derogations from (EU) 965/2012
Applying Pending
23 © Copyright 2016, Korn Ferry
Airworthiness – (EU) 1321/2014
Until April 21, 2017: For complex motor-powered aircraft used for commercial
specialised operations other than those by licensed air carriers, the operator or CAMO has to be approved in accordance with Part-145.
For other than complex motor-powered aircraft used for commercial specialised operations, the CAMO needs to be approved in accordance with Part-M Subpart-F or Part-145. The derogations allowed by EASA have the goal of making the transition to new means of compliance easier for the aircraft maintenance employees.
Air Operations – (EU) 965/2012
In order to ensure continuity with the previous regulations in place: Air operator certificates issued by a member state to operators
before the regulation applies shall be deemed to have been issued in accordance with this regulation. This action alleviates the time and economic burden for operators to obtain new certificates.
No later than October 28, 2014, operators shall adapt their management system, training programmes, procedures, and manuals and replace the existing AOCs to be compliant with the current regulation.
Aircrew – (EU) 1178/2011
Maximum use of possible ‘grandfathering’ was introduced to minimise the need for additional activities or staff related to existing national pilot licenses and medical certificates, existing flight engineer licenses, licenses from third countries, licenses obtained during military service, training commenced prior to the application of the regulation.
By way of derogation, member states may decide not to convert non-JAR compliant licenses until April 8, 2014. This allows for more time for aircrew members and their employers to transition to the new standard of licenses.
Alleviations for the implementation of SMS have been foreseen with regard to the complexity of the organisations and risk of activities. SMS requirements introduce extra costs and management layers. In order to differentiate between types of organisations, EASA envisions alleviations to avoid over-regulating some branches of Aviation like Business Aviation.
Rules of the Air – (EU) 923/2012
By way of derogation, member states may decide not to apply the provisions of the regulation until December 4, 2014.
Table 2: Mitigation of effects through derogations
24 © Copyright 2016, Korn Ferry
Future of the Regulatory Environment in Europe and its Effects
on the Workforce
In the next five years, we see the European regulatory environment taking
the following shape.
Implementation of the Aircrew and Air Operations rule should take
place in the time span 2014-2017, with the effect that current license
holders will either have to convert their current document or
obtain a new one.
Significant changes to the aviation industry will come from Safety
Management System (SMS) implementation. Highly regulated
management systems will need skilled managers knowledgeable in
terms of regulations as well as additional layers of supervision
within companies.
Competent authorities’ oversight will increasingly be more risk-based,
which means inspectors’ presence and work will be optimised to avoid
unnecessary control.
Following the GA Roadmap, some significant modifications will be
introduced in Airworthiness, Air Operations and Aircrew to simplify
regulations applying to General Aviation. As a result, the Business
Aviation workforce should experience more flexibility.
The implementation of new aerodrome rules will represent a challenge.
New regulations applicable to aerodrome design, aerodrome
operators, aerodrome operations, and national aviation authorities
(NAAs) came into force in 2014. NAAs have a limited time to convert
existing aerodromes. During the transition period, NAAs and
aerodrome operators will need to build an effective working
relationship to achieve the transition on time, comply with all European
rules, and maintain a useful basis for continuing oversight and
certificate validity. Specific training will be required for NAA
personnel and aerodrome managers, engineers, safety experts,
service contractors, and human factors specialists.
25 © Copyright 2016, Korn Ferry
4 BUSINESS AVIATION WORKFORCE: MOSTLY CLEAR, POSSIBLE STORMS AHEAD
SUMMARY
Business Aviation has enjoyed a protective bubble up to now, due to its low
attrition rates and high loyalty levels among its employees, as well as low
level of growth. However, this could change, as the current workforce ages
and commercial aviation continues to grow.
The sector faces a gender problem, with low rates of female participation in
Business Aviation, except for in a few specific roles. This will become more
of a problem as the overall workforce shrinks, since Business Aviation is
primarily recruiting from only the male half of the population.
The implication here is that Business Aviation needs to improve its gender
ratio. Demographics suggest that the sector cannot depend on low attrition
rates to protect it. The demographic challenges are different country by
country.
Young people and graduates generally perceive Business Aviation quite
positively, though not as a first career choice. At the same time, they
assume they will have significant career opportunities in Business Aviation,
but this is not necessarily the case. If they join smaller companies, they will
have a more holistic career path, in that they can be expected to undertake
many different tasks. However, if they want broader career opportunities,
they are likely to find these in the larger aviation companies, outside of
Business Aviation.
The most important insight from this chapter is that Business Aviation, and
aviation overall, needs to work to make itself more attractive not only to
young people, graduates and women, but also to all those highly skilled,
technically savvy aviation professionals who are going to other aviation
segments or sectors. To be able to achieve this, it also needs to improve its
HR practices as well.
26 © Copyright 2016, Korn Ferry
4.1 STRENGTHS AND WEAKNESSES
Workforce SWOT for Business Aviation
Helpful Harmful
Inte
rnal
Interesting scope of work for employees with bigger diversity of tasks and higher responsibility (depending on jobs).
Family-like culture in many companies in the sector due to the company size with positive impact on people engagement and loyalty to the company (employee retention).
Many companies seem to have a balanced workforce structure from an age perspective.
Flexibility in rewarding people.
Little to no awareness of future workforce shortages.
Lack of internal career perspectives.
Difficult, unreliable working schedules for selected jobs (lack of dependability, no work/life balance).
Low level of HR maturity, including recruiting and talent management.
Low (employer) brand recognition in the sector.
Male-dominated environment.
Ex
tern
al
Aviation and especially Business Aviation is inspirational and is very attractive for many young people joining the workforce. This also applies to technology.
Growth in aviation overall will lead to programmes (e.g. education) being set up to address workforce shortages. Business Aviation will benefit from this action.
Broad diversity of training opportunities.
New technologies leading to higher efficiency and lower workforce demand.
Mergers will lead to bigger, more professional and efficient organisations.
Some cost problems due to competition.
Seemingly lower job security due to size and dependency on key clients.
No growth (story) for many Business Aviation companies as sector stagnates.
Lack of skilled workers due to educational situation in some countries.
Lack of female applicants in the workforce pool for critical jobs.
Growing regulation leads to higher education and training requirements (e.g. pilots) and additional effort (e.g. safety).
Very demanding, somewhat eccentric clients.
Demographic change: Not enough qualified young people entering the labour market.
Table 3: Workforce SWOT Business Aviation
27 © Copyright 2016, Korn Ferry
Workforce SWOT for Commercial Aviation
Helpful Harmful
Inte
rnal
Broad career perspectives (depending on company size) for many job groups.
Clear and dependable work schedule.
Sophisticated, comprehensive training programmes.
In many cases, high employer branding (status) with global reach.
Large pool of highly qualified applicants, including
global sourcing.
Job security (e.g. in case of bigger airlines).
In many cases, own educational entities and training programmes.
Financing rewards for training of future employees.
Narrow scope of many jobs, somewhat ’production-
like’ in some cases.
Corporate culture often with little freedom to act.
Higher levels of bureaucracy and administration.
Higher overall people costs (e.g., due to higher unionisation, and benefits such as pension schemes).
Lack of organisational flexibility.
Less openness for certain job candidates.
Ex
tern
al Growth of worldwide commercial aviation traffic and
increasing fleet size leads to higher workforce demand.
Lobbying power of commercial airlines regarding
workforce-related topics.
Competitive situation in commercial aviation in Europe (Middle Eastern Airlines, Low Cost Carriers) will deeply affect both workforce supply and demand, and the required personnel cost level.
High unionisation restricts workforce flexibility and
impacts reward levels.
Table 4: Workforce SWOT Commercial Aviation
4.2 MAPPING THE SECTOR’S KEY ROLES
4.2.1 OVERVIEW OF JOB FAMILY CONCEPT
Based on the 50+ interviews, we
developed a job family framework for
the Business Aviation sector. This is
essentially a map of all the different
(key) roles in the sector. The
framework defines and differentiates
levels within a job type. Job families
often overlap with organisational
functions, but they are not identical
(for instance, there might be Finance
and Controlling job family roles in a
Production unit).
With this job family framework, we aim
to:
Establish a common understanding of the workforce and its different
roles.
28 © Copyright 2016, Korn Ferry
Provide a common language in Europe for all (key) positions in
Business Aviation companies.
Facilitate career paths in the sector, and benchmarking jobs and skills
within the sector, as well as people development.
Identify critical roles with respect to workforce shortages.
4.2.2 BUSINESS AVIATION JOB FAMILY FRAMEWORK
The job family framework is divided into core job families and sub-families
(excluding enabling functions):
Ground Operations
Flight Operations
Flight Personnel
Operations Centre
Completions & Maintenance
Aircraft Completions
Maintenance & Engineering
Marketing, Sales & Customer Service
Airport & Facility Management
The following levels (job types) apply:
Head
Manager
Professional
Supervisor
Operator
29 © Copyright 2016, Korn Ferry
The following table features the complete job family framework; detailed
descriptions of the roles and levels are listed in the appendix.
Table 5: Job family framework for Business Aviation
4.3 WORKFORCE SIZE
Within the EU9, Business Aviation employs 71,828 workers across the four
main industry sub-segments: Operators, MROs, FBOs, and Manufacturers.
As shown below, manufacturers are the major employers (56%), followed
by operators (34%), while FBOs account for only 1% of the labour force
(1040 people).
Figure 12: Employees per Industry Sector EU9
1%
9%
34%56%
FBOs MROs Operators Manufacturers
30 © Copyright 2016, Korn Ferry
France, Germany and the UK employ the highest number of Business
Aviation personnel, accounting for approximately 75% of the total in the
EU9. On average, 38 of every 100,000 people in the EU9 work in the
Business Aviation industry. Switzerland has the most per capita, with 139
employees per 100,000 people.
In the EU9, the employee-per-aircraft ratio is approximately 13. Poland has
approximately 23 people employed per owned aircraft.
Figure 13: Direct employees per country in the EU9 (Operator, MRO, Manufacturer, FBO)
4.4 WORKFORCE STRUCTURE AND SIZE
ACROSS EUROPE
The interviews showed no striking differences between European
countries with regard to the overall workforce situation. Where
technical education is concerned, Switzerland, France and Germany
seem to be in a better position than many other countries.
Eastern Europe seems to have lower workforce mobility than Western
Europe.
Workforce Distribution Across Segments and Countries
France has the highest number of employees (23,681) working in the
Business Aviation industry, with the focus on manufacturing. The table
below shows that 46% of the Business Aviation manufacturing workforce is
employed in France. Germany has the highest percentage of employees at
Operators, MROs and FBOs (26-30%), while Switzerland has the second
largest MRO workforce (23% of all EU9 MRO employees). The United
Kingdom shares the second highest number of people working in the FBO
and operator segment.
23.681
16.657
13.431
6.316 5.412 2.724 1.767 1.589 1.291
-
5.000
10.000
15.000
20.000
25.000
31 © Copyright 2016, Korn Ferry
Operators MROs FBOs Manufacturers
Belgium 5% 1% 1% 0%
Czech Republic 3% 5% 3% 4%
France 14% 18% 15% 46%
Germany 26% 27% 30% 20%
Italy 8% 8% 8% 7%
Poland 4% 2% 3% 2%
Portugal 4% 1% 7% 1%
Switzerland 12% 23% 11% 4%
UK 24% 15% 21% 15%
Total 100% 100% 100% 100%
Table 6: Employees per country and segment (%)
Overall, 38 out of 100,000 people work in the Business Aviation industry in
the EU9.
Table 7: Business Aviation employees per country labour force (per 100,000)14
Workforce Efficiency
The figure below shows that in the EU9, approximately 13 employees are
needed to operate one aircraft. In Portugal, operators only employ around
eight persons per owned aircraft, which represents the lowest ratio in the
EU9. This might be attributed to the dominance of one global player in this
country.
14 Analysis based on data provided by DLR and Eurostat (2013)
Country Operators MROs FBOs Manufacturers Total
Belgium 20 1 0,2 0 22
Czech Republic 13 6 0,6 27 45
France 10 4 0,5 56 70
Germany 14 4 0,7 19 37
Italy 6 2 0,3 8 16
Poland 4 1 0,2 3 8
Portugal 18 2 1,2 7 28
Switzerland 63 34 2,5 40 139
UK 18 3 0,7 19 40
EU9 13 4 0,5 21 38
32 © Copyright 2016, Korn Ferry
Figure 14: Employees per Aircraft15
4.5 AGE AND DEMOGRAPHIC CHANGES
4.5.1 AGE STRUCTURE
Generally, the age structure in Business Aviation companies is well-
balanced, with no particular disparity in age group representation. A
preponderance of employees in ground operations are under the age of 40.
Research indicates that, in some countries, the situation might be
problematic with regard to specific jobs. For example, the age structure of
the MRO licensed workforce in the UK could be problematic, with close to
half of MRO license holders in the UK in 2014 over the age of 50.
4.5.2 DEMOGRAPHIC CHANGES IN EUROPE
To analyse possible future workforce gaps in Business Aviation, it is
important to know how demographics will develop in the coming years. The
figure below charts the future population and workforce (ages 25-64) of
EU9 countries through the year 2050.
15 Analysis based on data provided by DLR
23
1716
1413 13 12 12
10
8
1
5 6
34
3 3
1
6
2
0
5
10
15
20
25E
mplo
yees /
Aircra
ft
Operator MRO
33 © Copyright 2016, Korn Ferry
Figure 15: EU9 population vs. workforce development in thousands16
According to these numbers, Europe’s dramatic demographic changes in
the next 25 years will clearly impact the labour market. The general
population will increase while the workforce will decrease by around 15m
people within the next 15 years. This development will already start within
the next five years and is going to accelerate.
The demographic change will have a different impact in each European
country. Germany, Poland and Portugal, for example, will lose 20% to 30%
of their workforce within the next 35 years.
As the workforce shrinks, there will be a high demand for staff to replace
retiring workers. This will lead to general skills shortages throughout all
industries and will impact the Business Aviation industry.
2015 2050 Absolute Change
Relative Change
Belgium 6,019 7,156 +1,138 +19%
Czech Republic 5,969 5,182 -787 -13%
France 33,798 33,919 +122 0%
Germany 44,789 34,529 -10,261 -23%
Italy 33,179 31,437 -1,743 -5%
Poland 22,259 16,715 -5,544 -25%
Portugal 5,680 3,995 -1,685 -30%
Switzerland 4,588 5,291 +703 +15%
UK 33,669 36,607 +2,938 +9%
Total EU9 189,950 174,831 -15,119 -8%
Table 8: Future EU9 workforce development in thousands17
16 Eurostat (2013)
17 Eurostat
170.000
175.000
180.000
185.000
190.000
195.000
200.000
205.000
210.000
340.000
345.000
350.000
355.000
360.000
365.000
370.000
375.000
380.000
2015 2020 2025 2030 2035 2040 2045 2050
Population EU9 Workforce EU9
34 © Copyright 2016, Korn Ferry
4.6 GENDER BALANCE
The overall female proportion in Business Aviation is very low, with the
exception of some jobs, such as flight attendants, marketing specialists,
accounting, or customer service representatives.
There are very few female pilots or technicians, whether at operators or
MROs. This image of a male-dominated industry can be attributed to:
Culture of the industry and perception of ‘heavy work’
Lower female ratio of graduates in technical jobs
According to Women in Aviation International, in the US, 6.6% of women
are pilots and just 2.2% are female mechanics. According to the Royal
Academy of Engineering, only 6% of the UK's engineering professionals
are female, and an even lower proportion of women work in aerospace
(11% versus 19%).
However, there have been signs of growth in the female pilot population in
recent years.
35 © Copyright 2016, Korn Ferry
Country Pilots Estimate Female Pilots
Estimate Female Pilot Students
UNITED KINGDOM
14,684 6.37% 8.5%
GERMANY 11,881 7.11% 9%
SWITZERLAND 4,736 6.45% 10.1%
FRANCE 4,396 7.62% 7.1%
ITALY 2,984 4.89% 8.1%
BELGIUM 2,037 7.53% 11.3%
POLAND 291 5.26%
FINLAND 277 12.07%
CZECH REPUBLIC
263 2.73%
PORTUGAL 193 2.93%
USA 218,229 5.12% 12%
CANADA 6,852 6.78% 11.9%
Table 9: Female pilot population18
4.6.1 WHY SO FEW WOMEN?
Misperception and Mental Barriers
The main reason for this low female ratio is probably due to a
misperception of aviation – and technical jobs overall. The lack of accurate
and positive information about technical jobs and careers in aviation leads
to stereotyping and a lack of female role models, all of which deters
potential female workers.
According to a recent survey by British Airways19, 63% of women said they
were deterred from a career as a professional airline pilot because of a lack
of role models (e.g. pilots on TV) – or because they heard it was a man’s
job. While 20% said they thought women could only be cabin crew, 13%
said they had never been on a plane flown by a female pilot.
18 FAA’s Airman Directory, 2014, analysed with Namsor
19 British Airways press release, 2015
36 © Copyright 2016, Korn Ferry
Gender Ratio Views of Industry Stakeholders
In general, industry stakeholders state that employers express a
preference for a more gender-balanced workforce. The low number of
female staff, particularly in technical jobs, is mainly attributed to the lack of
female applicants, due to women being under-represented in educational
programmes that have a technical scope.
Most sector professionals, including many of the women who were
interviewed, did not see a clear business disadvantage in having a small
number of female employees in their workforce.
4.7 LOVE IT OR LEAVE IT: ATTRITION AND
MOBILITY
The attrition rate, defined as voluntary and involuntary departure, ranges
from 0% to 15% in Business Aviation companies, with a very low median of
around 1% and 2%. Compared with other sectors’ attrition rates, this is
quite low.
A large number of experienced employees in Business Aviation have a
long tenure with the same employer, because people in the sector tend to
either leave quickly or stay until they retire. Additionally, smaller, family-led
companies usually create an organisational climate that generates loyalty
and a low attrition rate.
The attrition rate for younger employees tends to be higher. In theory, the
lifestyle in Business Aviation should be attractive to young people.
However, the sector can be associated with long working hours and high
expectations in terms of flexibility and client service expectations.
What leads to a positive attrition rate?
Family-like atmosphere
Interesting work (e.g., direct client work serving interesting people)
Broad scope of work
Minimal hierarchy
Interesting travel
Table 10: Factors for a low attrition rate
“Employees love it
or leave it”
(Operator/FBO)
“Not many
employees are
leaving us. Mostly
those who retire.”
(FBO)
37 © Copyright 2016, Korn Ferry
4.8 USING EXTERNAL RESOURCES
Business Aviation is a seasonal business. There is a significant peak in
summer, around June and July, with some 66,000 flights, compared to a
low of some 42,000 flights in winter20.
Figure 16: Number of Business Aviation flights in EU9 in 2014 per month 21
The higher frequency of flights leads to increased demand for employees in
the summer, but this does not lead to more outsourcing.
4.9 CAREER OPPORTUNITIES
Career opportunities are the weak point in Business Aviation. Due to the
dominance of small and medium companies in the sector, Business
Aviation can provide fewer real career paths than commercial aviation.
In smaller companies, there are only two to three career levels for many job
families, and the number of leadership positions is limited. An option could
be to develop alternative horizontal career moves between job families.
Career paths across different companies would help, but company
executives may not support this.
This weakness cannot be solved in the short term, but ongoing M&A
activities might create long-term opportunities.
20 HayGroup Analysis based on WingX Data
21 HayGroup Analysis based on WingX Data
0
10
20
30
40
50
60
70
NU
MB
ER
OF
FL
IGH
TS
[T
HO
US
AN
DS
]
38 © Copyright 2016, Korn Ferry
4.10 HR POLICIES AND OPERATIONS
We see major differences in HR policies and operations across Business
Aviation companies. The qualitative analysis suggests that, in the Business
Aviation industry, company size is a key driver for different maturity levels
in HR.
Figure 17: Different maturity levels in HR by company size / type
Many small and medium companies do not have dedicated HR
professionals.
Very few companies interviewed have sophisticated recruitment
processes, talent management or retention management. Additionally,
they often lack a basic reward strategy. Considering the growing
competition for employees with potentially higher reward levels in
commercial aviation, this shows potential areas where Business
Aviation is at a critical disadvantage.
Many small companies do not to train people in-house or ensure an
adequate talent pipeline by offering apprenticeship programmes.
Instead, their focus is on sending employees to mandatory training to
comply with regulations.
Small and medium Business Aviation firms
Bigger Business Aviation groups (often with several country operations)
Business Aviation units belonging to a bigger corporation
HR Maturity Level
39 © Copyright 2016, Korn Ferry
Figure 18: Key HR areas that need to be addressed by HR professionals
4.11 AN ATTRACTIVE SECTOR… IN NEED OF
VISIBILITY
A key challenge for Business Aviation is the low level of awareness of the
attractiveness of the sector on the part of potential employees. This is a
key barrier to attracting the young people that will be needed to replace the
sector’s ageing population in the next 5 to 10 years.
4.11.1 ATTRACTING YOUNG TALENT
STEM Jobs
Many critical Business Aviation job clusters are so-called STEM jobs
(Science, Technology, Engineering and Mathematics). A report by the
European Commission forecasts the need for an additional 1.4 million
employees in key STEM-related occupations in the EU28 between 2015
and 2025, representing an increase of approximately 10% in this period
(vs. 3% for all occupations) 22. Even if demand in Business Aviation does
not grow, demand from other sectors will lead to an overall shortage in the
labour pool.
