Startups and their contribution to the future of sustainable aviation - A qualitative study on the role of startups in the transition of the aviation industry toward sustainable air mobility.

Abstract: The aviation industry is faced with a challenge, unlike the ones it faced before. Climate change is posing an impending threat to many industries, and also aviation is urged to reduce its carbon footprint. There is an abundance of research available about the transition of the aviation industry toward a sustainable future, but not on the topic of startups in the aviation industry, or in this transition. Even though many startups are emerging in this sector and as they become more and more involved, the topic becomes increasingly relevant. This thesis aims to identify the role of startups in the transition of the aviation industry toward sustainable air mobility, through qualitative exploratory research. 12 semi-structured interviews with professionals in the aviation industry were conducted in pursuit of answering the research question. Through the research, it can be concluded that there is an apparent consensus about the value and necessity of startups in the transition of the aviation industry and the introduction of radical innovation in the sector. Their main value-adding characteristics have been identified as a diverse perspective and management style, less bureaucracy resulting in a faster pace, a culture that facilitates innovation, and the freedom to take risks and reinvent themselves when making mistakes. Incumbent firms are generally open to collaboration with startups in different forms. It was pointed out that combining the startup’s strength with the experience, expertise, and network of the incumbent firm results in a win-win situation. There still are many obstacles to be overcome on the way to a sustainable future in aviation, both for incumbents and for startups. Besides developing the technology, challenges include the development of infrastructure and energy production that the technologies require. Additionally, the mindset in the industry needs to become more open to sharing ideas and the threat of a lack of manpower should be addressed before it becomes a major bottleneck. Regulation and certification of innovation is another challenge that both incumbents and startups are faced with, but it is rather a guideline for safe operations rather than an obstacle to overcome. Startups have a particularly difficult time getting their product certified, often due to a lack of experience and connections. The collaboration between startups and incumbents can offer useful solutions in this regard. Finally, it can be concluded that business models in all different branches will inevitably adapt to this transition. Particularly the changing supply chain of OEMs and the adapting network structure of operators could present opportunities for new entrants.