Aviation Support Services NAICS 4881

Mar 14, 2025 - Chaos at the FAA

• Staffing problems, aging air traffic control equipment, and government-induced chaos from the Trump administration’s culling of staff at the Federal Aviation Administration (FAA) have disrupted air travel in early 2025. Shortly after taking office, Trump and Elon Musk’s government efficiency department began cutting FAA staffing citing diversity initiatives. Amidst the cuts, several fatal air collisions and ground mishaps occurred in quick succession. The staff cuts at the FAA came despite years of warnings by government officials of air traffic controller staffing shortfalls due to low pay, long hours, and the significant stress that goes with the job. Alongside these challenges, the Transportation Department is reviewing a 15-year, $2.4 billion contract with Verizon to upgrade air traffic equipment, saying the company isn’t moving fast enough.
• The International Monetary Fund projects global trade volume will increase 3.2% in 2025, driven by easing geopolitical tensions, expanding e-commerce, and growing consumer demand in emerging markets. Aviation support services may benefit from increasing air cargo traffic. These developments provide fertile ground for freight forwarders and logistics providers to enhance their services and seize new opportunities in cross-border shipping, according to Air Cargo Week.

• The aviation industry has seen substantial merger and acquisition activity in recent months, according to Goldman Sachs. Alternative investment firm Stonepeak agreed in October to acquire aircraft leasing and support provider Air Transport Services Group for about $3.1 billion. Apollo Global Management acquired Barnes Group, a 167-year-old provider of engineered products and innovative solutions, for $3.6 billion in early October. Snow Peak Capital purchased TurbineAero, a provider of maintenance, repair and overhaul services for aeroengine components, while H.I.G. Capital acquired STS Aviation Group from Greenbriar Equity Group.
• Aviation support services slightly raised their prices during the first nine months of 2024, according to the US Bureau of Labor Statistics (BLS). Aviation support industry employment and average wages for nonsupervisory employees increased moderately during the first nine months of 2024, according to the BLS.