22 European Commission
Employer Branding
Recruiting
Reward Management
Talent & Performance Management
Workforce Planning & Controlling
Employee Relations
Management
HR Administration
40 © Copyright 2016, Korn Ferry
Figure 19: Projected employment development by occupational category (Cedefop 2011)
At the same time, workforce supply for these jobs is stagnating or
even declining (see figure below).
Figure 20: Proportion of upper-secondary Vocational Education & Training graduates in STEM-related subjects (Cedefop 2014)
While technology is still one of the most attractive areas for prospective
employees, in Europe there is still room for improvement. Generally, the
interest in technology-related jobs is high in Europe, but not high enough to
meet demand and there are major differences between regions.
Migration to Europe could help ease demographic problems. However,
Europe faces tough competition for skilled professionals from other
countries as it is not the preferred destination for STEM-skilled, third
country nationals.
Aviation
While airlines are still seen as desirable employers, the rest of the aviation
supply chain is less appealing. Even completing an education in aviation
does not necessarily mean joining the aviation workforce: a recent survey
41 © Copyright 2016, Korn Ferry
by the Aviation Technician Education Council (ATEC) estimates that 25%
of aviation technician graduates pursue careers in non-aviation fields.
4.11.2 BUSINESS AVIATION ATTRACTIVENESS:
REAL BUT UNDERRATED
As part of this study, an employer branding survey was conducted with
aviation students at different European schools and universities.
Overall, Business Aviation is not doing badly. Though commercial aviation
was rated as attractive or very attractive by 88% of participants, 76% found
this to be true for Business Aviation. Nevertheless, Business Aviation not
only trails commercial aviation, but also the space industry, aircraft
maintenance and defence as very attractive.
Figure 21: Measure of aviation sector attractiveness
However, the current gap is not so big that it cannot be bridged.
A key challenge is low brand awareness: nearly half of the respondents
could not name any Business Aviation company. This shows the general
challenge the industry is facing. Its core is mostly small and medium
companies and even the bigger players are largely unknown.
0%
20%
40%
60%
80%
100%
Very Attractive Attractive Neutral Unattractive Very Unattractive
42 © Copyright 2016, Korn Ferry
Figure 22: Young talent top priority employers in Business Aviation
4.11.3 CAREER PRIORITIES
The top three factors to attract young talent are training and development,
good career prospects, and challenging work. Reliable working hours, an
attractive lifestyle and job security are considered less important.
Figure 23: Employee career priority factors
None
Airbus
Dassault
Cessna
Icelandair
Bombardier
Gestair
SAS
KLM
DAO Aviation
Join Jet
Sun-air
0%
20%
40%
60%
80%
100%
Very Important Important Neutral Unimportant Very Unimportant
43 © Copyright 2016, Korn Ferry
Business Aviation scores higher than commercial aviation in a number of
career priority factors. These include the areas of work-life balance, career
prospects, attractive salary, task variety, challenging work and attractive
lifestyle.
For some of the factors, the perception in this employee target group is
different from the reality, according to industry insiders – in particular
work/life balance and good career prospects. From an employer branding
perspective, it is good that Business Aviation is seen as more attractive.
However, this could have implications for the attrition rate of young people,
if their perceptions prove to be misplaced.
Figure 24: Career perceptions of Business Aviation versus commercial aviation
0%
20%
40%
60%
80%
100%
Applies fully to Business Aviation Applies more to Business Aviation
Applies to both Applies more to Commercial Aviation
Applies fully to Commercial Aviation
44 © Copyright 2016, Korn Ferry
4.11.4 GENDER
As gender is critical to solving the workforce shortage within Business
Aviation, we see that the picture shifts slightly when we look at the female
population only.
Figure 25: Employee career priority factors – female sample
Good career prospects remain amongst the top three factors, but a good
work/life balance is by far the most important factor. The percentage of
women prioritising an attractive salary as very important is considerably
lower than in the overall sample.
When comparing Business Aviation and commercial aviation among the
female sample, the following key differences are evident:
Business Aviation is associated more with work/life balance and career
prospects, less with challenging work.
Commercial aviation is associated more with an attractive lifestyle and
less with career prospects.
0%
20%
40%
60%
80%
100%
Very Important Important Neutral Unimportant Very Unimportant
45 © Copyright 2016, Korn Ferry
Figure 26: Perception of Business Aviation versus commercial aviation – Female sample
It seems that employers within Business Aviation looking to attract female
talent would do well to promote work/life balance and career prospects.
4.11.5 STUDENT PERCEPTION
Secondary school students assign a higher priority to job security, task
variety and attractive salary. University students put more emphasis on
career prospects and training and development.
University students associate attractive lifestyle, challenging work and
attractive salary with Business Aviation more than secondary school
students, who tend to put Business and commercial aviation on the same
level.
Business Aviation needs to change this target group’s perception, as many
secondary students could become maintenance technicians, for example.
4.11.6 MAKING EUROPE MORE ATTRACTIVE
Two-thirds of all survey participants would prefer working in their home
country – or in North America. This could pose a threat to aviation in
Europe.
0%
20%
40%
60%
80%
100%
Applies fully to Business Aviation Applies more to Business Aviation
Applies to both Applies more to Commercial Aviation
Applies fully to Commercial Aviation
46 © Copyright 2016, Korn Ferry
Figure 27: Preferred regions for work
4.11.7 REACHING NEW TALENT USING THE
RIGHT CHANNELS
The top three sources for information on potential jobs are internet job
portals, friends and teachers. These insights need to inform all personnel
marketing and recruiting activities, as traditional job advertisements score
considerably lower.
Figure 28: Sources for job search
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
47 © Copyright 2016, Korn Ferry
5 ARE OTHER SECTORS BETTER PREPARED? THE SITUATION IN COMMERCIAL AVIATION
5.1.1 OVERALL WORKFORCE SITUATION IN
COMMERCIAL AVIATION
The workforce situation in commercial airlines differs from country to
country, company to company, and role to role. In general, the gap
between workforce demand and supply is growing. There are short- and
mid-term fluctuations limited to specific countries, airlines, roles, and
aircraft.
The situation differs between airlines depending on:
Location:
Fast-growing airlines face critical shortages, as they do not have a
sufficient pipeline of experienced pilots. Recruiting from other
airlines, using external resources and taking over staff made
redundant at money losing national carriers are key elements of
their talent acquisition strategy.
Regions have different workforce supplies due to specific
educational systems and attitudes towards technology companies
and jobs. For example, technical vocational training in Germany,
France, and Switzerland provides a good pool of graduates.
Type of airline:
Airlines with appealing destinations have fewer problems attracting
pilots and flight attendants.
Low-cost airlines run different models, e.g., fleet standardisation to
avoid having to train the workforce for different type ratings and
using atypical forms of employment such as agency work, zero-
hours contracts, or even so-called self-employment to keep
workforce costs low and ensure maximum flexibility.
Some airlines have a very good organisational climate, with an
attractive employer value proposition, and therefore achieve low
attrition rates and a good pipeline of job applicants.
For many major airlines, demographics is not a short-term, but a long-term
problem. For example, captains will start retiring in larger numbers in about
five years’ time at some big airlines. The resulting gaps need to be filled
with experienced pilots, in addition to the forecast growth in demand for
pilots.
The workforce situation is also different by aircraft type. For newer aircraft,
such as the Boeing 787, there is a lack of technical staff, due to a limited
workforce with the required licenses. For other aircraft types, such as the
Boeing 747, there is a surplus of experienced staff in the labour market.
48 © Copyright 2016, Korn Ferry
Retraining is complex and costly, and therefore, a lack of balance between
workforce supply and demand may persist.
The workforce situation differs by roles, for example:
Pilot requirements are changing; so is the demand for candidates with
additional leadership and customer/personal service skill requirements.
Engineers and pilots belong to a mobile, global workforce, whereas
many maintenance technicians are less mobile and tend to stay in one
location.
Airlines have different resourcing strategies. Some tend to increase their
workforce supply with vocational training programmes or cadet schemes;
others opt for a mix of sources, including cadet schemes, hiring from
competitors, and armed forces recruiting. There is a natural ’food chain’ in
flight operations, with pilots moving from training to short-haul flights,
regional airlines or Business Aviation, until finally they move to long haul
routes, before retiring.
5.1.2 WORKFORCE DEMAND
The commercial aviation market will grow both in fleet size and in traffic.
While the biggest growth will be in Asia Pacific, the commercial aviation
fleet in Europe will almost double within 20 years and traffic will grow
annually by about 4%.
Table 11: Growth in aviation fleets and traffic23
This growth will lead to increased demand for staff by the scheduled
airlines, MROs and probably manufacturers. This increase in demand will
be especially noticeable in operational areas, such as cabin crew and
technicians/engineering. Commercial airlines are already experiencing
shortages for pilots and technicians in selected markets as described
above.
23 Airbus Global Market Forecast – Flying by Numbers 2015-234, and Boeing website “Long-term market – Current market outlook 2015-2034”
49 © Copyright 2016, Korn Ferry
Boeing forecasts the need for an additional 95,000 pilots and 101,000
technicians in Europe over the next 20 years. This will mean some 5000
additional pilots and the same number of technicians will be needed per
year in Europe.
Taking into consideration the general demographic trends and the
stagnating numbers of people joining the workforce in technical jobs, this
poses a huge challenge to fill these roles in Europe. At the same time, with
a much larger forecast growth in demand globally, more and more of the
global aviation workforce may be attracted to areas like the Middle East
with its enticing reward packages, modern fleets, and job security.
Figure 29: Aviation workforce forecast of additional demand for pilots and technicians by 203424
5.1.3 WORKFORCE AVAILABILITY
Though all indicators show that a workforce shortage already exists, many
stakeholders (including airlines with good employer brands) still doubt that
this shortage will materialise as they continue to attract large numbers of
job applicants, including for pilot positions. In the past, shortages have
been forecast that never materialised.
Workforce availability is different per country, job, and company. Official,
reliable data is difficult to get, and contrary to the US, Europe-wide data is
not available.
24 Boeing Aviation Workforce Forecast, corporate website 2015
95.000 101.000
558.000609.000
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
Pilots Technicians
Europe World
“Republic
Airways files
for bankruptcy
after pilot
shortage”
Bloomberg,
Feb. 25th, 2016
50 © Copyright 2016, Korn Ferry
Putting Business Aviation in Context
Aviation provides around 4.5 million jobs in Europe25. Business Aviation,
with around 371,000 employees, makes up a small fraction of the
aviation sector. Therefore, even if workforce demand in Business Aviation
itself may be stagnating, the sector will be directly affected by the overall
labour shortage in aviation. The problem, however, will become acute in
the mid to long-term as retirements create gaps, which will be difficult to fill,
as the competition for talented aviation specialists escalates.
5.1.4 BEST PRACTICES
Many of the bigger scheduled airlines have highly sophisticated HR
departments, processes and tools that give them clear advantages in
attracting and retaining the right people. This includes:
Sophisticated employer branding and recruiting programmes, including
state-of-the-art recruiting websites and a presence at career fairs
Providing vocational training for technicians, in-house pilot training,
cadet schemes or internships for students
Strategic workforce and HR planning
Career path management
Professional rewards management
Performance management
Lufthansa and Strategic Workforce Planning
In 2011, Lufthansa Cargo conducted a project on strategic workforce
planning (SWP) in order to develop basic processes, structures, and
systems for the long-term planning and management of human resources.
The project was successfully implemented, and was transferred to a yearly
planning cycle and further enriched with HR Strategy and Controlling in
2013.
Lufthansa Cargo now acts as a sponsor to support the group-wide
implementation with:
Group-wide planning models for different areas, including management
levels and administrative functions
Definition of standards and tools for SWP and provision of a platform
for exchange between experts from the different companies
Cadet Programmes
Major scheduled airlines offer cadet programmes that allow students to
train with the company to gain their pilot license. Some schemes pay the
training costs and the students pay them back once qualified. Others
25 European Commission, Flightpath 2050
51 © Copyright 2016, Korn Ferry
require students to pay a bond up front, which is then repaid over a number
of years once the pilot is flying with them.
Examples of cadet programmes:
British Airways – Future Pilot
Virgin Atlantic – Future Flyers
Wizz Air – Cadet Pilot Programme
easyJet – Pilot Training Programme
Employer Branding and Recruiting
In order to attract talented staff, KLM invests in many activities to create a
positive employer brand and to approach potential candidates directly:
Frequent visits to universities and schools
Stands at (job) fairs and events
Own recruiting website
Own mobile game to learn how to manage an airline
In a nutshell, workforce gaps in commercial aviation will have a
tremendous impact on the Business Aviation workforce. Business Aviation
can learn how to deal with the growing workforce shortage to some extent
from commercial aviation and should join forces with other aviation
segments to tackle the issue.
The industry can gain additional insights from other regions, especially
North America and Asia. This analysis and potential solutions are
described in the appendix.
Mobile game KLM Aviation Empire
“The logical next step in the digital revolution of KLM”
52 © Copyright 2016, Korn Ferry
6 BUSINESS AVIATION WORKFORCE: SEGMENT BY SEGMENT
SUMMARY
The workforce situation differs from segment to segment, while the
situation of pilots, dispatchers, and experienced technicians also varies
country by country.
Following the analysis of current and future workforce shortages in a global
context, this chapter constructs a detailed picture of variables affecting the
future supply and demand of appropriately trained aviation professionals,
allowing for deeper understanding of likely future employment shortfalls in
Business Aviation.
It also sets out a detailed analysis of current and future workforce
shortages within Business Aviation, focusing on specific jobs in particular
working environments. The analysis of ‘job families’ allows for greater
attention to be given to the day-to-day realities of employment issues of
those working within Business Aviation.
53 © Copyright 2016, Korn Ferry
6.1 BUSINESS AVIATION WORKFORCE: THE
BIG PICTURE
Workforce Shortages Today
Although most of the Business Aviation professionals interviewed do not
report any workforce shortages currently, there are some critical roles –
pilot, maintenance technician and dispatcher – where limited workforce
shortages do exist. These shortages are limited to specific locations or
company types or sizes. Compared to commercial aviation, Business
Aviation stakeholders show a lower degree of awareness of the aviation-
wide challenges and less interest in addressing them.
The labour markets in Business Aviation and other aviation segments are
not fully linked, at present. There is only limited movement of employees
between the different areas. Overall, the demographic structure of the
workforce in Business Aviation is quite balanced, with no particular age
group discrepancies. Because recruitment in small and medium companies
is infrequent, they experience few problems in this area.
Future Workforce Shortages
Most experts interviewed do not expect to see major changes in Business
Aviation workforce demand in Europe in future and therefore do not
foresee major workforce shortages. Stagnation or marginal growth in fleet
and revenue in the overall Business Aviation market will likely mean no
significant additional workforce demand in this sector. Consolidation in the
market might even lead to reduced demand as economies of scale require
a fewer people for selected job clusters.
At the same time, while regulation might lead to a slight increase in
demand in specific job clusters, such as technicians or safety, this may be
offset by technology trends.
There are regional differences in workforce demand, with higher growth
levels expected in Eastern Europe as well as in selected countries where
regulation or other trends lead to market differences, such as in Malta.
Factors Impacting Workforce Supply
This view of the sector stakeholders is contradicted by the forecast of major
growth in commercial aviation, which will increase workforce demand for
aviation-related jobs in the coming years, especially for experienced pilots
and technicians. There are already shortages reported at some airlines and
this will affect Business Aviation, as both sectors compete for the same
type of employees. Business Aviation is at a disadvantage, however, as it
is consists primarily of small and medium sized enterprises with a low level
of HR capacity.
54 © Copyright 2016, Korn Ferry
At the same time, workforce supply in many European markets, especially
in technology-related jobs, is tightening due to:
Demographic changes, specifically a significant decrease in the
workforce pool in many European countries due to low birth rates.
Stagnant numbers studying STEM subjects in Europe, with growth in
demand for professionals in these subjects (not only from aviation).
Low female ratio because of an unfavourable perception of the sector
and its specific culture.
Figure 30: Key workforce demand and supply drivers
Together, these trends will probably create a shrinking workforce pool for
Business Aviation, as there will be a big pull effect from other aviation
segments.
The large and medium sized companies in other aviation sectors and the
larger players in Business Aviation will be better prepared for the coming
shortages. The picture is different, however, for the many small and
medium sized companies in Business Aviation. The limited sector branding
and workforce management professionalism will lead to mid- and long-term
problems due to a lack of new talent joining the sector.
•Growth in demand, especially for pilots and technicians in commercial airlines due to market and fleet growth
•Stagnant demand in Business Aviation
•Rising demand for technical jobs in other sectors
•Regulation leads to additional demand
•Advances in technology will likely lead to slightly decreasing demand
•Shrinking workforce population in Europe
•Stagnant numbers studying STEM subjects
•Low female proportion in aviation
•Shrinking supply from national air forces as key source of critical jobs
•Major differences in workforce availability between countries (demographic change, technical, education)
Wo
rkfo
rce d
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an
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Wo
rkfo
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ilab
ility
55 © Copyright 2016, Korn Ferry
6.2 OPERATORS
6.2.1 MARKET AND COMPETITION
Business Models
Business Aviation operators make use of a range of business models to
facilitate their activities.
Member or jet cards, comparable to a debit card system for flights,
provide customers with credit for flight hours based on pre-defined
criteria, such as aircraft type and time. 26
Charter operators rent aircraft. This model is especially attractive for
companies and occasional flyers who do not wish to purchase an
aircraft or commit long term.
Fractional ownership whereby an individual or company shares
ownership and a fractional operator takes full care of the aircraft on
behalf of all owners.
Full owners acquire 100% interest in an aircraft. This includes
corporate Business Aviation, which refers to aircraft owned and used
by a company for their employees.27
Some companies might run several of these business models, while some
operators are also MROs and FBOs.
Market Structure
The number of operators in the EU9 gives an insight into the size of
Business Aviation in these countries. Overall, there are 979 operators, with
most located in Germany (290), the UK (261), France (153), and
Switzerland (120). In contrast, smaller European countries like the Czech
Republic (27) or Portugal (13) are home to fewer operators28.
Figure 31: Operators in the EU9 countries (total numbers)
26 Sherpareport
27 NBAA
28 DLR
56 © Copyright 2016, Korn Ferry
Figure 32: Operators in the EU9 countries (percentage)
Competitive Situation
Operators interviewed perceive the market as being small, where
everybody ’knows each other’. They also describe the European market as
highly competitive, with a few top players dominating the market and a
large number of smaller operators, some of whom struggle to maintain
profitability.
Figure 33: Largest operators in EU9 countries by fleet size (2014)
The top 15 Business Aviation operators represent 21% of the EU9 fleet.
Operators with large fleets of more than 20 aircraft in service represent
only 1% of the total industry (seven operators). However, these seven
operators represent 12% of the total EU9market fleet, with 1947 aircraft.
The largest operators are NetJets, TAG Aviation, and JetAviation Business
Jets. The majority of operators, as well as most of the top 15, are members
of the EBAA29.
29 DLR & EBAA
“We
experience a
pressure from
the market
concerning the
price. And the
market
situation is
becoming hard
for charter
companies.”
(Interviewed
Operator)
57 © Copyright 2016, Korn Ferry
The majority of operators operate just one aircraft (749 or 77% of all
operators). This model is particularly common in Germany, the UK, France,
and Switzerland30. Many of these smaller operators continue to employ
their aircraft for the entire serviceable life of the aircraft.
Market Trends
Many operators interviewed expect to see the market become saturated
within the next few years. Additionally, some operators reported a growing
trend in M&A activities, with smaller operators increasingly likely to be
acquired by larger competitors or to cease to exist.
6.2.2 EXTERNAL TRENDS
Technology
Advances in technology are impacting Business Aviation, especially
operators. Some operators fear the effects of advanced technology, with
technicians facing higher-level skill requirements, for instance.
Technology also offers huge opportunities for operators. Many expect
increased levels of reliability and safety due to advances in technology.
There is also a positive effect on the workforce, with advanced training
technologies, such as e-learning, increasing efficiency.
Some operators expect the use of advanced information technology to lead
to the automation of some flight planner and dispatcher tasks, as
scheduling becomes faster and easier. At the same time, type ratings for
mid- and long-haul route aircraft are becoming simpler due to increased
safety thanks to advances in technology.
While technology is already impacting the operator workforce, the majority
of jobs do not yet seem to be affected.
Regulations
With an increasing regulatory burden on Business Aviation, some industry
stakeholders expect this to lead to higher workforce demand for certain
positions, while other operators state that they already have the right
workforce in place to meet changing regulations.
There are also indirect regulatory effects on the daily business of
operators, such as landing and parking restrictions at larger airports or
regulations affecting the positions of captain, head of flight operations,
continuous airworthiness manager, or compliance manager. Operators
expect a higher demand for safety-related skills and potentially an increase
in the workforce size due to regulation.
30 DLR
58 © Copyright 2016, Korn Ferry
6.2.3 WORKFORCE COMPOSITION
Workforce Size
Germany (6251), the UK (5952), France (3457), and Switzerland (2867)
have the largest Business Aviation workforces, indicating where the market
focus of operators lies.31
Figure 34: Staff employed by operators in EU9 countries (2014)
Age
Most operators report a rather balanced workforce in their own companies
and do not foresee demographic problems at this point. However, a
minority of operators see a less balanced age distribution for certain roles.
These include flight attendants where operators report a high percentage of
job incumbents in the 30 to 40 age range. Looking at the US, we see that
the average age of pilots keeps rising. In addition, there are also
indications that, for more technical jobs, the average age is 40+.
