Defense and Space
Article | June 8, 2022
The pandemic has fueled the private aviation segment boom. It has raised many new aviation business bodies.
While the private aviation segment was once reserved for millionaires and A-listers, it now has aircraft that look for more quick and secure gateways.
“We’ve flown more for businesses now than ever, based private jet travel provider PrivateFly.This is the time to use capital to travel safely. We’re seeing sales year-to-date matching with 2020. The sales are outperforming in the private jet market. And since the pandemic hit, we have seen striking changes in clients’ profiles and buying habits."
- Adam Twidell, CEO and founder of UK
Despite the ongoing dimness of the growth of the aviation industry, there has been a fresh influx of customers for private jets.
The pandemic empowered the private aviation companies. As a result, the private jet market has noticed a higher demand of 72% healthy since 2019.
About this, Adam Twidell mentions that private aviation is cautiously hopeful about the future for private jet travel.So, how is the private aviation market growing? How is private jet travel becoming popular? Let’s understand it.
Why are Private Jet Companies Taking Off?
Today, many business travelers are seeking a safer way to fly due to the ongoing effect of the pandemic. As a result, the term ‘safer’ fly has turned to private jet travel.
Its appeal in the present time has been evident. But some reasons that support the answer behind arethe taking off of private aviation companies are as follows:
The Uncertainty of Commercial Aviation
A drop in airline operations throughout the pandemic is one of the reasons. On the other hand, the pandemic facilitated an increase in the number of new business travelers in private aviation.
A Shift in Consumer Behavior
The surging number of first-time flyers have learned to invest in safety. Consumers are beginning to understand that investing in safety is essential today. Consequently, private aviation is not considered a luxury but a common choice as a reliable travel solution.
Control & Flexibility
The evolving new technologies in aviation have now created controllable operations. Such advancement has enabled aviation businesses to recover rapidly. Similarly, the private aviation sector is passing the power to customers to choose scheduled flights. The flexibility of the travel segment has added a value in terms of safety for business travelers.
“For companies looking to fly more frequently, they may get a jet card membership award. It will be a one-off charter and the commitment of jet ownership. You get a consistency of aircraft services like fixed prices and flexible terms."
-Twidell
More Options for Domestic
The domestic aviation sector is recovering compared to the international sector, which is still down by 20% as compared to 2019 as per IATA. All of this is due to the innovation by private aviation companies.
What do these key reasons show us? First, private aviation has constantly been reaching extraordinary heights and serving outstandingly in the new normal.
In this case, some prominent private aviation companies are doing wonders in the aviation industry. They are bringing innovative ideas and reshaping global businesses effectively.
So, who are they? What are those private aviation companies doing? Let’s know further.
The Best of 4 Private Aviation Firms Reshaping Aviation
Business aviation is expected to reach a valuation of more than 2 billion in 2022. This would be more than twice the valuation recorded in 2019, as per the Global Insights Market research study.
So, let’s study some of the most sorted-out private aviation firms. And how they are making innovatory inclusions in the aviation industry.
XOJET
Xojet is known as “Uber for the airways,” being the third-largest North American private aviation company. Xojet partnered with JetSmarter – the world’s largest mobile marketplace for private jets. They aim to bring novel opportunities, ways, and ideas to reshape the industry once again.
Xojet took advantage of digitalization and made the idea of “Uber for the airways” on-demand and straightforward. JetSmarter now serves as the exclusive digital distributor for XOJET’s aircraft, which has provided access to a new technology player—an unparalleled supply of premium jets.
“This shared venture is all about efficiency, which makes us more successful in assisting our clients.” And we will be able to accelerate the process of providing a digital solution for them.”
-Brad Steward, CEO of Xojet
The real opportunity is to put the 11,000 private jets in service in the US. And most of them would fly at an average of 200 hours annually at 30% capacity. As a result, XOJET generated more than $300 million worth of revenue in the second quarter of 2020. So, it is undoubtedly the digitization of private aviation that is concreting the pathway of growth of the industry for the future.
