Up until the unprecedented spread of COVID-19, the Airlines industry was recording a steady growth in passenger numbers. In the near term, after the COVID-19 pandemic has been contained, most people may not consider international travel a top priority due to reasons like fear or economic slowdown. Many questions are being raised without clear answers.
The current crisis demands that the industry accelerates actions to reduce the impact of negative cash flow. Airlines will need to get their think tanks together along with their business partners who can strategically support in the revival process.
Airlines have struggled with challenges around fuel cost and hedging, optimal load factor, leasing cost, fleet maintenance cost, and efficacy of loyalty programs. This crisis has created a window to reimagine ways to counter long-standing challenges, which have quadrupled due to the COVID-19 impact.
While there is an immediate requirement of cutting costs and minimizing losses, there are more challenges to be expected as normal operations begin. Airlines can start assessing the low hanging ones for remedial measures:
In the near future, we may experience new business models in the airline industry and see airports equipped with contact-less check-in. The new normal would be more sustainable and self-service-enabled with pivotal role played by digitization and automation. The COVID-19 crisis has also raised the importance of e-commerce in the airline industry, however, it’s again a question of how soon can airlines adapt and transform customer touchpoints.
Heads BPaaS solutions and manages M&A and Consolidation opportunities across the Consumer Business Unit at Digital Operations and Platforms in Wipro
He specializes in Airline Passenger and Cargo Business Processes and Systems implementations, and has keen interest in new products/solutions and building new technology alliances to enable business opportunities.