Southwest Airlines is taking it to the Max

Business Aviation

Article | January 28, 2022

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. 242 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.

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. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "How can airline companies improve their customer experience?", "acceptedAnswer": { "@type": "Answer", "text": "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" } },{ "@type": "Question", "name": "How does AI play its role in aviation concerning customer experiences these days?", "acceptedAnswer": { "@type": "Answer", "text": "AI plays a crucial role in helping customers in aviation to find the correct information more efficiently. 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Defense and Space

Article | June 8, 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. 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Article | April 20, 2020

With rescue flights crisscrossing the globe and passengers keen to get where they are going as soon as possible, will we see the end of hub to hub travel? Has this current aviation crisis signaled the decline of the current model of aviation we know today? One reporter at Simple Flying gives his opinion.