The technology optimizes airline profitability

After two years of pandemic activity, the airline industry has been forced to implement a variety of strategies to ensure the proper resumption of operations. Many airlines have turned to technology as a primary tool to help them increase profitability, even soon after the pandemic.

 

Undoubtedly, the first strategy that airlines have adopted is automation, both in internal processes and in those that require passenger interaction, as they seek not only to create zero-touch checkpoints. But also to work tirelessly in the quest for customer satisfaction to have a stronger value proposition than their competitors, and to do all of this while reducing their costs.

 

Zero-touch passenger checkpoints are a great investment because they reduce passenger wait times which directly benefits your customers. But it also has an impact on cost reduction because it affects the number of people needed to handle these processes and the time the aircraft is on the ground. After all, the more optimal the wait times, the fewer taxes the airline pays and the more routes it can expand. 

 

In addition, the use of technology today is a tool that not only helps build customer loyalty but can also help management make better decisions in real-time, which would help achieve strategic goals in less time.

 

The use of technology enables airlines and airports to collect real-time data on passenger preferences and buying patterns on different routes or under specific parameters, offering the opportunity to micro-segment the market and personalize offers, making the most of the situation while providing an unparalleled travel experience and strengthening the customer’s trust in the airline. 

 

Finally, we could say that technology has demonstrated its importance and has become evident after the pandemic crisis, that they are tools that have come to change the way we do things, improving the experience both internally and externally, and that they are undoubtedly investments that are increasingly attractive thanks to the number of benefits they offer.

 

Aeronautical technology investments in 2023

Digitalization is imminent and wrapped in the artificial intelligence boom, the road to 100% automation is getting closer and closer.

And it is that, during 2021 and 2022, the growth and the boom in the mobilization of all economic sectors, produced the acceleration of a factor that seemed to be seen in the distance, but that undoubtedly, has come to stay.

In this way, we see that artificial intelligence covers each of the main economic environments, where the aeronautical and maritime sectors are not left out.

After two years of imminent growth, the aeronautical industry did not foresee the challenges it could face, and it is now where it is on the move to invest in new resources during recovery.

Automated processes…

“Digitalization is seen as the key to meeting these challenges, as it offers greater scalability and flexibility,” said David Lavorel, CEO of SITA.

In this sense, the same report collected by SITA, states that airlines and airports worldwide will put in place the investment of IT resources, seeking to improve each of the processes in airport development.

As a result, airlines and airports are looking to reduce waiting times and improve the travel experience for passengers at every stage of their journey. This technology investment will also serve to create a key staffing mechanism, so that staff can be placed in higher attention assignments.

Today, we can see the speed with which airline and airport transit resources are increasingly relying on technological means to support their development.

Strengthening the technological foundations will therefore be the main focus for this year, which is undoubtedly the key to completing the digital transformation.

Good news for 2023

During a new moment, where many are studying the strengths and threats of 2023, air terminals are trying to weigh the new challenges, hoping for a new era and great opportunities for the aviation sector. 

As we have discussed in previous articles, there are many projects in the air, new technologies for transportation and air traffic control. There are also new experiences for passengers, such as in-flight connectivity, the opening of new routes, and the improvement of airport infrastructure worldwide. 

At this point, we can see how airports are already preparing for funding and new work to expand and improve the structures of airport spaces at a time when challenges are at the door. 

New projects are on the way…

In the last few days we have talked about El Dorado Airport as the most punctual airport in Latin America, and today we can see that a new project has been approved for the construction of a new terminal at the airport of Cartagena, a tourist destination in the Latin country that receives countless world-class tourists year after year. 

This project will allow the expansion and modernization of the structure of the Rafael Núñez International Airport in Cartagena. Thanks to these works, the airport will be able to increase its air capacity and be prepared to receive approximately 7.5 million passengers per year. 

The authorities in charge of the project have also stated that these modernization and construction works will be completed in two and a half years. 

In this sense, tourism in Colombia is getting stronger and getting recognized on an international level.

We talk about sustainability…

From airplanes with recycled materials and paper savings to the digital world, the aviation sector is looking for new horizons in terms of sustainability and environmental friendliness.

For several years now, there has been talking about introducing an environmentally friendly fuel to minimize the damage caused by CO2 in the air. Today, new mechanisms are already being presented to achieve zero emissions by 2035. 

