Business Aviation
Article | January 7, 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. They have put efforts on surveillance approach on every business operation to increase accuracy by introducing technologies.
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Business Aviation
Article | December 28, 2021
Every month OAG updates its year-to-date Punctuality League table to provide an ongoing ranking of the world’s largest airlines and airports alongside its Monthly on-time performance (OTP) data. The list is based on the twenty largest airlines (by number of flights operated) known as Mega Airlines, and we provide a Top 10 ranking. With November Monthly OTPs now in, we have 11 months of data to take an early look at how these Mega Airlines have performed to date.
And whilst we have another month of data go, it is great to share some early insights before we release final numbers early next year.All the Top 10 airlines in our sneak preview currently come in with an OTP of over 85%. When compared to 2019, the last year of ‘normal’ flying, the Top 10 Mega airlines achieved OTP of between 75% and 86%, so this is a clear indication of just how much punctuality has improved over the past year.
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Air Transport
Article | July 6, 2022
Is the aviation industry finally reviving after the devastating 2020? If yes, then what will it show in the next five years?
2020 will be remembered in airline history as the most turbulent year to date. Due to the pandemic, the period brought massive changes in the airline industry—business models and customer behavior globally. As a result, regaining customer confidence and reforming business models have become a critical factor for airlines to uncloud the economic storm and remain a formidable competitor in the years of uncertainty ahead.
Technologies that were being used before the pandemic are now being studied well with vividness. The inclusion of new technologies is onboarding, which somehow sets up new aviation industry trends. These will be a timely solution to fight the ongoing economic instability and challenges pouring in.
To increase safety notions, boost business confidence, customer trust, and making airline operations more efficient, adaptability and high intelligent business outline is the new blueprint for survival and growth to happen in the next five years.
Drivers of Emerging Trends
The intention of emerging trends in the airline industry is from weak signals from a wide range of fields, including threats, technology, and potentiality to function remotely, impacting the industry’s all-over operational dynamics.
The trends are setting primarily due to the winds of change pounding the industry from different directions. Be it from technological, demographical to environmental shifts. Understanding the potential business landscape is therefore critical to ensure what the future of air travel will be.
During a study conducted by IATA, business leaders in the airline industry identified the most critical drivers of emerging trends that were probable to have an influential impact by 2035. Also, these drivers suggest bringing more and more opportunities in business models and operational models of the industry beyond 2020.
Therefore, it is the hope of all airline companies (you) that how you will be affected by future developments and how the entire business landscape will be changed by the trends discussed here. So, take advantage of the opportunities that some of these trends may give rise to.
Leading Aviation Trends to Expect
Cybersecurity
Today, the importance of cybersecurity technology in the airline industry is rising. Airlines, now being aware of the downsides of using traditional operational models, is becoming more concerned about delivering high-performance using technology.
With having well-operated cybersecurity functionality onboard, airlines are focusing on becoming more agile to scale their infrastructure. Also, in the next five years, increased connectivity between the real and virtual world, including robots, will eventually end the boundaries between virtual and physical security.
IATA’s research with the London School of Economics found that the aviation industry will invest $15 billion by 2035, thanks to connected operations.
Moreover, as cybersecurity matures, it will be seen as the most secure and scalable way of operating organizational data, and processing will be easier than before. You will have your airline documents within a secured centralized database, which will reduce silos of information that pose security risks and threats.
Biometric Technology
The pandemic, apart from bringing challenges, has helped businesses to leverage influential ideas to foster. Yes, it has made the airline industry emphasize the high usage of biometrics as a must-have technology stack. Biometrics is on the rise that can reinforce the idea of touchless operations in airports.
The airline industry forecast has laid primary focus on self-service. However, as the blend of software and technology is more in demand, applications will be more defined than before in the coming five years. The technology will allow automated checks, self-service systems using devices like mobile, tablets, and others and cover iris, face recognition, fingerprint, which will even work with PPE masks.
The industry is already making great experiences that allow businesses to conduct frictionless operations using biometric software and hardware. For example, in November 2020, Star Alliance introduced a novel interoperable biometric identity scanner platform for screening employees and passengers at airports.
