In this episode of the Advanced Manufacturing and Mobility Business Minute podcast, speakers Raman Ram, Mike Cadenazzi and Mike Iacono examine the turbulence shaping the aerospace and defense sector. While airlines are placing more orders, supply chain issues and safety concerns are impeding production rates. Pilot shortages have become an issue, particularly for regional carriers. In terms of deal activity, private equity has championed creative financing solutions and has emerged as a net buyer despite complex market fundamentals. Regulatory scrutiny remains a significant concern, necessitating proactive planning and engagement with antitrust counsels. Furthermore, sellers are increasingly evaluating prospective buyers for their ability to close deals without regulatory hiccups. Industry leaders anticipate more orders, new solutions to supply chain issues, updates on sustainability challenges and technologies, and more transaction announcements in 2024. As businesses focus on strategic portfolio rationalization, private equity is expected to play an increasingly important role in driving transaction volume and deal value. The podcast also includes perspective from EY Americas A&D Leader Raman Ram and EY Americas A&D Managing Director Mike Cadenazzi, as well as EY Americas Strategy and Transactions Partner Mike Iacono, on where larger deals are getting done in the A&D sector. Key takeaways: North American airlines were profitable last year and it's expected that the rest of the world's airlines will also be in the black this year. Despite underwhelming market fundamentals, private equity is leveraging sector resiliency and capital availability to continue with strong buying. While pilot shortage is a looming issue, fleet availability is seen as a more immediate concern.  Strategic buyers continue to shape their portfolios, even as they remain cautious about buying.