Gender
The gender ratio of employees working for operators is highly dependent
on the job type. Looking at technicians (all levels), operators have almost
no female employees. There are more female pilots, but the percentage is
very low.
While most interviewees acknowledge the low female proportion in many
key operator roles, they do not perceive the gender gap as one of their key
challenges. They consider the low ratio of female employees in jobs such
as technicians to be the consequence of ’the male nature of the job’.
Generally, many operator executives interviewed show openness to a
higher female ratio in critical jobs. To a certain extent, they see advantages
in hiring more female staff. Some, for example, also believe that female
pilots outperform their male colleagues. The stated benefits of a higher
female ratio include:
31 DLR
59 © Copyright 2016, Korn Ferry
Female senior managers handle things in a different way and give
different perspectives.
Female staff improve the organisational climate of the overall
company.
The professionals interviewed could not identify additional costs associated
with the underrepresentation of women in the workforce.
Attrition and Mobility
The attrition rate, defined as voluntary and involuntary leaving, ranges from
0% to around 20% at companies interviewed. Many operators report strong
levels of employee loyalty in their company. Most experienced employees
tend to stay with operators for many years, with voluntary leave considered
a phenomenon among younger employers. The reasons for the different
attrition rates for younger staff members include the possibility of collecting
more flight hours at other organisations and the perception of limited career
options.
According to many operators interviewed, Business Aviation offers
employees a particular lifestyle. Due to the high service orientation towards
clients and flight operations, many operators require high flexibility and
non-regular, rather long working hours. Thus, either employees like this
lifestyle or they discover early in their Business Aviation career that it does
not suit them. Consequently, people who decide to work in Business
Aviation seem to have a strong preference for this way of life – which helps
to explain these comparably low attrition rates.
Another reason for the low attrition rate is that operators, frequently located
in the countryside, offer their employees-value propositions typical of small
companies, such as very personal relationships among staff and a family-
like climate.
External Resources
Only a limited number of operators interviewed rely on external human
resources, and mainly at busy times only. Flight attendants and pilots are
the two roles identified that are filled most often by external staffing.
Sources for these staff include agencies, other companies with similar
aircraft (and consequently type rating qualifications of pilots), as well as
external pools of freelancers. However, some companies also try to limit
the usage of external resources due to quality and regulatory concerns.
6.2.4 CURRENT WORKFORCE SHORTAGES
There is no consistent picture of workforce shortages at operators. About
two-thirds of the operators interviewed agree that there are current
workforce shortages of experienced maintenance technicians (Cat B1
and/or B2) and experienced dispatchers/flight planners. At the same
“Either you love
it or hate it”
60 © Copyright 2016, Korn Ferry
time, many operators experience no such shortages. One reason for this
might be that there are not many vacancies in smaller companies and
therefore, the difficulties attracting talent are not transparent.
A few operators face scarcity for other positions, such as:
Captain
Entry-level maintenance technician (Cat A)
Experienced maintenance technicians with supervisor or management
function (Cat C)
Flight data monitoring professional
Crew planner
6.2.5 FUTURE WORKFORCE SHORTAGES
Operators have difficulties forecasting the workforce situation for the next
five years. Most who report no current shortages for specific positions also
see no future challenges concerning their workforce.
However, they do expect future workforce shortages in relation to
experienced maintenance technicians (Cat B1 and/or B2), especially
with several type ratings working in critical roles. In addition, operators see
the trend towards a shortage of experienced dispatchers/flight planners
continuing. Some operators also forecast shortages of experienced pilots,
and some even expect the same for younger pilots, in five to ten years.
In conclusion, the interview results show that only a limited number of
interviewees expect future workforce shortages and only for particular
roles.
6.2.6 REASONS FOR WORKFORCE SHORTAGES
According to the expert interviews, workforce shortages, either current or
future, can be attributed to:
Finding Young Talent
A high proportion of the workforce belongs to a demographic that will
retire soon. Not enough graduates are entering the market, which will
result in a workforce gap. Operators reported an unwillingness of
young people to live the Business Aviation lifestyle and work long
hours.
Operators located in more rural areas report that it is generally hard to
recruit new people because of their seemingly unattractive location.
Financial Aspects
Overall, stakeholders state competitive salaries are not offered by the
Business Aviation industry (especially for experienced maintenance
technicians and captains).
“As long as the
people are
interested in
the aviation
industry and
they are willing
to study, there
will be no
issue.”
(Interviewed
Operator and
MRO)
61 © Copyright 2016, Korn Ferry
The high cost of getting type ratings for maintenance staff is also cited.
6.2.7 DIFFERENCES IN WORKFORCE SITUATIONS
There are clear differences in workforce situations between countries,
companies of differing size, and types of operators.
For example, aviation departments in big corporations do not face
shortages, as they have strong employer brands and professional HR
departments. They also pay above average wages, provide a better work-
life balance and offer greater job security.
Mobility is different for the critical roles at operators, with pilots being very
mobile, but technicians often showing a much lower mobility readiness.
Therefore, problems in filling role may vary depending on location.
6.3 MROs
6.3.1 MARKET AND COMPETITION
Business Model
Companies offering MRO services often combine these with other
Business Aviation-related services. This applies especially to the medium-
sized and bigger MROs. MROs are also often operators, handling the
maintenance of both their own aircraft and those of others. Manufacturers
are extending their value chain, moving more and more into the MRO
business as it provides additional revenues. We also see combinations of
MROs and aircraft refurbishment providers.
As companies offer several services, it is difficult to differentiate the
workforce situation related to the core MRO services because:
Experts Interviewed look at the company as a whole and do not
distinguish between MRO and other service offerings.
Many trends affect the service lines in similar ways, such as price
pressure, technology trends, etc.
This section only elaborates on interview statements clearly linked to MRO
services.
62 © Copyright 2016, Korn Ferry
Market Structure
The total number of MROs inside the EU9 is significantly smaller than the
number of operators, with only 107 companies32. However, they are
similarly focused on the main markets, with 34 MROs in Germany, 23 in
the UK, 15 in France, and 14 in Switzerland. In comparison, there are only
four MROs in the Czech Republic and three in Portugal.33
Figure 35: Number of MROs in each EU9 country (2014)
Figure 36: MROs by EU9 country (by percentage, 2014)
32 For MROs it is not clear whether they maintain helicopters or fixed wing aircraft
33 DLR
63 © Copyright 2016, Korn Ferry
Competitive Situation
Many of the statements regarding the overall competitive situation of
Business Aviation apply to MROs as well. Additionally, there seems to be a
trend towards relocating overhaul activities of large cabin aircraft to other
regions with considerable cost advantages, such as Asia.
6.3.2 EXTERNAL TRENDS
Technology
As technology is at the core of their business, technology trends affect
MROs more than any other segment of Business Aviation.
Several key technology trends will affect MROs:
Technology developments in avionics are leading clients increasingly
to replace complete electronic units rather than repairing them, which
eases the workload and simplifies the duties of maintenance staff.
There seems to be a trend towards larger aircraft, which will ultimately
affect maintenance staff and the technical skills required. For instance,
due to additional systems in these lager aircraft, more cabin-related
maintenance will be required.
Other trends that will impact MROs and their workforce include:
Big data supporting MRO technicians in managing inventory and
monitoring equipment health
Mobile technology increasing efficiency of technicians in their
daily work (e.g., better availability of documentation during
maintenance work)
3-D printing might revolutionise the supply chain for aircraft parts
in the mid and long term
Maintenance of aircraft made of composite material will require a
very different skillset of technicians
Using drones for maintenance might be a future trend as well
(though perhaps more relevant for bigger aircraft)
Regulations
An increase in the regulatory burden will mean the demand for training for
maintenance staff will grow, which could lead to more staff being hired. As
this could a greater administrative onus, it could scare off young people.
“Technology is
changing very
fast!”
(Interviewed
MRO and
Operator)
64 © Copyright 2016, Korn Ferry
6.3.3 WORKFORCE COMPOSITION
Workforce Size
MROs in the EU9 employ a total of 6721 people, with Germany (1798),
Switzerland (1533), France (1228) and the UK (1035) employing the most
and Belgium (59), Portugal (90) and Poland (116) the fewest.34
Figure 37: Workforce size by country in EU9 (2014)
Age
There are indications from external data sources that, in some European
countries, licensed technicians are overrepresented in the age range of 40
to 60.
Gender
Those interviewed describe the industry overall as ’male dominated’, with
female ratio of technicians in MROs ranging from 0% to 10%35. While those
MROs interviewed stated that they would like to employ more women, the
reasons cited for the lack of women technicians included:
Image of the industry
Perception of ’heavy work’
Low attractiveness of technical jobs for women
34 DLR
35 However, as only two interviewees have been able to provide numbers, the range is vague.
“We would like
to see some
more women
but it’s just so
male dominant.
This is
probably an
industry-wide
problem.”
(Interviewed
MRO and
Manufacturer)
65 © Copyright 2016, Korn Ferry
Attrition and Mobility
The attrition rates reported by MROs are described as ’low’ or ‘moderate’ -
in many cases below 5% - and job tenure is on average long. Regional
mobility highly depends on the location of the employees, for example,
Eastern Europe is less mobile than other regions. Overall mobility for
technicians is lower than for pilots or university-educated engineers.
A key challenge for MROs is the high investment in developing new skills
and getting their technicians type rated, if trained employees leave the
company, these investments in skills are lost.
6.3.4 CURRENT WORKFORCE SHORTAGES
As with operators, there is no consistent picture of workforce shortages at
MROs. Many MROs interviewed agree that there are current workforce
shortages for experienced maintenance technicians (Cat B1 and/or
B2), often regarding specific skills, such as a specialisation in avionics,
customer and service orientation, and people with many type ratings.
However, many MROs said that they are not experiencing workforce
shortages. This not only applies to bigger MROs, but also to small ones. In
an additional telephone survey36 of 10 small MROs located in Germany and
the UK, eight stated they have no current workforce shortages.
6.3.5 FUTURE WORKFORCE SHORTAGES
Two general trends regarding the future workforce shortage have been
identified from speaking with MROs:
There is a problem in making Business Aviation MROs attractive to
young people.
Many MROs agree that a shortage of entry-level maintenance
technicians (Cat A) and experienced maintenance technicians (Cat B1
and/or B2) will develop in the market.
6.3.6 REASONS FOR WORKFORCE SHORTAGES
The current and future challenges behind workforce shortages include:
Change of job scope. In many technical jobs, bureaucracy and
administrative tasks take an increasing share of time, which makes
these jobs less desirable to current or potential incumbents.
36 Hay Group conducted an additional telephone survey in December 2015 with Germany and UK-based small MROs (10-30 FTE). The purpose of the survey was to get a better understanding of the workforce situation of small MROs and to find out if they have a current workforce shortage and a future workforce
66 © Copyright 2016, Korn Ferry
Lack of skills:
Depending on the country, there is a lack of apprenticeship
schemes on offer for maintenance staff, even by larger MROs –
something cited by many operators as well
Those moving from commercial aviation to Business Aviation in
maintenance face certain skill barriers. Not only are type ratings
different, but a different skillset is required for technical jobs in
commercial aviation than for Business Aviation (e.g., service
orientation and flexibility plays a bigger role in Business Aviation)
Demographic change is seen as a challenge as the technical staff
ages
6.3.7 DIFFERENCES IN WORKFORCE SITUATIONS
Many of the key differences cited in the section about Operators apply to
MROs as well.
Generally, smaller companies find it more difficult to recruit staff. However,
one-third of the small MROs interviewed have their own, in-house
apprenticeship programme for technical jobs. These MROs report no
current workforce shortages for entry-level maintenance technicians (Cat
A), no such problems expected in future, nor do they have any problems in
attracting young people.
6.4 FBOS
6.4.1 MARKET AND COMPETITION
Business Model
The interviews suggest that the business model and the range of services
offered by FBOs differ from market player to market player. Many FBOs
also offer additional services, combining with the role of operator or MRO,
or adding other operating services to their portfolio (e.g., servicing
commercial airlines at selected airports).
Due to these different business models, distinguishing the FBO core
processes and workforce is difficult. On the other hand, many trends affect
all parts of the business, including price pressure and technology trends.
Market Structure
In terms of the number of industry players, there are fewer FBO firms in the
EU9 than MROs or operators. A total of 56 FBOs compete on the EU9
market, with most found in the four biggest European Business Aviation
countries. However, they are distributed slightly differently, as Switzerland
and the UK claim the highest number FBOs with 14 each. Ten market
67 © Copyright 2016, Korn Ferry
players are in France with only eight in Germany, two in Belgium, three in
Portugal and only one each in Poland and the Czech Republic.37
Figure 38: Number of FBOs in EU9 companies (2014)
Figure 39: FBOs in EU9 companies (by percentage, 2014)
6.4.2 EXTERNAL TRENDS
Technology
FBOs are less impacted by technology trends in Business Aviation overall.
The trend towards larger aircraft with more seats could necessitate
changes in the infrastructure for FBOs to handle these, such as larger
hangers. The impact on the workforce size still needs to be determined.
37 DLR
68 © Copyright 2016, Korn Ferry
6.4.3 WORKFORCE COMPOSITION
Workforce Size
Figure 40: Workforce size in FBOs by EU9 country (2014)
The number of employees working for FBOs is significantly lower than in
the Operator or MRO sector. The countries with the largest FBO
workforces in the EU9 are Germany with 312 employees, the UK with 221,
France with 153, and Switzerland with 116. FBOS in Belgium, the Czech
Republic and Poland employ the fewest people among the EU9 countries.38
Age and Gender
No peculiarities in the demographic structure or future trends have been
identified for FBOs. The workforce seems to be significantly younger than
in other sector segments.
Ramp worker jobs seem to be staffed predominantly by men, whereas
back-office and customer representative roles have a high proportion of
female staff.
Attrition and Mobility
Attrition rates depend predominantly on the company, ranging from very
low single digit numbers up to 20%.
Potential recruiting sources for staff include commercial airlines (especially
for ground handling staff), airports, and the hotel/leisure industry (for
customer facing roles).
The quality level of services offered seems to determine different FBO
market segments. This poses a barrier for workforce mobility between
different FBOs due to a lack of required skills of staff in some segments
(where training is less important and quality levels of service are
considerably lower). No relevant movement between staff from ramp work
to operations/back-office has been reported.
38 DLR
69 © Copyright 2016, Korn Ferry
External Resources
The use of freelancers by FBOs for the busy season in the summer time is
quite widespread.
6.4.4 CURRENT WORKFORCE SHORTAGES
The majority of FBOs interviewed do not see any current critical
workforce shortage, though medium-sized and small firms face some
(minor) difficulties filling open positions. Bigger companies and those part
of a bigger group have advantages to overcome occasional, local
workforce shortages. The lack of specific language skills in some regional
markets poses a challenge.
In some countries, lack of workforce flexibility poses a problem (e.g., due to
contracting and licensing issues).
6.4.5 FUTURE WORKFORCE SHORTAGES
FBO professionals do not foresee critical workforce shortages in future.
Educational and work experience requirements are not high and the
training effort is very low compared with other Business Aviation jobs.
6.4.6 DIFFERENCES IN WORKFORCE SITUATIONS
There are no significant differences in the workforce situation between
countries, companies of different size, or types of FBO. Different
regional/local regulations lead to differing levels in pay and administrative
effort. Different country-based educational levels and the resulting
availability of highly qualified people lead to differing educational
requirement for staff. As in other sub-segments of the sector, smaller
companies have greater difficulty in attracting talent.
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6.5 AIRPORTS
6.5.1 MARKET AND COMPETITION
Market Structure
The European Business Aviation industry relies on airports that are part of
various market segments:
Public airports with a major share of Business Aviation movements
(e.g., Biggin Hill, Le Bourget)
Public regional airports with significant Business Aviation movements
(e.g. Poznan Airport)
Major public airports (e.g. Berlin-Schoenefeld)
Non-Commercial Business Aviation airports (e.g. Adolf Wuerth Airport)
Figure 41: 1147 airports in the EU9 are used for Business Aviation purposes.
0 200 400 600 800 1000 1200 1400
Total
Switzerland
UK
France
Germany
Italy
Portugal
Belgium
Czech Republic
Poland
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Figure 42: Germany and the UK, followed by France and Switzerland, are the countries in the EU9 with higher volumes of Business Aviation operations.
Competitive Situation
For most commercial airports, there is significant pressure on airport fees,
especially at regional airports with a large market share of Low-Cost
Carriers. For Low-Cost Carriers, many regional airports are
interchangeable, which increases competition between airports in this
segment. The opening of new regional airports or the conversion of former
military airports to civil aviation has increased the competition even further.
Low-Cost Carriers argue that they bring revenue-generating passengers to
otherwise empty airports. This trend leads to the following effects:
At Poznan Airport, for instance, ground handling fees have decreased
by 50% due to the presence and the significant bargaining power of
Low-Cost Carriers. This trend negatively affects Business Aviation
ground handlers working in the same airport whose salary would
go down because of Low-Cost Carriers.
Airports try to compensate for the lack of sufficient aeronautical
revenues by increasing other revenue, such as from food & beverage
or retailing. At regional airports with a large share of Business Aviation
traffic or at non-commercial Business Aviation airports, the revenue
structure is still mainly based on fees as it is difficult to generate other
revenue at airports with low traffic volumes. This implies that small
Business Aviation airports struggle to reach a sufficient level of
aeronautical revenue to remain profitable.
9.7%
16.6%
29.0%
24.5%
11.9%
1.3%
2.3% 2.0% 2.1%
Switzerland UK France
Germany Italy Portugal
Belgium Czech Republic Poland
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Many of the large public airports are dealing with capacity constraints and
competition with other hub airports. These constraints, in combination with
more complicated and time-consuming processes, make hub airports less
attractive to Business Aviation users, who prefer smaller and more easily
accessible airports.
Market Trends
Some of those interviewed mentioned that, in markets that
experienced strong Low-Cost Carrier-driven traffic growth in recent
years, there is a trend toward consolidation and unprofitable airports
will exit the market. This could for instance become an issue in
Germany, where airport capacity has been expanded dramatically and
many regional airports remain unprofitable. Considering how many
Business Aviation airports are small regional airports (40% of all
Business Aviation airports in the country fall under this category), the
workforce in the sector would be heavily affected by such airports
exiting the market. In other European markets, where airport density
and competition are less significant, this trend could become less
severe.
6.5.2 EXTERNAL TRENDS
The seasonality of labour demand is a big issue for airports. Airport
maintenance reaches a peak during the winter because of snow
removal and bad weather conditions, while more passenger security
personnel is required during the summer since that is the peak travel
period.
Changing regulations regarding AFISO might impact costs. An AFISO
requires nearly the same level of education as tower controllers, but
only makes about 50-60% of the salary of an air traffic controller (which
is over EUR 80,000).
The major aviation trends also affect airports:
There is a significant market growth, and consequently growth in
airport traffic volume in Business Aviation in Asia, the BRICs
and Africa
As large public airports reach capacity, slots become more difficult
to obtain, which could lead to a shift of operations towards smaller,
regional airports. However, if Business Aviation operators shift
away from major airports this could reduce the sector’s
market pull since major airports are typically better
connected to main urban centres.
In Germany, more companies are in the process of taking airports
over for the primary use of their Business Aviation fleet (e.g.,
BASF in Speyer, ZF in Friedrichshafen), providing more stable
revenue for these airports.
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6.5.3 WORKFORCE COMPOSITION
Relevant Jobs
At small airports, small staff levels typically mean staff have several
different qualifications and conduct a range of jobs in parallel. This can
be a problem for the Business Aviation sector, however, because
of the importance of soft skills for ground handling personnel.
For bigger airports, division of labour is necessary and specialists fill
various roles. At a minimum, the following jobs are required:
Head of Airport
CEO
Head of infrastructure
Managers
Rescue and Fire Brigade Manager
Airport Facility Manager
HR, Finance, IT, Marketing, etc.
Professionals
Airport Regulation Manager
Air Traffic Controllers
Supervisor
Airport Security Supervisor
Firefighting Team Lead
Operator
Airport Security Agent
Firefighter
Airport Facilities / Maintenance Director
(Aerodrome Flight Information Service Officer, AFISO)
Aviation Weather Observer
Airport Operations Assistant
Gender
Gender of airport personnel is no different between Business Aviation and
other aviation sectors.
Women can only be found rarely or in certain job categories throughout
the airport (such as administration, check-in, etc.)
For most jobs, this shortage of female staff has not been perceived as
an issue, but the fact that there is a shortage of women in security can
be a problem
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Attrition and Mobility
At Eastern European airports with a major share of Low-Cost traffic
(e.g. >50%), cost pressure makes it difficult to find handling agents and
airport maintenance staff due to low salaries. Workers are migrating to
the UK, Scandinavia, Benelux, and Southern Europe, where salaries
are better. This is a trend not only affecting low-skilled and low-cost
jobs, but also IT specialists and accountants that are leaving Eastern
European countries.
The Middle-East, and in particular Dubai, advertises around the globe
for jobs as the Business Aviation sector is growing very fast there.
Additionally, the comparably high salaries in the region have
implications for the European workforce, as the region attracts talent
away from European airports. This is particularly true for jobs requiring
high qualifications, such as air traffic controllers.
6.5.4 CURRENT WORKFORCE SHORTAGES
In general, airport managers interviewed did not mention significant current
workforce shortages as a major concern. Several interviewees said that
they are able to get the staff they need. The following issues were
mentioned, however, that can make it more difficult to fill positions:
Dealing with Business Aviation clients not only requires the necessary
technical skills, but also soft skills. It is tough to find qualified ground
handling employees who also have received a ‘hotel staff’ type of
training.
