Air Transport
Article | July 6, 2022
Is the aviation industry finally reviving after the devastating 2020? If yes, then what will it show in the next five years?
2020 will be remembered in airline history as the most turbulent year to date. Due to the pandemic, the period brought massive changes in the airline industry—business models and customer behavior globally. As a result, regaining customer confidence and reforming business models have become a critical factor for airlines to uncloud the economic storm and remain a formidable competitor in the years of uncertainty ahead.
Technologies that were being used before the pandemic are now being studied well with vividness. The inclusion of new technologies is onboarding, which somehow sets up new aviation industry trends. These will be a timely solution to fight the ongoing economic instability and challenges pouring in.
To increase safety notions, boost business confidence, customer trust, and making airline operations more efficient, adaptability and high intelligent business outline is the new blueprint for survival and growth to happen in the next five years.
Drivers of Emerging Trends
The intention of emerging trends in the airline industry is from weak signals from a wide range of fields, including threats, technology, and potentiality to function remotely, impacting the industry’s all-over operational dynamics.
The trends are setting primarily due to the winds of change pounding the industry from different directions. Be it from technological, demographical to environmental shifts. Understanding the potential business landscape is therefore critical to ensure what the future of air travel will be.
During a study conducted by IATA, business leaders in the airline industry identified the most critical drivers of emerging trends that were probable to have an influential impact by 2035. Also, these drivers suggest bringing more and more opportunities in business models and operational models of the industry beyond 2020.
Therefore, it is the hope of all airline companies (you) that how you will be affected by future developments and how the entire business landscape will be changed by the trends discussed here. So, take advantage of the opportunities that some of these trends may give rise to.
Leading Aviation Trends to Expect
Cybersecurity
Today, the importance of cybersecurity technology in the airline industry is rising. Airlines, now being aware of the downsides of using traditional operational models, is becoming more concerned about delivering high-performance using technology.
With having well-operated cybersecurity functionality onboard, airlines are focusing on becoming more agile to scale their infrastructure. Also, in the next five years, increased connectivity between the real and virtual world, including robots, will eventually end the boundaries between virtual and physical security.
IATA’s research with the London School of Economics found that the aviation industry will invest $15 billion by 2035, thanks to connected operations.
Moreover, as cybersecurity matures, it will be seen as the most secure and scalable way of operating organizational data, and processing will be easier than before. You will have your airline documents within a secured centralized database, which will reduce silos of information that pose security risks and threats.
Biometric Technology
The pandemic, apart from bringing challenges, has helped businesses to leverage influential ideas to foster. Yes, it has made the airline industry emphasize the high usage of biometrics as a must-have technology stack. Biometrics is on the rise that can reinforce the idea of touchless operations in airports.
The airline industry forecast has laid primary focus on self-service. However, as the blend of software and technology is more in demand, applications will be more defined than before in the coming five years. The technology will allow automated checks, self-service systems using devices like mobile, tablets, and others and cover iris, face recognition, fingerprint, which will even work with PPE masks.
The industry is already making great experiences that allow businesses to conduct frictionless operations using biometric software and hardware. For example, in November 2020, Star Alliance introduced a novel interoperable biometric identity scanner platform for screening employees and passengers at airports.
AI & Big Data
Artificial Intelligence (AI) welcomed massive opportunities in transforming aviation business operations amid the ongoing crisis. This technology in the airline industry has immensely aided companies in collecting data and forming a virtual assistance environment for queries, enhanced logistics operation, security, and self-services with highly augmented reality.
A market survey reveals that 97.2% of the aviation companies are installing big data and AI together. In fact, 76.5% of airline companies are gaining the value of data collection with the help of big data and AI. Source: resources.vistair.com
AI is also being set up in terms of safety improvement initiatives and potential safety issues. In this case, Southwest Airlines partnered with NASA to build an automated system capable of preventing potential threats and breaches by using machine-learning algorithms.
Green Technology
Green technology is one of the upcoming trends in the airline industry in the next five years. The prediction is it will make novel changes in the airline industry from various directions like the workforce, shares, stakeholders, and governments.
In the green tech concept, it is the generational shift and advancement that may head the change using new tools. These would bring in notable opportunities beyond 2021.
If you observe, the pandemic has driven the agenda of sustainability in terms of climatic conditions. And you will be surprised to know that aviation has already put up a serious concern in its fossil fuel usage by 2035. Even aircraft manufacturers have begun their journey with green technology.
To clarify this, the main objective of sustainable development for the coming years is decarbonization and green technology investment.
Aviation companies like Japan Airlines and IAG are investing to bring net-zero carbon emissions by 2050, and by 2045, they aim to achieve carbon neutrality. And these, of course, are happening quickly due to digitalization.
