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Airline CIOs ramp up digital investments

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 01 Feb 2023

Chief information officers (CIOs) of airports and airlines across the globe are ramping up their investments in technology, to digitalise their operations and speed up passenger journeys to ensure rapid post-pandemic revenue recovery.

This is one of the highlights of air transport communications and IT provider SITA’s 2022 Air Transport IT Insights report, released this week. It reveals that with post-pandemic recovery plans in place, aviation CIOs are working to ensure their operations are agile and resilient, as they face increased disruptions, baggage mountains and staff shortages.

The aviation industry was among the worst hit by COVID-19 lockdowns, with all sub-sectors reporting large-scale losses over the past two years, as a result of closed borders and travel restrictions.

Despite this, SITA notes the industry’s IT spend is projected to continue its steady year-on-year growth trend since 2020 to support the push for digitalisation, with 96% of airlines and 93% of airports expecting their IT spend to stay the same or increase in 2023 compared to 2022.

Last year, airline and airport IT spend rose to an estimated $37 billion and $6.8 billion respectively, according to SITA.

This has spurred an acceleration of digitalisation, with airlines and airports looking to key technology solutions, such as advanced self-service, biometrics, artificial intelligence (AI) and machine learning (ML), to fortify their operations against disruption.

“Air travel has recovered faster from the pandemic than anyone in the industry had initially expected, particularly in Europe and the US,” notes David Lavorel, CEO of SITA.

“While the recovery is welcome, airports and airlines have found themselves on the back foot with staff and resource shortages. This has put strain on operations, resulting in an increased risk of congestion, delays, cancellations and mishandled baggage. Digitalisation is seen as key to addressing these challenges, providing more scalability and flexibility.”

Technological deficiencies, which forced Southwest Airlines to cancel nearly 17 000 flights over the December festive season, spotlighted airlines’ need to upgrade their tech systems. According to reports, the incident exposed major tech-related shortcomings faced by many airlines across the globe.

This month, the airline announced it will invest $1 billion to revamp its aging IT infrastructure.

ITWeb previously reported that Airports Company South Africa (ACSA) is preparing to invest R100 million to become among the first African organisations to introduce digital identity verification technology for passengers.

According to ACSA CIO Mthoko Mncwabe, the partially state-owned airport management company sees digital identity technologies as a seamless way to facilitate movement of passengers, without them having to present physical proof of identity documentation.

Achieving more with less

According to the SITA report, airlines are placing great emphasis on IT tools to provide the best passenger experience possible, even amid staff shortages and budget constraints.

AI and ML-based business intelligence solutions are at the forefront of airport IT investment priorities, with 93% or more planning business intelligence initiatives for asset management and flight operations by 2025.

“Over the next three years, 90% or more of airlines are planning to invest in IT service management enhancement and disruption warning systems, as well as business intelligence initiatives for aircraft turnaround management, passenger processing and baggage processing.”

To support effective baggage management and empower passengers following a period of significant disruption, the majority of airlines plan to provide real-time baggage tracking information to passengers by 2025.

“Airports are similarly prioritising self-service initiatives, placing strong emphasis on self-check-in and self-bag-drop, with 86% planning implementation by 2025. Their use of a secure single biometric token across all touchpoints has surged from just 3% in 2021 to 39% in 2022, with over half planning implementation over the next three years.

“This signals a strong commitment to the next-generation travel experience where passengers can breeze through the airport using their face as their boarding pass.”

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