In some remoter regions, where the workforce size is generally small
(for instance in the Alps), finding the needed skills can be challenging.
In rural or remote areas (for instance around Sion Airport), the local labour
market does not offer enough supply of:
Ground operations specialists and this leads to issues, especially
during the peak times of the year.
Maintenance technicians.
The seasonality of the airport business makes it difficult to hire enough
qualified staff for the peak periods.
Tower controllers were mentioned as an important job category that has
always been in high demand. Again, given the training that is needed to
fulfil this job, finding qualified staff in rural areas is even more challenging.
In addition, firefighters are absolutely mission-critical to any airport. Airport
firefighters are typically recruited at local fire departments and then take
airport-specific training, which is relatively short (several weeks plus
refreshers every two years). This short training process ensures that
shortages are rare.
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6.5.5 FUTURE WORKFORCE SHORTAGES
Impact of the trends on the workforce:
In Eastern Europe, the mobility of the workforce and the trend towards
moving to countries with higher salaries, such as in Northern or
Western Europe or the Middle East, has the potential to lead to
shortages at airports. This can affect both low-skilled and high-skilled
jobs as well as personnel in Business Aviation whose salary is
driven by the fee level set by Low-Cost Carriers.
More soft skills will be required when dealing with high profile Business
Aviation clients. It will be increasingly difficult to find staff that possess
both the required technical skills and the requisite soft skills.
6.6 MANUFACTURERS
6.6.1 MARKET AND COMPETITION
Business Model
Manufacturers play an important role in the Business Aviation market as
they provide one of the key elements of the industry: the aircraft. However,
data about this industry segment needs to be analysed with great caution,
because of both its heterogeneity and complexity:
Manufacturers also offer other Business Aviation services. This applies
especially to MRO services.
Manufacturers often do not just serve Business Aviation customers,
but also and foremost the commercial and military segments.39
Market Structure, Competitive Situation and Workforce Size
In the EU9 countries, the total Business Aviation fleet size is 1947 aircraft.40
However, the market is characterised largely by an oligopolistic structure
with few industry players (though less so than in commercial aviation).
Some 83% of all aircraft are manufactured by five companies: Cessna,
Bombardier, Hawker Beechcraft, Dassault Aviation and Piper 41. The
current fleet is dominated by non-European manufacturers. Manufacturers
forecast considerable aircraft deliveries over the coming years, but
primarily for fleet replacement and upgrades, as Business Aviation
operators do not expect major fleet growth42.
39 Boeing & Dassault Aviation
40 Hay Group Analysis based on DLR Data
41 Hay Group Analysis; Cessna and Hawker Beechcraft are parts of Textron Inc. and
represent a combined share of 44% of EU9 fleet size
42 ICF
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Figure 43: Fleet structure in EU9 countries by aircraft manufacturer
In terms of European manufacturers, there are 28 companies in the EU9
countries43. Most of the players are located in France (8), the UK (6), and
Germany (5). In all other EU9 countries, the number of manufacturers
ranges from one to three.44
Figure 44: Number of manufacturers in EU9 countries (2014)
43 Some manufacturers operate in different countries and are listed multiple times in
different countries (e.g. Airbus)
44 DLR
Piper8%
Cessna28%
Others17%
Dassault Aviation
17%
Hawker Beechcraft
16%
Bombardier14%
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Figure 45: Manufacturers in EU9 countries (by percentage, 2014)
Figure 46: Workforce in Business Aviation manufacturing by country
6.6.2 EXTERNAL TRENDS
In terms of technology, most trends that affect Business Aviation generally
also affect manufacturers, often with more of an impact on job clusters due
to the many core activities in these companies, from development, testing
to production and sales. Relevant trends include the development of
avionics, and new materials and production methods, such as 3D printing.
Furthermore, the demand for larger jets with more seats has a potential
effect on the workforce.
6.6.3 WORKFORCE COMPOSITION
With over 40,000 staff, the number of employees working for
manufacturers is significantly higher than the number of employees
working for other stakeholders in Business Aviation. The job landscape is
also more diverse and complex than in other aviation segments, ranging
from R&D related jobs to testing, production, client training, and a more
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complex sales and marketing workforce. As manufacturers also serve other
clients outside Business Aviation, a clear differentiation of employees
working for Business Aviation cannot be made. Accordingly, analysing the
workforce composition is not feasible at this point.
The manufacturers interviewed report low attrition rates. One describes it
as “stable in production and service”. However, there seems to be a trend
of smaller manufacturers losing staff to bigger companies.
6.6.4 CURRENT AND FUTURE WORKFORCE
SHORTAGES
No clear view about current shortages was provided by those
manufacturers interviewed, though some report a shortage of technicians.
As manufacturers are mostly bigger companies, their employer brand,
professional HR with more career options, job security, and recruiting
savvy position them better in the fight for talent and they do not need to
fear any relevant workforce shortage.
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7 COMPETING FOR CAPTAINS, PILOTS AND TECHNICIANS - CRITICAL ROLE SHORTAGES
SUMMARY
The impact of workforce drivers, such as attrition rates, demographics, the
availability of talent in the labour market, and regulatory and technology
developments, will be most evidenced in workforce gaps in the critical roles
of Captain, Maintenance Technicians and Flight Planners.
There are numerous ways that aviation in general and Business Aviation in
particular can influence the supply and demand of key elements of the
workforce in terms of retaining, developing and attracting skilled employees
in Business Aviation.
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7.1 IDENTIFICATION OF CRITICAL ROLES AND
SKILLS
Critical roles in Business Aviation are those where both a scarcity of
potential jobholders or skills needed and a high strategic importance or
mission criticality exist.
Figure 47: Critical roles approach
Based on the interviews and additional research, we have identified the
following critical roles, in the job family framework:
Captain
Flight planner
Maintenance technician
Additionally, for some parts of the sector, the following roles might be
critical as well:
Pilot
Operations controller
Trainee flight dispatcher
Aviation design engineer
Supervisor completions
Production operator (e.g., saddler)
Maintenance supervisor (cat. C)
Air traffic controller
Firefighter
Flight information officer
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Technicians
Experienced technicians are the job cluster where there is the highest
agreement among experts that there will be a workforce shortage in the
future. It is also a job cluster where Business Aviation competes with
commercial aviation.
Captains
Whereas less experienced pilots seem to be plentiful in the market, the
labour supply for experienced pilots is rather tight. Most operators in
Business Aviation do not see a major workforce shortage today, but
forecast possible shortages in the mid- to long-term.
Flight Planners/Dispatchers
Some operators consider flight planners as a job cluster that has potential
for workforce shortages, even if there are currently no signs of this.
The duration for internal training of people for this job (three to 12 months
including on the job training) contributes to the criticality. Flight planners in
Business Aviation are different from planning functions in scheduled
airlines and therefore not an ideal recruiting source.
7.2 WORKFORCE DRIVERS
Based on the analysis conducted above, the following workforce supply
and demand drivers were identified:
Key Workforce Supply Drivers for Business Aviation:
Attrition rate
Age structure and retirement
Availability of talent in labour market
Attractiveness to employee target group
Productivity (increase in productivity lowers workforce demand)
Reward level development (lower reward levels allow more people to
be hired with the same personnel budget)
Workforce mobility (balances supply and demand between regions)
Indirect supply drivers (with impact on talent availability and reward
levels):
Growth and workforce demand in sectors competing for the same
type of talent (e.g. automotive sector)
Demographic development of the overall workforce
Availability of qualified graduates
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Key Workforce Demand Drivers for Business Aviation:
Number of registered aircraft
Number of flights
Flight hours
Aircraft type distribution (homogeneity of fleet)
Aircraft age
Technology developments
Regulatory changes
Indirect demand drivers that influence fleet and flights
GDP growth
Revenue growth in Business Aviation
Acceptance of Business Aviation in society
7.3 WORKFORCE RISKS
Based on the analysis conducted, we identified the following key workforce
risks in Business Aviation:
Workforce Supply Side
Rising attrition rate due to increasing number of younger people joining
or more attractive offers from competitors or other aviation segments.
Retirement of older employees without proper replacement creating
bigger gaps. Early retirement might accelerate this risk.
Lack of transparency on key workforce indicators that might lead to
unexpected loss of staff (voluntary leave, retirement) without being
able to initiate countermeasures early in the process.
Continuing decrease in number of young people willing to specialise in
STEM subjects.
No change in the perception of aviation and Business Aviation as
attractive sector and therefore no increase in share of graduates.
No improvement in the output of qualified graduates from the
education system in selected regions (e.g., because of lack of financial
support for students, lack of appropriate schools or training).
Increasing reward gap between other aviation segments and Business
Aviation and within the sector. Need to either increase reward levels as
well or higher probability for voluntary leave and open positions.
Increase in HR management maturity level at competitors attracting
and retaining needed resources better than Business Aviation
companies.
No upward trend in workforce mobility for specific roles within Europe
(e.g., technicians).
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Forecast growth and workforce demand rise in sectors competing for
the same talent comes true (e.g., scheduled airlines).
Poaching of specialists to non-European regions such as US due to
high demand and very competitive job offers.
Workforce Demand Side
Growth of Business Aviation fleet, number of flights, and flight hours
(should be a positive development, but potentially increases the
workforce gap).
Increase in fleet heterogeneity.
Increase in aircraft age (lack of replacement).
Developments in technology do not lead to forecast small workforce
reduction, but to demand for skills that are not available in the market
(e.g., on carbon material).
Additional regulations (local, national, and at European level) might
increase the need both for additional staff and training to acquire new
required skills.
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8 WEATHERING THE STORM: HOW TO CLOSE WORKFORCE GAPS
SUMMARY
The key finding is that EBAA needs to trigger awareness of the coming
workforce shortages within the Business Aviation sector, both among its
members and the wider Business Aviation community.
Business Aviation has to get better at attracting talent into the industry. It
can go some way to increasing the talent pool of skilled employees and
helping attract highly sought after talent into Business Aviation, e.g. by
creating a more compelling sector employment brand.
Improving educational and training opportunities is another solution area
that increases the quantity and quality of the skilled workforce.
Encouraging EBAA members to increase the professional maturity of their
human resources operations, particularly at SMEs, and systematically
monitoring the workforce situation at both sector and company level, are
critical to improve recruiting, talent management, training and workforce
planning.
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8.1 CURRENT PROGRAMMES TO CLOSE
WORKFORCE GAPS
8.1.1 OVERVIEW
Current programmes to close workforce gaps can be categorized on a
European, national, industry-wide, or company-specific basis. Table 12
summarizes the main programmes aiming to reduce existing mismatches
between workforce supply and demand across Europe.
Technicians Pilots Flight Planner/ Dispatcher
Other
1. EU
1.1 EASA – GA Roadmap
1.2 EDUCAIR
1.3 EU STEM Coalition
1.4 WorldSkills Competition
2. Country 2.1 National Apprenticeship Programmes
2.1 National Apprenticeship Programmes
3. Industry 3.1 Internal Training Programmes (Large Companies Only)
4. Company
4.1 University Classes Taught by Industry Experts
4.5 Offer of “Training Bonds” Options
4.8 Partnership with Hotel Chain for Ground Handlers Training on Soft Skills
4.2 Customized School Curricula to Fit Company Needs
4.6 Provision of Pilot Training with Aircraft Purchase
4.3 In-House Apprenticeship Programmes
4.4 Internship Programmesin Partnership with Companies
4.7 Partner with external providers to offer curricula for pilots
4.9 Internal Training Programmes for Firefighters
Green = Operators, Yellow = Manufacturers, Purple = Operators +
Manufacturers + MROs, Blue = Vocational Schools, Orange = Airports
Table 12: Overview of the current programmes to close workforce gaps grouped by scope: European, country specific, industry, or company specific.
86 © Copyright 2016, Korn Ferry
European Union
EASA-GA Roadmap: The European Commission and EASA drafted
the GA Roadmap in order to minimize the number of rules and adopt a
risk-based approach when regulating the General Aviation sector.
Although Business Aviation is not synonymous with General Aviation,
parts of its activities are, such as corporate business jet flights, and
this is why the GA Roadmap is relevant to the sector. Key measures
envisaged by the GA Roadmap to avoid overregulating the General
Aviation sector are:
Simplify administrative and operational procedures
Make oversight activities more proportionate, delegating them to
the end-user organization
Tailor the certification process to be more proportionate
Production of a regulatory quick reference guide
EDUCAIR: In order to identify the competence gaps between the
required skills and the educational curricula available in the aviation
sector, the Foundation for Science and Technology in Portugal funded
the Educational Gaps in Aeronautics and Air Transport
(EDUCAIR) project, conducted by a team of experts from six European
universities between 2011 and 2013. Although the main result of the
study was that no significant competence misalignment exists at the
EU level, it stated that educational programmes tend to be organized
as separate containers rather than fostering transversal educational
offers. In addition to the need for more flexible programmes, the study
also pointed out the critical need for a strong school-industry
partnership to ensure a high level of technical education.
EU STEM Coalition: Science, Technology, Engineering and
Mathematics (STEM) graduates are a key factor to ensure economic
growth and quality jobs for young people across Europe. The high rate
of youth unemployment and high number of vacancies for STEM jobs
highlights a skills mismatch.
Several EU member states have addressed this mismatch by
developing successful national STEM strategies. The EU STEM
Coalition is the result of the joint force of the national STEM platforms
of Denmark, The Netherlands, Belgium and Estonia. By providing
peer-to-peer coaching, the STEM Coalition aims to help establish new
national STEM platforms in other member states. Although not
specifically focused on the aviation sector, the EU STEM Coalition
addresses a mismatch between demand and supply of skills in Europe,
including in the Business Aviation sector.
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Country
National Apprenticeship Programmes: Apprenticeships are a useful
resource to facilitate the transition from training to work. The European
Commission reports that countries with a strong apprenticeship
system have lower levels of youth unemployment. Examples of
apprenticeship systems can be found in the UK, Germany, Switzerland
and France.
The UK government has implemented a rigorous apprenticeship
structure in which
groups of employers ('Trailblazers') develop new apprenticeships,
working together to design standards and assessment approaches. As
of July 2015, there were 140 Trailblazer employer groups
delivering over 350 apprenticeship standards.
Industry
Internal Training Programmes: Large companies in the Business
Aviation sector have the resources to offer internal training
programmes for their employees. Business Aviation experts
highlighted the fact that manufacturers, large MROs and large
operators provide internal EASA-certified training for technicians.
Large operators are also able to train dispatchers in-house. Airports
hold internal security training to bring their personnel up to speed.
The figure below shows an overview of the type of personnel trained
by large Business Aviation players across Europe.
Technicians Pilots Dispatchers Other
Figure 48: Internal training providers in Business Aviation in Europe and the job categories targeted.
Large MROs
Large Operators
Manufacturers
Large Operators
Airports
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Company
Technicians
Company-wide programmes aimed at reducing workforce gaps for
technicians in Business Aviation follow two main paths. Both
vocational schools and companies work together to reduce
mismatches between demand and supply, while companies also
provide specific internal programmes.
School/Industry Initiatives: Business Aviation manufacturers,
operators, and vocational schools in Europe provide university-
level classes taught by industry experts, as well as customized
school curricula to fit industry needs and internship programmes to
increase student/company interaction at school.
In-House Apprenticeship Programmes: These are very
common among aircraft manufacturers, operators, and MROs in
the sector.
Pilots
In order to promote the Business Aviation pilot career, some vocational
schools have a specific curriculum for pilots conducted by external
providers.
Other
Smaller airports whose operations comprise mainly Business Aviation
cannot rely on the same financial resources as large commercial
airports. Small airports across Europe are investing resources in
safety training both for general staff as well as for firefighters.
Business Aviation operators report a lack of soft skills among ground
handling personnel. Given the client-facing roles that ground handlers
have in Business Aviation, some operators have started providing
specific training on soft skills, including by partnering with hotel
chains to offer this type of training to their employees.
8.2 POTENTIAL SOLUTIONS
8.2.1 OVERVIEW
When determining potential solutions to meet the workforce shortage
challenge, sector stakeholders can influence the workforce gap in two
ways. They can either influence the workforce demand by using business
levers, or influence the supply side by using human resources levers.
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Figure 49: Overview of potential solutions
Demand Side
The following business levers can be used to influence the number and
type of talented individuals moving into Business Aviation:
Make-or-buy strategy: Individual companies might consider
outsourcing to external providers for specific processes where they find
it difficult to attract or retain personnel with the right skills and cost
levels. As in many other sectors, outsourcing of enabling functions in
aviation is quite common. While outsourcing critical roles is more
difficult, as these often constitute the core competencies of the
companies, outsourcing maintenance work among operators is quite
common.
Optimize processes to lower workforce demand: A core activity
when optimizing workforce demand is to review the current process
landscape, then streamline processes and decision-making and assign
processes and activities to the appropriate roles. Often people who are
too senior (and scarce) take care of activities that could be delegated
to staff with lower skill levels.
Harmonize fleet and invest in technology: Fleets in Business
Aviation are often quite heterogeneous. Harmonizing fleets helps
decrease the number of people needed to operate and maintain them.
Small and medium sized Business Aviation companies can also
increase efficiency by investing more in technology.
Move to locations with sufficient workforce supply: Workforce
shortages do not show an equal distribution across countries and
regions. Some countries have a better supply of young talent in the
critical roles. In other countries, there might be oversupply of personnel
for several years, such as due to the failure of a big local player in
aviation. Shifting some operations to these countries or establishing a
new subsidiary might help to overcome workforce shortages in specific
locations.
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Governmental lobbying to optimize regulations: Government
regulations are a factor affecting workforce demand. Identifying the
impact of specific regulations on the workforce and then lobbying from
a united aviation sector might help mitigate the workforce impact of the
regulations.
Supply Side
We see many more levers for Business Aviation on the supply side to avoid
major workforce shortages.
Figure 50: Overview of proposed workforce supply solutions
8.2.2 TRIGGER AWARENESS
Figure 51: Triggering awareness is key for successful solutions implementation
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Awareness is Key:
“This is a struggle that will come and can’t be won by fighting it
alone”
Without creating awareness of the looming workforce shortages and the
need to initiate countermeasures, any measures proposed to tackle the
problem are unlikely to be accepted by Business Aviation stakeholders.
Therefore, the first step in addressing the talent crisis is to create
awareness of the coming workforce shortage and that the sector as a
whole needs to address it.
Need for Comprehensive Planning
In order to highlight impending Business Aviation workforce shortages, a
comprehensive strategic communications plan needs to be developed and
executed. The plan should build upon this foundational study, extract
relevant content, make use of the pre-existing stakeholder segmentation,
use the stakeholder database, and develop objectives in line with the
identified workforce situation.
Segment EBAA Customer and Stakeholder Groups: It will be important
to define the communications needs of each group of stakeholders.
Explore possibilities around a cascading effect from different
communication campaigns, where a campaign geared towards a
stakeholder group with higher awareness levels might be used for those
with lower awareness levels.
Figure 52: Sample Stakeholder Segmentation based on subsector
Define Communication Roles: By defining communication roles, key
messages can be tailored to the communicator. For example, an executive
sponsor’s communication impact will be different than communications
through newsletters. Messaging will need to be tailored to satisfy both the
audience (stakeholder group) and the communicator.
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Create Communications Objectives: All communications should focus on
the workforce situation, while recognising that there are supporting
objectives around EBAA and asking stakeholder groups to support its
workforce development efforts. The key objectives of the strategic
communications programme should address particular challenges, such as
insufficient pilots being trained.
Figure 53: The value of diverse communication channels
Select Communications Channels: While newsletters are effective
communication tools, EBAA should consider the full suite of standard
communications channels available, including websites, executive
speeches, informative videos, fact sheets, discussion forums, or blogs and
consider how each stakeholder group might engage or interact with these
media to design a comprehensive communications plan with associated
timelines and message calendars.
Achieving the objectives will depend on the credibility of the messenger
and whether the communication is viewed as authentic. We recommend
that EBAA work with ‘role model’ companies that have a strong reputation,
as well as companies that have already experienced severe workforce
shortages and are starting to tackle the problem with pragmatic measures.
8.2.3 IMPROVE TALENT ATTRACTION
Create ONE Compelling Sector Employer Brand
Business Aviation, with its many small and medium sized members, needs
to act together to attract talent to the sector. Otherwise, potential
employees will be drawn to other sectors, especially commercial aviation
and other technical sectors such as the space or automotive industries. We
see in the results of the sector attractiveness survey how compelling the
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brands of major airlines or major aircraft producers are. They have a high
brand awareness and a positive image.
Employer Value Proposition
The first step in creating a compelling employer brand is to define an
Employer Branding Value Proposition (EVP) to communicate a common
image of work in Business Aviation. This EVP should include:
The unique set of offerings and values that will positively encourage
suitable target candidates to choose a Business Aviation company as
an employer.
What employees experience while they are part of a company in the
sector – everything from the satisfaction of the work, the environment
they work in, the leadership, culture, compensation, training and career
development will all play a role.
The set of attributes that the current and potential employees should
perceive as the value they gain through employment in the sector.
Figure 54: Employer Branding for Business Aviation
The following steps should be followed to create the EVP:
Analysis
Organize a group of HR specialists from the sector to work on the
topic. Define a people strategy, goals and key target groups for the
sector (this could vary by segment and country).