Expecting a Sustainable ‘DIGI-TECH’ Future
As the pandemic brought downturn and slowdown in the airline industry, they have prioritized investing in digital by recognizing its importance and the optimum necessity. It is because it will be one of the significant ways for you to bring customers back and show your potential to endeavor services in a changing industry landscape.
So, technology and digital together must be supported that respects businesses’ need to invest in multiple areas of functionality. On the other side, revenue management goals also need to be focused on to gain success among competitors. And following the path of trending digital platforms will make you victorious over revenue management performance objectives. In this way, you will be in the skin of the game and would observe your company rising through the challenges over the coming years.
Frequently Asked Questions
What are the topmost technologies that will define aviation beyond 2021?
The technologies—3D printing in manufacturing, automation, and robotics are the topmost that will define how the aviation industry will be beyond 2021.
How is technology being used in aviation?
Airline operators use technology to market their services and products, advancing their software to leverage functionalities like biometrics, automation, cybersecurity, AI, big data, and more. Also, technology is being used to make safer airport operations like touchless checks to make safe for passengers.
Will the aviation industry overcome challenges?
Up until now, globally, the aviation industry is maintaining positive growth, despite prevailing challenges due to COVID-19. Technologically, it seems that the industry will foster slowly and gradually. Yet, there is sluggish growth economically due to high jet fuel prices.
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Defense and Space
Article | June 8, 2022
When operating aircraft above the Arctic Circle (66.5° N latitude) there are certain hazards to be aware of. We decided to take a look at what aircraft are best suited for Arctic flight.A huge problem with flying in the Arctic is not just icing, but the visual restrictions that are placed on pilots. During the spring and fall, whiteout or flat light can distort what a pilot sees. The horizon can suddenly disappear making objects appear as if they are floating in the air. This can make things like mountain ranges extremely difficult to judge.
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Air Transport
Article | July 26, 2022
The COVID-19 effect has been tendered on business aviation than commercial aviation. However, it is the operations that reported a surge in demand for business aviation. The demand has been witnessed from new businesses and and those who revamped their operations amid travel restrictions.
In 2020, the airline industry experienced a heavy loss of worth USD252 billion, reports IATA. The industry players were at risk, which included accounting with direct economic destruction. Prompted by other risks factors such as restrictions on movements, especially travel limitations due to COVID-19, there is a serious need for the industry to access its operations competently.
So here are two crucial questions that took the heat. First, how is the industry going to manage economic uncertainties, travel restrictions, and market instability? And second, how may these affect aviation business conclusions in the coming years?
Such considerations may include some crucial aspects. They are changes in valuation methods, revision of future investments with existing liabilities, re-assessment of forecasted fuel consumption, revision of manufacturing, marketing, and others.
This blog is aimed at capturing the impact of COVID-19. And how business aviation can proceed to bridge gaps across multiple travel restrictions, both during and after the COVID-19 crisis. To delve into detail, let's go further.
The Level of Airline Business Drop and Recovery
Globally, the aviation businesses were severely harmed by 80% in 2020. The industry players found it extremely complex to navigate the commitments. Also, their work with collaborations is slated for the same year.
Customers seemed uninterested in discussing new business acquisitions due to COVID travel restrictions on business. However, some operators preyed on lower prices and increased demand for aviation services and products. These were mainly in the manufacturing and marketing fields. The reason is some corporate clients easily adapted to the emergence of digital platforms. They switched to zoom calls to replace personal contacts and connections.
Michael Walsh, CEO of Aer Mobi, says,
“OEMs have now announced a major drop in production capacity. Potential buyers could be from booming sectors financial services and online sales as they may seek to purchase high-profit products. These will be only a few brilliant spots for new aircraft purchases for OEMs.”
On the same note, Shaun Quigley, Managing Director, Volantair Air Charter, says
“In the time of crisis, the ability is to “pull one’s head in." This is what will happen at least until the final quarter of 2021.”
Business aviation in 2021 will hover around 25% to 30% globally, says Jose Rego, Senior Director – Market Intelligence and Strategy, Embraer Executive Jets. The rebound will be sluggish until 2025.
While the travel businesses' situation in the pandemic is not up to mark, its believed that digital transformation is viable to conduct airline operations. Such transformation will drive sales eventually following the rise of trending technologies simultaneously.
Aviation Business by 2030
A major transformation is promised by an array of powerful new technologies and corporate clients’ pressure. The industry plays that turn this trend to their advantage have the opportunity to redefine, restructure, reform, and reshape their business amid air travel restrictions.
So how will the key players of the aviation sector take their businesses forward by 2025 and beyond? Here is the outline of vital forces that the sector will see transforming.
