Why is aviation so important?

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The air transportation system is critical to U.S. economic vitality. Aviation drives many different parts of the economy.

Spotlight

EVA Airways Corp.

EVA Air embraces core values that promote safe and punctual flights, friendly and professional services and innovative, efficient operations. EVA made its maiden flight on July 1, 1991. Now, our network spans the globe, stretching from Asia and China to Europe, North America and Oceania, and links more than 60 cities.

OTHER ARTICLES

The Boeing 737 MAX – What Needs To Be Fixed?

Article | March 26, 2020

The Boeing 737 MAX is one of the most praised and also the criticized aircraft ever built. On one hand, it has been popular with airlines with plenty of orders for the American planemaker. However, since being grounded many airlines have become nervous about utilizing the type. How can Boeing move forward? As mentioned in the introduction, the Boeing 737 MAX is a fine aircraft if you look at the pure numbers. It has great fuel efficiency, very versatile thanks to its range and perfectly hits that sweet spot with passenger numbers.

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BUSINESS AVIATION

Airline Marketing: Evolving Through COVID-19 Impact & Rebuilding Future

Article | March 26, 2020

The unprecedented wave of Covid 19 created significant turbulence in the aviation industry that made the industry face daunting new challenges. However, as airlines continue to respond to the challenges, the marketers remain focused on paving the way for quick recovery. Whereas, aviation experts admitted that this black swan event impacted the airline industry roughly. The impact of COVID-19 on airlines was forced to face bankruptcy, destruction of financial packages, and complete changes in the airline industry in terms of security. Therefore, while keeping the fact that COVID-19 will have longer-term repercussions, it’s imperative the airline industry would quickly reduce the impact on its stakeholders and operations. And for this, airlines need to go beyond conventional thinking and come forward in using technology to dig in for the long haul. Airline Industry: Riddled with Challenges Amid COVID-19 Given the airline market behavior during the Covid-19 crisis, it has many opportunities to target different marketing segments through direct and indirect channels. However, some complexities that challenged building an effective marketing strategy were: Drop-in Revenues According to KPMG, commercial revenue has been a rich source of income in airline businesses; it contributed more than 50% of inclusive revenues in the airline industry. However, a large share of revenue is generated by marketing which has completely dried up with minimum footfalls. Reduced economic growth, absence of remote work arrangements, and loss of operational models have been some of the fallen parts of the airline industry to deal with this new reality. IATA, at first, stated that airline revenues could fall by $314 billion in 2020 owing to COVID-19, which is a fall of 55% compared to 2019. However, further analysis revealed that it fell $419 billion more in the same year. Also, the second quarter of 2020 saw a nearby decline to $43.5 billion in revenues compared to the projected baseline, a reduction of more than 1%. Impact on Future Investments The impact of COVID-19 on airlines was much on the plan for future investments and asset building. These areas posed significant challenges for airline businesses and investors to monetize assets or repurpose them to create shareholder value. In other ways, competition from newer asset-light businesses also posed an additional challenge on asset building and profitability. How has Airline Industry Retorted to the Pandemic? Most businesses have reduced all new investments, freezing shares, maintenance, and partnership costs. These have been the extreme response expected in the war—COVID-19, which is even gimmer than war. But, despite all the impact of COVID-19 on airlines, airlines have responded with alacrity. The crisis made them stand by quickly developing new business processes and operations, research models. In a longer time, changes in the airline industry weren’t so significant. Airlines are also witnessing a radical shift in their development priorities and unique opportunities to conduct research. The desire to provide additional pressure on revenue management systems to predict demand more accurately has also been the core force of development. Let’s understand more under the following points: Technology Makeover In a progressively evolving digital-only landscape, the technology carries more value if used well. Investing in the right tools and technology can help monetize assets better and significantly improve operating efficiency and customer experience. Refocus on Cost-line Innovations in marketing strategies, technology can suggestively change the cost of providing services for both airlines and airports. It can help give more pressure on both affordability and profitability. This area of transformation can stimulate significant savings in operating costs and could become the norm for the best performance of marketing. Innovate COVID-19 has spawned the best inventions and innovations. The value of data and technology that you have access to today cannot be overstated. Yet, the aviation industry has shown the resilience to come back stronger and smarter. Therefore, there is a necessity for a thoughtful, analytical, and consistent approach to reforms to help the industry function at a newer and higher altitude and redefine its new normal. The changing geopolitical marketing scenario and impending operational shifts globally demand a swift and nimble approach. Advantageous changes in airline industrial policy in COVID-19 will be required to feat the opportunity, with accrete marketing strategic gains and create a better future. In a nutshell, airlines had to reinvent how they looked at bookings, employee management, and revenue management, as the previous curves were no longer relevant, and the training data used for machine learning algorithms were no longer valid. Now, airline businesses are exploring novel ways to shorten the old methods used in forecasting, pick up on trends more quickly, and incorporate demand adjustments made by manual revenue management users. Finally, the writing is evident on the wall—as airline stocks continue to falter (by 16 to 20%), the industry needs to go beyond conventional thinking and use technology to dig in for the long haul. Airline Marketing: Path to Recovery with 3 Important Tech-Strategies Inclusion of Advanced Analytics In the next five years, airline businesses will proceed to develop their ability to install advanced analytics. Although the industry has been using advanced data and analytics, there are expectations that marketing leaders will expand the entire value chain of analytics more progressively. Data-backed analytics will render insights to pinpoint geo-specific interventions for maximum ROI. While traditional sources of competitive advantage for airlines such as products, networks, technology will continue to gain importance, it is believed that increased usage of data science and advanced analytics will help the industry to augment these sources to deliver notable performance improvement. Rapid Adoption of Data Science The aviation industry is part of the change, too, in terms