NetJets
NetJets has been serving as one of the oldest and largest private aviation companies. It accumulated a fleet of around 700 jets globally. NetJets’ plans for the first supersonic business jet with its sizeable fresh capital front. It plans to build a supersonic aircraft and is working with innovative and creative partners and private jet manufacturers.
Additionally, NetJets has received a delivery of 25 new private jets so far in 2021. It expects to spend around $2.5 billion to add another hundred jets by the end of 2022.
VeriJet
VeriJet started offering aircraft engines based on cruise missiles and carbon-fiber fuselages. With the help of low emission techniques, the engines are more durable and promote efficient flying. In addition, it has involved artificial intelligence assistance with one pilot. AI helps the jet with landing and other flight operations.
Richard Kane, VeriJet’s chairman, and CEO is counting on “carbon shaming” and promotes go-green emission and fly efficiently.
Clay Lacy Aviation
Clay Lacy Aviation has earned a reputation among other prominent private aviation users for its Waterbury-Oxford (KOXC) operations and maintenance facility. It has actively provided jet charter and looks after maintenance, aircraft management, repair, and renovation capabilities.
“We have offered solutions for clients by providing the first charter to professional aircraft management. From heavy maintenance inspections and cabin upgrades. We offer all at the best value.”
-Clay Lacy Aviation
With this, Clay Lacy experienced an 80% growth over the first 18 months. The growth was recorded by word of mouth spread rapidly across the region based on the East Coast at airports from New Hampshire to Florida.
Apart from this, a data-driven approach to private jet manufacturers and management constantly compares clients’ operating parameters. The process thus ensures that the asset is well-maintained and operates efficiently.
The Demand for Private Aviation is Still Rising
Experts say that the private aviation sector saw an uptick in 2021. In addition, the private aircraft firms witnessed a gradual rise in business from August 2021.
The aviation industry has been tested for a long time when it comes to adapting to diverse requirements. But, in the end, the industry has smartly evolved through challenges over technology and innovation. And the numbers should only proceed to grow now as global businesses recover their positions in late 2021.
“While the business aviation industry continues to experience a thriving market, the longer-term picture will clear step-by-step. Well-known issues such as the pilot shortage, collapse in values of used jets, lack of OEM innovation, rising operational costs have been recognized well, and the industry will cope soon. As a result, the overall environment is prepared for bringing in innovation from every aspect.”
-Peter Maestrales, CEO, Airstream Jets
Frequently Asked Questions
What is the valuation of the private aviation market?
The private jet aircraft’s market size was $24.4 billion globally in 2019. But during the pandemic, the valuation diminished by $20.1 billion. According to recent calculations, for the first quarter of 2021, the private aviation sector grew to a share of $23.6 billion.
What countries have the most private jet operations?
The United States occupies first place in private jet operations. But then, Europe is counted for having a big part of private jet operations.
Why is the private aviation sector becoming more popular?
Private flying has gained popularity because it has fared better than commercial operators. In addition, it has offered convenience, safety, time-saving, flexibility, and costs.
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Air Transport
Article | July 26, 2022
Experience is Everything—human or mechanical. But Get it Right.
"AI's potential doesn't solely lie in its ability to improve business efficiency. Rather it lies in its ability to bridge the gap between businesses and customers. AI-powered communications enable for surged personalized and strengthening of information, stimulating customer trust and customer experiences."
- Kevin Gosschalk, CEO, Arkose Labs, in a conversation with Media 7.
Whether you make payments with a single tap in apps, ask Alexa to instruct in your smartphones, select Google assistance to find flights, or connect to airline companies, digital transformation is omnipresent. So, the appreciation comes naturally for how today's digital atmosphere transforms and affects our lives in every way.
Yes, you heard that right!
Using Google assistance to find flights is not the new way the industry uses AI. Instead, it has enhanced its way of AI usage into its process and operations. Like other businesses, aviation businesses are catching up well in using data and technology. With the help of these, they now create more compelling and prompter customer experiences.
