Business Aviation
Article | December 28, 2021
The aviation industry has allowed people to connect the world in unimaginable ways. Due to this, it has contributed massively to social and economic development globally.
However, the aviation sector produces nearly 1.8% of annual carbon emissions. It is almost half of the total growth in carbon dioxide emissions in the last twenty years due to the expansion of flights, increasing routes, and airline sizes.
In the loop, the commercial aviation sector has also been affected by climate change. The change is due to increased noise levels, air pollution, and waste production.
According to the International Energy Agency (IEA), the industry recorded 2.8% of global CO2 emissions in 2019. But now, the industry has pledged to be carbon neutral by 2050 through a focus on a critical low-carbon strategy, says IATA. By looking at this futuristic development, airline businesses are becoming more and more optimistic.
The Action Plan
The aviation industry has taken steps to reduce rising carbon emissions. The industry had framed targets that included carbon-neutral growth before the pandemic. But the pandemic compelled the industry to make some critical decisions. One of them is to fasten the action plan for low-carbon development.
McKinsey recently studied the industry’s emissions. According to the report, the industry's aviation emissions would be reduced by 18 to 35 percent by 2030. However, as the aviation industry’s growth is recorded from Asia, including India, China, and Southeast Asia, decarbonization can only work if airlines from these nations actively participate in the development.
“For aviation, zero-carbon is a bold, audacious commitment. But it is also necessary.”
-IATA Director General Willie Walsh
Airlines and other businesses are under pressure to make rapid progress towards lower emissions. It is because breakthrough technology like hydrogen-powered planes has started manufacturing.
For example, British Airways, Delta Air Lines, Inc., and United Airlines Holding Inc. have already made net-zero commitments by introducing hydrogen-powered planes. Similarly, JetBlue Airways Corp has set a target of 2040 to introduce low-carbon planes in no time.
So, by looking at above comitments, how will aviation progress in terms of low-carbon development? What are those fundamental ways that’ll guide the industry to see a sustainable future in real life?
4 Ways Aviation will Look Forward to Reducing Carbon Emissions
Green Fuel
Aviation considers green fuel as one of the quickest paths to low carbon development. Green fuel can be a game-changer in lessening carbon emission impacts. But, furthermore, it can lead to drastic climate change. Green fuel, also known as sustainable aviation fuel (SAF), is made from renewable sources such as plants or waste.
As per IATA, SAF can cut carbon emissions by nearly 80%.
But specific concerns like cost and availability are equally essential to think about. For example, the United States and other countries consider subsidies to decrease prices and increase supplies. They are practicing this due to limited availability. Also, some airlines are blending small amounts into the fuel they buy for their aircraft.
Other concerns, such as planes running properly on pure SAF, are also highlighted. In addition, flight engines based on petroleum fuel rely on their oily qualities to lubricate parts and function appropriately. So, it's unclear if green fuels offer that amount of strength in their engines to fly a flight.
Despite so many heated concerns (that are valid), the industry still looks good as Boeing (BA.N) studies the above issue. It has even committed to ensuring its planes are certified for 100% SAF by 2030.
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Lower Carbon Technologies
Technological improvements to lower carbon emissions include retrofitting existing aircraft, adopting the latest fuel-efficient aircraft, retiring old aircraft, and others.
Several ongoing electric or hybrid-electric aircraft technology projects are in the pipeline. They are being identified to enter the industry between 2022-2030. In contrast, some of them are already in service.
Developments in Infrastructure
The International Civil Aviation Organisation (ICAO) has created plans to reduce fuel burn and greenhouse gas emissions (GHGs). The plans have been forwarded to optimize communication, navigation, surveillance (CNS), and air transport management (ATM) regarding zero-carbon development.
Apart from this, airlines are also working to align emission cuts with investments. Consumption of fuel usually covers 20-30% of operational costs. It is one of the highest costs of an airline business. So now airlines are considering adopting fuel-efficient flying and airport operations.
Collaborations
Today, aviation needs more stakeholders for a sustainable future. They can only increase the efficiencies and development of SAF.
Stakeholders from technology providers, oil companies, and energy production could drive demand and help bridge the cost gap. For instance, airlines commit to buying SAF at a particular price or at a different price than traditional fuel jets. These factors could eliminate market risks for fuel suppliers.