of technology development. Airline Technologies in Covid is radically varying the way businesses connect with their customers. The data required is allowing businesses to take informed steps towards operational efficiency. While embracing new technologies, changes in the airline industry are witnessing the addition of artificial intelligence (AI) to the maximum so that businesses can operate in the post-COVID-19 scenario. Control of Digital Solutions As airline market behavior during the Covid-19 crisis has incurred changes in the airline industry, the control of digital solutions has come to the rescue. The solutions are in need to shift resources and efficiently scale to maintain operations. Digital tools can help with a wide range of business efficiency, sales and revenue management, marketing, and network planning. Opportunities to Reimagine in Post COVID-19 Era Here are the significant ways in which it could be done. Operating Model Airlines today need a data-driven operating model with a mindset that pushes accountability across each touchpoint in the business journey. Marketing teams should be organized around journey stages keeping technological aspects on board. The operating model should be accompanied by KPIs that should be measured across the customer journey and regularly shared with every team member. Digital Transformation The airline industry could consider stepping up IT, digital, and automation investment now. The crucial strategies for digital transformation are driving data-driven platforms and personalization. Tracking business interaction at every touchpoint with the brands and their products enables better predictive analytics. This means integrating digital solutions with enterprise systems and making the data available at the point-of-sale for sales associates to view, interpret and recommend products accordingly will enhance the convenience of operations. In the case of point, airlines businesses can respond to the faster recovery of short-haul flights by investing in direct sales, owning the customer relationship. Also, relationships with IT and its providers could be re-considered and explore from a technologically perspective. Beyond this, other initiatives which involve efforts like using data in smarter ways to enhance decision making, requiring some investment to yield significant payoffs, are in the line of digital investments. Virtual Reality Gone are the days with COVID-19, when customers were physically involved in the airline business and running it successfully. Unfortunately, the panic of the pandemic is here to stay as a part of our life. So, companies will need to think out of the box. Several tools are available in the market today to avoid physical interactions. Brands have introduced their own ‘Virtual test and try’ tools for marketing and sales purposes. For instance, Guerlain invested in gamification and launched a mobile game called ‘WeChat’ to promote its sales deck. Similarly, to enhance the operational desk, Lancôme introduced ‘Virtual Mirror’ - an augmented reality virtual makeover app.12 ‘Modiface’- a Canadian AR and AI company, was purchased. Its product performs virtual try-on simulations and is enabled to support live video for all airline operations. So, the crisis and issues the airline industry facing in the Covid‑19 on revenue generation will still be intensely felt in 2021-2022, as it was earlier. But it is expected that the coming quarter of 2021 will show improvements compared to the previous. This means the industry, which was moving from a decline of 7% in the first quarter of 2021, will see a decline of 35.2% in the fourth quarter compared to the projected baseline. How to Plan a Marketing Strategy for your Airline Company? Being in the market already, you can understand where the roots of a marketing campaign come from. Nearly all the airline businesses arise their marketing activities from their vital target group or according to the demand to promote a new product. There is no solitary way to create a marketing campaign because it involves many company-specific details. Here, you will need to understand how you can stay ahead of your competitors in the marketing field to yield revenue. Here is a brief sum-up of some valuable points that can help you. Stick with your Customer Segment: Business or corporate travelers differ in their travel behavior and priorities. So, while you run a marketing campaign, it should highlight this factor as a prime concern. Focus on the Product you will Market: This point covers that you need to consider that all the product dimensions (digital, physical, service) to market should consider on parameters like how do you want it to market, what are your secondary aims, and how can you benefit from customer actions. Foster Interaction: So, try to keep as much interaction with your customers as possible. It does help to build loyalty, establish relations with your brand, and source valuable data about your customers. By doing this, you will be able to create a personalized experience for them in the future. Be loyal: As long as you are not an ultra-low-cost airline operator, you will perhaps have to reward the loyalty your frequent customers give you. Special offers, discounts, and loyalty programs make your brand a company to stick with forever. Keep an Eye on Competitors: As the airline market has high competition and competitors, your team creating a marketing strategy must include two key elements: your market position and your competitors. And the last, you must maintain a balance between competition and customer loyalty at any cost. Frequently Asked Questions What are the top three issues the airline industry is facing in the Covid‑19? Although the airline industry faced several challenges, the worse challenges were: Sluggishness in travel/travel bans Loss of revenue Data loss Which airlines have been most affected by coronavirus? The list of airlines worst affected by covid-19 goes as: China Southern Hainan Airlines Singapore airlines Japan airlines Korean Air & Asiana Middle Asia British Airways United Airlines What is the future of the aviation industry after covid-19? From the perspective of the COVID-19 scenario, the aviation industry needs to pick itself up and begin rebuilding. From hygiene and health standards to aircraft data management to monitor an aircraft’s components and onboard equipment can transform airline operations. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are the top three issues the airline industry is facing in the Covid 19?", "acceptedAnswer": { "@type": "Answer", "text": "Although the airline industry faced several challenges, the worse challenges were: Sluggishness in travel/travel bans Loss of revenue Data loss" } },{ "@type": "Question", "name": "Which airlines have been most affected by coronavirus?", "acceptedAnswer": { "@type": "Answer", "text": "The list of airlines worst affected by covid-19 goes as: China Southern Hainan Airlines Singapore airlines Japan airlines Korean Air & Asiana Middle Asia British Airways United Airlines" } },{ "@type": "Question", "name": "What is the future of the aviation industry after covid-19?", "acceptedAnswer": { "@type": "Answer", "text": "From the perspective of the COVID-19 scenario, the aviation industry needs to pick itself up and begin rebuilding. From hygiene and health standards to aircraft data management to monitor an aircraft’s components and onboard equipment can transform airline operations." } }] }