The developments and revenues in the global aviation industry are skyrocketing. The industry expects almost 8.2 billion passengers to fly around the world by 2037. The rising numbers are because of digital transformation. The most interesting thing is aviation now has to manage high expectations of digital-savvy customers. It will be even more interesting now!
Before the blog breaks into discussing the futuristic airline customer experience, let's look at the flashback of the past customer experience scenarios (challenges) that prevailed in the airline industry.
Past Customer Experience Scenario in Airline
The aviation industry in 2018 recorded 4.4 billion passengers flying around the world. Furthermore, according to the IATA reports, the count is anticipated to reach 8.2 billion by 2037. But the industry is increasingly lacking behind in customer experience.
Complex booking procedures and missing out on the best flight offers because of complex app/website navigation and other potential customer services are issues raised in air travel today. Apart from this, customers also raise concerns over inflight infotainment systems. The systems merely do their job. Therefore, as many airport terminals are still empty, customer service representatives are working harder to overcome such issues.
As the industry has stepped into the fourth industrial revolution, AI rewards the best experiences for travels and other airline customer services. Now, airline marketers can find diverse AI-based digital solutions to sail through the cloud. And the findings are quite remarkable.
Let's come to the part where you will know how AI is helping the aviation industry scale its customer services.
How Can AI Enrich Airline and Scale Customer Services?
Airlines that leverage AI customer experience have had a significant advantage during the pandemic time. Their insights have been put into enriching the entire aviation business. Let's understand the 'how.'
Get Multiple Output in Seconds
When the demand for air fly rise, offering immediate services for customer handling teams becomes stressful. However, with AI, instances like this get a perfect solution.
AI can handle an infinite number of customers' demands at once. By leveraging AI-based digital solutions, you can scale up fulfilling airline operations in seconds. As a result, teams in your firm can easily diminish the increased demand for services and serve remarkable customer experience.
The benefit of AI can also be seen crosswise support channels. For instance, WestJet's ticket volume surged by 71% on Facebook Messenger and WhatsApp during the beginning weeks of COVID-19 disruption in North America. However, the airline kept its response time low as its virtual agent Juliet ultimately resolved 87% of tickets.
Identity New and Trending Issues
Aviation is an industry of challenges. Issues and obstacles keep knocking on the door of airline companies. In such cases, AI informs if there are any trending issues over channels. For example, during the COVID-19 outbreak, new onboard safety issues and questions towards social distancing surfaced for the first time. However, airlines have never come through about social distancing. So, by leveraging AI, they created a responsive plan for customers. They communicated the same through AI-enabled solutions on websites and applications.
In response to the coronavirus, Gartner suggests that companies should use chatbots in digital channels to focus on the most ordinarily asked questions to give solutions for customers.
Feedback Analysis
Air travel can be stressful at times, even for frequent and experienced travelers. For example, it could be passport-related or booking tickets, baggage checks, ticket prints, arrivals, departures, seat assistance, etc.
So, by analysis of data, artificial intelligence in customer experience learns about these pain points of airports and flight experiences. In this way, customer experience can be improved and enhanced simultaneously.
Then comes feedback. Using AI for feedback analysis, airlines can research the market. It can make informed decisions related to processes and operations.
"AI systems can quickly allow airlines to discover opportunities to intervene in the customer journey and turn a miserable experience into a delightful one. It also allows companies to respond faster in a synchronized and regulated way that is uniform with the business's values. Ultimately, we want to understand how an airline can fascinate a customer as well as where there is an abrasion in the customer journey and figure out how to fix it,"
- CEO of PureStrategy Inc. Briana Brownell
Briana highlights the growing relevance of natural language used in AI. Understanding technology in the processing and analysis of customer experience data thus allows businesses to explore the customer journey in their own words.
For example, ANIE, an AI assistance, can help customers find, book, and pay for flights.
Effective Communication
The speed of responsive communication to customer queries is highly considered to resolve issues. For example, airport issues like flight delays or baggage loss crop up quite often throwing. As a result, travelers usually get into a state of nervousness. However, when they do not get a response or explanation to their problems, they start considering other airlines for their future trips.
