Aviation Industry Faces Rising Costs Delays As IATA Addresses Tech Challenges

The International Air Transport Association (IATA) is actively addressing operational challenges in aviation technology through collaboration, digital transformation, and industry standard development, aiming to enhance aviation safety, efficiency, and sustainability. Faced with supply chain disruptions and rising costs, IATA has launched initiatives including optimized inventory management, expanded supplier networks, and enhanced information sharing. These efforts are designed to improve the overall travel experience for passengers by mitigating the impacts of these global challenges.
Aviation Industry Faces Rising Costs Delays As IATA Addresses Tech Challenges

Imagine arriving at the airport full of anticipation for your flight, only to be informed of a delay due to "technical reasons." Worse yet, such occurrences appear to be happening with increasing frequency. Behind these disruptions lies a significant challenge facing the aviation industry's technical operations.

The International Air Transport Association (IATA) is actively addressing these challenges, working to enhance the safety, reliability, cost-effectiveness, and efficiency of aviation technical operations. This encompasses aircraft maintenance and engineering, as well as maintenance, repair, and overhaul (MRO) activities. IATA achieves these goals by developing industry best practice guidelines, standardizing data transmission and technologies, and assisting the International Civil Aviation Organization (ICAO) and national authorities in harmonizing airworthiness and aircraft transfer regulations.

Supply Chain Crisis: Aviation's Bottleneck Problem

The aviation industry's supply chain is currently under unprecedented pressure. In 2024, aircraft deliveries totaled just 1,254 units—approximately 30% below pre-pandemic peak levels—while undelivered orders have soared to a record 17,000. This supply-demand imbalance has created severe consequences:

  • Soaring Costs: Parts shortages and maintenance delays have dramatically increased operational expenses. IATA estimates that supply chain challenges will cost airlines over $11 billion in 2025.
  • Flight Disruptions: Extended aircraft maintenance cycles and reduced availability of operational aircraft directly lead to flight delays and cancellations, impacting passenger travel.
  • Safety Concerns: To maintain operations, some airlines may be forced to extend parts lifespans or use non-OEM replacements, potentially compromising safety.

IATA is collaborating with airlines, OEMs, leasing companies, MRO providers, parts distributors, and regulators to strengthen global aviation supply chain resilience through inventory optimization, expanded supplier networks, enhanced information sharing, standardization, and technological innovation.

Digital Transformation: The New Engine for Operational Efficiency

Beyond addressing supply chain challenges, IATA is driving digital transformation in aviation to improve aircraft operational efficiency. Key initiatives include:

  • Predictive Maintenance: Utilizing sensors and big data analytics to anticipate component failures and schedule proactive maintenance.
  • Electronic Flight Bags (EFB): Replacing traditional paper manuals with digital versions to improve pilot efficiency.
  • Drone Inspections: Implementing UAV technology for faster, more comprehensive aircraft examinations.
  • Blockchain Applications: Enhancing parts traceability and maintenance record transparency through distributed ledger technology.

Industry Collaboration: Building Best Practices

IATA's Technical Operations Working Group (TOWG) develops comprehensive guidelines for safe and efficient aircraft engineering and maintenance. Simultaneously, the Maintenance Cost Technical Group (MCTG), composed of volunteer experts, provides resources to help airlines control rising maintenance expenses.

The association's MRO SmartHub platform assists airlines and service providers in optimizing parts management by providing price benchmarks, availability data, and supplier connections. This enables more informed procurement decisions and cost reduction.

Safety Advancements: Implementing Global Standards

IATA continues to support implementation of ICAO's Global Aeronautical Distress and Safety System (GADSS) and Autonomous Distress Tracking (ADT) standards. These initiatives enhance flight tracking capabilities and emergency response coordination, significantly improving aviation safety worldwide.

Through industry conferences like the IATA Ground Handling Conference and Annual General Meeting, the association facilitates collaboration among airlines, regulators, and service providers to address operational challenges and drive continuous improvement.

As the aviation industry navigates complex technical and operational challenges, IATA's leadership in standardization, digital innovation, and cross-sector cooperation remains crucial for ensuring safety, efficiency, and sustainability in global air transport.