Analyse in detail the current Business Aviation EVP perceptions and
channel effectiveness, based on the results of the sector attractiveness
survey. Engage in focus groups with selected members of the target
groups (both young people that joined the workforce and those still in
the education system). Conduct a gap analysis between actual and
desired perceptions and identify key focus areas that lead to these
perceptions.
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EVP Strategy Development
Define:
The unique attributes, offerings, and values the potential target
group should associate with Business Aviation
The experience employers should provide in the sector
The concrete EVP statements
Business Aviation is unique, with its high percentage of small
companies, its technical and operational orientation, and its male
dominance. Simplicity is key for the EVP approach.
Testing and Approval
The EVP statements should be tested across different target group
segments and countries and then be adjusted where necessary.
It might also be helpful to define common design requirements for the
‘Business Aviation’ employer brand (possibly including a common logo
to achieve a higher recognition effect).
Roll-Out
Conduct EVP gap analysis both internally (with existing employees in
Business Aviation companies) and externally (especially with graduate
target groups) to identify the changes and the concrete measures that
are needed to (re-) position Business Aviation as an attractive
employer.
Creating an employer brand is not only a matter of advertising and PR,
but also requires alignment of human resources, processes, leadership
and company cultures in the individual companies and across the
sector. Tools, checklists, training and coaching are needed to support
individual companies to conduct their individual roll-outs. Sector-wide
engagement and communication measures should be launched before
any external communication roll-out.
Management and Metrics
Employer brand awareness and image need to be measured on a regular basis to identify changes in the level of awareness of target groups and whether defined targets have been met. This requires the definition of clear KPIs and how and when they will be measured.
Launch Common Employer Branding Activities with Other Aviation Stakeholders
A further solution to increase awareness of Business Aviation is to use the
overall ‘Aviation’ brand to promote this particular employer brand in
partnership with other aviation segments and stakeholders. This solution is
supplementary and should only be initiated after having begun the roll-out
of the Business Aviation branding measures.
95 © Copyright 2016, Korn Ferry
As the other stakeholders in aviation are bigger, Business Aviation should
only participate in common measures to communicate a brand that is
aligned with the Business Aviation employer brand.
Conduct Common Personnel Marketing Activities in the Sector
Since most industry players in Business Aviation, especially operators and
MROs, do not have a significant number of recruits, a good brand
awareness programme, or a considerable personnel marketing budget, it
makes sense to bundle specific personnel marketing activities in the sector
to professionalize these activities and achieve economies of scale.
This approach will also ensure that the employer brand is better
communicated and consistently positioned.
Figure 55: Benefits for all industry players with common marketing measures
EBAA and national Business Aviation associations can provide useful
bundling and coordination services. The following activities should be
coordinated and initiated by EBAA and its local organisations:
Define common recruiting focus areas with local Business Aviation
associations and firms, such as:
Specific educational entities (flight schools, technical schools,
universities) for entry-level employees
Specific sourcing markets approached together with common
relationship management (e.g., military)
Organize partnerships with schools to provide early career advice and
guidance and initiate relationships.
Provide standard templates for recruiting ads with common, sector-
wide branding.
Common branding &
design (increaseBusiness Aviation
recognition)
Common approach
andtargets
Bundlingof
resources
96 © Copyright 2016, Korn Ferry
Coordinate common, bundled recruitment ad placement in relevant
media.
Establish and maintain a common presence on social media.
Common presence of Business Aviation companies at relevant career
fairs managed by EBAA or local organisations.
Bundling of personnel marketing activities with a few selected partners
at better cost (e.g., for ads and recruiting services).
Set-up, run, and advertise a website for internships in Business
Aviation.
Set-up, run, and advertise a job marketplace on the EBAA website with
open jobs as well as jobseekers in Business Aviation.
Initiate Programmes to Raise Female Participation
Any solutions to increase the number of women in Business Aviation need
to address different steps in the process of attracting and retaining women.
Some changes will take quite a long time to happen and need to be started
now.
Figure 56: Steps in influencing the female workforce ratio
Increasing the attractiveness of technical jobs for girls is
a target that Business Aviation can support. We recommend
that EBAA identify useful, existing activities from other
sectors, companies, associations, or government bodies,
which Business Aviation as a sector can participate in and
support. This will also bring the sector into contact with
potential employees and thus position itself to ensure a
future fair share of young graduates. An example of a
potential initiative Business Aviation companies could
participate in is the WISE campaign in the UK.
Figure 57: WISE campaign poster
Increase attractiveness of technical jobs for girls
Increase number of young women in technical education programmes
Attract women to Business Aviation companies
Retain women in Business Aviation companies
97 © Copyright 2016, Korn Ferry
Related to increasing awareness is the need to remind people how
inspirational aviation can be. Regarding technical jobs, we recommend
greater participation in existing activities with other organizations,
aviation segments, or key aviation stakeholders. Opportunities should
be created for girls and young women to meet aviation role models,
champions and organizations that are making a difference. Examples
of potential initiatives include
Girls’ Day in Germany, a yearly event where girls from age 10
spend a day in a company
The Aviatrix Project, designed to inspire and encourage girls and
women to join the aviation sector
Figure 58: Examples of projects and events to change the perception of male-dominated industries
Not only does the perception of girls and women toward Business
Aviation need to be changed, but so does that of Business Aviation
managers. Increasing the female ratio ‘is good for business’. EBAA
and its local organizations need to create and communicate a business
case showing that a higher female ratio in Business Aviation
companies is beneficial from a financial and commercial perspective.
Without this change in understanding, support for any measures to
increase the female workforce will be lukewarm.
In order to attract potential female candidates to Business Aviation, the
employer value proposition and brand needs to be developed,
rolled out, and promoted – taking into consideration the current
perception among young women regarding Business Aviation and the
specific needs and wishes of potential female employees. Changing
the current perception of Business Aviation as being male-dominated
and not attractive for women should be part of a general campaign to
create visibility and improve the image of the industry as employer.
Key to achieving and keeping a higher female ratio in Business
Aviation is to retain the women already in the industry. This is the last
step in the process described above, but according to our experience
with many companies, it is the most critical and difficult one. Many
companies focus only on attracting women, but do not think about how
to retain them. Retaining women requires changing a well-engrained
98 © Copyright 2016, Korn Ferry
culture and practices in Business Aviation companies. The first step is
to become aware of the cultural elements and practices that could lead
to departures. EBAA should liaise with organizations like WISE in the
UK that provide training, tools, workshops, or counselling and enable
firms to identify their necessary training for increasing the number of
women in the workplace and to define and implement improvement
measures.
Create a Sector-Wide Engagement Programme
Currently, the attrition rate in Business Aviation firms is, on average, quite
low. This is a key competitive advantage for the sector. However, the next
generation of young people joining the workforce is different. Their
expectations regarding their work and work environment are different as
are their mobility and willingness to stay with an employer for a longer time.
Therefore, it is important to be aware of the engagement levels and
problems of the workforce. Managers can only react if they know that
engagement and enabling levels of their workforce are at a critical level.
Unfortunately, many managers, even in SME firms, think that they have a
good understanding of their employees’ engagement levels, but reality
shows in many companies that this is not the case.
We recommend that EBAA coordinate setting up a framework, tools, and
processes to measure engagement levels in its member companies and
provide the necessary knowledge to interpret the results and initiate
countermeasures. EBAA can either hire a consultancy to build and run this
or outsource it entirely. Besides giving individual members the necessary
insights to manage their workforce’s engagement levels, it also provides
the necessary information to benchmark the results for the sector as a
whole against other sectors’ engagement levels and show early indicators
of possible risks for the sector. This is also an important aspect in the
monitoring plan described later in this report.
8.2.4 INCREASE SKILLED WORKFORCE
Sourcing Analysis to Evaluate High-Value Programmes
As a first step to increasing the skilled workforce, EBAA should undertake a
workforce sourcing analysis to determine the type of programmes that
could attract more Business Aviation employees. The sourcing analysis
should examine the Business Aviation workforce and identify the most
frequent sources of employees. For example, if the majority of candidates
apply as a result of a job fair or a specific training centre, then EBAA
member firms should strengthen their efforts in these areas to attract more
candidates.
99 © Copyright 2016, Korn Ferry
Improve Education Offerings for All Business Aviation Jobs
Upon determining the best sources for Business Aviation candidates,
EBAA, with its member companies, should then seek to improve the status
quo. EBAA should identify potential improvements to education offerings
for Business Aviation jobs. Besides supporting the goal of reducing
workforce shortages across Europe, this will also ensure that the workforce
is better prepared for the jobs that it will fill. To this end, we recommend an
evaluation of the potential solutions below to determine which provide the
best return on investment:
Training as a ‘shared service’: EBAA members should attempt to
build a partnership or outsourcing strategy with aviation organisations
that excel at training pilots, dispatchers and technicians. For example,
if an operator was delivering excellent aviation training, it could be an
additional revenue stream for the operator to offer their training to
external customers. For specific jobs without proper training offerings,
such as dispatchers, this will be especially important.
Partnerships with schools: EBAA could work with those countries
with the greatest need for Business Aviation workers to establish
programmes to advance aviation careers within the school curricula.
Sponsoring a career day, highlighting the diverse career paths in
aviation, may entice more candidates to pursue the education and
training required for a career in Business Aviation.
Share best practices for Business Aviation education and
training: Simply by creating a forum for member firms to share
information and best practices related to training could reveal best
practices not widely known across the industry. By establishing regular
processes to analyse new trends in aviation education, EBAA and
member firms would be in a better position to continually improve
education over time.
Standardization of education: If EBAA were to create formal
standardized training programmes, in compliance with EASA
requirements, then Business Aviation companies could reach out to
EBAA for staff training. This would include establishing rigorous
competency models and behavioural indicators. The benefit of
delivering exacting competency-based training means that training
could be broken down into smaller modular units, enabling more
iterative career paths for employees. Modular learning and the ability to
explore new career paths may create a more attractive work
environment for millennials. From here, EBAA could identify a vendor
to provide training delivery (classroom, instructor, etc.) and offer the
training as an additional revenue stream for its members. This would
enable EBAA to track workforce development trends and quickly adapt
to changing training requirements. Standardizing education would
increase recognition of training certificates across Europe.
100 © Copyright 2016, Korn Ferry
Regulatory considerations
It would be necessary to ensure that all training meets EASA requirements.
Multi-Skilling of Staff
Although Business Aviation attrition is low, the career expectations of
millennials and Generation Y are different from the current workforce.
Therefore, finding new ways to provide life-long learning through cross-
training programmes may provide a more attractive value proposition to
young people. In addition to addressing the new generation’s career
development needs, cross-training the workforce may provide a less
expensive to meet aviation staffing needs.
Multi-skilling can mean training staff across different aviation sectors (e.g.,
preparing pilots for Business and civil aviation) or training staff across
Business Aviation jobs (e.g., air traffic controllers at small airports also
providing managerial support).
By breaking down the work of technicians and flight planners into smaller
modular learning units, candidates may take training in different units,
slowly expanding their knowledge, skills and abilities in short iterative
bursts. This may also reduce training costs since employees could take
more targeted training modules, focusing only on what they need. This
could create a more competitive market for training service providers,
providing a lower cost alternative for candidates, and addressing the career
needs of the next generation by providing new and interesting career paths
and making job candidacy more merit based.
If Business Aviation firms were to cross-train with other sectors (e.g., civil
aviation), or across Business Aviation jobs, overall sector training costs
could be reduced. For example, a small regional airport may not need both
a flight dispatcher and a technician, but may instead rely on a single
individual to provide both services.
Regulatory considerations
Cross-training across aviation segments may increase overall training costs per person, as the certification or knowledge requirements for Business, Commercial and Civil may be different.
Because of the nature of aviation, checks and balances are critical for safety. When performing more than one role for a small Business Aviation job it will be important to ensure that more than one employee meets all appropriate safety requirements.
101 © Copyright 2016, Korn Ferry
Improve Education Financing for Critical Jobs
Education for Business Aviation jobs is costly and may therefore negatively
influence potential Business Aviation employees. To address potential
workforce shortages in the Business Aviation segment across Europe,
companies should support education financing for critical jobs such as
pilots, flight dispatchers and technicians.
The rising cost of education is not as critical an issue in Europe as it is in
the US or Asia, due to a high level of subsidies in Europe, which has
insulated most universities. That said, Britain introduced annual tuition fees
in 1998, at £1000 (then $1650), which by 2012 had risen to £9000
($13,900)45. Alternatively, in Germany, public universities are free for EU
citizens (or states require a nominal fee). To address potential financial
shortfalls for students interested in pursuing an occupation in Business
Aviation (especially for pilots), companies need to provide education
incentives. Proposed options include training bonds, employee tuition
reimbursement and low-interest direct education financing support.
Training Bonds
Commonly offered in Canada and Asia, training bonds are “contracts
between an employee and the employer indicating that the employee will
have his or her training paid for (and his or her accommodations paid for
during training), but only if he/she remains with the employer for a minimum
amount of time.”
Regulatory considerations
Legality of training bonds may be different across different countries. Research shows contradictory evidence and would need to be further evaluated by legal experts.
Employer Sponsored Programmes
Business Aviation firms need to consider near-term costs associated with
providing training financing to employees against the long-term costs
associated with major workforce shortages. While apprenticeship
programmes lead to reduced unemployment and thoroughly train
candidates for jobs, they are often difficult to institute in free-market
economies, such as the UK and US. Countries such as Germany with
heavy economic regulation are better suited for this type of educational
tracking.
Essentially, apprenticeship programmes offer a short-term investment to
realize long-term workforce gains. The graphic below shows how the
investment model for apprenticeship programmes may work.
45 The digital degree, The Economist, June 28th 2014
102 © Copyright 2016, Korn Ferry
Figure 59: Apprenticeship training model
Apprenticeship programmes provide long-term value, but may require more
influence and change than EBAA can effect on its own on a European
level. Alternatively, EBAA may consider developing an apprenticeship
programme in a country such as Germany, where it is the norm. Ultimately,
it will require a comprehensive business case analysis to determine if such
a programme will result in long-term value given the required up-front
investment and that it may only be feasible on a national level.
In the near-term (< 8 years), Business Aviation should consider alternative
employer sponsored programmes:
Employee tuition reimbursement – similar to training bonds but
offered in the United States, employee tuition reimbursement is a
“contractual arrangement between employer and employee that
outlines specific terms under which the employer may pay for the
employee’s continuing education.” Many programmes offer
reimbursement as long as the education supports the employee’s
current job.
Individual Learning Accounts – offered in part of the UK, individual
learning accounts encourage employees to determine how to spend
money on their own professional development.
Employer Training Pilots – a programme in the UK that reimburses
employers for the cost of granting low-skilled employees paid time off
work to pursue education and training courses.
Subsidized Education Grants and Loans
103 © Copyright 2016, Korn Ferry
These are monetary grants based on financial need and loans where the
government pays the interest while the student is in school. A 2012 study
by the European Centre for the Development of Vocational Training
(Cedefop) reviewed loans for vocational education and training in Europe
and recommended that, when countries design and implement vocational
education and training loan schemes, they should abide by certain core
principles. 46
To improve education financing for the Business Aviation workforce, EBAA
should consider how to leverage the appropriate financial instruments to
increase sector participation. By coordinating financial instruments with
state policies, or providing tax incentives (Finland), EBAA could effectively
increase the pipeline of eligible and trained employees into targeted roles.
A quick review of the legality of training bonds, if drafted correctly, is worth
researching, as they are the lowest cost, highest return option for the
Business Aviation sector. Alternatively, EBAA members should consider
conducting a cost/benefit analysis of an employer programme such as
tuition reimbursement, or in countries with heavy government economic
regulation, determine if an apprenticeship programme is feasible. Both of
these options require considerable company investment, so a full financial
analysis would be required.
Regulatory considerations
Of the EU9, only the UK offers income-contingent or hybrid replacement student loans. The primary reasons for the limited number of income-contingent or hybrid schemes are related to the prerequisites for such schemes. These prerequisites include significant inflow of financial resources, as the scheme has to be financed for a long time before repayments start to accumulate and sustain it; sound administrative and strong legal frameworks; well developed, universal, transparent and effective system of income tax collection; and efficient payment mechanism.47
46 Loans for vocational education and training in Europe, Research Paper No 20, European Centre for the Development of Vocational Training, 2012
47 Chapman, B. Income contingent loans for higher education: international reform. Discussion paper, No 491. Centre for Economic Policy, Canberra: Australian National University
104 © Copyright 2016, Korn Ferry
8.2.5 PROFESSIONAL WORKFORCE MANAGEMENT
Human Resources Management
To create a level playing field in HR and ensure Business Aviation
companies a fair share of the available aviation workforce, Business
Aviation companies need to professionalize their HR departments. This is
especially true for the small and medium sized companies.
There are two options on how to approach this:
Train professionals doing HR work in the companies to improve their
HR skills. This can be centralized with EBAA developing a training
curriculum for the core HR skills needed in the war for talent.
Roll-out of the curriculum could be done
centrally (preferably with a blended learning approach that
requires only limited travel) contracted to one provider or
by local Business Aviation associations that select and manage
local providers, but use the common curriculum
Alternatively, EBAA could draft key requirements and content for these
training programmes and local Business Aviation associations could
handle the development and roll-out themselves.
Outsource selected HR services to professional services firms or
freelancers.
Figure 60: HR focus areas for optimisation
Professionalise human
resources management
Recruiting
RewardManagement
Talent Management
105 © Copyright 2016, Korn Ferry
Recruitment
Recruitment is key to attracting the right people. Recruitment activities that
can be optimised are the definition of the target profile and sourcing
approach, as well as the screening, interviewing, and assessment of the
candidates.
EBAA can help by:
Offering training
Putting together process checklists (with webinars on how-to-use)
Creating standard role profiles for key roles to be used for ads and with
skill requirements to be used during the selection process
Providing on-demand assessment tools (contracted from a selected
provider)
Talent Management
Talent management encompasses activities such as performance
management (including target setting and reviews), career and succession
planning and people development – all of which is essential to enable staff,
keep them engaged, achieve targeted results and retain employees.
EBAA can support members by:
Offering talent management related training
Providing customized checklists and templates for talent management
Gathering and publishing information on training in all Business
Aviation relevant topics as a kind of training marketplace
Reward Management
Rewarding people according to their job requirements, performance and
the market pay level is key when it comes to retaining and attracting staff.
Many Business Aviation competitors, especially airlines, bigger airports,
and aircraft manufacturers/suppliers, have highly sophisticated reward
management systems. Competing for the same pool of resources, and
even in the same market to some extent, requires an increased
professionalization of reward management.
EBAA can support its members by regularly gathering and monitoring
reward levels in both Business Aviation and competing sectors for talent
and providing reports to their members on this topic. This would also help
to identify changes in the workforce situation, since rises in pay levels tend
to be an indication of workforce shortages.
EBAA can also provide training geared toward the specific needs of the
sector and its small and medium size companies regarding reward
management as proposed above in the HR curriculum.
106 © Copyright 2016, Korn Ferry
Continuous Monitoring of Situation
A key challenge when addressing workforce shortages is:
To gather reliable data on the workforce and monitor the situation at
regular intervals at the sector level. Thus, the criticality of the problems
can be assessed and necessary measures initiated early in the
processes. It allows sound discussions with government entities on
subsidies and other legislative or operational support as well.
To induce companies in the sector to conduct simple workforce
planning and controlling to become aware of their specific problems
and initiate countermeasures when they still have options available.
We recommend that EBAA coordinate setting-up a simple web-based
workforce planning and monitoring system for member firms where they
can plan and control their workforce with a low level of complexity.
Members would be trained with a quick web-based module on workforce
planning techniques and EBAA could gather anonymized workforce data
on a regular basis and analyse the sector workforce situation. A similar
system is currently being piloted with the German Association for People
Management (DGFP).
Figure 61: Example of simple workforce planning and monitoring tools
107 © Copyright 2016, Korn Ferry
8.3 COST, FUNDING AND IMPACT OF
SOLUTIONS
8.3.1 COST OF COMPANY MEASURES
The cost of company measures, seen in the table in section 10.3.3, can be
categorized into three progressively more expensive levels:
Level Cost
€ <50K
€€ 50K – 400K
€€€ >400K
While the table provides the relative cost for each of the potential solutions,
a more detailed analysis will need to be conducted to understand the full
costs associated with any particular solution.
8.3.2 OPPORTUNITIES FOR FUNDING AND OTHER
SYNERGIES
Within the European Union there are several organizations whose interests
overlap with and are similarly aligned with those of Business Aviation.
Because of the relative size of Business Aviation within the aviation
industry, it is recommended that EBAA partner with other aviation councils
(e.g., International Civil Aviation Organization (ICAO)) before approaching
funding institutions. By uniting and presenting a shared argument for more
investment in aviation, specifically as it relates to education and training,
there is greater likelihood of success.
European Programmes
European Centre for the Development of Vocational Training
(Cedefop): This is the European Union’s reference centre for
vocational education and training. They provide information on and
analyses of vocational education and training systems, policies,
research, and practice.
Cedefop may provide EBAA and partner aviation concerns with best
practices for improving vocational education and training for pilots,
flight dispatchers and technicians. The organization may also have
specific insight on ways to improve education and training in critical
Business Aviation countries while simultaneously helping EBBA to
advance its cause.
Education & Training 2020 (ET2020): While each EU country is
responsible for its own education and training systems, EU policy is
designed to support national action and help address common
challenges, such as ageing societies, skills deficits in the workforce,
108 © Copyright 2016, Korn Ferry
technological developments and global competition. ET2020 is the
framework for cooperation in education and training.
