New regulatory requirements and improving demand for air travel will boost demand for industry services
New York, NY (PRWEB) July 28, 2014
The Flying Schools industry has struggled over the past five years, despite improving macroeconomic conditions. Early in the five-year period, industry operators faced collapsing consumer and business wealth, which led to a decline in the number of individuals taking flights. Plunging per capita disposable income and corporate profit caused domestic and international flight demand to weaken; consequently, demand for flight schools decreased as work for pilots became scarce. Nevertheless, air travel rebounded in light of improving economic conditions, boosting demand for industry services; however, certification figures have remained anemic, reflecting continued low pay and benefits for regional pilots. Furthermore, new regulation is providing an additional barrier to entry for prospective pilots, who must now log a significant number of flying hours before receiving an Airline Transport Pilot certificate, which is required to become a co-pilot. However, regulation has also supported industry enterprises; students who need to record more hours will turn to industry operators for more flying lessons. Over the five years to 2014, industry revenue is forecast to grow moderately at an average annual rate, including a jump in 2014 due to new regulatory requirements and improving demand for air travel.
Major industry players have continued to dominate the industry landscape and push out smaller, less profitable organizations. Therefore, the number of industry enterprises is estimated to decline over the five years to 2014 at an annualized rate. This trend is expected to persist over the next five years.
The Flying Schools industry exhibits a moderate degree of market share concentration. Over the next five years, industry revenue is expected to grow at a faster rate as economic conditions continue to improve. The number of enplanements is forecast to grow, thereby boosting revenue for the airline sector and increasing demand for industry services. Regulation will add an additional barrier to entry for prospective pilots; however, regulation capping the amount of hours pilots can fly as well as implementing required rest time will translate to airline operators needing to hire more pilots. Overall, industry revenue is forecast to grow at an annualized rate over the five years to 2019.
For more information, visit IBISWorld’s Flying Schools in the US industry report page.
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IBISWorld industry Report Key Topics
The Flying Schools industry provides aviation and flight training, including vocational training and recreational training.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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