Not only is there talk of green fuel, but also hydrogen and ethanol to produce a friendly and safe fuel for aviation. We see that there are still some years to go, but behind all this, big companies are working to achieve the expected results.

 

This and other news about the maritime and aeronautical sectors are in our blog

 

Airport recovery in Latin America

We are starting a new year, after stumbles, pandemics, and a new adaptation, airports presented their balance sheets for 2022. For the most part, the recovery was evident, which translates into new challenges and improvements. 

In the case of Latin America, El Dorado Airport, which serves Bogota, was the most punctual airport in Latin America in 2022. 

This result was announced by Cirium, a specialist in the analysis of the aeronautical sector, which presented the annual balance of the punctuality performance of airports worldwide. 

In the case of El Dorado International Airport, it was the most punctual with 80.72%, which places it in the top 10 and as the most punctual in Latin America. 

Recovery at Tocumen Airport 

In the case of Central America, specifically at Tocumen International Airport, the annual report of airport activities was presented. 

In this report, the recovery of the airport in the year 2022 stands out, which recovered the airport traffic concerning 2021, new flight routes were opened, and also, the recovery of the structure and operation of the new Terminal 2. 

In general, it can be said that although the year just ended was a year of challenges, the return of airlines and the lifting of restrictions was positive for the recovery of the sector. 

In terms of numbers, Tocumen Airport closed 2022 with more than 15 million passengers, a little more than 6 million more than in 2021. 

This is only a small part of what happened in Latin America, but the recovery of air traffic worldwide was very satisfying for the recovery of the aviation sector after years of uncertainty and new challenges. 

But 2023 is just beginning, what will it hold for the aviation sector? 

 

Read more news about the aviation and maritime sectors in our blog

Ready to Fly is now a reality

The International Air Transport Association (IATA) has been working on a project called One ID, under the premise of allowing passengers to arrive at the airport “ready to fly”. This means that they will be able to completely digitize the check-in experience at airports by implementing a biometric process with zero contact.

 

The objective of this initiative is to create a more streamlined process with a pre-trip information exchange, where the passenger will have to demonstrate that they meet the requirements for their trip and then identify themselves at established points at airport facilities through biometric recognition.

 

One Id seeks to standardize the digitization processes of all airlines, airports, and governments to provide a seamless experience that is easy for travelers to integrate and use.

 

The implementation of this type of technology will provide multiple benefits and clearly, the main one is that now passengers will not have to be confused with a pile of documents. They will have to share only the minimum necessary data with their digital identity for airlines, airports, and governments. 

 

In this way, when passengers arrive at airport facilities, they will already have their traveler data and itinerary, so they can avoid long lines by just presenting themselves to the biometric reader and identifying themselves. 

 

Other stakeholders that will also benefit from this new process are the airlines and airports which will be able to count on the efficiency of the processes and the reduction of time spent on manual identification of each passenger, which will reduce costs by relying on automated systems and focus their efforts on providing added value to their customers.

 

In terms of security, the One ID system will arguably help strengthen borders and make it easier for governments to receive accurate passenger information, as well as reduce the number of passengers who are inadmissible for presenting inadequate, insufficient, or false documentation.

 

Currently, many airlines have been working on digitizing these processes that allow passengers to board without presenting physical documentation, but IATA intends to create a standardized system that digitizes the admissibility of each traveler, so that when the passenger shares their “OK to Fly” status with the airline, they can automatically bypass all document checks within the airport facilities.

 

Ultimately, travelers want and need technology for their trips, to ensure better treatment, more efficiency, better services, and a considerable reduction in the time spent on controls. So they are undoubtedly willing to share their most sensitive information to support the progress that these systems will offer in the future and from which the industry as a whole will benefit.

 

However, the new standards are focused on protecting the data of passengers, who at all times remain in control of their data and credentials, sharing only verified approvals and without any intermediaries. In addition, this is not mandatory, so it will be an option if the passenger wishes to opt-out of this process and use manual verification.

 

Robotics in the airport sector

We have already talked about how technology has become involved in everyday life. However, today we can see how robots are becoming more and more integrated into the routine, and this is how we can already see them in airports worldwide. 

To provide security, trust, and support, there are already some airports that have implemented the use of robots within the installations.

Airports in London, Japan, and the United States are just some of the terminals that already have robotic units to perform different tasks that help to streamline the development of the same. 