ET2020 is a forum for exchange of best practices, as well as advice
and support for policy reforms. Funding for policy support and
innovative projects is available through Erasmus+ for activities that
promote learning and education at all levels and for all age groups.
The 2015 Joint Report of the Council and Commission on ET2020 calls
out two concrete issues of critical importance to EBAA:
Higher education systems should boost the knowledge economy
and respond to society’s needs
Vocational education and training play a key role in developing the
relevant skills
It is recommended that EBAA identify key points of contact supporting
the ET2020 working groups and work together to find ways to better tie
education to the needs of the aviation industry overall and specifically
help determine how to improve vocational training to support the needs
of Business Aviation.
European Fund for Strategic Investment: Launched in 2014, this
fund aims to attract private capital to invest in worthwhile projects –
education and training are among the main objectives. In addition, the
European Social Fund and the European Regional Development Fund
are supporting a broad range of educational projects between 2014
and 2020, one of the goals of which is to improve the labour market
relevance of education and training systems. (EBAA should seek to
identify a potential joint venture with this European fund focused on
national education programmes for aviation.)
ESF – European Social Fund: This framework programme aims to
provide grants for projects that support the improvement of
employment and social inclusion. Available for SMEs, training centres,
and local/regional authorities, the specific objectives of the fund are:
(1) promoting employment and supporting labour mobility; (2)
promoting social inclusion and combating poverty; (3) investing in
education, skills and life-long learning; and (4) enhancing institutional
capacity and efficient public administration.
European Commission – Flightpath 2050: This report on the High-
Level Group on Aviation Research in Europe identifies the goal of
aligning university programmes in aviation closely with the needs of the
aviation industry.48
48 http://ec.europa.eu/research/transport/pdf/flightpath2050_final.pdf
109 © Copyright 2016, Korn Ferry
National Programmes
STEM Action Plan: Launched by the Flemish government in Belgium
in 2012, the aim of the STEM Action Plan is to attract more pupils and
students to STEM education and related jobs when they graduate.
Jet-Net.dk: Started in 2012, this is a Danish national network
organization of 56 companies that focuses on joining schools and
companies in beneficial relationships, in which they collaborate on
STEM education.
Verordnung über die Finanzhilfen für Ausbildungen im Bereich
der Luftfahrt (VFAL) – Programme on Funding Aid for Training in
Aviation, this Swiss programme is expecting 270 applications from
candidates to become pilots, flight instructors, or technicians. The goal
is to reduce issues related to skill shortages in the Swiss Aviation
industry.
German Federal Government: Interested in developing marketing
campaigns to promote jobs in aviation, EBAA may partner with the
government to create strong regional awareness of Business Aviation
careers.
8.3.3 POTENTIAL IMPACT OF SOLUTIONS
The following table lists the solutions proposed in the previous section and
the graph provides an alternative visualization for the same information.
# Solution Name
What is the solution How much will it cost?
How quickly will there be a return?
How high will the return be?
1 Awareness Campaign
A strategic communications campaign on the plight of the Business Aviation workforce will likely increase concern and participation for the cause, and result in increased awareness and interest
€ Fast N/a – value is to drive awareness not reduce workforce shortage
2 Sourcing Strategy & Targeted Investment
A successful sourcing analysis and targeted investment strategy will result in an improved pipeline of potential candidates
€€ Medium Moderate
3 Training as a Shared Service
Identifying the best training provider amongst aviation firms and developing a service level agreement
€€€ Medium High
4 Standardization of Education
EBAA should standardize aviation education across Europe and provide education as a reimbursable service to customers
€€€ Slow High
5 Training across multiple aviation sectors
EBAA would develop a cross sector training programme that leverages the best “parts” from each sector to cross skill employees quickly
€€€ Medium Moderate
6 Training across multiple roles
Business Aviation companies may seek to hire cross-trained
€€€ Medium Moderate
110 © Copyright 2016, Korn Ferry
employees that can perform two roles for the firm
7 Training bonds Legally offering training bonds to employees, who are able to obtain high-cost training through their intended employers
€ Fast Moderate
8 Employer sponsored Programmes
Employers can offer training to current employees that may be taken on nights and weekends
€€ Fast Moderate
9 Subsidized loans and financing
Partnering with national programmes and loan-granting institutions to provide lower-cost alternatives to potential employees
€€ Slow High
Table 13: Impact Review of Potential Solutions
When mapped onto an X- and Y-axis, the solutions can be divided into four
quadrants, with an additional variable provided by colour. The most
transformational solution would be for EBAA to standardize and provide
Business Aviation training to the whole sector.
Figure 62: Impact analysis of potential solutions
111 © Copyright 2016, Korn Ferry
9 METHODOLOGY
9.1 OVERVIEW OF APPROACH
Figure 65: Project approach overview
The standard survey used to gather detailed quantitative workforce supply
and demand information did not deliver sufficiently complete data sets,
which were to be used for a quantitative modelling and simulation, and so
phase 3 of the methodological programme could not take place.
9.2 INTERVIEWS
9.2.1 OVERVIEW
In phase 1, 53 in-depth semi-structured (9 explorative and 44 standard)49
interviews were conducted with selected industry experts to provide
information on workforce demand and supply, existing and potential
shortages, as well as insights about perceived key trends in Business
Aviation.
49 Additionally, other interviews (neither explorative nor standard) for further background information were conducted.
112 © Copyright 2016, Korn Ferry
In total, 156 companies were contacted of whom 28 refused to participate.
Approximately 25% of those organisations, which refused to be
interviewed, are training organizations. Furthermore, 63 organizations did
not respond at all when being approached.
Figure 66: Overview number of interviews in phase 1
Interviews are distributed unequally among the EU9 countries.
Figure 67: Interview per country
Additional interviews were conducted in phases 2 and 4 of the research
taking into consideration the regions of North America and Asia.
156
63
28
12
53
0102030405060708090
100110120130140150160
overallcontacted
no response refused interested done
# o
f com
panie
s
0
2
4
6
8
10
12
14
16
18
20
# o
f com
panie
s
done refused
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10 APPENDIX
10.1 REFERENCES
3Degrees (2015): NetJets Announces Comprehensive Climate
Initiative, Supported by 3Degrees
A. Wittmer et al. (eds.) (2011): Aviation Systems
ABC News (no date): Attrition rate of new air-traffic controllers more
than doubles
Acare (2012): SRIA volume 2
ACARE (2014)_ Workshop on Education and Training Needs for
Aviation Engineers...
"Advisory Council for Aviation Research and Innovation in Europe
(ACARE) (2012): Realising Europe’s vision for aviation - Strategic
Research and Innovation Agenda"
AERO – BILDUNG (2015a): Certifying Mechanic CAT A
AERO – BILDUNG (2015b): Certifying Mechanic CAT B1.1 Turbine
AERO – BILDUNG (2015c): Certifying Mechanic CAT B1.2
Kolbentriebwerk
AERO – BILDUNG (2015d): Certifying Mechanic CAT B1.3
Hubschrauber/Turbine
AERO – BILDUNG (2015e): Certifying Mechanic CAT B2
Aero-Dienst (2015): Strategy
AeronautX: Ops Training
AES (2015): OUR PHILOSOPHY. We are dedicated to quality!
Airbus Group (2015a): Strategy & Mission
Airbus Group (2015b): Industrialisation. From concept to reality
Airbus Group (2015): Airbus Global Market Forecast – Flying by
Numbers 2015-2034
Airports Commission (2013): Aviation Demand Forecasting
Airvet (2014): Progress Report
ARSA / College William and Mary (2014): Policy solutions for a
stronger technical workforce
Ascend (2014): Flightglobal Fleet Forecast 2014-2033_ Commercial
and freighter aircraft market
ATPL Flight Training Programme - InterCockpit
AVIATION LEADERS DEVELOPMENT PROGRAMME (ALDP)
Aviation Quality Services: Safety Makes Sense (Slides)
Aviation Safety Bureau (2010): The Basics of Aircraft Maintenance
Baptista (2014): A closer look at Business Aviation: the who, how and
why
114 © Copyright 2016, Korn Ferry
BCG (2014): The Global Workforce Crisis
BDVI (2014): Beschäftigte der deutschen Luft- und Raumfahrtindustrie
nach Herstellergruppen
BDVI(2014): Umsatz der deutschen Luft- und Raumfahrtindustrie 2014
BERUFENET (2015a): Fluggerätmechaniker/in
BERUFENET (2015b): Techniker/in der Fachrichtung Luftfahrttechnik
BERUFENET (2015c): Prüfer/in von Luftfahrtgerät
BERUFENET (2015d): Industriemeister/in im Bereich
Flugzeugbau/Luftfahrttechnik
BlueSky Business Aviation News (2015): Business Aviation Airport
Ranking
BOEING (2012): Technologien für die Zukunft
Boeing (2013): A Discussion of the capacity supply - demand balance
within the global commercial air transport industry
Boeing (2014): Current Market Outlook 2014-2024
BOEING (2014): The Boeing Company 2014 Environment Report.
Build a Better Planet
Boeing (2014): The Boeing Company 2014 Annual Report; URL:
https://materials.proxyvote.com/Approved/097023/20150226/AR_2353
28/pubData/source/The%20Boeing%20Company%202014%20Annual
%20Report.pdf
Boeing (2015): Pilot & Technician Outlook
Boeing (2015)_Current Market Outlook 2015 - 2024
Bombardier (2014): Market Forecast
Bombardier (2014)_ Market Forecast 2014-2033
Bombardier (2015): Strategy
Booz & Company (2010): Regulating aviation in emerging markets
BP (2014): The outlook for Sustainable Aviation Fuels
British Airways Careers: Flagship Future Pilot Programme
URL:http://www.britishairways.com/careers/futurepilot/futurepilot_home
.shtml (retrieved on 27.01.2016)
British Airways (2015): Press release – Poll reveals why women don’t
apply to fly
British Council (2014): Postgraduate Student Mobility trends to 2024
CAA (2015)_List of approved Training Organizations Czech Republic
CAAS (Singapore, 2015): Bridging Skies
Capa (2015): MRO Overview
CAVOK & ARSA (2015): Global Fleet & MRO Market Economic
assessment 2015-2025
Cedefop (2009): Future Skill Supply in Europe
Cedefop (2011): Employment development by occupational category
(website)
115 © Copyright 2016, Korn Ferry
Cedefop (2014): Labour force skills forecast for 2015
Cedefop (2014): Rising STEMS (website)
Civil Aviation Authority (2015): List of approved training organizations
UK
CNN Money (2015): America's air traffic controller shortage from
October 14, 2015
Consultancy UK (2015): Global aviation MRO market to grow to 100
billion
Coventry University (2014): Airvet Territorial Analysis Report
Dassault Aviation (2013): Annual Report 2013;
URL: http://www.dassault-aviation.com/wp-
content/blogs.dir/2/files/2014/03/RA-2013_VA_BAT_BD_2.pdf
DLR (2014): Aircraft ops employment+fleet 2014 based on ascend
DLR (2014): Heli ops employment+fleet 2014 based on ascend
EASA (2015): Non-commercial operations with complex motor-
powered aircraft (NCC) URL: https://easa.europa.eu/easa-and-you/air-
operations/non-commercial-operations-ncc-complex-motor-powered-
aircraftEASA (2015): Derogation Table 2015.340
EASA (2015): Derogation Table 22/02/2016 (Version XXIX)
EASA (2015): Derogation Table 30/03/2015 (Version XXII)
EASA (2015): GA Roadmap
EASA (2015): Mission and Organization
EASA (2015b): European Aviation Safety Plan 2014-2017_List of
Open Actions
EASA (2016): European Plan for Aviation Safety 2016-2020
EBAA (2012): What is Business Aviation
EBAA (2013): Aviation Taxes in Europe: A snapshot
EBAA (2013): State of the Industry
EBAA (2014a-i): Country ID Cards
EBAA (2015a): Annual Review 2014-2015
EBAA (2015b): State of the Industry
EBAA (2015c): Traffic Data July
EBACE (2015): Conference exhibitor directory
Embraer (2015): Market Outlook
ENAC (2015): List of approved Training Organizations Italy
Engineering UK (2015): The State of Engineering; URL:
http://www.engineeringuk.com/EngineeringUK2015/EngUK_Report_20
15_Interactive.pdf
Eurocontrol (2005): Getting to the Point: Business Aviation in Europe
Eurocontrol (2012): Market Segment Rules
Eurocontrol (2012): Business Aviation in Europe 2012
116 © Copyright 2016, Korn Ferry
Eurocontrol (2013b): User Forum 2013: Continuous Descent
Operations
Eurocontrol (2015) _ Business Aviation IFR Movements Forecast
Eurocontrol (2015)_Flight Traffic EU9 2010-2015
European Aviation Safety Agency (EASA) (2014): Part-66 - Certifying
Staff
European Commission (2015): Commission Staff Working Document
European Commission (2011): Flightpath 2050
European Commission (2011): MEMO-11-857: Europe's Airports 2030:
Challenges Ahead
European Commission (2013): ESCO
European Commission (2014): European Vacancy and Recruitment
Report 2014 - Statistical Annex
"European Commission (2014): Skills Panorama - European job
growth creators Analytical Highlight"
European Commission (2014): Verordnung Nr. 1321-2014 DER
KOMMISSION
European Commission (2014b): The Research Framework
Programmes of Europe - Opportunities for Trans-National Research in
Aviation
European Commission (2015): Science, technology, engineering and
mathematics STEM skills; URL:
http://skillspanorama.cedefop.europa.eu/sites/default/files/EUSP_AH_
STEM_0.pdf
European Parliament - Policy Department (2015): Encouraging STEM
studies for the Labour Market
European Parliament (2008): Regulation (EC) 216/2008
European Parliament (2011): Regulation (EU) 1178/2011
European Parliament (2012): Amendment (EU) 2012/290
European Parliament (2012): Regulation (EU) 923/2012
European Parliament (2012): Regulation (EU) 965/2012
European Parliament (2014): Regulation (EU) 1321/2014
European Parliament (2015): Amendment (EU) 2015/1088
European Parliament (2015): Amendment (EU) 2015/1536
Eurostat (2013a): Hauptszenario - Bevölkerung am 1. Januar nach
Alter und Geschlecht; URL:
http://appsso.eurostat.ec.europa.eu/nui/show.do
"Eurostat (2015): Auswanderung nach Alter und Geschlecht
Eurostat (2015): Bevölkerung nach Altersgruppe
Eurostat (2015): Bevölkerung zum 1. Januar
Eurostat (2015): Erwerbspersonen nach Geschlecht, Alter und
Staatsangehörigkeit
117 © Copyright 2016, Korn Ferry
Eurostat (2015): Fluggastverkehr nach dem Meldeland
Eurostat (2013): Grad Students Engineering Programs EU
Eurostat(2015): Einwanderung nach Alter, Geschlecht und
umfassender Staatsangehörigkeitsgruppe
Eurostat (2015): Grad Students Mathematics, Science, Technology
FAA (US Federal Aviation Administration, 2014): The Airmen Directory
Flybe Aviation Services (2015): How are we meeting industry
challenges
FOCA (2015): List of approved training organizations Switzerland
FOD Mobiliteit (2015): Lijst van ATO's Belgium
GAMA (2013): General Aviation Statistical Databook & 2014 Industry
Outlook
GBS (2010): Weiterbildung zum Techniker Maschinenbau mit
Schwerbunkt Luftfahrttechnik in Verbindung mit EASA PART 66 Cat
B1 Lizenz
Gloucestershire Airport (2012): Environmental
H. Müller (2015): Zuwanderung: Osteuropas vertane Chance
Handbook of Business Aviation (2015)
Hay Group (2007-2014): Job Families
Honeywell (2014a): Global Business Aviation Forecast
Honeywell (2014b): NBAA Market Update
I. Ferguson (2015): Regional MRO Market-Forecast Trends
Challenges & Opportunities
IATA (2013): Technology Roadmap
IBAC (2013): Definitions of Business Aviation;
URL: http://www.ibac.org/about-ibac/ibac-definitions-of-business-
aviation
ICAO (2009): Tenth Session of the statistics division, Working Paper
ICAO (2011): European Commission's framework for sustainable
biofuels for aviation
ICAO (2014): CAPACITY & EFFICIENCY Air Navigation Report
ICAO (2015): Developing Singapore’s Aviation Manpower
ICAO (2016): Training Report - Jan/Feb 2016
ICF (2014): Business Aviation Trends & Outlook;
URL:https://www.singaporeairshow.com/downloads/market_info/Busin
ess_Aviation_Trends_and_Outlook_June_2014.pdf
IFS (2014): CIVIL AVIATION MRO - THE PIVOTAL ROLE OF MOBILE
IN A DRAMATICALLY CHANGING MARKET
INAC (2015): List of approved Training Organizations Portugal 1
INAC (2015): List of approved Training Organizations Portugal 2
International Labour Organization (ILO) (2008): International Standard
Classification of Occupations
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John Mulcair (2010): MRO faces skills challenges
Konrad Adenauer Stiftung (2013): Der Europäische Arbeitsmarkt -
Erfolg durch Flexibilität und Mobilität
LBA (2014a): Informationsschrift des Luftfahrt-Bundesamtes über die
Verordnung (EU) Nr. 1321/2014 der Kommission, Anhang III (Teil-66)
LBA (2014b): Informationsschrift des Luftfahrt-Bundesamtes über die
Prüfererlaubnis für Prüfer von Luftfahrtgerät Klasse 1, 3 und 4 (gemäß
LuftPersV)
LBA (2015): Genehmigte Ausbildungsbetriebe nach Teil-147
Linz/Ziegler/Lang (2011): Business Aviation in Europe
Luftfahrt Bundesamt (2015); Luftfahrerschulen im
Zuständigkeitsbereich des LBA Germany
Lufthansa (2013): Single European Sky: Für mehr Effizienz und
Klimaschutz
Lufthansa Flight Training (2015): Website
Lufthansa Technik (2015): Maßgeschneiderte Innovationen für Kunden
M. Thomas (2015): Luftverkehr: einheitlicher europäischer Luftraum
Mercator (2015): 3 Technology Trends Transforming Airlines
MINISTERE DE L ECOLOGIE (2015): List of approved Training
Organizations France
MTU Aero Engines (2015): Strategie
NBAA (2014): Business Aviation Factbook
NBAA (2015): Website - Job Seeker
OECD (2012): Growth in total economy potential output and ist
components
Oliver Wyman (2015): MRO Survey -Turning the tide - A WAVE OF
NEW AVIATION TECHNOLOGY WILL SOON
Oxford Economics (2012): The role of Business Aviation in European
Economy
Reals (2015): EBACE: Business Aviation industry must embrace
change: Gamba
Rolls Royce Aerospace (2014): Market Outlook
Rolls-Royce (2015): BETTER POWER FOR A CHANGING WORLD
Sabena (2015): Website - Part-147 Technics Training Catalogue
Sherpareport (2015): The Guide to private aviation 2015; URL:
http://www.sherpareport.com/images/stories/planes/guide_to_private_
aviation.pdf
Sion Airport (2015): Umwelt aktuell
Stansted News Limited (2015): The handbook of Business Aviation
Statista (2015): Anzahl der sozialversicherungspflichtig beschäftigten
Flugzeugmechaniker in Deutschland von 1999 bis 2011
Statistisches Bundesamt(2014): Studierende in MINT Fächern
119 © Copyright 2016, Korn Ferry
"Steer Davis Gleave (2012): Study on the effects of the implementation
of the EU aviation common market on employment and working
conditions in the Air Transport Sector over the period 1997/2010 "
Tara Harl (2014): The perfect storm of aviation workforce issues
The Economist (2013): A new deal?
The World Bank (2015): Global-Economic-Prospects-June-2015
United Nations (2014): International Migration Report 2013
University Stuttgart (2013): Zahlenspiegel 2013
VTOC Fokker (2015): CAT A1 (Part 66) Training
VTOC Fokker (2015): CAT B1.1 (Part 66) Training
VTOC Fokker (2015): CAT B2 (Part 66) Training
Wall Street Journal (2015): A Looming Pilot Shortage Means a Bumpy
Ride for Airlines, from July 23, 2015
Wikipedia (2015): List of aerospace engineering schools
World Bank Group (2016): Air transport, passengers carried
WorldSkills Standard Specification (2015): Aircraft Maintenance
"Y. Jorens, D. Gillis, L. Valcke & J. De Coninck (2015): ‘Atypical Forms
of Employment in the Aviation Sector’, European
Social Dialogue, European Commission"
10.2 ACRONYMS
Acronym Description
EBAA European Business Aviation Association
EVP Employer value proposition
FBO Fixed-base operator
FTE Full time equivalents
m Million
M&A Mergers & acquisitions
SME Small and medium enterprises
STEM Science, Technology, Engineering, Mathematics
SWP Strategic Workforce Planning
120 © Copyright 2016, Korn Ferry
10.3 JOB FAMILY FRAMEWORK
10.3.1 JOB FAMILY FRAMEWORK FOR BUSINESS
AVIATION WITH CRITICAL ROLES
Table 14: Job family framework for Business Aviation with critical roles
10.3.2 DESCRIPTION OF THE JOBS IN THE JOB MAP
Job Title Description
Ground Operations
Head of Ground Operations
Responsible for all aspects of the safe, cost-effective, and punctual running of the allocated base operation. Develops operational policies and procedures to improve quality and services.
