Defense and Space
Article | June 8, 2022
DataBridge recently released a new market research analysis on AI in aviation, and the findings are promising. The aviation industry has relied on artificial intelligence (AI) for years. The technology has assisted pilots through machine learning algorithms to collect flight data about altitudes, air traffic management, weather, and route distance. It has enabled them to optimize fuel usage and reduce fuel costs. And now, it is going further.
AI has been cascading into other areas of aviation. Here are some trends to note from the “Global Artificial Intelligence in Aviation Market” study.
Benefitting Ground Operations
AI is extensively used in real-time support systems and air traffic control. From automated baggage check-in to facial recognition, it is powering several ground operations. These functions contribute heavily to maximizing resources, reducing labor costs, and enhancing seamlessness across different processes.
Improving Performance and Processes with Machine Learning (ML)
The emergence of AI in aviation is thanks to a surge of capital investments by key aviation players. Cloud computing is being used by many organizations as a way to consolidate processes and deal with complexity better.
Impacting How Planes will be Piloted
AI will considerably impact the future of piloting as we know it. Building on Airbus’ first ever takeoff, landing and taxi using vision-based AI in 2020, prominent aerospace tech firms continue to work on self-piloting planes or passenger autonomous aerial vehicles (AV) that will employ AI-powered intelligent navigation to fly.
Improving Efficiency and Accuracy for Manual Processes
According to aviation experts, ML digital assistants are able to process massive volumes of historical data in order to support ground staff and pilots alike. With AI’s capabilities of enabling elusive insights into patterns and complexities of data, the technology is considered ideal for aviation, where there is no room for errors.
The Path Ahead
The COVID-19 pandemic highlighted the importance of new technologies in pushing the envelope and innovating solutions. The evolution of technology will only propel the adoption of AI further into the aviation industry. With multiple use cases and brilliant results from the use of AI, the aviation industry is all set for a digital transformation fuelled by data, machine learning and precision
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Air Transport
Article | July 6, 2022
Skift research shows that 90% of airline marketers have dropped their marketing budgets due to the pandemic.The pandemic brought massive changes in marketing. Due to this, CMOs navigated through restricted availability of resources and shifted airline companies’ guidelines for months.
CMOs find increasingly difficult to rely on conventional financial and managerial aspects like typical cost setting—the way profitability was being achieved, fuel consumption, accounting decision making, investments, manufacturing and more. Due to these challenges, airline brands are bound to sternly reevaluate their current and future marketing process to maintain a steady flow of income and increase ROI.
So, it’s quite possible that your marketing tactics also may have suffered due to the pandemic. Right? And now you must think, “How much should your budget be for marketing?”
It’s an important question. It’s because most aviation businesses do not have a considerable aviation marketing budget. The answer to your concern lies here, “spend the least amount that achieves your business objectives.”
A lot has transformed since the outbreak of the pandemic. Yet, there are novel opportunities in aviation marketing activities. So, let's take a closer look at some of the opportunities that might help control your aviation marketing budget.
Opportunity No.1: Invest in Paid Advertisements; they are cheap!
Paid advertisements are becoming cheaper. These are in higher demand when it comes to aviation marketing.
It makes sense because the way digital advertisements are making money is going to benefit marketers. First, the paid ads drive the cost per click (CPC), so investing here can increase the ROI. Second, as the pandemic forced companies to focus on all-digital processes, as it prompts the audience to spend more time online. Resultantly, traffic on the web is up, and there are lots of ads. It means ads are cheaper.
Even conversion rates are increasing now. It’s because the ads online are evolving at the same rate as it was before the pandemic. Therefore, you must take advantage of paid ads to start with controlling your aviation marketing costs.
Opportunity No. 2: Determine your Annual Customer Value
The key to having controlled aviation marketing costs is to have an average customer revenue. If you haven’t calculated yet, then you should begin with it. Begin tracking the effectiveness of your sales and marketing efforts. Once you begin with it, you will calculate how much money is spent on every customer or a new customer.