Next, airlines can work with B2B customers willing to pay for the decarbonization initiative. For example, airlines could use loyalty-program rewards as incentives for every customer to choose airlines that use SAF. Collaborations like these can help the industry accelerate its low carbon emission initiatives.
These Top Airlines Commit to Using New Technologies
Aviation industry leaders aim for 30% of the aircraft to operate with the help of new technologies by 2030. They strongly support the introduction of hydrogen and electric-powered planes to the market in order to reduce the industry's carbon footprint.
So, let’s see the airlines and their commitment to creating a sustainable aviation future.
Air New Zealand
Air New Zealand’s initiatives such as True Target Zero accelerate the adoption of zero-emission aircraft worldwide. Air New Zealand is delighted to work with other industry leaders working towards net-zero goals.
“Air New Zealand pledges to put low carbon solutions in place for all our smaller domestic and regional flights in the future. However, we know that the drive to decarbonize the aviation industry is impossible for one airline to tackle alone. Rather it’s a joint venture, and it's all about joining hands together.”
-David Morgan, Chief Operational Integrity & Safety Officer, Air New Zealand
Mokulele Airlines and Southern Airways
Mokulele Airlines, the largest intra-state carrier in America, has already worked for many years as a maven to bring electrification to its air transportation system.
“We are satisfied to join the World Economic Forum in seeking a global public commitment to promoting sustainable air travel.”
-Stan Little, Chairman & CEO, Mokulele Airlines and Southern Airways
Braathens Regional Airlines
The airline has the ambition to make its flights fossil-free by 2030. The airline has included electric planes, and with its partnership with True Zero Aviation, it is taking steps to accelerate towards actual low carbon emissions.
Can Aviation Make a Difference in the New Path of Development?
There are a lot of positive aviation stories from all over the globe. However, aviation also has some barriers to the new path of low-carbon development. Nevertheless, aviation can undoubtedly make a difference by introducing technologies, implementing result-driven strategies, implementing the right tools, and many more.
But from the customers' perspective, choosing to fly less can be another good reason to reduce an individual’s carbon pollution. The reduction can be up to 50% each year. So even avoiding long-distance flight travel could make a significant difference to aviation.
Business travelers could adopt or choose to use virtual meeting technology. These could be other crucial factors limiting the carbon footprint in the atmosphere.
Whatever you choose to opt for, it is high time to contribute to a more sustainable aviation sector for the future.
Frequently Asked Questions
How can airlines reduce their carbon footprint?
Airlines can introduce more efficient aircraft. Efficiency in technological aspects, reduce flight delays, and increase the use of sustainable lower-carbon or alternative fuels. Also, investment plays a vital role here. They can invest in emissions initiatives and promote low-carbon travel.
How can an airline achieve its carbon-neutral goals?
An airline can explore hybrid and electric aircraft technology to reach carbon-neutral goals, reduce carbon emissions using SAF, and embrace fewer flight routes (distance).
Do aircraft harm the atmosphere?
Aircraft create very polluting elements and are highly challenging means of transport. Indeed, air traffic represents less than 2%-3% of the global CO2 emissions, yet it transmits direct CO2 emissions than cars on roads.
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Defense and Space
Article | June 8, 2022
The global airline industry is currently going through unprecedented financial damage. A few factors contributing are high operational costs, increased security costs, low customer satisfaction, low revenue, and frequent dynamic shifts in air travel.
Hence, it’s a high time for airlines businesses to resolve their multitude of issues for its economy to recover. To leverage this goal, the industry should leverage its most high-volume asset—analytics. Analytics will help drive the airline industry's growth rate in the coming years.
It’s because, Developing new data applications will bring a handful of digital marketing opportunities in the next five years. And these applications will bridge the gap in the industry.
Welcome to the New Age of Analytics
This topic of discussion is not new. But the new thing about analytics is that it is changing the airline industry data collection process. Analytics has become an essential part because the pandemic has forced countless non-digital airline businesses to shift to online operations.
Advanced analytics with innovative data technologies is becoming popular due to its numerous applications. To name a few, it provides smart management abilities and a proper decision-making system. So, to get a hand over this, marketers should have a razor-sharp focus to upgrade their analytics.
With advanced analytics, airlines can deliver the right information to the right audience at the right time. And when customers access the right information efficiently, they turn into prospective clients. In addition, by using analytics as part of online operations, airlines can survive without a dedicated offline presence.
