The technology optimizes airline profitability

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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.

 

What can be expected for shipping in 2023?

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In the last three years, international trade has been affected by the decline in the shipping sector. Which is the main means of transporting cargo that has been affected throughout the supply chain, causing a rise in prices and triggering the so-called container crisis in different regions of the world.

 By 2023, this trend is expected to continue due to economic uncertainty and the different geopolitical conflicts, together with the reduction in the demand for Chinese manufacturing by the United States, which has caused China to cancel the departure of its ships to the USA and Europe. 

This also has a direct impact on Latin America, which has been affected by delivery times and container price increases.

 The shipping industry has been affected since around 2008 when the global economic crisis put its financial viability at risk. However, there have been other variables that have gradually had negative effects on the functioning of the supply chain; such as the increase in fuel and increased competition from both maritime and non-maritime companies with air and rail transport and the Covid-19 pandemic that came to aggravate the situation.

 This crisis has affected the financial position of shipping companies, which have been forced to adapt their operations to new scenarios that allow them to lower their costs, renew their services and become more autonomous. To this end, efforts are underway to revolutionize the industry with technological tools for digital transformation to help create smart ports that continue to operate even when there is a pandemic or the development of green fuels to help reduce the environmental impact of the industry.

 Efforts are aimed at investing in supply chains to make ports, maritime fleets, and connections more prepared for future crises. Improve their service offerings and stay in the game, making strategic changes and transforming a very traditional industry into opportunities for improvements with more efficient processes and full utilization of all its resources.

 

Airline staff deficit generates a new crisis in the industry

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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.

 

Resilient ports

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Nowadays, airport planning must be viewed as an ecosystem in permanent transformation, which does not work in isolation but is an integral part of its immediate environment. As well as other sectors that directly influence its daily development such as tourism, foreign trade, defense, territorial integration, and social connectivity, but above all, its planning must be aligned with the objectives and policies of the State.

 

Evaluating the above, the planning of the air system should be focused not only on aircraft, infrastructure, and services but also on sustainability (social, environmental, and economic) and should not lose its articulation with the urban planning where they are located.

 

The current situation must be taken into account in airport planning, while analyzing the past and how things were done to foresee the future and improve processes, building different scenarios, considering all possible variables, and dimensioning their influence.

 

The truth is that we are in constant evolution, and situations change overnight, but today, keeping airport development at the forefront of technology is vital to lay the foundations. This allows a sector in constant development to grow and meet the demand of travelers for more efficient services and transform their travel experience.

 

Airport development management has a responsibility to take advantage of the buildings, facilities, and infrastructure available to them and evaluate their full capacity to adapt and create resilient infrastructures that promote the sustainability of the industry, but above all foster innovation.

 

Using technological platforms makes it possible to optimize resources without the need for large investments in infrastructure. Additionally, they facilitate the daily work of airport employees, while benefiting travelers who obtain high-quality services with state-of-the-art technology that offers them: greater data security, more efficient waiting times, and, obviously, greater convenience when using systems such as self-check-in. Also, biometric systems for passenger control or zero-contact technologies have become so popular in recent times.

 

Undoubtedly, the airport sector has had a rapid capacity to adapt and has weathered one of the worst crises in history, but if anything is clear, it is that airport planning must be very resilient and mutate step by step, to adapt to the needs.  Above all, they must be open to learning, take advantage of every innovative technology that facilitates data collection and analysis, and be very dynamic in decision-making, which will allow them to cushion the impact of any situation that may arise.

 

New initiatives in the maritime sector

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In such a changing universe, the challenges are becoming more complex, not only at the economic or social level but also at the environmental level. 

Over the years, the impact of the industrial revolution on the environment has left an almost indelible mark that now shows the consequences of a universe that spoke silently. 

A few years ago, given the environmental collapse, many sectors began to look for ways to reverse and seek balance in the environment, one of them being the maritime and aeronautical sectors. 

In this sense, industry leaders worldwide are looking for ways to develop new forms and methods of combustion that are friendly to the ecosystem. The Getting to Zero coalition is one of the calls to action in the maritime sector that seeks to develop the sustainable deployment of ocean-going vessels, predicted for the year 2030. 

Development of new initiatives

To carry out these actions, it will be necessary to measure the impact on the environment. That is why one of the initiatives forecast for January 2023 will be to measure the Energy Efficiency Index (EEXI) and the Carbon Intensity Indicator (IIC). 

This process goes hand in hand with Smart Freight Centre and the World Business Council for Sustainable Development (WBCSD), which apply their efforts in the logistics of carbon measurement in the sector working together with other organizations worldwide where Maersk, CMA, and CGM stand out. 