The other important aspect to consider is how wisely you spend the dollars in a limited budget. And that’s where a marketing plan comes into action.
A well-improvised marketing plan may include proper tactics, tools, and platforms. But to implement all these things effectively requires an adequate budget. However, how to use them requires a thorough analysis and experts’ experience. Usually, marketers make a mistake by spending too much on a single marketing tactic. And this results in a considerable loss.
So, to control your budget, be intelligent to concentrate on a selected marketing tool and platform. And then spend dollars on it. Tapping on this approach, you will create a cost-effective marketing plan, which will give better marketing results.
Besides, your customers might equally feel satisfied by getting worthwhile results. Well, in reality, it will be easy for you to determine the annual value of money spent on each customer.
Opportunity No. 3: Review Investment Plans
When looking at the aviation marketing budget, it’s advisable to review investment plans carefully. The investment plan is crucial when you need to control your aviation marketing. Having an in-depth knowledge of it can lead you to save big. Also, it might bring opportunities further for your airline business.
For example, in December 2019, JetBlue announced a marketing structural cost program. It aimed at producing $250-$300 million by 2020 through cost savings. According to the company’s 2020 annual report, the program emphasizes these points:
Technical marketing operations
Planning, automation, and executing efficient activities online .(Like on a website, social media platforms, online campaigns, and more)
• Decreasing distribution costs
• Tax reformation
All these aspects demonstrate opportunities to propel business growth.
We are extremely excited about the potential for increased business demand with the costs and tax cut.
- Glen Hauenstein, President of Delta Airlines.
So, consider if you can reduce, delay and/or eliminate non-essential marketing tasks or not. Then, find opportunities to help you do a transition from costly, inefficient technological aspects to more cost-efficient technology, thus, driving more valuable results.
The bottom line is that you must understand where it makes sense to cut costs and where to make the proper investments because it's about bolstering your airline business. With the help of this, you can create value for customers, partners, and investors in no time.
Opportunity No. 4: Encourage Innovative Digital Engagement
Some of the top airlines like Delta Airlines and its marketing teams use innovative engagement methods through digitalization. Yes! After being hit by the deadly pandemic, Delta lost $60 million in cash each day. Delta CEO Ed Bastian revealed that Delta airlines reduced 80% of its operation.
“Delta will weather the storm by sticking to our shared values of honesty, persistence, and service to our customers and our communities. We encourage digitalization to the core. And that has helped our customers easy to connect us.”
- Delta CEO Ed Bastian
With this approach, Delta further forecasts its revenue to rise by 90% by the end of 2021.
So, you can see how investing in digital methods can help revenue rise without going out of budget or crossing the budget line.
When you introduce automation, AR, VR in your aviation marketing efforts, it will drive value from existing customers and engage potential customers. For example, you can create innovative videos for social media, visual online campaigns, presentations, and more.
Finally, remember to “Have Patience and Carry On”
It is critical to managing finance, especially in global disasters like coronavirus. However, today's marketing budget may seem exhausting when aviation businesses compete each day. But it is helpful at the end of the day!
Controlling your aviation marketing costs will lead you to increase your ROI. And this way, you will get valuable prospects, which is even more critical in the current scenario. Moving ahead with not-so-hard marketing budget control, you will require powerful leadership, top competency with courage and empathy, and the correct data, of course. So, having all these aspects and proactive measures in place, you will be able to outshine again.
So, which one of the opportunities are you going to implement first?
Frequently Asked Questions
How do airline businesses do marketing?
Marketing is the best practice to build trust among airline customers. The marketers offer rewards to customers so that they become loyal to an airline brand. They also run campaign activities, provide rich informational content, produce videos to educate and motivate customers. This is how engagement increases along with loyal numbers of customers.
What are the leading airline expenses?