With the digital transformation happening in the aviation industry, it at a turning point. The situation now is an “adapt or die” one. This policy is generating opportunities for airlines that are making significant changes to their current old business model. However, such a transformation is only possible when analytical technologies are fully adapted. This way, marketers can easily capitalize on operating online by being agile and have adaptable tools.
How can Marketers Adapt Analytics?
As a marketer in the digital era, you need to organize data with the help of technology. By organizing data, you can easily collect data from channels such as social media, loyalty programs, and other online forums. Here are some to use Analytics to empower digital transformation:
Power of Personalization
Digital technologies offer marketing and sales opportunities in direct and indirect channels. For supplies and buyers, this means they can establish greater contact with consumers. It will result in a significant way to sell and buy more products. However, you can take customer interaction a step further by offering personalized offers and discounts with analytics.
Investing in Loyal Customer Base
The most important digital opportunity comes from loyalty programs. Offering it can provide marketers with substantial amounts of customer information. Additionally, there are three other focus areas where you can use analytics:
Partnership with leading technology providers
Enhancing content
Cost maintenance
Investing in these customer-centric areas using analytics will gradually deliver proven results.
Empowering Strategies using Analytics
The next step is to develop a comprehensive data platform strategy by including a data integration layer. By combining traditional and new data sources, this layer will make a flexible and more accessible data architecture to scale airline industry data. This will allow marketers to gain insights into their changing customer behavior.
Hence, adding a data integration layer will also need considerable effort and investment to deploy a cloud platform, an analytic-data-warehouse layer, and a team that maintains the data platform.
So, what are the Exact Ways Analytics is Going to Help Marketers?
Cost reduction:
The advanced airline industry analysis will help in making cost reductions. Whether it is from fuel consumption, deploying technology, or smart manufacturing, analytics can solve cost-related issues at once. For this, airline businesses must deploy AI systems with machine algorithms, which will help marketers to collect the exact data. Then they can easily analyze the estimations and can reduce them as per the requirements.
Customer Satisfaction
The addition to cost reduction, predictive analysis can help by keeping customers up-to-date in real-time. You can enhance Customer satisfaction by promoting offers based on their demand. Once you can have genuine insights and information about your customers and understand their behavior beforehand, you can approach them with the right message, solutions, and services by giving the right reason to invest.
Most importantly, predictive analytics will help speed up the response rate to customers' queries and solve them in no time. Today the response speed matters because airline customers are constantly shifting their travel behaviors. As a result, they now seek customized approaches compared to the traditional approach.
For example, Delta Airlines deployed advanced predictive analytics with AI. They optimized their operations through innovative customer services. Delta Airlines invested a whopping $600,000 for automation software installation. The investment was successful as they were able to access their data effortlessly and were able to connect with their customers by offering them multitude of offers.
Performance Attributes
Today, airline companies need prompt and accurate performance measurements to take critical, appropriate, and timely actions. Big data analytics can automate certain daily activities. The activities such as prospects' queries, website visitors, landing page hits, and more can be watched daily or weekly. With big data being so effective it will also help you understand the core ingredients for revenue generation. In the end, such advancement will stimulate airline industry data growth.
Risk Protection
This is of utmost importance for the airline industry's growth rate. You can develop various innovative models and strategies and avoid risks while implementing them using Advanced Data Analytics.
The risks could be like a data breach, technical factors, organizational operations, customer data, and more. To counter back these risks, you should have proper strategic or annual safety objectives. Advanced analytics have higher levels of excellence that alleviate performance drifts. It will also help you to achieve and maintain through a proper monitoring and testing system.
For example, British easyJet has diminished its operational challenges using AI. With the help of IT, it used data science to improve its pricing strategy, manage inventory, and lowered risk factors. As a result, the company observed an increase in profits of almost 20% in 2021.
What’s Next for You with Analytics?
Marketers should be astute and apprehensive about Analytics. Understanding the upcoming trends of analytics are vital. In addition, the current situation also demands a holistic approach that supports technology (digitalization). Having appropriate approaches will lead you to stand out in this competitive industry.