With this, it seeks to account for carbon emissions within the supply chain, i.e., supplier-customer to generate conscious logistics. The guide is expected to be published by the end of this year and its next launch during the annual meeting of the World Economic Forum in Davos, in 2023. 

Other green mechanisms… 

Other mechanisms are also part of taking the first steps to seek environmental balance, which is why, thanks to the development of software, the elimination of paper is very close. 

Part of it is the SUITE of GP Nauticals since, besides optimizing processes and times, it eliminates to a great extent the amount of paper that the collection invoices require. 

This software can be integrated according to the needs of each client and are specialized for the maritime and aeronautical sectors.

If you want to know more news about both sectors continues browsing our blog. 

 

 

Mobile applications in the aviation industry

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In recent times, it’s evident how mobile applications related to air transport have multiplied, and have promoted major changes in the aviation industry. From the improvement of internal processes to cope with any kind of operational disruption, as happened during the pandemic, to those focused on customer satisfaction by transforming the way they travel.

We live in an interconnected world and there is a clear need to have as much information and services as possible on our mobile devices. Thanks to this, more and more airlines and airports are focusing their efforts on developing technology that allows them to be at the forefront of the needs while helping to reduce costs, optimize revenues, improve labor productivity, and above all innovate while making life easier for their passengers.

The use of this type of technology can also become a differentiating branding tool.  Now that many airlines are seeking to build customer loyalty through attractive benefits that play an important role in passengers’ decision to travel.

Now, let’s take a look at the latest technologies that have been used in the airline industry and are being tested around the world. 

For example, contactless self-check-in and baggage handling technology are being tested in many airports, as well as mobile applications that allow airlines to scan travelers’ passports and visas at different checkpoints, thus speeding up long waiting lines and reducing waiting times, which is a huge benefit for passengers.

On the other hand, airlines are looking for ways to integrate into their mobile applications options that allow passengers to manage their services without the need for a cabin crew member anywhere in the travel chain and especially without contact. So if a passenger wants to use the entertainment systems of the aircraft, he can do it just by scanning a QR code from his mobile device and thus choose what he wants to see while interacting with the crew to buy products or services such as food or duty-free items. 

These types of technology platforms not only serve to meet the needs of passengers, but also provide airlines and airports with the opportunity to understand passenger behavior and purchasing patterns. This allows companies to segment the market and personalize their offers.

Similarly, facial recognition technology continues to make inroads in the industry, and biometric identification options are expected to become common in the coming year, as their benefits are not only focused on passengers but also help to reduce costs, optimize resources, and speed up boarding times. 

Even now, facial recognition payment technologies and contactless fingerprint scanning are being tested. 

 Similarly, another area that is being impacted by mobile technology platforms is the administrative sector of the airline industry where they are beginning to implement port management systems that allow airports to manage data in real-time with cloud support. That helps the organizations involved to be more efficient in managing information, concessions, contracts, billing, and payment of services. 

Today there are many development companies specialized in the aviation industry that continually offer solutions that improve processes, encouraging a market that has been greatly affected in recent years by the pandemic of COVID-19 as is GP Nautical. who have focused their efforts on creating innovative technology platforms for the aviation sector that allows any port to have a management system of the last generation with minimal investment.

 

Airport planning and development

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The preparation of a strategic plan to improve and develop airport facilities involves a lot of variants, such as the levels of airport demand and traffic or safety, which is undoubtedly one of the most predominant issues, or the number of rules and regulations that these entities must follow.

 

The design of this planning should focus on generating a balance between the airside installations and the terminals or ground services. So, involving each affected group is vital for the success of the planning.

 

An airport installation is not only based on the landing or take-off of aircraft or the boarding or landing of passengers. We also consider each supplier and service provider, such as refueling, maintenance, and services of installations or aircraft, cargo transportation services, and even parking for aircraft that are not in service.

 

For this reason, it is important to make a strategic plan for the development of these facilities. Such as an evaluation of environmental issues, design, financing, legal terms, and political decisions that may affect the development of the airport.

 

In addition, one of the first actions to implement in a development plan correctly is to optimize as much as possible the existing facilities in terms of operations, processes, and technology. Especially those areas that will be in charge of receiving all the traffic derived from the terminals or areas in expansion.

 

For this reason, one of the main recommendations is that airport installations should have an administrative management system that, thanks to automation, collection, and management of information in real-time, allows for an optimization of resources and secure and efficient handling of data.

 

Nowadays, software exists in a specialized way for the aeronautical sector that allows managing a digital transformation process in the industry without major inconveniences or very high investment values. 

 

For example, software such as GP Nauticals’ AIMS Suite can handle administrative, and financial tasks of port facilities, generate bills and manage payments, digitalize services such as fuel dispatch or perform a detailed control of passengers, according to each one of its products. 

 

All of this with support in the cloud and analytics available in real-time that can assist in more assertive decision making.