AI & Big Data
Artificial Intelligence (AI) welcomed massive opportunities in transforming aviation business operations amid the ongoing crisis. This technology in the airline industry has immensely aided companies in collecting data and forming a virtual assistance environment for queries, enhanced logistics operation, security, and self-services with highly augmented reality.
A market survey reveals that 97.2% of the aviation companies are installing big data and AI together. In fact, 76.5% of airline companies are gaining the value of data collection with the help of big data and AI. Source: resources.vistair.com
AI is also being set up in terms of safety improvement initiatives and potential safety issues. In this case, Southwest Airlines partnered with NASA to build an automated system capable of preventing potential threats and breaches by using machine-learning algorithms.
Green Technology
Green technology is one of the upcoming trends in the airline industry in the next five years. The prediction is it will make novel changes in the airline industry from various directions like the workforce, shares, stakeholders, and governments.
In the green tech concept, it is the generational shift and advancement that may head the change using new tools. These would bring in notable opportunities beyond 2021.
If you observe, the pandemic has driven the agenda of sustainability in terms of climatic conditions. And you will be surprised to know that aviation has already put up a serious concern in its fossil fuel usage by 2035. Even aircraft manufacturers have begun their journey with green technology.
To clarify this, the main objective of sustainable development for the coming years is decarbonization and green technology investment.
Aviation companies like Japan Airlines and IAG are investing to bring net-zero carbon emissions by 2050, and by 2045, they aim to achieve carbon neutrality. And these, of course, are happening quickly due to digitalization.
Expecting a Sustainable ‘DIGI-TECH’ Future
As the pandemic brought downturn and slowdown in the airline industry, they have prioritized investing in digital by recognizing its importance and the optimum necessity. It is because it will be one of the significant ways for you to bring customers back and show your potential to endeavor services in a changing industry landscape.
So, technology and digital together must be supported that respects businesses’ need to invest in multiple areas of functionality. On the other side, revenue management goals also need to be focused on to gain success among competitors. And following the path of trending digital platforms will make you victorious over revenue management performance objectives. In this way, you will be in the skin of the game and would observe your company rising through the challenges over the coming years.
Frequently Asked Questions
What are the topmost technologies that will define aviation beyond 2021?
The technologies—3D printing in manufacturing, automation, and robotics are the topmost that will define how the aviation industry will be beyond 2021.
How is technology being used in aviation?
Airline operators use technology to market their services and products, advancing their software to leverage functionalities like biometrics, automation, cybersecurity, AI, big data, and more. Also, technology is being used to make safer airport operations like touchless checks to make safe for passengers.
Will the aviation industry overcome challenges?
Up until now, globally, the aviation industry is maintaining positive growth, despite prevailing challenges due to COVID-19. Technologically, it seems that the industry will foster slowly and gradually. Yet, there is sluggish growth economically due to high jet fuel prices.
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Defense and Space
Article | June 8, 2022
Whether you’re a small, newer airline looking to make a splash in the online world or a niche brand wanting to expand your customer base, you’ll need the right aviation marketing strategies in your arsenal. Similar to any other industry in today’s market, digital strategies are non-negotiable for brands in the aviation space who are hoping to connect with customers online and restore customer confidence in the aftermath of COVID-19.
And if you’re looking to take your brand to the digital skies, you need impactful strategies that help you offer a seamless customer experience. Let’s look at five strategies you can use for your aviation marketing strategy.
Aviation Marketing through Social Media
Visibility is a hugely important goal to achieve for any business. After all, how can you hope to attract new customers if no one knows about you? This is especially true and important for smaller airlines or those not operating in the commercial space. For example, when the average customer thinks about traveling by plane, they probably aren’t considering private airlines.
But if customers see content online about airlines, perhaps even highlighting that some private airlines fall in their price range, things can change. Once customers are aware of your company, you’re one step closer to securing a sale. The key is getting in the picture in the first place—something social media can do.
In addition to visibility, use social media to keep your customers informed. Despite us seemingly living in a post-COVID world, uncertainty is still a big factor that customers and airlines alike have to consider. Positive coronavirus results or transmission outbreaks can throw a wrench in travel plans right up until check-in, but social media offers a way to keep customers informed with live information and updates.