The leading airline expenses are as follows:
The employment process expenses. These expenses are the most critical operational cost of an airline (33.5%).
Fuel expenses (19.6%).
Sales and marketing expenses. They are approximately 15.7% on the rise.
How do airlines control the marketing budget?
There are several ways the airline controls its marketing budget. A few of them are:
By conducting fuel-saving strategies
Operation procedure simplification
Introducing automation
Technology implementation
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Air Transport
Article | July 15, 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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Business Aviation
Article | December 10, 2021
Blockchain's abilities and features such as security, transparency, and centralizing systems can help aerospace companies reduce maintenance costs, minimize errors in aircraft parts and increase aircraft availability.
Blockchain technology has been valuable to one of the world's most complex and globally interconnected industries—the aviation industry. The technology can deliver ultimate benefits for thousands of suppliers, mainly involved in manufacturing an aircraft.
Aviation business leaders know that they need to adapt and innovate to survive. And blockchain in the aviation industry is one growing area of innovation that is yet to be explored. However, experts agree that aircraft maintenance and operations innovation will enable aviation companies to improve their efficiency. In this way, the technology will enhance performance and safety notions to the next level.
"We believe blockchain is significant in the aviation industry. Its probabilities promise to stimulate efficiency in the industry through maintenance process in general."
- Scott Thompson, the aerospace and defense leader at PwC.
Blockchain: A Technology of Trust
According to IATA's study in "Future of the Airline Industry 2035," blockchain study has been identified as one of the technologies that may significantly impact the future of aviation. It also states that demand for new commercial aircraft may reach nearly 40,000 planes over the next 20 years!
Looking at the demand scale, the companies that manufacture, provide services and operate aircraft mostly seek out AI, 3D printing, and blockchain technology. They would allow airline businesses to optimize performance.
"Blockchain is a lot about trust in the context of aviation, but the trust comes with huge costing."
- Scott Thompson
To him, blockchain for the aviation industry is like medicine. Through blockchain tools, the more data you have on every aircraft part, the better you can predict the parts' performance, longevity, abilities, and performance. Thus, the potential of predictive analytics will increase.
With blockchain, you have a snapshot of every part of the aircraft and know the parts' history. Moreover, the decentralized nature of blockchain made the maintenance process flawless, with all data being analyzed at the same time.
So, what areas can benefit from the blockchain and make a difference in aviation? First, let's highlight the part.
Blockchain Technology: Making a Difference
The Role of Blockchain in the Supply Chain
The supply chain in the aviation industry is looking promising for collaborations to happen in the supply chain. Blockchain will bring revolution in the long term to connect many loose ends in the supply chain ecosystem. The technology offers a prominent way to track data and provide consistent aircraft configuration data across the supply chain.
So, by knowing the absolute configuration of an aircraft part, blockchain solution empowers airlines and defense companies to share and authenticate data securely.
Blockchain in Aircraft Parts Tracing
Blockchain also plays a vital part in transforming maintenance logs and tracing aircraft parts. With the help of blockchain technology, you can ensure that parts being produced are authentic and meet the necessary airworthiness requirements.
For example, a blockchain application named Enspan, formerly known as Parts Pedigree, is pioneering. It could offer a more efficient approach to documenting an asset's lifecycle.
At the same time, with the help of blockchain applications, airlines would be able to sell and purchase parts with confidence. The only consideration is the documentation should be accurate and comply with all maintenance regulations.
Blockchain Applications in Loyalty Programs
Blockchain in the aviation industry can automate loyalty program transactions and security. It is relevant today as more and more airline companies are issuing credit cards, rental cars for accommodation, membership cards, and more like these.
By creating a standard digital currency like tokens using the blockchain, travelers can access instant value for flights on the spot. On the other hand, airline executives get a transparent understanding of how the revenue generates from reward programs.
For example, companies like Loyyal have already leveraged the benefits of blockchain to create digital wallets. These wallets will let customers store their reward tokens.