Taking advantage of data for your existing or potential customers can help you to recognize more information about their activities. So that you can include more innovative techniques and can attract potential leads before they are gone. With technically sound data analytics you can experiment with different customer-centric strategies like:
Building responsive landing pages that get fit in every screen
Being more flexible with your prospects and enhancing interactions either through social media or a website.
Creating platform-specific content to improve customer interaction.
The strategies mentioned above will help you in collecting more data and curating on-demand content/information. By adopting these strategies, you can provide a data-backed open online platform in which you can easily connect with your customers.
Once you have grabbed the technique for your digital marketing needs, tapping big data solutions will be a much better way than before. Therefore, it is crucial to keep legacy thinking aside and welcome innovation onboard.
Frequently Asked Questions
What is the importance of analytics in the airlines business?
Analytics play a vital role in airline businesses. It helps in cost reductions, which could result in investing in better ways. Also, data helps to avoid breaches, provide safety measures, collect huge amounts of information, and enhances operational functionalities.
Does analytics require proper strategies to function in an airline business?
Yes! To implement analytics in your airline business, you need a strategic approach. Analytics provides statistical analysis. Using it, you can investigate and analyze business performance and give insights about improvement as well.
What are the different types of analytics used in the aviation industry?
There are three types of analytics that airline businesses use:
Descriptive analytics: It tells the current business operation
Predictive analytics: It shows what could happen in real-time
Prescriptive analytics: It shows what should happen in the future.
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Air Transport
Article | July 26, 2022
As 2021 is a few months away from its end and is the beginning of a new year, it is hopeful that it will bring more positiveness for airline businesses. But what the industry has ahead? How will the new landscape of technology strategies in airline businesses look?
Or say, what will be the platforms for novel technology strategies in the aviation industry in the future?
Let’s have a quick read in the next!
What Airline Technology Strategies Will Look Like?
As you know, the airline industry saw a lot of disruption in 2020. But the circumstance also paved the way for promising and powerful new technologies.
Airline businesses are now turning the tech trends to their advantage. In this way, they can get a handful of opportunities to streamline operations. They could do this because the landscape of technologies is reshaping aviation.
For example, IATA recently calculated that the airline's revenue worldwidewould be more than half of what it was in 2019. That means the industry will witness a massive change due to emerging tech stacks. Its rising importance is influencing market leaders to make more informed decisions today. This is why it is critical to imply technology strategies in your business.
Thus, the focus is on the clients' strategic choices and investments. It will now depend on the implications of technology strategies.
How will some of the applied proactive technologies in business processes look like in the new normal?
This blog groups some of the newer technologies for the new normal in aviation. Explore them and take inspiration from the potential of technologies to revive your business and drive growth.
5 Tech Strategies to Reshape Airline Industry
Machine Learning with AI
Before the pandemic, the airline industry displayed an exceptional commitment to the potential of AI. Like, you must have seen the adoption of chatbots to communicate and other ways to improve operations.
Now, the usage of AI is soared, and its application is more profitable than before. The platform analyses a faster deployment of millions of operational data.
Mechanization
Mechanization technology in the airline industry is gaining thrust. Due to the rapid developments and advancements, several airline businesses are implementing it. As tools are becoming smarter, businesses will soon have completely automated operations. Automation will ease all the workloads, reduce manual intervention and errors to a high accuracy rate.
Real-Time Information Technology
Real-time information technology is a significant technological aviation strategy. It has the potential of improving airlines’ operation efficiency with the help of customized software usage.
Your business can drive growth by implementing custom software applications. But, as you know, to deliver customized and personalized solutions, it is essential to understand clients’ expectations and preferences. So, how is this technology going to take you through it? Let’s understand in the following ways:
Personalized solution: Custom software applications are developed with the help of the updated information collected by knowing customer’s preferences. In this way, you can create personalized or customized solutions for your clients.
Technical Excellence: Having an expert development team across all application stages is a plus in your business. The cutting-edge tools will benefit from fulfilling clients’ demands
Higher business value realization: It's critical to properly align real-time information technology with your business processes. This will deliver solutions on time with the right approach to your client. This way, your business can generate higher value and build trust in long-term relationships with clients.
Analytics
Analytics is the most urgent technological need for airline businesses in the future. Aacquiringe accurate data, predicting losses, and evaluating clients’ needs will be the next transformational scenario in the airline industry.