Airlines can use social media platforms like Twitter to post live updates on flights, including regular information on delays, but also more unexpected and yet super useful updates on things such as weather conditions at their destination.
And if you’re looking for international aviation marketing strategies as a multinational company, social media is a great way to connect with customers across territories too, thanks to its global reach.
Digital Customer Service Strategies
We saw during COVID-19 how important it was to provide quick, accurate information to customers, with things like up-to-date websites, live social updates, and automated texts for flight changes. These strategies all helped to streamline customer service offerings, as well as free up helplines and customer service booths at airports, and they have helped establish a new benchmark when it comes to customer service.
Having a solid customer service strategy in place is more important than ever—specifically, having one that’s responsive, flexible, and digital. This means offering smart chatbots that can assist with frequently asked questions, detailed guidance online addressing common challenges that customers face, and over-the-phone support in multiple languages that can enhance an international aviation marketing strategy.
Customer service might not seem like it matches with airline marketing, but going above and beyond for your customers is essential in creating the right reputation for your brand. Establishing your company as a gold-star service provider will not just give you something to shout about online, but it will also keep customers loyal and engaged with you too.
Mobile Solutions
We all know that the future is mobile—and it’s no different for aviation companies, who have that same pressure to keep up with technological advancements if they want to provide the best service possible for their customers.
Smartphones are an integral part of all of our lives, and they’re now just as important as ever, as people are taking their digital identification with them on their travels. Aviation companies must recognize the company they keep in the travel space, where mobile apps support customers on their journeys and trips—from navigation to weather and accommodation to ridesharing. Without an interactive app or fully mobile-friendly site, an airline’s strategy for marketing won’t be as impactful.
Customers used to have to carry printed versions of their flight documents in order to board, including boarding passes and booking confirmations, but things aren’t so paper-based anymore. Digital wallets that keep boarding passes safe and apps that store customers’ flight information are the norm now.
Mobile apps are also fantastic for driving loyalty programs. With an interactive app where customers can collect and cash in loyalty points, you not only provide an easy way for customers to enjoy their rewards, but also make flying more accessible and cost-effective.
In a post-COVID market, there is even more of an emphasis on contactless travel—another area where mobile solutions can play a key role. Phones allow consumers to have all their information handy, and other contactless technology helps facilitate airport management.
Content that Creates Real Connections
Digital content has the potential to reach a wider audience and, more importantly, turn readers into customers, so it should be included in any airline marketing strategy. Showing customers exactly what your company can do for them, and how you do it, is crucial for establishing strong branding and customer relationships. It’s how airlines can differentiate themselves from their competitors and add value to their services.
Meaningful content that your audience will trust includes user-generated content that offers real insights into what it’s like to be a customer of your company, such as honest reviews and feedback from real customers. You can deliver this content in a variety of ways—e.g., blogs, videos, social media, PR—but however you choose to do so, be sure to keep the story at the forefront of your narrative to create those all-important connections with customers.
Omnichannel Digital Experiences
Alongside social media, there are a slew of other digital channels that should be considered in your digital strategy. This is hugely important because of the myriad ways that consumers interact with the online world nowadays. If it’s not live Twitter updates, it’s check-in reminder emails. The point is that brands need to be present across different platforms and digital mediums in order to provide a competitive and effective experience for their customers.
For airlines, it’s about making sure that no matter what device a customer is using, their journey is cohesive and streamlined. They should be able to switch seamlessly between your website on their laptop and emails on a tablet, with the right information easy and quick to find in a consistently branded way.
It’s also worth considering that people tend to carry multiple devices with them while traveling, making it even more important for airlines and airports alike to offer omnichannel digital content to their customers.
Conclusion
Whatever part of your aviation branding or marketing you need support with, the team at TPT Digital can take your brand to new heights. The 2022 Aviation Festival is a great opportunity for learning, connection, and collaboration—come and say hello to us there!
Also, get in touch if you’d like to discuss how TPT Digital can support your paid social media content. We’re happy to give you a free quote.
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