Aviation Technology
Article | July 26, 2022
A New System That Aims to Create Carbon-Neutral Aviation
Scientists have achieved an amazing breakthrough in the development of carbon-neutral fuel for the aviation industry. An aviation fuel production system that uses water, sunlight, and carbon dioxide has been put into action. Its design was published on July 20th, 2022, in the journal Joule. The dream of achieving carbon-free aviation could become a reality with this development.
“We are the first to demonstrate the entire thermochemical process chain from water and CO2 to kerosene in a fully-integrated solar tower system.” - Aldo Steinfeld, Professor, Study Corresponding Author, ETH Zurich
The aviation industry accounts for approximately 5% of the global anthropogenic emissions that contribute to global climate change. The industry heavily relies on kerosene, commonly known as jet fuel, a liquid hydrocarbon fuel derived from crude oil. There are no clean options to power commercial flights on a global scale at the moment.
Production of Synthetic Kerosene
This breakthrough, with the help of solar energy, makes it possible to produce synthetic kerosene from water and carbon dioxide instead of crude oil. The amount of CO2 emitted during kerosene combustion in a jet engine equals what is consumed during its production in the solar plant. It is what makes the fuel carbon neutral, especially if the CO2 in the air is captured and directly used as an ingredient, which could be possible in the near future.
As part of the European Union's SUN-to-LIQUID project, Steinfeld and his colleagues put forward a system that uses solar power to generate drop-in fuels—synthetic alternatives to fossil-derived fuels like kerosene and diesel. Solar-produced kerosene is consistent with the current aviation infrastructure for allocation, fuel storage, and use in jet engines. It can also combine with fossil-derived kerosene, according to Steinfeld.
High Hopes for the Future
Steinfeld and his team began scaling the construction of a solar fuel manufacturing plant at the IMDEA Energy Institute in Spain half a decade ago. The plant has 169 sun-tracking reflective panels that redirect and concentrate solar radiation into a tower-mounted solar reactor. This concentrated solar energy then powers redox reaction cycles in the reactor’s porous ceria structure, which is not absorbed but can be reused. It transforms the water and carbon dioxide into syngas, a customized mixture of hydrogen and carbon monoxide. This syngas is then injected into a gas-to-liquid converter and is finally converted into liquid hydrocarbon fuels such as kerosene and diesel. Steinfeld and his team are working on amping up the reactor’s efficiency from the current 4% to more than 15%.
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Air Transport
Article | July 6, 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.
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Be responsive towards customers"
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Business Aviation
Article | January 7, 2022
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
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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 "
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Use power of influencers"
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Business Aviation
Article | October 27, 2021
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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