In these cases, AI software deployment can speed up and simplify services, automatically enhancing airline customer experience. In addition, effective customer emails with exact information can also solve significant issues and streamline employees' workflow using natural text.
Another way to automate and improve airline customer experience is chatbot development. Today, many airlines enhance their customer support with AI-powered chatbots on their websites and mobile applications.
The Business Insider’s research report says that by 2022, over 80% of airline businesses are likely to have chatbot automation implemented in operations.
These chatbots help passengers with bookings, managing flight schedules, and updating customers about general flight information. In addition, they can post queries and other types of assistance to get quick responses.
Self-Services at Airports
Easy self-check-ins, ticket booths, and overall communication (from booking to destination arrival) add to the comprehensive AI-based digital solutions.
The pandemic forced the aviation industry to witness the extraordinary rise of numerous contactless technologies. So, airports are now more focused on providing self-services for customers. These include contactless payments, luggage checks, robotic assistance for queries, and more like these.
Self-service systems in airports are critical automated systems. AI technology is installed to automate passenger journeys without any hurdles.
Today, airline companies and airports implement an end-to-end solution using artificial intelligence in customer experience to facilitate smooth passenger air travel and operations. In case of point, Delta Airlines, one of the world's largest global airlines, uses intelligent systems such as Fly to Gate by Thales. The system works with biometrics technology. The employees use it for the document scanning process to recognize and verify passengers at security checks.
Such technology reduces passenger check-in time and improves customer experience.
Future of AI Customer Experience in Airline Industry
There are many shreds of evidence that customers increasingly want a personal touch with their communications. They adore personalized services. Even airline companies are seeking profound connections with their customers. And this is the right time to act by offering personalized customer experiences.
Today, AI makes it possible for the entire airline industry to enhance customer experience with automation, provide self-service solutions, ensure safe air travel, and more. Technology is a powerful tool for airlines to make informed decisions that they couldn't take in the past few years. Now airlines can make decisions faster on essential decisions such as on pricing of tickets by analyzing data, enabling secure authentication of customers than before.
Ultimately, the success of artificial intelligence in customer experience is driven by having a deep understanding of different customer segments. By harnessing the power of conversational AI, airline businesses can improve their ROI, nurture long-term customer relationships, metrics being the core elements.
Frequently Asked Questions
How can airline companies improve their customer experience?
To improve customer experience, airline companies can follow these ways:
Focus on knowing the target audience
Meet unique and specific customer needs
Keep customers engaged on social media platforms
Make smart customer-targeted decisions
Be responsive towards customers
How does AI play its role in aviation concerning customer experiences these days?
AI plays a crucial role in helping customers in aviation to find the correct information more efficiently. It actively helps analyze customers' data and recommend services based on their browsing preferences about flights.
How does AI improve customer experience?
AI enables the power to strengthen customer engagement, encourage activities, and improve customer retention. Although not a replacement for human beings, it does help increase the efficiency of serving — like answering frequently asked questions, providing the correct information, and being available 24*7.
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Aviation Technology
Article | July 26, 2022
Every month OAG updates its year-to-date Punctuality League table to provide an ongoing ranking of the world’s largest airlines and airports alongside its Monthly on-time performance (OTP) data. The list is based on the twenty largest airlines (by number of flights operated) known as Mega Airlines, and we provide a Top 10 ranking. With November Monthly OTPs now in, we have 11 months of data to take an early look at how these Mega Airlines have performed to date.
And whilst we have another month of data go, it is great to share some early insights before we release final numbers early next year.All the Top 10 airlines in our sneak preview currently come in with an OTP of over 85%. When compared to 2019, the last year of ‘normal’ flying, the Top 10 Mega airlines achieved OTP of between 75% and 86%, so this is a clear indication of just how much punctuality has improved over the past year.
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Article | April 20, 2020
The coronavirus outbreak has put airline customer care teams on the front lines. Airlines that have adopted artificial intelligence are alleviating some of the stress that their customer care teams are under.
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