Demand for Integration and Efficiency Will Propel the Global Commercial Aviation Asset Management Software Market, Notes Frost & Sullivan

LONDON, February 8 - The need for integration and more efficient business cycles is propelling
the global commercial aviation asset management software market, with
revenues projected to grow at a compound annual growth rate (CAGR) of about 8
per cent from 2008 to 2018. There is considerable potential to be tapped as
airlines increasingly implement IT asset management solutions. However,
factors such as development costs and the lack of an existing IT
infrastructure in certain regions must first be addressed.

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New analysis from Frost & Sullivan (www.aerospace.frost.com),
Global Commercial Aviation Asset Management Software Market Assessment, finds
that the market earned revenues of about $325.0 million in 2008, and is
estimated to reach $680.6 million by 2018. The total market includes the
asset management spending by airlines and maintenance, repair and overhaul
(MRO) organisations.

"The implementation of an IT system in this market has cut the time lag
in business cycles by 20 per cent on average," notes Frost & Sullivan Team
Leader, John Siddharth. "Shorter business cycles reflect directly on the
increased efficiency of an organisation. This has driven many airline
operators and MRO shops to implement IT asset management systems."

The need for interdepartmental integration is another major driver. The
efficiency of an integrated system can be judged when invoicing or raising a
purchase order in an organisation. This usually takes 24 to 48 hours in a
non-integrated environment.

"Airlines have been subjected to stringent safety regulations that have
had a considerable impact on market prospects," remarks Siddharth. "Airlines
are implementing IT asset management solutions to keep track of fleet,
inventory and also human resources."

Development costs are much lower in countries like India. Cost-effective
outlays on highly skilled professionals reduce the cost of asset management
software in the development stage. India has developed well in the services
sector, and is currently an outsourcing hub for most global IT companies.
This has promoted the number of highly skilled IT professionals for software
development.

However, the lack of existing IT infrastructure presents a challenge,
particularly in regions like Eastern Europe and Africa, where there is a lack
of proper Internet access. More than 80 per cent of these markets remain
untapped, and without basic amenities like effective Internet connectivity,
the potential of these markets will continue to remain unrealised.

"Data migration is the process of retrieving existing information when a
new system is implemented and can be considered the second step in the
overall implementation process," states Siddharth. "This has been a challenge
from the technological aspect. Major market participants have their own
technology for data migration."

The market is highly consolidated, and there are numerous participants in
specific areas like inventory management within the asset management supply
chain. Major participants can forge strategic alliances with smaller
participants to meet specific requirements.

If you are interested in more information on this study, please send an
e-mail to Monika Kwiecinska, Corporate Communications, at
monika.kwiecinska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

Global Commercial Aviation Asset Management Software Market Assessment is
part of the Aerospace Growth Partnership Service programme, which also
includes research in the following markets: Middle East Business Jets Market
Assessment, Very Light Jet Market Assessment - Asia Pacific, Very Light Jet
Market Assessment - Middle East and, Very Light Jet Market Assessment -
Europe. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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     Global Commercial Aviation Asset Management Software Market Assessment
                                 M4B3

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com