Page 29 - AAA JANUARY - FEBRUARY 2018 Online Magazine

the attention of as many as pos-
sible and also in an effort to upsell
themselves.” However, focusing
their digital investments on the
customer-facing side, like web-
sites and mobile apps is not a
complete solution. Whilst that
remains an important factor, it is
essential that airlines recognize
the vast potential for efficiency
and cost reduction that digi-
tal technology can bring in this
industry.
“Many Americans never leave
the country in their lives
(There is nothing negative
about that. It’s a huge country
and the need never arises.)
because of which there isn’t
a need for passport immi-
gration. In Europe too, the
Schengen regulations allows
seamless travel. In South
East Asia, however, travel
requires some form of immi-
gration everywhere,” said
Kruss while talking about
the role of digitalisation in
creating seamless travel.
“Airline operators have to
work very closely with the
airport operators. Bottlenecks
are created when you are not
in full control of the journey
and a part of it is being looked
over by the airport operator,
where u have limited control.
Unfortunately, even with
digitalisation if the bottle-
neck cannot be removed, the
airline ends up creating and
awful travel experience. So,
you can invest as much as
you want in other parts of the
value chain and still end up
with bottlenecks that prevent
smooth experiences.”
ASIAN AIRLINES & AEROSPACE
Unsolved Riddles
an there be a downside to this ideal situation of creation
of seamless travel? What happens if a passenger arrives
just minutes before boarding the aircraft? It would definitely
Cimpact into the non-aviation revenue – duty free shopping at
the airport, for example. This is a riddle which many operators do not
have a clear answer for. There are many such questions that airlines
have to ask themselves – Where can they value-add? What are the
factors that are truly out of their control? What are the opportunities
they can monetize on? Then again, there are certain services which
may not reap profit but if the airline does not provide it, it can affect
its brand image.
From service point-of-view the LCCs can play around with really low
but attractive offerings (ancillary revenues). The FSCs, on the other
hand, can have a hard time from their DNA perspective. They have
always sold seats, meals and baggage together so will the break-up
of this combination affect the airline’s brand value? Coming back to
the Segment-of-One, the FSCs will not only charge each and every
traveler what he will be willing to pay but also tailor the experience
of the product to what he is most comfortable with.
Digitalisation is also one of the driving forces that requires market
players to innovate, however, it is just a matter of time when a suc-
cessful innovation/product by one airline is soon adapted, replicated
and made more affordable. As the aviation industry embraces digi-
talisation, the warning signs are emerging - cybersecurity as well as
science and engineering talent being lured away to a more advanced
digitized industry. The biggest challenge being the lack of digital cul-
ture and training. There are strong arguments for investing in supply
chain digitization to improve operational efficiency. To stay ahead, as
others catch up, companies must ensure that their digital strategies
continuously evolve. It is this understanding that will play a decisive
factor in who will prevail and who will perish.
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