Deloitte mentions that blockchain for the aviation industry could be a game-changer in this field. This is because intelligent contacts can automate transactions through the blockchain, even in the supply chain.
Blockchain In Enhancing Security Measures
Blockchain technology, along with encryption, offers aviation an outstanding security blanket. As digitalization is speeding up, the need to have extra security layers for users is more critical than ever. So, for optimum security measures, blockchain employs cryptography that serves as a firewall against online threats and attacks. Any part of the information on the blockchain is stored cryptographically in secrecy.
Do you remember Malaysia Airlines Flight 370 that vanished in March 2014? The case was the biggest mystery in the aviation industry. There was no information on the flight's disappearance. Millions of dollars were spent trying to uncover the mysterious reason behind Malaysia Airlines Flight 370's disappearance.
The event is a clear example of why there is a need for a more robust storage mechanism. Blockchain usage in security measures is a priority to tackle such incidents in the future. In emergencies, information regarding flight routes, in-flight operations, location tracking, passenger data, and documents can be easily detected.
Flight-related data on a blockchain backup record adds an extra layer of protection in today's time amid centralized systems. However, it is all being done to ensure that all the processes remain transparent and effective.
Blockchain for Aircraft Maintenance
A commercial aircraft’s average lifetime remains up to 30 years. So, it's a laborious process to maintain documents associated with an aircraft.
On this, says,
"90% of entire maintenance records of an aircraft are paper-based documents. So there are millions of boxes."
- John Maggiore of Boeing
Understandably, such a system can have many drawbacks and lead to loss or fraud. For example, American Airlines in 2015 was proof of a fraud case in maintenance, which still can be an issue as senior aircraft have no chance of having a digital record.
So, when looking at the role of blockchain in helping airline companies go digital, there are higher expectations for the technology to serve in this field. In addition, the tools associated with blockchain technology can maintain an immutable record of aircraft, benefiting stakeholders in the aviation leasing community.
Furthermore, blockchain technology for the aviation industry can also speed up the release of an aircraft. It would be as simple as scanning a QR code on an engine to provide the entire history of the asset.
Hence, there is no stopping here! For example, companies such as Boeing are examining more and more blockchain applications. Similarly, Airbus has also demonstrated an interest in how blockchain technology could be used in supply chain tracking.
Therefore, by using blockchain to reinforce the Internet of Things, you can understand the potential of two crucial technologies working to work together to digitize and future proof airline processes.
Finally, Blockchain is Gaining Traction in Aviation!
The aviation industry operates under strict safety standards, regulations, and concerns. And the way it leads ultimately comes from the technologies it adopts (historical or present). For this reason, the bar of expectancy always remains high. On top of all, the pandemic has resulted in proving blockchain’s capabilities.
Among most airline companies, Airbus is intensely learning about the potential of blockchain. In addition, several other airline companies have expressed their interest in bolstering blockchain technology. As mentioned above, Lufthansa, British Airways, and Air New Zealand have already implemented the technology in their various airline projects. Whereas Air France in 2020 announced that it is looking forward to using the technology to enhance its maintenance activities.
The blockchain has already captured the needs of aviation businesses across the world. Still, the testing continues on the other side of the table. However, the providers of blockchain solutions are progressing rapidly.
Frequently Asked Questions
How is blockchain used in the aviation industry?
Blockchain in the aviation industry is gaining high value. It showcases its capabilities in tracking the status and location of flights, detecting parts, passengers' data in detail, monitoring operations in-flight, and more.
How can blockchain improve the aviation industry?
Blockchain in aviation can bring in much-required shifts and alterations. Shifts like improving ground operations, getting transparency in processes, transactions, costs, and revenue, and provide layers of securities to essential assets..
Do airlines use blockchain?
Airlines use blockchain technology to manage their take-offs and landing slots. The technology helps create cost-effective solutions to allow airlines to swap take-off slots and land more efficiently.e
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