 

Digital transformation in the airport industry

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With a continuously growing annual traffic volume, airport facilities commit to digital transformation. But this is not always very easy to implement for a sector that should not stand still, so how do make these changes most optimally without affecting daily operations? 

 

It is the human capital that experiences and addresses firsthand the implementation of technology that is reflected in the mutation and evolution of processes. For this reason, there must be a lot of organization, integration, and continuous collaboration between the board, the workforce, and the technology service provider to make a correct transfer of knowledge thus reducing resistance to change and encouraging active participation in the improvements to be implemented.

 

The continuous training of human capital is a key factor for the success of the digital transformation. Because it allows the management to ensure that all staff have the skills and willingness to work with the proposed new technologies and thus are willing to offer a better service to the end customer.

 

The ally providing the technology services must have extensive knowledge about the aeronautical industry and its standards, as this way they can anticipate their needs and facilitate the process, understanding in advance what is best for them, their times, and their current processes to thus offer the best recommendations related to the sector or even detect new opportunities and market niches.

 

An excellent ally for the aviation industry, for example, is the company GP Nauticals, a U.S. company that develops specialized software for the sector that also has a multidisciplinary team capable of making a correct technology transfer, in addition to guiding managers on the right path by detecting growth opportunities for the industry and offering implementation plans so that new processes do not affect the daily operations of the port or airport. So we invite you to enter their website and get to know everything GP Nauticals has to offer in terms of digital transformation for the aviation sector.

 

WEB: gpnauticals.com

 

Opportunities for digitalization of aviation fuel

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Aviation fuel is one of the most important milestones in the air transport sector, as it accounts for approximately about 40% of total airline costs.

The cost of aviation fuel is mainly borne by airlines through the provision of services and undoubtedly falls on airline ticket prices. 

But how does this administrative process between suppliers, airports, and airlines work?

The sale of aviation fuel is one of the few sectors that have not yet a technological transformation process. At present, manual work is predominant, and it works in this way:

All flights register their flight plans and the planning is announced through the FIDS systems. 

Each airline per airport has a fuel supplier (in case the airport has more than one supplier). In this way, when the plane reaches the ground, an operator approaches the aircraft, where not only the fuel requirement is checked, but also any other maintenance required by the aircraft, to give way for the operator to fill out a form and authorize the loading of fuel. 

Finally, this operator must take this information to the administrative offices so that the necessary documentation for billing is processed and issued, and thus the process is repeated over and over again with each aircraft operating at the airport.

With all the technology currently available, there is a significant modernization opportunity for this sector. We can even refer to the development of technology such as Fuel AIMS, specifically designed to facilitate fuel sales processes, and help reduce administrative procedures, reducing human transcription errors and allowing faster processing of receipts and invoicing in real-time.

This type of software permits merchants to offer their fueling services, and keep fuel prices updated according to type and category. So, each airline is free to choose the one that best suits its needs.

The penetration of this type of technology in the air transport sector is very close to happening, as the immediacy, efficiency, and support they provide is undoubtedly the next step.

If you want to know more about GP Nauticals and the products it offers you can visit our dedicated AIMS SUITE section and contact us.

 

The digital transformation of the aviation industry

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After two years of pandemic and despite the economic impact it had in the aeronautical sector. It has become clear the interest of those involved in creating great opportunities to increase investment in technologies that encourage the digital transformation of this important industry.

 The main areas that will be favored by digitalization are the following:

Zero-touch technologies

Many airlines and airports have implemented this type of technology, not only to avoid contagions. But because they facilitate the transit of passengers in airports.

It’s used for the web check-in, self-check-in, unassisted baggage delivery, passenger checkpoints with facial recognition, or simple boarding pass scanners.

All are in the cloud and with data analysis facilities that provide a great tool for decision making and data sharing.

Cybersecurity

Today we see a lot of software and mobile applications that have increased exponentially and are used for the verification of data related to flights, passengers, or simply airport administration. So there is a very high level of vulnerability.

For this reason, cybersecurity has become one of the main investment points.

Payment platforms

In the same vein of adapting to consumer habits and new business models, airlines, airports, and concessionaires have made significant investments to digitize their service offerings.

Which mainly includes payment platforms that facilitate the cancellation of financial obligations throughout the chain within the sector.

Digital transformation is not a new issue for the industry; in fact, it is the second sector, after Oil & Gas, that has made more efforts to stay at the forefront of technology, which drives to improve some operational activities of the business. However, there is a long way to go when it comes to evaluating the maturity of digitalization.

Currently, many startups are continuously working to present solutions that help leverage digitalization.  With various products that will help to revolutionize the industry. Such as the AIMS Suite from GP Nauticals, which offers a range of possibilities about airport administrative systems.