Robotics Maintenance
Currently, airline operations maintenance accounts for approximately 20% of the operating costs. However, as the pandemic happened, market players and novel inventions are placing big hopes on the intelligent automation of maintenance.
For example, Airbus uses two seven-axis robots on the new fourth A320 line in Hamburg to conduct 80% of their business operations, thus improving functional aspects for employees.
Intelligent automation is fueled by terabytes of data. The data could be stored and used by businesses to manage operations easily. The addition of robotics and AI in aviation has increased the digitalization shift landscape for established players. From automatic scanning, data mining to improved diagnostics, robotics has a significant role in the future of aviation operations and maintenance.
Use of Alternative Sources of Energy
The shifting of environmental sentiments has made the aviation industry include greenhouse gases, electrofuels, hydrogen, and even batteries. The industry has set a target of cutting down high energy emitter fuels by half by 2030.
Companies like Airbus have impressive plans to develop hydrogen planes in the next 15 years. Even for eleven years, SkyNRG has been known for supplying "advanced waste" biofuels to airlines. These fuels are recycled from industrial waste, cooking oil, agricultural and forestry residues.
New technologies from engineering and manufacturing of aerodynamic are going to play a significant role in upcoming airline trends like specialized and improved designs and the use of carbon-efficient biofuels and electric
In this case, the International Council on Clean Transportation (ICCT) research found out that around 5.5% of aviation fuel could come from sustainable origins by 2030. Basically, it would be primarily from advanced waste biofuels.
Aviation Business: Witnessing Some Hope
There is an anticipation that the established aviation businesses will pick up their pace by 2022 amid COVID 19 restrictions.
Interestingly, there has been a pick up in air travel (essential air travel) in a specific part of the world. However, in some Asian countries, travel activity is estimated to be less than 40%. But the travel demand is expected to be higher in the years ahead.
Aviation business operators expect expanded business with new criteria of sales—digital. They might witness growth due to new prospect acquisitions that have adopted the digital workforce. The businesses expect green shoots of growth in the travel industry. Especially from business travel classes as these are seeking to experience fly again.
Business aviation traffic in 2021 highlighted the growing interest from buyers. On this, Jose Rego, Senior Director – Market Intelligence and Strategy, Embraer Executive Jets elaborates,
“There may be a peripheral surge in demand from first-time buyers; I expect this to affect fractional sales initially.”
Therefore, now IATA estimates that governments globally will provide $160 billion in support, loans, and tax breaks so that airline businesses can cover current costs.
Safety is Priority, so is Business
The aviation industry acclaims that business aviation might be on track sooner. In this context, the presence of a qualified team and fast-track applications, software, and platforms could help operators to function in a safe and well-maintained way.
As the aviation industry continues to plan new air travel rules (essential), aviation business is at an optimum point. Its crucial role in supplies, sales, business development, and essential air travel services has redefined the face of business. Thus, in this way aviation business has paved the way to make a strong comeback in the coming years.
Frequently Asked Questions
What can future measures due to the pandemic suggest for the aviation industry?
Airline businesses must have a robust plan which establishes the core of business aviation. The future is for market leaders. How they will manage roles and responsibilities responding to the crisis. Finally, national authorities will have a crucial role in stimulating demand and fostering the rapid recovery of the airport business. Restoring consumer confidence will be an essential part of this effort.
What is the COVID-19 advice for the aviation industry?
The global market leaders are actively managing the impact of COVID-19 to ensure aviation safety and to support the industry’s return to normal safety assurance activities. They have put efforts on surveillance approach on every business operation to increase accuracy by introducing technologies.
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Air Transport
Article | December 10, 2021
Drones may be troublesome at some points in the supply chain. It can cause many hurdles and safety hazards. But what about the vast potential that drones carry to assist and even improve safety?
The topic of discussion in this blog revolves around drones in the supply chain. Are these advantageous or troublesome? The blog showcases both sides of the coin.
According to the global commercial drone market’s study, drones are expected to witness growth of 26%. It is going to reach a value of $10,738m by 2022. Aren’t these figures impressive?
While the pandemic has forced industries and businesses to increase touch-less mechanisms, the increasing demand for contactless deliveries has given drones a wide-ranging opportunity to be reliable. Did you know that over twenty thousand drones are registered for commercial use with the Federal Aviation Administration (FAA) today? Many of which are already being used in the supply chain process.
A study by MarketsandMarkets indicates the drone package delivery market might surge from $528 million in 2020 to $39 billion in 2030 at a rate of 53.8%. Similarly, Gartner estimates that drone delivery will reduce delivery costs by 70%.
These show a promising future for drone technology to hover industries and would significantly affect customers across the globe.
How Exactly are Drones Changing Supply Chain Processes?