It is estimated that by 2028 the market for robots in airports will reach US$2,108 million, according to Research & Markets. This means that the growth of such technology will grow exponentially year after year. 

New smart strategies…

After turbulent years due to Covid-19, the airline industry was forced to look for alternatives to weather the ravages of flight groundings, massive layoffs, and financial decline. But, amid the formula for a new take-off, they found the benefits of digital transformation. 

These brought unbeatable benefits to lift the sector back on its feet. Among them were electronic vaccination ballots, the use of software for airport administrative management, facial recognition and artificial intelligence for passenger control, and more. 

That is why now, robots are joining this formula to enhance the needs of air terminals. 

Robots, a good decision? 

Some of the functions that robots fulfill in airports can be found: 

  • Strengthen security in terminals, with the ability to prevent dangerous events. 
  • Thanks to artificial intelligence they can detect prohibited or dangerous artifacts such as explosives. 
  • Manage passenger transit, boarding pass scanning, and more. 
  • Keep cleaning tasks unimpeded. 

These are just some of the tasks that are currently being taken advantage of, but, this will not stop here as the world of robotics will begin to grow exponentially and will be increasingly implemented around the world. 

Read more about the aeronautics sector in our blog.

Technological advances in air terminals

2022 is almost over, a year that was undoubtedly a great source of technological advances and a year of palpable recovery for the aeronautical sector. 

But, it was an eye-opener of the benefits that new technologies have brought to one of the main economic sectors worldwide. 

From artificial intelligence to biometric technology, these are just some of the new technology uses implemented in airports around the world, having as a first need, to improve the passenger’s experience. To make their stay in air terminals as comfortable and pleasant as possible. 

That’s why with a view to full automation, we leave you a small tour of the technological innovations that serve firsthand to improve and configure new moments in airports around the world. 

Seoul Airport…

Incheon Airport in Seoul launched the big data platform Airport Data Sandbox, which facilitates the collection of data to analyze information such as congestion in the terminal, weather, traffic, or transport forecasts. 

It also provides information on passenger flow and allows for easy allocation of personnel management to improve airport operations. Each of the aforementioned data is handled in real-time. 

Barcelona Airport… 

And speaking of biometric technology, the Vueling Barcelona-Malaga route has a biometric program that covers the passenger’s entire transit from home to the boarding terminal. 

This is AENA’s third biometric project at Barcelona airport, where through the Spanish airport holding company’s app, passengers can register for baggage check-in, optimizing waiting times and security controls. 

All of the above while complying with the security of each passenger’s data. 

Qatar Airport… 

Hamad International Airport in Qatar is one of the airports considered a worldwide efficient airport, in terms of decision-making and technological improvements for the administration of the air terminal. 

It uses the necessary technological tools not only for administration but also to ensure an optimal stay for users. That is why they are about to implement digital twin programs, to plan and visualize different scenarios based on the collection and study of data. 

These are just some of the new scenarios that are being presented in air terminals around the world, but we are undoubtedly eager to see what 2023 will bring.

 

Keep reading more aviation news in our blog.

Future technology for airlines

Making security checkpoints more efficient is the airline industry’s focus for modernizing check-in processes and risk assessment for the common passenger.

 

Implementing biometric technology, and improving RX analysis software on baggage, supported by the data provided by the travelers themselves and that can be more easily verified together with the data in passports, will undoubtedly be a great advance in the screening of airport passengers, who will even be able to carry in their carry-on bags, toothpaste, nail clippers, laptops and even check-in without removing their shoes or jackets.

 

By standardizing these processes and technologies at airports, travelers will be able to rely on a much greater security base than at present while benefiting from faster screenings, and airports will rely on technology, optimizing resources more efficiently and requiring fewer specialized personnel.

 

However, specialists have stated that these new systems are not based on racial or religious data, but are an update of the current systems that, supported by human observers, will provide a more efficient service for the facilities and undoubtedly for passengers who minimize their waiting times at airport facilities.

 

In a continuous commitment to R+D+I, the airline industry seeks to satisfy its passengers by providing higher quality services and thus building the loyalty of millions of passengers who travel year after year. 

 

But industrial digitization now allows having huge databases and analysis systems that are supported by artificial intelligence that can become a great ally that greatly facilitates the daily work of employees on the ground, finding unattended market niches and in turn providing the necessary security required by the industry in its risk assessments.