Implementing this technology will allow airlines to streamline their operations ahead of time. It will also help to take realistic measures to bring down losses that occurred due to the pandemic.
Analytics are also effective in predicting and preparing for the results of business efforts. Data-backed analytics would provide insights to pinpoint geo-specific interventions to gain higher ROI.
Agility
The implementation of technology strategies has encouraged airline businesses to become agile. At the same time, some leading industry market players have now shifted their business to operate in agility. So, it's expected that this trend will continue beyond 2021.
The aviation industry caters to a vast array of products and services. It works to deliver seamless operations and services. The adaptation of agility requires multiple systems to interact and exchange data. So, with the growing rate of partnerships, agility is the need of the hour.
Today, in several airline businesses, teams work in separate locations. Being agile helps them to win adverse circumstances. It also builds the trust of audiences by keeping transparency in work and responding to queries faster.
With this, the emerging technology is also expected to help track the progress of smaller efforts and proactively handle the metrics for projects coming in. In addition, the technology ensures that you can constantly inspect functions and deliver quality products or services.
Lastly, since the budget is one of the top concerns of airline businesses, the development of agile technology strategies helps to keep a check on expenses. Therefore, by tracking the expenditure, it will be easier to plan future budgets adequately.
Frequently Asked Questions
What are other critical new technologies that will transform aviation?
According to IATA’s report, the aviation industry will witness a drastic transformation. Some important new technologies such as cybersecurity, 3D printing in manufacturing, robotics, and biometrics will enter in the future.
How has technology enhanced the aviation industry?
Technology has enhanced aviation in manufacturing. New techniques have created new aircraft with improved fuel consumption and reduced environmental impact. In terms of operation, automation and AI are the new takeovers in aviation.
Why is technological development important for aviation?
Technological development is important to improve the efficiency of airline operations. The need for better connectivity, enhanced travel experience, reduced fuel costs, budget alignment, control over expenses has urged technology to step in.
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Air Transport
Article | July 26, 2022
A New System That Aims to Create Carbon-Neutral Aviation
Scientists have achieved an amazing breakthrough in the development of carbon-neutral fuel for the aviation industry. An aviation fuel production system that uses water, sunlight, and carbon dioxide has been put into action. Its design was published on July 20th, 2022, in the journal Joule. The dream of achieving carbon-free aviation could become a reality with this development.
“We are the first to demonstrate the entire thermochemical process chain from water and CO2 to kerosene in a fully-integrated solar tower system.” - Aldo Steinfeld, Professor, Study Corresponding Author, ETH Zurich
The aviation industry accounts for approximately 5% of the global anthropogenic emissions that contribute to global climate change. The industry heavily relies on kerosene, commonly known as jet fuel, a liquid hydrocarbon fuel derived from crude oil. There are no clean options to power commercial flights on a global scale at the moment.
Production of Synthetic Kerosene
This breakthrough, with the help of solar energy, makes it possible to produce synthetic kerosene from water and carbon dioxide instead of crude oil. The amount of CO2 emitted during kerosene combustion in a jet engine equals what is consumed during its production in the solar plant. It is what makes the fuel carbon neutral, especially if the CO2 in the air is captured and directly used as an ingredient, which could be possible in the near future.
As part of the European Union's SUN-to-LIQUID project, Steinfeld and his colleagues put forward a system that uses solar power to generate drop-in fuels—synthetic alternatives to fossil-derived fuels like kerosene and diesel. Solar-produced kerosene is consistent with the current aviation infrastructure for allocation, fuel storage, and use in jet engines. It can also combine with fossil-derived kerosene, according to Steinfeld.
High Hopes for the Future
Steinfeld and his team began scaling the construction of a solar fuel manufacturing plant at the IMDEA Energy Institute in Spain half a decade ago. The plant has 169 sun-tracking reflective panels that redirect and concentrate solar radiation into a tower-mounted solar reactor. This concentrated solar energy then powers redox reaction cycles in the reactor’s porous ceria structure, which is not absorbed but can be reused. It transforms the water and carbon dioxide into syngas, a customized mixture of hydrogen and carbon monoxide. This syngas is then injected into a gas-to-liquid converter and is finally converted into liquid hydrocarbon fuels such as kerosene and diesel. Steinfeld and his team are working on amping up the reactor’s efficiency from the current 4% to more than 15%.
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