Ground Operations / Station Manager
Oversees customer services and all ground activities. Participates in the development and implementation of operational policies and procedures to improve quality and services.
Technical Ramp Supervisor
Supervises guidance of aircraft and all ground services. Generates rosters and provides instructions and training for new hires at the
ramp.
Customer Service Supervisor
Oversees on-site customer care and assures all customer requests and needs are fulfilled. Assures customer visits run smoothly and oversees coordination with other players locally.
Technical Ramp Agent Performs basic ground equipment services, handles loading and unloading and provides transportation. Maintains the ramp area, building, and equipment in a clean, presentable condition. Provides guidance for aircraft.
Ground Service Agent / Customer Service Agent
Provides face-to-face customer care at the airport, such as greeting, escorting customers to/ from the aircraft and takes care of any
Ground OperationsMarketing, Sales & Customer
ServiceAirport & Facility management
Flying Personnel Operation Center Aircraft Completions Maintenance & Engineering
Head of Ground OperationsHead of Corporate Flight
DepartmentHead of Aircraft Completions Head of Maintenance Head of Sales & Marketing
CEO Airport (Accountable
Executive)
AOC Accountable Manager Head of Airport Infrastructure
Head of Flight Operations
(Postholder)Ground Operations / Station
ManagerChief Pilot Flight Planning Manager Completions Manager
Postholder Maintenance
Manager (Part 145)Marketing Manager
Rescue and Firefighting Service
Manager
Chief Training Pilot/
Training and Standards
Aviation Safety ManagerPostholder Compliance /
Quality ManagerSales Manager Airport Facility Manager
Cabin Service Manager
Postholder Continuous
Airworthiness Manager (CAMO,
Part M)
Customer Service Manager
Postholder Crew Training
Captain PilotFlight Data Monitoring
ProfessionalAviation Design Engineer Marketing Professional Airport Regulation Manager
Chief Training Pilot/
Training & Standards CAMO Professionals
Business Development
Professional / Senior Sales
ProfessionalsManufacturer's Pilot
Instructional Pilot,
Production Pilot,
Test Pilot,
Customer Relationship
Customer Service Professional Air Traffic Controller
Copilot/First Officer
Technical Ramp Supervisor Senior Aviation Safety Specialist Supervisor CompletionsMaintenance Supervisor /
Foreman / Inspector (Cat C)Airport Security Supervisor
Customer Service SupervisorSenior Flight Planner/
Dispatcher
Team Leader Maintenance (Cat
B1 or B2)Firefighting Team Lead
Technical Ramp Agent Flight Attendant Flight Planner / DispatcherTeam Lead Production Operator
(Saddler, Electrician, Carpenter)Maintenance Planner Sales Representative (exp.) Airport Security Agent
Ground Service Agent /
Customer Service AgentOperations Controller
Production Operator (Saddler,
Electrician, Carpenter)
Maintenance Technician
Airframe (Cat B1)Trader Firefighter
Catering Operator Crew Planner Installation OperatorMaintenance Technician
Avionics (Cat B2)
Customer Service / Care
Representative
Airport Facilities / Maintenance
Operator
DriverTrainee Flight Planner /
DispatcherProduction Planner Maintenance Technician Engine Sales Assistant
Flight information service
officer (FISO)
Aviation Safety Specialist Licensed Polymechanic Maintenance Mechanic (A) Travel Agency Agent Aviation Weather Observer
Apparatus TechnicianMaintenance Purchasing &
Logistics SpecialistCall Center Agent Airport Operations Assistant
Technical Draughtsman
Completions & MaintenanceFlight Operations
Hea
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Sup
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special requests. Makes sure customer visits run smoothly and coordinates with other players locally.
Catering Operators Provides tailored catering solutions for flights in line with owners' / customers' requests. May provide meals in-house or source from local restaurants or hotels.
Driver Drives owners/customers or the crew to and from the aircraft, to appointments or around facilities. Requires excellent knowledge of routes within main area of operation and awareness of safety and security considerations. May perform miscellaneous errands as directed.
Flight Operations/ Flying Personnel
Chief Pilot Responsible for flight operations. Assigns and supervises the duties of flight personnel and coordinates aircraft maintenance with flight scheduling. Ensures that flight operations are in line with federal and local flight regulations. Other duties might be to oversee pilot
training.
Cabin Service Manager
Oversees cabin crew team, including cabin safety standards. Ensures that a top-class service is provided to both aircraft owners and clients. Other duties may include crew training.
Postholder Crew Training
Oversees the crew-training programme and provides appropriate training for the crew to effectively and efficiently perform their tasks (in-house or outsourced). Ensures that the highest standards are met.
Captain Ensures that trip of assigned flight is conducted in the safest manner possible. Determines flight routes, speed and take-off and landing times to fulfil scheduling requirements. Must stay current with federal and local flight regulations.
Manufacturer's Pilot Instructional Pilot, Production Pilot, Test Pilot, Customer
Relationship Pilot
Instructional Pilot trains pilots on the manufacturers' aircraft. Production Pilot tests aircraft before the delivery to customers. Test Pilot manages the flight test programme of new aircraft/ products.
Customer Relationship Pilot liaisons with customers locally.
Co-Pilot/First Officer Assists captain in determining flight routes, speed, and take-off and landing times to fulfil scheduling requirements. Must stay current with federal and local flight regulations
Flight Attendant Responsible for safety on board and looking after customers (refreshments, catering on board, etc.). Takes over administrative tasks such as managing inventory that keeps a flight running smoothly.
Flight Operations/ Operation Centre
Head of Corporate Flight Department
Responsible for all operational activities. Ensures all tasks and duties are in line with regulations.
AOC Accountable
Manager Accountable to the civil aviation authorities for maintaining safety standards required by regulation and additional standards specified by the AOC holder or applicant. Have corporate authority for ensuring that all operations and maintenance system activities can be financed and carried out to the standards required.
Head of Flight Operations (Postholder)
Oversees all flight operations activities. Ensures safe and efficient operations in line with all legal and corporate regulations and requirements.
Flight Planning Manager
Performs flight planning and dispatching. Ensures all activates are in line with legal and corporate regulations and requirements.
Aviation Safety Manager
Oversees compliance monitoring. Administers policies and regulations, the communication processes and acts as a role model in adherence to regulations. Ensures continuous improvement of
122 © Copyright 2016, Korn Ferry
organizational-wide safety management systems and a focus on operational safety in the aviation company.
Flight Data Monitoring Professional
Downloads and analyses aircraft flight recorder data on a regular and routine basis to enhance the safety of flight operations.
Senior Aviation Safety
Specialist Monitors compliance in the Flight Operations department with regulatory and corporate requirements, whilst also maintaining a focus on operational safety throughout and continues improvement of organizational-wide safety management systems.
Senior Flight Planner/
Dispatcher Plans flight routes taking into account weather conditions, landing conditions, direction, speed, etc. Schedules and dispatches crews and equipment. Might lead a team of several people and educate trainees.
Flight Planner/
Dispatcher Plans flight routes taking into account weather conditions, landing conditions, direction, speed, etc. Schedules and dispatches crews and equipment.
Operations Controller Obtains flight permissions and slots. Other duties might include flight planning (see description Flight Planner/Dispatcher).
Crew Planner Plans crew roster, generates standby plans and plans other required resources. Coordinates replacements in case of illness, crew accommodation and transportation.
Trainee Flight Planner /Dispatcher
Entry position. Learns all duties of dispatching/flight planning on-the-job. Assists Dispatcher/Flight Planner with flight planning. Practical training might be complemented with classroom training.
Aviation Safety
Specialist Assists with compliance monitoring in the Flight Operations
department. May take over other administrative tasks.
Completions & Maintenance/ Maintenance & Engineering
Head of Maintenance In charge of the maintenance department and responsible for implementing and maintaining the high safety standards required by
EASA and local aviation authorities.
Postholder Maintenance Manager (Part 145)
Responsible for ensuring that the organization complies with Part 145.
Postholder Continuous Airworthiness Manager (CAMO, Part M)
Ensures airworthiness of fleet in line with EASA and local aviation
regulations. Ensures timely performance of maintenance activities.
Postholder Quality Manager
Ensures implementation and maintenance of the quality assurance programme including audits. Monitors compliance with standards and the adequacy of procedures. Monitors implementation and effectiveness of corrective actions. Responsible for compiling periodical data evaluation as input to the management evaluation. Supports the Accountable Manager in preparing and carrying out the management evaluation. Ensures that quality assurance activities are properly documented and stored.
CAMO professionals Conduct activities related to ensuring airworthiness of fleet in line with EASA and local aviation regulations. Reviews timely performance of maintenance activities.
Maintenance Supervisor / Foreman / Inspector (Cat C)
Oversees maintenance teams that perform first and second line maintenance tasks. May coordinate rosters depending on tasks and qualification/type rating of staff.
Maintenance Planner Coordinates implementation of CAMO results into work patches. Schedules rosters according to availability and qualification of staff.
Maintenance Technician Airframe (Cat B1)
Approves maintenance work on airframe. Performs maintenance of aircraft (first line and second line) and components (mechanical and electronic). Performs specific mechanical maintenance tasks that
include dis-/assembling and testing of component parts.
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Maintenance Technician Avionics (Cat B2)
Approves maintenance work on avionic units and electric units, and replacement of replaceable avionic units. Performs maintenance of aircraft (first line and second line) and components (mechanical and electronic). Performs specific maintenance tasks that include dis-/assembling and testing of component electronic parts.
Maintenance Mechanic Performs debugging, repair work, dis-/assembling and testing of component parts.
Maintenance Purchasing & Logistics Specialist
Plans and manages allocated supply chain resources and demand processes to ensure that the business meets agreed customer service targets at minimum operating cost and optimum stock levels. Manages finished goods inventory assortment, levels, and replenishment to ensure on time performance and fill rates.
Completions & Maintenance / Aircraft Completions
Head of Aircraft Manufacturing
Oversees all aircraft manufacturing activities (including product planning, leadership, production planning and scheduling, quality
and safety management, continuous improvement, etc.).
Completions Manager Oversees all activities associated with aircraft pre-flight, paint operations as well as final test flight in terms of staffing, resource planning, process definition, continuous improvement, etc. Ensures that aircraft manufacturing/completion activities are all in line with quality and safety standards.
Aviation Design Engineer
Performs a variety of engineering work in designing, constructing and testing aircraft. Conducts research to evaluate adaptability of materials and equipment to aircraft design and manufacture. May recommend improvements in testing equipment and techniques.
Production Coordinator
Organises projects and records, tracks and communicates results (work and current progress status, estimated versus actual labour hours, materials, resources, and outsourcing) in areas of production
and engineering.
Team Lead Production Operator (Saddler, Electrician, Carpenter)
Manages production operations within the aircraft production department on multiple shifts or across several departments on a single shift. Generates the extended production plan for an entire
plant or an important product line. Reviews conceptual renderings.
Production Operator (Saddler, Electrician, Carpenter)
Designs conceptual renderings using specific completions and refurbishment expertise (e.g. saddler, electrician, and carpenter). Oversees selected operational completions and refurbishment tasks.
Installation Operator Conducts completions and refurbishment tasks according to conceptual renderings.
Production Planner Plans and prepares production schedules and prepares production reports. May prepare lists of required materials, resources, tools, and equipment. Confers with Production Operators to determine status of assigned projects and tasks.
Licensed
Polymechanic Conducts drilling, cutting threads, turning, milling, grinding,
assembling, adjusting, measuring, checking and start-up activities.
Apparatus Technician Installs, maintains, and fixes electronic equipment. Performs preventive and corrective maintenance on apparatuses.
Technical Draughtsman
Carries out technical drawings based on provided specifications and calculations. Other duties may include calculating structural strength, assessing aircraft capacity limits, and estimating production costs.
Marketing, Sales & Service
Head of Sales & Marketing
Oversees marketing and sales activities of the company’s products and services with the objective of improving the company’s market share.
Marketing Manager Responsible for marketing activities with the objective of improving the company’s market share. Responsible for the development and implementation of product/service offering strategies. May be accountable for a specific market region or type of flight service.
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Sales Manager Responsible for sales activities for products/services with the objective of improving the company’s market penetration. Responsible for the development and implementation of sales strategies. May be accountable for a specific market region or type of aviation service.
Customer Service Manager
Manages activities of a team of customer service representatives, ensuring top class service is provided to aircraft owners and other aviation clients. May be accountable for a specific market region or a specific type of aviation service.
Marketing Professional
Plans and conducts marketing mix activities for the organization’s products and services using, for example, point of sales material, promotional activities and media to support sales growth. Might conduct selected product management activities.
Business Development Professional / Senior Sales Professionals
Responsible for the development and implementation of detailed sales plans. Conducts strategic business development activities. Structures and negotiates key contracts prepared by Sales Representatives. Manages the client relationship with key accounts.
Customer Service Professional
Oversees customer services activities and ensures that top class service is provided to both aircraft owners and other aviation clients.
Finalizes and executes contracts prepared by the sales team.
Sales Representative (exp.)
First contact person for critical VIP-customers/owners in the field, handles RFQs/RFPs and liaises with clients. Prepares (service) contracts.
Trader Trades used aircraft (and helicopters) from various manufacturers
from/to individual buyer or companies.
Customer Service / Care Representative
First contact person for customers/owners, handling RFQs, liaising with clients and administrating flight reservations from a client’s perspective. Provides good customer service and maintains the client relationship at operational level.
Sales Assistant Conducts outbound calling to attract new customers/owners for the company's aviation services. Supports Sales Representatives in their
sales activities.
Travel Agent Provides travel planning and booking services to both internal (crew) and external clients, finding the best travel solutions for the non-Business Aviation flight segments of a journey. Provides support and
solutions when travel arrangements do not work as planned.
Call Centre Agent Ensures the delivery of excellent customer/aircraft owner service, by acting on inbound customer telephone enquiries and responding to requests for information or flight service.
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10.4 BUSINESS AVIATION IN OTHER REGIONS
10.4.1 WORKFORCE SITUATION IN NORTH AMERICA
Pilots
The business aircraft fleet in North America is expected to grow at a
compound average growth rate of some 2% over the next 10 years. Given
the higher rate of growth in other regions, the total North American
contribution to the world business aircraft fleet will decrease by around
10% over the next 10 years.
Figure 68: The North American Business Aviation fleet will keep growing over the next 10 years but at a slower pace than other regions50
Starting from the projected growth of the business aircraft fleet and the
average number of technicians (~1.6) and pilots (~3.8) needed per new
aircraft, it is possible to plot the aggregated demand for new pilots and
technicians in the US Business Aviation sector as shown in the following
figure. The plot shows 20,000 new pilots will be needed in Business
Aviation in the US over the next 20 years with an average demand of
1000 new pilots per year.
50 Bombardier Market Forecast 2014
0%
20%
40%
60%
80%
100%
2014 2024
Business Aircraft Fleet(North America)
North America Other
126 © Copyright 2016, Korn Ferry
Figure 69: Aggregated demand of new pilots and technicians in the US Business Aviation sector51
Conversely, the supply of pilots and technicians can be estimated by
looking at the Air Transport Pilot (ATP) licenses and Airframe & Power
plant (A&P) licenses granted by the Federal Aviation Administration (FAA)
over the past 10 years. On average, some 5350 new ATP licenses have
been granted per year over the past 10-year horizon. Since only around
20% of the total pilot workforce in the US is employed in Business Aviation,
this equates to approximately 1070 new pilots joining Business
Aviation per year.
Those interviewed for the study reported no current shortage of pilots in
the US Business Aviation sector. However, the difficulties regional
airlines face in hiring entry-level pilots could point to a problem for the
future supply of pilots for Business Aviation. To understand why such a
trend might affect Business Aviation in the near future, Figure 71 shows
typical career paths for pilots joining the Business Aviation sector in the
US.
Figure 70: FAA Air Transport Pilot (ATP) and Airframe & Powerplant (A&P) licenses granted over the past 10 years in the US52
51 Sheryl Barden (API) and FAA data
52 Sheryl Barden (API) and FAA data
Technicians
Pilots
Fleet
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ATP
A&P
127 © Copyright 2016, Korn Ferry
Figure 71: Typical paths through which pilots join Business Aviation in the US
Pilots in the US traditionally join the Business Aviation sector from either
regional airlines or the military. In both cases, candidates need to go
through retraining before flying a business jet.
Regional airlines in the US are currently reporting difficulties in finding
sufficient numbers of qualified pilots, however, mainstream airlines have
not reported similar issues. Although Business Aviation operators serve a
limited number of passengers, given the exclusive service they offer, pilots
in the field are typically hired from a pool of experienced professionals
rather than new hires thus making the typical Business Aviation pilot level
of experience similar to that of a major airline pilot. This explains why the
Business Aviation sector in the United States
reports no current shortage of pilots at this time.
Individuals who wish to become a Business
Aviation pilot in the US face a number of
obstacles.
Pay
The average starting salary for a first officer at a
regional airline is around $23,000. Entry-level
hiring problems at regional airlines could directly
impact Business Aviation in the near future since
pilots at regional airlines are one of the main
pools for Business Aviation pilots.
Flight SchoolRegional
Airline
Major Airline
Business Aviation
Air Force Academy
Military
Major Airline
Business Aviation
Type Rating Necessary
1
2
Figure 72: Main obstacles encountered by Business Aviation pilots in the U.S.
Pay
Training Cost
Quality of Life
Regulations
Supply of Military Pilots
128 © Copyright 2016, Korn Ferry
Regulations
In reaction to the 2009 Colgan crash, the required number of hours for
cockpit crews has been increased from 250 to 1500 hours. Business
Aviation pilots have a hard time accumulating the required number of hours
since they fly less than airline pilots. As this new regulation adds about
$100,000 and several years to the process of becoming an airline pilot, it
has decreased the number of qualified applicants to regional carriers.
Supply of Military Pilots
The number of former military pilots joining the aviation industry has
declined since 2001 from 70% to 30% of Business Aviation pilots.
Historically the military has been an important source for qualified pilots for
the airlines. It is not clear if the decline is due to the stricter FAA
requirements for an ATP license or the lack of interest of former military
pilots to seek employment in Business Aviation.
Technicians
When looking at the A&P licenses granted over the past 10 years, knowing
about 8.5% of the total aviation technicians’ workforce in the US is
employed in the Business Aviation sector, the data suggests that some
520 technicians per year join Business Aviation.
Although the number of A&P licenses granted per year does not seem to
indicate a current shortage of technicians, the Aeronautical Repair Station
Association (ARSA) reports that 86% of its members are finding it difficult
to get qualified workers while 26% say the search for qualified workers is
extremely difficult. Three specific challenges face Business Aviation
maintenance in the US.
Quality of Life
Higher pay, better benefits and greater job
security are offered by other career choices,
such as the automotive sector. In Business
Aviation, the lack of scheduled flights has a
big impact on working hours, which can be
extremely irregular with night and weekend
shifts.
Regulations
In Business Aviation, there is a lack of
personnel trained to work on sophisticated
airframes and avionics. Though some
avionics technicians may hold an A&P license, there is no FAA
exam/certification specific for avionics, which makes it harder to assess
candidates’ skills.
Although there does not seem to be a lack of technicians holding A&P
licenses, personnel that can work on sophisticated aircraft and airframes
Quality of Life
Regulations
Demographics
Figure 73: Main challenges faced by Business Aviation maintenance in the U.S.
129 © Copyright 2016, Korn Ferry
are hard to find since the available skillsets are not in line with the rapidly
evolving technology.
Demographics
Another impending threat to the supply of technicians in the US is
represented by the fact that some 87% of the current workforce in the
overall aviation sector, including Business Aviation, is older than 40, and
30% of current technicians are eligible for immediate retirement. Less
than 1% of aviation technicians are younger than 24.
Figure 74: US technician demographics 2012 - most of the aviation technicians in the US are older than 40 and about 30% of the total workforce has reached retirement age53
Air Traffic Controllers
Although a shortage of Air Traffic Controllers (ATCs) is not a critical issue
in Europe, in the US, ATCs are understaffed and at their lowest point in
27 years, according to the National Air Traffic Controllers Association
(NATCA). Airports across Georgia, Illinois, and New York report personnel
shortages and it is not unusual to have instances of overworked staff falling
asleep during overnight shifts or working six days a week. In Texas,
staffing at the regional air traffic facility is nearly 45% lower than what is
deemed necessary.
10.4.2 WORKFORCE SITUATION IN ASIA
General Trends Across Asia
The business aircraft fleet in Asia is expected to grow over the next 10
years by a compound annual growth rate of 13% in Greater China, 12% in
South Asia and 6% in Asia Pacific. The figure below demonstrates that the
total contribution of Asia to the global Business Aviation fleet will
almost double over the next 10 years.
53 Source: AviationPros
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
18-24 25-30 31-40 41-50 51-60 60+
130 © Copyright 2016, Korn Ferry
Figure 75: The Asian Business Aviation fleet is expected to double its contribution to the global business aircraft fleet over the next 10 years. The term Asia in the chart encompasses Greater China, South Asia and Asia Pacific54
In Business Aviation across Asia, there is an entry-level skills shortage
for flight crews driven by the growing Chinese aviation sector and the
need for military pilots and technicians holding B1 or B2 licenses.
The boom in low-cost carriers in Asia has led to high demand for pilots.
Flight schools in Asia are thriving.
There is generally no shortage of rich people in Asia who can afford
paying for the flight training of their kids.
There are waiting lists of up to 9 months for getting into flight school.
The Chinese Air Force is growing rapidly and is in need of more pilots.