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AIRPORT MANAGEMENT

A Stepwise Guide to Re-position your Airline Brand amid the Pandemic

Article | March 26, 2020

Hit by the impact of the COVID-19 slump, airline businesses are enduring a major crisis no matter how recognized they were before. The crisis has pushed airline businesses to re-look at how to manage and operate their operations. It even includes re-positioning in the airline industry’s competitive market landscape. In a time like this, you need to delve deep when you update your airline brand positioning strategy. Your marketing team will have to be versatile and adapt to a new set of planning strategies. They should be mindful of aspects to reduce risks and overcome challenges that the pandemic caused. It’s time to rise again through hindrances that affected your airline brand image to go down. Let’s throw some light on why brand positioning in marketing has become necessary now. Importance of Re-positioning of an Airline Brand Brand positioning in marketing is receiving snowballing attention in airline marketing today. Adopting versatile branding concepts creates optimism to provide value to products and services. And such concepts help products and services to perform well on various distribution channels. The values play an active role in brand positioning and so in re-positioning. Since customers’ activities have transformed in the new era of digitalization, deciding afresh on values will help you position your brand for the future. The branding must include a proper blend of physical and emotional values to make the brand both powerful and meaningful. When faced with challenges, it’s natural for even large airline businesses to become unrecognizable by customers. Thus, showcasing your brand as unique as possible becomes hard-hitting to differentiate from the competition. In that case, the idea of re-positioning requires consistent branding strategies. The strategies can help in many ways. A few of them are maintaining customer loyalty, encourage awareness, and showing customers your presence in the market. Therefore, to build deeper relationships with customers by re-positioning your airline brand, there are some important steps to follow. The stepwise guide will help in creating a competent brand positioning framework development. But remember, the framework should be defendable for growth. 6 Steps to Follow: Re-position your Airline Brand Determine your Values Start by considering the values that will represent your airline business brand. By finding the values, it will make you different from the rest of the competitors. Especially in a case where you are going for product marketing or service as an ordinary in the market or marketing it extraordinarily. Your aim gives you essential insight into what and how to go with the brand again in the new normal. Thus, try to analyze and research aspects of your competitors as well. We fight every day to stand out. We know our customers like to sound and feel authentic about brands. So, we believe that instead of building a complex picture of our airline brand (where no one will be able to understand), we prefer humanization. - Kevin Krone, the Vice President and Chief Marketing Officer of Southwest Airlines. In realizing this aspect, your marketing team can innovate by creating campaigns to improve brand image. Identify the Competitors Surrounding and Research After recognizing the brand values, it’s requisite to analyze competitors serving in the market as you. You can do it by performing competitor analysis. The analysis will help to decide how better you can do in creating your brand positioning strategy. To start with it, there are different methods for determining your competition. They are: Do a thorough competitor research You can take guidance from your sales team to study what and how competitors develop their distinctive ideas with sales. Then, identify them through in-depth market research on their tactics of positioning their brand. To conduct it, include the following points into your research: What are the services or products competitors do offer? What are the brand positioning strategies they are using to ensure success? What is the current position of their brand in the market? It will be easy for you to set your aim to re-position your airline brand by putting these considerations forefront. Take Feedbacks from customers Connect with your existing and potential customers. Try to know what services or products they are considering according to the present scenario. Use the power of social media Social media platforms like LinkedIn, Quora, Facebook, and other online forums offer interaction with consumers. You can ask questions about products and services. Use these forums to discover competitors in your role. Find your Brand’s Uniqueness Building a unique brand image (by keeping a similar aim as before) will make you different from the competitors in the airline industry. We are the same exact airline that we were before. We are not walking away from our DNA. - Kevin Krone Your well-researched step on competitors will help to learn about