Since 2023 is here, we’re taking a future-oriented outlook. Viktoras Baltaduonis, the PBH Program Manager, covers the team’s latest work and current market insights, leading up to what the coming year will likely bring.
What is your team currently working on?
Viktoras Baltaduonis: Currently we are working on two projects - Power By the Hour for polish airline Enter Air and Power By the Cycle for wheels, tires and brakes for polish national airline LOT. We’re constantly working towards new prospects and have a couple of ongoing tenders which is in addition a good way of showing Magnetic Group presence in the market for operators and our competitors.
Meanwhile, together with IT, we are working on an extensive internal project with a goal to fully integrate our processes into the Quantum system and train the Team so we could utilize it to full potential. Second stage is going to be automation of some parts of the process to reduce the possibility of human error, have efficient daily operations, transparent and precise data accessible for everyone in the Magnetic Group to analyze and see trends of rotable components.
As for the supply chain, are there any changes or challenges that you currently observe? What are the likely reasons for this state?
VB: Yes, during the year 2022 we notice big changes in the market. First of all we see change in power balance between aviation companies, in some cases the fall of once big and mighty and the rise of small underdog players. Which indicates it is the time of opportunities for small and mid size companies like ourselves.
Covid and the war definitely have an impact which is felt by everyone in the sector. While demand for spare parts is growing together with sales of flight tickets, supply is quite behind. To name a couple of reasons - lack of manpower due to personnel laid of during Covid or left sector by themselves searching for a more stable work environment (phenomenon called “The Great Resignation”), shortage of raw material which is the cause of long lead times for spare parts manufacture which are crucial for aftermarket component repairs and growing inflation. Due to these reasons we notice shortage of rotable components in the aftermarket, delays in repair shops and rapid rise of costs.
From a personal perspective, what predictions could you forecast for 2023?
VB: The need to travel will continue to grow, maybe in a more moderate manner than this year as the need is going to be influenced by inflation and growing energy costs. Possibly the raw material shortage issue is going to be solved relatively soon and this part of the supply chain will be restored back to normal. Unfortunately, I don't think that it’s going to be the same with manpower and it might take a while (2-3 years) to fill the gap.
“In the midst of chaos, there is also opportunity” - Sun Tzu. Even though times are challenging, if we act instead of react we will stay on top and come out winners. Work hard, play smart and don’t forget to enjoy every moment of the journey!