Sectors Served
Different businesses, even within the same industry, may require different approaches to their management practices. While goals and methods may seem similar, differences in metrics present major challenges to businesses and their customers. If a manager has achieved impressive results in one sector, that does not automatically mean he or she will repeat the success in another, even in a similar role. In our assessment of management practices we rely on Process Management tools, for example the 4V Analysis: Visibility, Variety, Volume, Variability. It is obvious that Scheduled Air Transport and Business Aviation will have absolutely different scores; therefore companies representing each of the branches of the industry will need different management tools, and that’s where Avicon can help. If you have little or no experience working with such industries, we will be able to guide you through all the complexities, and will build a solution to will meet your firm’s requirements, whether you need to arrange financing for your aircraft, transport a non-standard cargo, or organise a transfer of technology.
Space & Satellites
Avicon has gained unique experience in working with Space industry. We have developed a wide network of contacts, and can manage projects of any complexity. For companies, which want to have in-orbit capability, or expanding their orbital fleet we can provide assistance with Asset Aquisition and Management. Avicon’s Business Analytics professionals can undertake market research for those assessing their position among competitions, while Transaction Services group will guarantee, that the deal your company is contemplating will present nor unexpected surprises, and will be an optimal solution for the majority of your stakeholders.
Multinational Infrastructure Projects
Avicon’s professionals have worked on a large number of projects, where, in parallel with commercial companies, multiple government departments and agencies have been involved. In most cases, we had to manage relationships at inter-governmental levels. A good example of our competence in the area is the successful completion of the CFIUS process, which we helped to organise on behalf of our client, a subsidiary of Rocket & Space Corporation ‘Energia’ and Sea Launch Company. For that, we had to satisfy the requirements of 9 top-level departments and offices.
Our professionals have also participated in the International Nuclear Safety Program (INSP) sponsored by the US Department of Energy, where we were engaged in design and procurement of different safety-related hardware for ex-Soviet nuclear power plants. Our specialists were involved in the organisation and project management of the UK DTI (BERR)-sponsored projects, and in ensuring the safety of Russian Research Reactors (NIKIET and IPPE). We have managed a group of technical consultants for the Seversk Plutonium Production Elimination Project (SPPEP) another major activity sponsored by the US government.
All of these projects have allowed us to build a deep understanding of heightened reporting standards, and an appreciation of the sensitive nature of certain aspects of working with government departments and agencies, especially when more than one country is involved in a project. It is because of this experience that we can offer our Business Analytics and Transaction Services to both local and federal governments. On behalf of such clients, we may, for example, investigate financial performance of private companies or independently verify their statements; thus, we may present opinions on potentially fraudulent activities. Such services may protect the interests of the general public, and potentially avert negative situations. Another good example would be an analysis of airlines for signs of insolvency on an on-going basis; since it is a government’s responsibility to provide transportation for the passengers of stranded carriers, a proactive approach can help to limit exposure by identifying problems before they become obvious.
Avicon can also help regulators to draft policies, seek independent expert and peer group opinions, and provide practical recommendations as to the implementation and enforcement of such policies. Because we base our work on rigorous, scientific methods of research, integrity will not be compromised.
Commercial & Transport Aviation
Business Aviation is a multi-billion dollar industry that employs tens of thousands of people worldwide. Yet it is a very little understood industry, as many professional managers may attest. At Avicon, we have conducted a series of studies in the field, and can really say a lot about it.
According to some studies, European companies that use business aircrafts have seen an 11.3% increase in their business efficiency (for the US, the figures are a bit lower, 8%). In our analysis, we also discovered that in a large number of cases, travel in a business aircraft can be cheaper than travel by scheduled airline, especially when people travel in small groups. In some cases, travel in a ‘bizjet’ is the only option when it comes to transporting valuable cargo or top executives. For example, compared to the US, fatality rates on scheduled air transport in Africa are 24 times higher, in Central Asia and Eastern Europe it is 12 times, with Russia lately giving grounds for serious concerns.
There are a large number of intrinsic benefits offered by Business Aviation: reduced travel time, increased en route productivity, minimised non-business hours away from home, increased industrial security, personal safety, full control over the schedule, positive corporate image, reduced fatigue of employees, truncated cycle time and more. While many such benefits are obvious, almost one in ten organisations surveyed by Avicon attested, that although they understand the benefits of Business Aviation and can afford it, the fear of organisational challenges puts them off the idea.
Many problems come from the view of the Flight Department as a cost centre, and the firm’s inability to integrate such departments into the global corporate hierarchy (see our article in Business Airport International magazine. Avicon can help your company to fully understand and enjoy the benefits of Business Aviation; we will lead you through the whole process, from selecting a business aircraft and the maintenance programmes to fleet rationalisation. We are not affiliated with any manufacturer or service provider and, therefore, will provide completely unbiased opinions, allowing you to make the right choice.
For companies who represent Business Aviation, Avicon offers our analytical skills, whether you need to understand your own position among the competition, if you are considering an M&A deal, or if you need to undertake a specific research, we will do it all, and with the highest possible standards of integrity and completeness.
The Air Transport Industry is truly exciting, yet arguably it is one of the most complicated business environments. As of 2009, system-wide revenues reached £344 billion, but net loss for the same year was forecast at £2.5 billion. It is estimated that consolidated losses for the first decade of the new millennia have levelled off at £26 billion. Still, since 1980, air travel has tripled, and over the next 20 years, on average it will show a stable 5% annual growth.
For a combination of factors, the Air Transport Industry has a unique position when it comes to management discipline. The industry, due to its focus on safety, reliability and efficiency, is ring-fenced by regulations. In many cases, working with the industry means working closely with governments, as only a handful of countries, notably the UK and the US, can proudly say that they have no airlines under government ownership. Governments are never good owners, or at least that’s what investors think: the price-to-earnings ratio for BA/Iberia is 8.49, for United-Continental is 44.50, for Aeroflot is 2.48, and Aer Lingus, which is run in partnership with private Ryanair, is 6.85. Probably, like no other industry, the Air Transport Industry preserves rudiments of national protectionism, and Freedoms of the Air is a direct manifestation of that.
Nevertheless, liberalisation and deregulation of the markets will, undoubtedly, change the picture in the coming years, and the industry will be adopting standards and practices accepted in other industries. The transition may be very painful for many of the players, and the term ‘flag carrier’ will disappear in many countries. That will lead to yet another wave of consolidation, and air travel will reach a new degree of commoditisation.
That will present serious challenges to many market participants. At Avicon, we will be able to help your business prepare for the changes by building appropriate strategies, either by considering an M&A deal, or by planning a divestment/downsizing, or choosing alternative solutions. In any case, we will look after your stakeholders’ best interests.
For businesses that rely on the Air Transport Industry, but are not themselves players in the market, we can offer a range of services; whether you need to build a temporary air bridge, plan a humanitarian mission, deliver non-conforming cargo, or even want to build a brand new airport, Avicon will have the best professionals at your disposal.