branding patterns in the new normal. In addition, by looking at their weaknesses and strengths, you might get a chance to know your strength. This aspect will make your brand unique. Develop a Re-positioning Statement Once you know your customers' thoughts, you need to develop a statement that portrays your message. If you aim to convey that your business offers the best services or products in the market during the current economic slump, then it’s imperative to keep a razor-sharp focus on a brand positioning strategy. For example, you can include your ROI data. Use it as a statement in online paid ads, social media platforms, campaigns, emails, and other marketing methods. By doing this, you will be able to grab your existing and potential customers’ attention. And see how potential ones become loyal towards your business in no time. There’s no definite way to re-position your existing airline brand in times of the pandemic. But there are some crucial ways to do it. The ways are customizing efforts enable significant chances to offer quality services and products to reach customers. Test your Re-positioning Statement—if it works! Once your re-positioning statement is formed, it’s time to test it. Try to do experiments with the help of feedback collection from customers. The feedbacks should cover if they are conveyed with the right message. Therefore, in this way, you can know whether your brand achieved its goal or not. As you invest effort and time into re-positioning your airline brand, it’s helpful to keep in mind the type of consumers, demographic segmentation, and verticals. These verticals provide a deep insight that content and its aim remain advantageous to your brand. Develop your Brand’s Reference Frame Your brand’s reference will be an accurate way for customers to perceive it in the right way. Having a genuine brand positioning framework today is vital for re-positioning. And with the help of an on-point brand development strategy, you can plan it extraordinarily. Once you have created the frame of your brand, it is advisable to keep a focus on reaching achievable goals. Successful Re-positioning Efforts Drives Growth As you are aware that a strong branding of an airline business makes all the difference when you enter the market, similarly, re-positioning also makes a difference when you have to outshine again amid challenges. So, having a definite approach will ensure success for your brand and drive growth amid the ongoing pandemic challenges. Frequently Asked Questions How can airline businesses improve their brand image? An airline business runs with a multitude of functionalities. Every function plays a responsible role in improving the brand image. Thus, some crucial ways are discussed below: Create the right message which should be synonymous with brand value or perspective Stay in contact with customers through various marketing ways Keep track of strategies and implementation Turn data into intelligence Keep an eagle eye on competitors and their activities Keep employees in the loop What are the best branding strategies for airline businesses? The best branding strategies for airline businesses are as follows: Cost control strategies Social media campaigns Creative advertisement Loyalty programs Use power of influencers { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "How can airline businesses improve their brand image?", "acceptedAnswer": { "@type": "Answer", "text": "An airline business runs with a multitude of functionalities. Every function plays a responsible role in improving the brand image. Thus, some crucial ways are discussed below: Create the right message which should be synonymous with brand value or perspective Stay in contact with customers through various marketing ways Keep track of strategies and implementation Turn data into intelligence Keep an eagle eye on competitors and their activities Keep employees in the loop " } },{ "@type": "Question", "name": "What are the best branding strategies for airline businesses?", "acceptedAnswer": { "@type": "Answer", "text": "The best branding strategies for airline businesses are as follows: Cost control strategies Social media campaigns Creative advertisement Loyalty programs Use power of influencers" } }] }

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Why Has Airbus Built The A321XLR?

Article | March 26, 2020

Why did Airbus build the A321XLR? Why did they look at the market and decide that it needed an aircraft that could fly 4,700 nautical miles non-stop with passengers in a single-aisle? And why have airlines fallen in love with the aircraft? Let’s discuss why Airbus saw a need for this aircraft, and how airlines have reacted.

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Spotlight

EVA Airways Corp.

EVA Air embraces core values that promote safe and punctual flights, friendly and professional services and innovative, efficient operations. EVA made its maiden flight on July 1, 1991. Now, our network spans the globe, stretching from Asia and China to Europe, North America and Oceania, and links more than 60 cities.

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