WEBVTT 1 00:00:00.090 --> 00:00:03.510 Welcome to the Paris Air Show 2025. 2 00:00:03.510 --> 00:00:04.920 My name is Carsten Schaetzberger. 3 00:00:04.920 --> 00:00:07.830 I'm a managing director and senior partner at BCG. 4 00:00:07.830 --> 00:00:09.480 Now, for me, this is very special. 5 00:00:09.480 --> 00:00:12.630 The first time I was here, I think was in 2001 6 00:00:12.630 --> 00:00:17.340 in the final stages of finalizing my university degree 7 00:00:17.340 --> 00:00:18.600 as an aeronautical engineer. 8 00:00:18.600 --> 00:00:20.280 So it's very close to my heart. 9 00:00:20.280 --> 00:00:22.260 I'm always happy to be here, 10 00:00:22.260 --> 00:00:24.330 and it always feels good to be here. 11 00:00:24.330 --> 00:00:27.300 Today I'm joined by my colleague, Diana Dimitrova, 12 00:00:27.300 --> 00:00:29.815 managing director and partner in our London office, 13 00:00:29.815 --> 00:00:31.770 and also leading our aerospace 14 00:00:31.770 --> 00:00:33.780 and defense activities in the UK. 15 00:00:33.780 --> 00:00:35.280 Great to be with you, Diana. 16 00:00:35.280 --> 00:00:38.220 Great to see you, Carsten, and wow, 25 years. 17 00:00:38.220 --> 00:00:40.890 You've got a lot of experience at these, 18 00:00:40.890 --> 00:00:42.690 but this one does feel a bit different, right? 19 00:00:42.690 --> 00:00:44.310 A lot more purposeful. 20 00:00:44.310 --> 00:00:46.410 I think there's a different energy to it. 21 00:00:46.410 --> 00:00:49.410 I think both the commercial aviation industry as well 22 00:00:49.410 --> 00:00:50.700 as the defense industry understand 23 00:00:50.700 --> 00:00:52.560 that they're at quite a pivotal point, 24 00:00:52.560 --> 00:00:55.110 especially the defense industry in Europe. 25 00:00:55.110 --> 00:00:59.130 So it's really reinvigorating to see all the action. 26 00:00:59.130 --> 00:01:01.710 I think in the past it always felt mainly 27 00:01:01.710 --> 00:01:03.060 about innovation. Yep. 28 00:01:03.060 --> 00:01:05.850 About showcasing innovation, showcasing technology, 29 00:01:05.850 --> 00:01:07.380 and I think now it feels much more 30 00:01:07.380 --> 00:01:10.170 about really asking the hard questions. 31 00:01:10.170 --> 00:01:11.003 Yeah. 32 00:01:11.003 --> 00:01:14.103 Discussing the global constellations that are different, 33 00:01:14.970 --> 00:01:18.573 forging partnerships, bringing ecosystem partners together. 34 00:01:19.410 --> 00:01:22.020 So I agree, it has a very different feel. 35 00:01:22.020 --> 00:01:25.394 I think on the commercial aviation side specifically, 36 00:01:25.394 --> 00:01:28.500 you are seeing these bombastic backlogs 37 00:01:28.500 --> 00:01:29.790 that have come out this week, 38 00:01:29.790 --> 00:01:32.430 but you are seeing just the demand that isn't easing up. 39 00:01:32.430 --> 00:01:34.890 So the industry is having to continuously ramp up 40 00:01:34.890 --> 00:01:36.930 at a scale they've never had before. 41 00:01:36.930 --> 00:01:38.730 And that's continuing to stress 42 00:01:38.730 --> 00:01:41.250 the supply chain resilience, elements that they have, 43 00:01:41.250 --> 00:01:42.960 making sure that suppliers can't produce 44 00:01:42.960 --> 00:01:44.790 at the rate that they need to, 45 00:01:44.790 --> 00:01:47.100 all of the while actually feeding in a lot 46 00:01:47.100 --> 00:01:49.110 of the new technologies that are emerging. 47 00:01:49.110 --> 00:01:50.820 So I think on the commercial side, 48 00:01:50.820 --> 00:01:54.060 it really is about that end-to-end ability 49 00:01:54.060 --> 00:01:56.070 to deliver that next level of ramp up 50 00:01:56.070 --> 00:01:58.080 that is being demanded of them. 51 00:01:58.080 --> 00:02:00.150 What's your take on the defense side? 52 00:02:00.150 --> 00:02:02.820 Ooh, a different mindset. 53 00:02:02.820 --> 00:02:04.080 I think we are now feeling 54 00:02:04.080 --> 00:02:06.990 in a much more escalatory mindset. 55 00:02:06.990 --> 00:02:09.030 It's much more action-oriented. 56 00:02:09.030 --> 00:02:11.340 A lot of it is around these partnerships 57 00:02:11.340 --> 00:02:13.080 and ecosystems that you've discussed, 58 00:02:13.080 --> 00:02:16.920 but even more prevalent is the topic of affordable mass. 59 00:02:16.920 --> 00:02:19.620 We are seeing these new entrants that are starting 60 00:02:19.620 --> 00:02:22.350 to actually provide those supplementary ecosystems, 61 00:02:22.350 --> 00:02:24.060 and you are seeing the big organizations 62 00:02:24.060 --> 00:02:26.760 or primes as we would know them, how to integrate that, 63 00:02:26.760 --> 00:02:28.890 how to bring that solution to the customer. 64 00:02:28.890 --> 00:02:30.930 I feel collaboration has always been important. 65 00:02:30.930 --> 00:02:31.980 Yeah. 66 00:02:31.980 --> 00:02:34.590 But it feels much more important these days. 67 00:02:34.590 --> 00:02:35.460 Yeah. 68 00:02:35.460 --> 00:02:38.940 With governments, with different priorities, 69 00:02:38.940 --> 00:02:41.416 with startups, new startups, with the primes, 70 00:02:41.416 --> 00:02:46.416 OEMs needing to reinvent themselves in the process, 71 00:02:46.530 --> 00:02:47.490 and particularly in Europe. 72 00:02:47.490 --> 00:02:50.520 I think we need a lot of, also, cross-border collaboration 73 00:02:50.520 --> 00:02:52.170 to happen to actually move forward. 74 00:02:52.170 --> 00:02:53.003 Yeah. 75 00:02:53.003 --> 00:02:53.836 I think we're learning a lot 76 00:02:53.836 --> 00:02:56.899 and just shows how important our presence is actually here, 77 00:02:56.899 --> 00:02:59.880 as BCG, of us being here, discussing with clients, 78 00:02:59.880 --> 00:03:03.090 listening to clients, understanding dynamics 79 00:03:03.090 --> 00:03:03.990 that are actually happening. 80 00:03:03.990 --> 00:03:07.140 So for me, as you, I think, alluded to 81 00:03:07.140 --> 00:03:09.360 at the very beginning, this is a bit of a different one. 82 00:03:09.360 --> 00:03:10.193 Yep. 83 00:03:10.193 --> 00:03:12.953 But it feels good and important to be here. 84 00:03:12.953 --> 00:03:15.536 (upbeat music)