Recruits who join the Air Force for flight training will typically be locked
into long-term employment contracts. The same is true for airlines that
are willing to finance flight training.
Training Bonds
Companies face an additional burden in
terms of the initial investment required
to type rate and train flight crews and
technicians.
54 Bombardier Market Forecast 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2024
Asia Other
Premium on Salary
Training Bonds
Regulations
English Proficiency
Figure 76: Main obstacles related to the Business Aviation workforce across Asia.
131 © Copyright 2016, Korn Ferry
Regulations
Labour immigration laws restrict the ability of foreign Business Aviation
technicians to come to countries with a growing Business Aviation sector,
especially technicians coming from the Philippines where labour costs are
lower and where there is an active pool of available labour that speak
English proficiently.
English Proficiency
An inability to speak English proficiently is a major obstacle when hiring
skilled technicians. Improving the communication skills of the workforce is
key in ensuring that the Asian Business Aviation sector can hire the talent it
needs.
Specific Aspects by Country
SINGAPORE
• Singapore is a major player in the Business Aviation sectorbecause of its central geographic location and the presence ofseveral overhaul facilities of engine and aircraft componentmakers.
• Business Aviation traffic in Singapore has been achieving anannual compound growth of 14%.
• In order to meet the demand coming from growth, Singapore isfocusing on training the next generation of talent in BusinessAviation locally and being recognized as a center of excellencein training since both European and American companies areperforming major maintenance activities in the region.
HONG KONG
• There is a lack of skilled labor in the Business Aviation MROsector where Hong Kong has a big presence.
132 © Copyright 2016, Korn Ferry
CHINA
•There has been a slight slow down in Business Aviation growthin China. Between 2005 and 2013 Business Aviation jet deliveriesgrew by 20% per year. In 2014 the growth was 15.5%, which wasdue to airspace restriction and the lack of infrastructure.
• Given significant growth that Business Aviation in China is stillexperiencing, both pilots and technicians are in need although localtalent is scarce.
JAPAN
• Japan's fast-aging population is a growing cause of concern in theaviation industry, including Business Aviation, with pilot shortagesalready having an impact on the industry. In 2015, Japan decided toincrease the retirement age of pilots to 67 years in order toaddress the shortage.
•The government plans to make Japanese airports more welcomingfor Business Aviation. Business Aviation grew by 14% (movements)in 2015.
INDIA
•Growth in India's Business Aviation sector has averaged 12.5%over the past 10 years.
• The Indian Business Aircraft Operators Association (BAOA) iscurrently working with the Indian Government to remove obstaclesto growth. If successful, demand for skilled Business Aviationprofessionals might increase even further.
MIDDLE
EAST
• The significant growth of Middle East carriers is luring pilots and,to a lesser extent, technicians away from Europe and North Americaand poses a threat to Business Aviation stakeholders around theglobe.
• The Middle East is predominantly dependent on the global supplyof Business Aviation pilots. The Middle East Business AviationAssociation (MEBAA) reports only minimal success in developingmore local talent as well as in branding Business Aviation in a wayto attract talent more interested in airlines.
133 © Copyright 2016, Korn Ferry
Perception of the Business Aviation sector as limited to the super-
rich and lack of full understanding of its role in the market for the
broader public
Existence of country-specific regulations (like in China, India and
Singapore) which might represent an obstacle to the full potential
growth of Business Aviation
Lack of infrastructure or inadequacy of the existing one to
accommodate specific needs of the Business Aviation sector
Knowledge and experience typically accumulated over the years
through a strong presence in Business Aviation is also lacking in Asia
and this is associated with an increasing demand for consultants from
Western Europe and North America.
Limited availability of local talent able to satisfy all the training and skill
requirements necessary to succeed in Business Aviation. This issue is
currently being addressed in two ways: attracting talent from other
regions and implementing training programs for local talent.
10.4.3 IMPACT OF WORKFORCE SITUATION IN OTHER
REGIONS ON EUROPE
Global Workforce Movements
Expat pilots moved to Asia when
Europe and North America were in
recession. As their contracts end the
question is whether they will stay or go
back to take advantage of an improved
aviation labour market in Europe and
North America.
The significant growth of the Middle
East Business Aviation sector and the
lack of a long tradition in the field sees
the region focus on the global talent
pool and, in particular, talent from
Europe and North America.
Asia has a shortage of local talent to
satisfy the increasing workforce demand in the Business Aviation sector.
ASIA
EUROPE
NORTH AMERICA
MIDDLE EAST
Figure 7748: Major workforce movements between Asia, North America, Europe and the Middle East.
134 © Copyright 2016, Korn Ferry
Best Practices in Other Regions for Europe
North America
Careers in Business Aviation Day: During the annual NBAA
Business Aviation Convention & Exhibition, NBAA hosts the Careers in
Business Aviation Day for middle school, high school, and college
students. Special admission pricing is available for students.
On-Demand Education: NBAA’s On-Demand Education offerings
provide web-based access to the critical information needed to enter
the Business Aviation sector. Complimentary webinars are provided to
NBAA Members.
Business Aviation Scholarships: NBAA offers a growing number of
scholarships to support students in various segments of Business
Aviation. Scholarships are available both to those seeking to enter the
industry and to those looking to advance their careers.
Business Aviation Networking: NBAA provides a comprehensive
program of industry events each year, which serve as effective career-
networking venues. Student discounts are often available.
Low-Interest Loans: Federal-aid benefit for both students and parents
to help cover educational expenses whenever a student decides to
pursue an aviation-related course of study.
Asia
One of the solutions identified thus far is the extensive use of training
bonds in Asian Business Aviation. Training bonds can be a useful
means to prevent employees from leaving a firm that has invested
heavily in the employee’s skills. The risk remains, however, that bigger
competitors buy out employees who just finished the training.
AsBAA is also engaged in making Business Aviation more attractive to
students in relevant technical areas, such as engineering or
Aeronautics & Astronautics. AsBAA is currently forming a student
chapter that has the goal of promoting jobs in Business Aviation to
these groups.
135 © Copyright 2016, Korn Ferry
10.5 EDUCATION AND TRAINING IN BUSINESS
AVIATION: DEMANDING, REWARDING –
AND HIGHLY SPECIALISED
10.5.1 CURRENT EDUCATION LANDSCAPE AND
OFFERS
Types of providers
With the exception of small companies, companies that only provide
training targeted at Business Aviation are hard to find. However, training
and experience acquired in Business Aviation can often be valuable in the
broader aviation sector. In Business Aviation, seven big clusters of training
providers can be identified.
Figure 78: Overview of the 7 main training providers (Airports, Airlines, Manufacturers, Technical Schools, Operators, MROs and External Providers) and their training areas of focus.
The detailed types of training provided by each source are listed below.
There is a net prevalence of private training providers across Europe.
The only public provider is represented by government-funded schools,
although the necessary training to get EASA certified licenses is not offered
for free to individuals.
OPERATORS
AIRPORTS
MROs
AIRLINES – MANUFACTURERS - TECHNICAL SCHOOLS
Security Training
Ground Ops
EXTERNAL PROVIDERS
Flight Ops
Regulation Compliance
Maintenance
136 © Copyright 2016, Korn Ferry
Three areas of training apply specifically to Business Aviation: flight
training, aircraft maintenance, and ground handling.
•Maintenance: Technical schools provide basic training for technicians and usually partner with training providers to complete practical training.
•Pilots: Some technical schools also offer a curriculum for pilots. In most cases pilot training is specifically offerered by flight schools.
•Controllers: Some technical schools partner with providers of training for controllers although this is done externally.
Technical Schools
•Maintenance: Aircraft manufacturers provide EASA certified training to their technicians.
•Pilots: Some manufacturers whose aircraft are mostly used for Business Aviation also offer flight training.
Manufacturers
•Maintenance: Provide training to employees engaged in maintenance activities.
MROs
•Security Training: Airports provide general training on security to all their staff. Safety personnel like firefighters get trained on-the-job over a few months.
•Ground Operations: Small airports used for Business Aviation provide some internal training for ground operations.
Airports
•Ground Operations: Provide training for staff both internal and outsourced. Training activities can vary significantly from simple training for baggage handling to maintenance EASA certified training.
•Flight Operations: Operators provide cabin crew training although small operators focused on Business Aviation only do not provide pilot training.
Operators
•Maintenance: Commercial airlines with activities in Business Aviation provide EASA certified training for technicians.
•Flight Operations: Airlines provide training for all the air crew members including pilots.
Airlines
•Maintenance: External training providers include programs to become an EASA certified technician.
•Flight Operations: External providers also offer aircrew training including flight training for pilots.
•Regulation Compliance: Some providers offer training for company managers on regulatory compliance.
Training Providers
137 © Copyright 2016, Korn Ferry
Flight Training
Most Business Aviation pilots started their career as airline pilots, some as
military pilots, and only a few started in Business Aviation. Table 15 shows
an overview of a typical training programme for airline pilots in Europe.
Although not always required for Business Aviation purposes, the Airline
Transport Pilot License (ATPL) is the type of certification most Business
Aviation pilots take after working for an airline.
Airline Transport Pilot
Provider Flight Schools, Airlines
Duration 1.5 years + 2 weeks
Cost € 70,000–€100,000 + Type Rating
Funding Private
Certificate ATPL – Airline Transport Pilot Licence
Flight Hours ≥ 1,500 h
Programme
Mix of theoretical and practical training taking the candidate through specific milestones:
- Private Pilot Licence (PPL) - Commercial Pilot Licence (CPL) - Multi-Engine rating (ME) - Instrument Rating (IR)
The ATPL programme is followed by aircraft type rating
Table 15: Overview of a typical pilot training programme in Europe
Students usually pay for their flight training themselves, a huge cost to
shoulder as a young professional. To get type rating, pilots need to pay an
additional cost of €15,000-€50,000. It can take a pilot in Business
Aviation up to 10 years to accumulate the number of hours needed to get
promoted from first officer to captain; an airline pilot will only need three, a
clear advantage for young professionals.
The table below shows the kind
of career transitions between
Business Aviation, airlines, and
the military in Europe across the
four main stages of a pilot’s
career.
In order to qualify for an ATP license, 1500 hours need to be accrued by
the candidate.
Business Aviation Experts' Concerns
Slow career progression
Irregular working hours
High cost of training
138 © Copyright 2016, Korn Ferry
Training Hour
Accrual 1st Officer Captain
Private Flight School
Table 16: Typical career transitions for pilots between Business Aviation, airlines, and the military
Additional training is necessary whenever a career transition takes place.
Business Aviation tends to hire more experienced pilots rather than recent
flight school graduates.
Maintenance
Aircraft maintenance training must comply with regulation (EU) 1321/2014.
It is offered by a variety of certified training providers or internally
administered by airlines, MROs and aircraft manufacturers, while EASA
provides the common standard. The common characteristics of these
training programmes are shown below.
Airline
Business Aviation
Air Force
139 © Copyright 2016, Korn Ferry
Table 147: Overview of a typical aircraft maintenance technician training programme in Europe.
A certified aircraft technician’s training costs are comparable to a pilot’s –
with great disparities depending on the type of aircraft one gets certified for
(e.g. from €25,000-€30,000 for a Learjet, to about €130,000 for a G650).
The high cost of technical training in Europe is seen as a common problem
across all EASA-regulated countries. Manufacturers also drive the cost of
training up through the control they retain over the aftermarket.
The table below shows potential career transitions for technicians in
Europe, from the main stages of their training to their careers as certified
technicians.
Aircraft Maintenance
Provider Training Providers, Airlines, MROs, Manufacturers
Duration 3 Modules: 1 year + 2 years + 2 years Aircraft Type Rating: ~ 3 years
Cost €35,000-€ 130,000
Funding Public/Private
Certificate A1, B1.1, B2, Aircraft Type Rating
Eligibility 3-4 years of basic professional education
Programme
A mix of theoretical and practical training is provided in order to obtain a proper certification:
- A1 (1 year): Mechanic with release authority of small, simple tasks under line maintenance.
- B1.1 (2 years): Technician with release authority for work on engines, mechanical and electrical systems.
- B2 (2 years): Technicians working on avionics maintenance.
- Aircraft Type Rating is required to operate on a specific type of aircraft.
140 © Copyright 2016, Korn Ferry
Figure 79: Typical career transitions between Business Aviation, airlines and other advanced industries for technicians.
Basic training in the aviation field is offered by secondary-level vocational
schools. A1, B1.1, B2 and type rating EASA-certified training is provided by
airlines as well as by
manufacturers, MROs, and
external providers in Business
Aviation.
Ground Handling
Airports or operators provide both internal and outsourced basic ground
handling training. Business Aviation ground handling staff, however,
frequently face clients, hence the critical importance of soft skills training.
The exclusive service provided by Business Aviation means it is not rare
for employees to interact with high-profile clients. Although this type of
training is not available everywhere in Europe, some operators and small
airports are investing in short training programmes of about 20 hours with
hotel staff training providers.
Business Aviation workers tend to come from different backgrounds, often
from the broader aviation sector or even from different industries. This
explains why it is difficult to restrict training programmes to a particular
target audience.
Basic Training
A1/B1.1 Level
B2 Level Type
Rating
Certified Technician
Vocational
School
Airline
Business Aviation
Advanced Industries
Business Aviation Experts' Concerns
Length of programme
Salary perspectives
High cost of training
141 © Copyright 2016, Korn Ferry
Flight Training
Business Aviation is not very attractive for young pilots who are just
entering the professional world.
Slow career progress, due to the lower number of hours
accumulated while flying a business jet (see 9.1.2. above).
High cost of training (ibid.).
Working hours, which tend to be less regular than commercial
scheduled flights.
Maintenance Training
Programmes need to be compliant with the EASA regulation in order to be
granted A1, B1.1, and B.2 certifications. Trainees tend to come from
vocational schools across Europe. However, attracting new hires to the
Business Aviation field is quite challenging for a combination of reasons.
Length of programmes: Getting B1.1 certification takes about 6-7
years, B.2 certification takes 8-9 years. It is becoming hard to find
properly qualified technicians holding a B.2 license.
Cost of training: Although the programmes are partially funded by
the government and the companies, trainees end up paying for part
of them, i.e. about €30,000.
Salary perspectives: Future pay checks are not attractive and the
position is commonly perceived as less prestigious than that of a pilot.
Industries other than Business Aviation pay better salaries and
offer more attractive benefits.
Both people who leave or come to Business Aviation as technicians also
have experience in other industries, so maintenance workers in areas other
than Business Aviation are also targeted by training programmes and
recruiting strategies.
Differences Between Countries
Although the EASA regulation holds for all 28 EU member states and four
EFTA countries, national education systems in Europe vary significantly.
The three big types of European systems are shown below.
Figure 80: Three types of European education systems.
Binary/Dual Systems
• Academic higher education is provided by universities and professional higher education is provided by specialized institutions
Partial Unitary Systems
• Professional higher education is provided by specialized institutions inside universities
Unitary Systems
• All types of higher education are offered by the same institutions with significant crossover between academic and professional activities
142 © Copyright 2016, Korn Ferry
European countries who notably follow a dual education system are
Germany, Switzerland, Denmark, Portugal, Austria, Belgium, Finland,
Malta, The Netherlands, Czech Republic, Austria, Lithuania, and Estonia.
Although a dual education system has the big advantage of making a
student an employee for a company from their first day, some concerns
about the system also exist:
Companies that take on apprenticeships have to follow a large number
of regulations.
The training itself is very expensive.
Requirements for several positions have become quite complex and
many schools do not provide an appropriate level of education.
One country that is in the process of re-introducing apprenticeships is
the United Kingdom in order to close the communication gap between
universities and companies. Young people in the UK are not attracted
to aviation due to the high cost of getting a licence (120,000 GBP) and
the experience that has to be gained. While the training programmes in
Ground Operations have proved to be inefficient, the British Business
and General Aviation Association (BBGA) is supporting a government
effort to introduce a more structured way of conducting training through
apprenticeships.
10.5.2 ASSESSMENT OF EXTERNAL TRAINING AND
EDUCATION OFFERS
Scope
External training offers in Europe focus on Maintenance, Flight Training,
and Regulation Compliance/Management. All three areas of focus deal
with highly regulated training activities.
In Aircraft Maintenance, the European landscape can be further divided
into:
Basic Technical Education: Provided by public or private technical
schools existing in different forms in all European countries.
EASA-Certified Training: Provided by either small or large private
companies whose curricula comply with Part-147 of the EASA
regulation. Such training programmes culminate in the granting of the
corresponding certification type: A1, B1.1 or B2.
Aircraft Type Rating: Provided by private companies and focused on
a specific type of aircraft. Both small and large training companies co-
exist in aircraft type rating. While large companies tend to provide
training for the most common aircraft used in Business Aviation,
smaller companies tend to offer training on the less common aircraft.
143 © Copyright 2016, Korn Ferry
Flight Training, when not offered internally by airlines or operators, is
outsourced to independent flight schools who can either partner with
companies or train private individuals.
Figure 81: External training in Europe is offered in Maintenance, Flight and Regulation Compliance/Management.
The last type of training offered to people working in the aviation sector
focuses on regulations and means of compliance.
Areas of Improvement
Business aviation experts report a lack of training providers in three critical
areas beyond maintenance, flight training and regulatory compliance.
Figure 82: Training areas of improvement
Ground Operations
•There is no formal training in place for people working in Ground Operations;companies just tend to provide on-the-job training only to bring the staff up tospeed;
•Ground Handling is not recognized as a real profession in Europe;
•The critical role of soft skills for staff working in Business Aviation is oftenoverlooked.
Dispatchers
•There are not enough educational offers in place for dispatchers;
•There are even less options for dispatchers focusing on Business Aviation;
• It is very expensive to train dispatchers in-house, in particular for smallcompanies.
AFISOs
•EASA is considering establishing specific requirements for the qualificationand training of Aerodrome Flight Information Service Operators;
•Regional Business Aviation airports are afraid of an increase of costs as aresult of aligning the education of AFISOs with the education of Air TrafficControllers.
External Training Offers
in Europe
Maintenance
Technical Schools
A1, B1.1 and B.2 Type Rating
Flight Training
Independent Flight Schools
Compliance
& Management
Quality Management,
Consulting Companies
144 © Copyright 2016, Korn Ferry
10.5.3 INTERNAL TRAINING AND EDUCATION IN
BUSINESS AVIATION
Scope
In Europe, all companies operating in the aviation industry offer internal
training.
Figure 83: Internal training in Europe is offered in Maintenance, Flight, Ground Operations and Safety.
Basic technical education in aircraft maintenance is not provided since it
falls within the scope of technical schools. The other two types of training,
which are EASA-certified, are offered internally.
EASA-Certified Training: Provided by either small or large private
companies whose curricula comply with Part-147 of the EASA
regulation. Training programmes in such companies culminate in the
granting of the corresponding certification type: A1, B1.1, or B2.
Aircraft Type Rating: Provided by private companies and focused on
a specific type of aircraft. Both small and large training companies co-
exist in aircraft type rating. While airlines, operators, and
manufacturers tend to provide training for the specific types of aircraft
used by the company, small MROs also offer training on the less
common aircraft.
Flight training is offered internally to the employees of airlines, operators,
and manufacturers – in general, large companies operating their own
training facilities.
Airports or operators train staff working in ground operations internally.
No formal programme is mandated, so standards vary significantly from
company to company.
Finally, basic security training is provided by airports to all staff, while
firefighters are trained on-the-job.
Internal Training Offers
in Europe
Maintenance: Operators,
Manufacturers, Airlines and
MROs
Flight Training: Airlines,
Operators, Manufacturers
Ground Operations:
Airports, Operators
Safety Training: Airports
145 © Copyright 2016, Korn Ferry
Quality and Adequacy
While EASA-certified training is less subject to company-wide
interpretation, major concerns have been reported in terms of training
Ground Operations staff. Basic skills are not the problem; however, the
lack of soft skills is detrimental to the Business Aviation sector (see
1.1.2. Ground Handling). Two different directions have been taken so far in
Europe to solve this problem:
Operators or airports join the network of luxury service providers and
outsource their staff training, like in the case of Sky Valet.
The institution of government-regulated apprenticeships over the
national territory can address the lack of training in ground operations.
Figure 84: Directions considered in Europe to address the lack of soft skills in Ground Ops
Differences between companies
The difference between large and small companies is a relevant factor
when it comes to expensive training programmes. While airlines and
manufacturers are usually large companies, this is not always the case with
MROs and operators, which may struggle to enter the market or be forced
to exit the market, so that a consolidation of large players is expected.
GROUNDOPERATIONS
Network of exclusiveservice providers
Apprenticeships
146 © Copyright 2016, Korn Ferry
11 CONTACT THE AUTHORS
Christian Weiss
Senior Principal and Project Director
Korn Ferry Hay Group, Germany
T: +49 69 505055 222
Dr Christoph Wollersheim
Lead Associate & Project Manager
Booz Allen Hamilton
T: +1 202-346-9312
In addition, the following consultants from Korn Ferry Hay Group and Booz
Allen Hamilton contributed to this study:
Gabriel Werthmann
Kate Helfet
Kathrin Janz
Kishan Daivandran
Paola Libraro
Ulrike Kluge
© Copyright 2016, Korn Ferry
ALL RIGHTS RESERVED. Do not modify
or create derivative works from contents.
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and supporting materials contain trade
secrets and proprietary business
information of Korn Ferry. This information
may be photocopied by CLIENT NAME for
use in evaluating the project, but is not to
be shared with other organizations,
consultants, or vendors without the express
written permission of Korn Ferry.
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