Automation is becoming a comprehensive solution in the distribution industry. A report by the Brookings Institute mentions that over 70% of jobs may be automated. In that case, drone technology is the main focus today.
On the other hand, some view automation as a threat. But with the help of automation, drones would make manual jobs redundant and destroy industries like aviation, transportation, production, and others involved throughout the global supply chain. However, several defenders of automation note that drone technology rarely replaces manual work. Instead, it tends to free up workers from a challenging workforce, reduces workloads and increases efficiency. As a result of this, companies become more productive.
In the realm of the supply chain process, drones offer the chance to completely change inventory management ways and shipping methods. And thus, companies can operate quicker and errorless management.
“As drones prove to be the next automation technology within the supply chain, businesses globally would do well. But to incur drone technology to their operations, they need to start investigating strategies to see if they would suitable their business model. My advice is to start looking for help from experts to understand the technological challenges, facts, and boundaries of using drones as part of your supply chain processes before going all-in too quickly.”
- Trish Young’s, UK Head of Business Consulting – Retail, Consumer Goods, Travel & Hospitality at Cognizant.
Let’s get into the advantages of drones that supply chain companies and industries are already reaping.
Advantages of Drones
Monitoring Supply Chain Delivery Courses
Drones in the supply chain assist in monitoring supply chain courses for barriers. Therefore, it could positively impact the entire delivery process via transport carriers . In addition, drones are used for monitoring road conditions and other hazards in the delivery process. In this way, a delivery operator can quickly select an alternative shipping process and make efforts to achieve a faster or on-time delivery.
Drones in Warehouses
Drones in warehouses can be used for inventory counting, improving safety before the supply process starts. Warehouses are full of products kept for supply or shipping to different locations via different modes of transport. In this case, using drones, the scanning of products and data will be faster by having barcodes. In addition, as drones are much safer, they eliminate the need for workers to scale up monitoring and thus save time. Here are some other ways drones can help warehouses in:
Providing better accuracy
Reducing human labor costs
Reducing workplace injuries
Streamline inventory tasks
Realistic Applications for Drones in Supply Chain
Skyward
Skyward is involved in developing the digital airspace infrastructure around industrial drones. In addition, the company is working on designing software for drones that will assist in the supply chain industries.
“I can tell you this from an engineering background that it is now possible to deliver goods using drones under five pounds, which is 86 percent of Amazon’s inventory, within a 30-minute of radius,”
- Jonathan Evans, the CEO of Skyward
Drones in the supply chain in demand due to its capabilities. Skyward determines the practical application of this technology and develops it for future purposes.
Amazon
Amazon’s Prime Air is a new drone technology-driven pilot program. Amazon is currently focusing on smaller packages under the 5lb range under its supply chain process. Amazon drone delivery is one of the most innovative services, and other companies are getting inspired to develop their drone-enabled supply chain program.
Walmart
Walmart is also taking the approach and reaping the advantages of drones. However, it is going miles apart in terms of using the technology for its supply chain process. Walmart has partnered with some prominent drone companies like Flytrex and Zipline. Flytrex and Zipline are currently doing pilot programs for supply chains and deliveries.
The Obstacles
As drone technology has already taken to the skies and is already operational, it is yet to be seen how quickly regulatory agencies allow the technology to operate without legal restrictions. More than one million drones are ready to take to the skies by 2022. But hurdles like safety risks, privacy issues, and security interference cannot be ignored. In addition, the military and commercial aircraft industry is posing valid concerns about sharing airspace and air interference. There are challenges like the susceptibility to hacking or theft, collision, and high insurance costs that have become a hurdle regarding drones in the supply chain process.
Further, the technology has many limitations that need to be highlighted. Limitations like limited battery life might restrict the operational duration. In addition, weather conditions also need to be taken into consideration. Whether drones can operate during high winds or rains. All these factors might impact supply chain management and may restrict the use of drones further.
However, the role of drones by supply chain companies is only going to ascend in the future. R&D companies are working hard to overcome significant challenges. They are working to provide more and more opportunities above all obstacles to optimize supply chain operations efficiently.
Frequently Asked Questions
How can drones be used efficiently in the supply chain?
Drones in the supply chain can be used efficiently to deliver at a low rate to rural areas. Also, it can eliminate the need for road transportation to save time, be more secure and faster.
How will drones impact the supply chain?
Drones in the supply chain will have a massive impact. Drones will improve service scenarios in industries and reduce costs, workforce, and capital. It can be helpful to manage and monitor inventory set up for products.
What kinds of jobs can drones replace?
Drones can replace five kinds of jobs. They are:
Capturing difficult footage
Enabling detailed monitoring
Spotting errors and implementing an error-free workflow
Assimilating huge data records
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