Adverse Impact of Covid-19 on Avionics Sector to Limit Demand for Aircraft Communication Systems
Aircraft communication systems are very important to maintain the safe and efficient operation of air traffic control as well as the smooth travel of military aircraft.

Aircraft communication systems are very important to maintain the safe and efficient operation of air traffic control as well as the smooth travel of military aircraft. How does an aircraft communication system work? First the data from the satellite communication is processed through the software-defined radio system of the aircraft. Once processed, this data is then converted to audio and sent to the radio operators at the control center. This process allows for real time commands and responses and allows for safe travel for military and commercial transportation activities. For example, if a missile launch warning is received from a military aircraft, military radars would allow the aircraft to turn around and return home safely without an operator needing to react and lost contact could lead to serious damage or collision.

Through SATCOM, we can receive clear voice communications from the cockpit; however, during bad weather or low-visibility circumstances these systems can often go down. Radio transmissions from the ground are usually reliable but the time it takes for the radio to travel to one point and back can be critical. With the use of a satellite-to-satellite connection the time required to send a signal to the ground can be greatly reduced and improved the safety of navigation systems for commercial and defense applications.

In the recent past, decrease in air traffic has led to low demand for aircraft communication systems. The global air passenger numbers are expected to decrease significantly during 2020, along with a significant reduction in revenue. Major airlines in the U.S. are also expected to witness significant reduction in passengers from 2019. However, initiatives to boost the aviation sector during Covid-19 is expected to offer lucrative growth opportunities for players in the market.

Moreover, recovery in domestic passenger traffic is also expected to boost demand for aircraft communication systems. For instance, according to ICRA Limited, an independent and professional investment information and credit rating agency, the Indian aviation industry witnessed a recovery in domestic passenger traffic in August 2020, with a sequential growth (over July 2020) of 25 per cent to 26 lakh passengers.

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