 

Airline staff deficit generates a new crisis in the industry

After two years of the pandemic, the cancellation of thousands of flights, and massive layoffs in the aviation sector, finally in 2022 flights worldwide began to increase rapidly. 

This has enabled the recovery of the industry and it could even be said that they are already beginning to generate profits. However, now a new crisis is coming.

We are at a stage where airline offers are falling short of passenger demands, which has caused flight cancellations, thousands of stranded travelers, or even lost luggage, and the industry is now facing a severe crisis of qualified personnel.

The crisis not only refers to the shortage of pilots. It also includes maintenance personnel, technicians, and ground staff, which potentially leads to fewer aircraft in circulation and delays in services as they are unable to handle all the processes related to flight preparation, passenger and baggage control, and everything else involved in the operation. 

The main problem is that it is not easy to replace or substitute these qualified personnel who require special certifications to be eligible for a position in this category, which would imply a considerable investment of time rather than solving this difficulty.

However, nowadays there are many devices, software, and technological tools that can serve as support to facilitate and optimize airport processes. This would also accelerate the evolution of the industry aiming at the technological transformation that is so necessary in these times.

According to the Commercial Market Outlook study conducted by Boeing annually, it is expected that by 2041 the world fleet will increase by 80%. 

In addition to the development of some market segments such as digital solutions that increase efficiency and reduce costs. But above all comprehensive training allows having qualified pilots and technicians.

The way of facing the crisis generated by the COVID-19 pandemic showed that the aviation industry has a great capacity to adapt and serves as a reference to demonstrate that this current crisis will not greatly affect the development of the sector.

Now they will be focused on offering better incentives to attract that personnel that migrated to other sectors due to the massive layoffs. 

But undoubtedly they will also have to work on creating new opportunities for digitalization, without neglecting the most important thing; attracting that 2.1 million new personnel, including pilots, mechanics, and crew members that will make every trip a better travel experience.

 

Logistical challenges for the airline industry in Qatar 2022

The World Cup is undoubtedly one of the most anticipated and attended events. Millions of fans, players, and stakeholders gather to enjoy the greatest sporting spectacle of all time. However, for it to run smoothly, it is essential to have logistics that take care of every detail. On this occasion, we will talk about the logistical challenges faced by Qatar, a country that does not exceed 12,000 square kilometers and expects to receive approximately 1.5 million visitors during the World Cup.

It is important to mention that this is the first time that a World Cup will be held in a Middle Eastern country, which puts some additional pressure on Qatar, which stands out for the quality of its services and premium products, especially from the point of view of the aviation sector, which has led Qatar to reinforce its airport infrastructure for the World Cup.

Qatar decided to reopen Doha International Airport, which had been closed for commercial operations since 2014. This is to manage the increase in passengers expected to be received by air without affecting the services and benefits to which they are accustomed.

On May 27 of this year, Hamad International Airport was inaugurated, becoming the main airport in the country and the base of operations for Qatar Airways, the most important airline in the region. The new air terminal, which has 2 parallel runways, was planned and built to cope with the congestion problems expected for this sporting season.

Another decision that was taken in the airline industry is that Qatar Airways will reduce some air routes, to will reduce some air routes to increase others with higher demand and from participating countries, thus facilitating the transfer of thousands of fans, but this airline will not be the only one to take measures, the airlines Oman Air, Kuwait Airways Saudia, and Flydubai, will increase their logistics to organize more than 160 round-trip flights. All this is expected to begin on November 20.

While other countries such as Argentina and Mexico, have opened direct flight routes to cater personally to their fans and plan to include more flights as their national teams advance to the knockout stages.

Another of the most important logistical points is the transfer of goods to meet the high demand for food, technological products, advertising, and all those related to the big event and also involves suppliers around the world that must meet a strict schedule of compliance to ensure supply. For this, Qatar made strategic alliances with the operator specializing in international logistics Interborders, but also Qatar Cargo, an air cargo company, acquired 3 new aircraft to complete its fleet and meet the requirements of this massive soccer event.

There is no doubt that the Qatar 2022 World Cup Organizing Committee is working tirelessly to attend to every detail and no less is to be expected from one of the world’s richest republics. Which has dedicated itself in recent years to building stadiums, airports, hotels, and buildings to host the long-awaited 2022 World Cup.