The Covid19 pandemic has definitely challenged all industries including the airport industry. It has demanded drastic actions across the industry with the ongoing travel bans, flight cancellations, visa cancellations, border closures, fewer flights, aircraft groundings, and revenue loss.
Airport management is even incurring additional operational expenses intended for extra disinfection, sanitization, and cleaning for a smooth experience for travelers. While some airports have thrived, there are some terminals that have closed their commercial operation.
Many airports, however, have remained open for their cargo operations. This is to maintain continuity of air cargo business that delivers essential items for many communities and industries.
According to experts, the Covid19 pandemic has wiped out about 38% of total passenger traffic and decreased almost half of the revenues for airports for the year 2020 alone. It cannot be denied that revenue channels have become paralyzed by the decrease in air travel as well as commercial activities. Additionally, several factors have posed a potential risk for airports as service providers for the airline, ground handling as well as other airport-related services have filed for bankruptcies.
Staying Afloat and Recovering from the Crisis
The airport industry is pushing for a swift, effective, and cost-efficient response from governments to help protect essential operations and offer the industry that chance to stay afloat and recover from this crisis.
The recovery timeline will differ from different airports across the world as this will depend on how the government responds and the support that they can get. According to experts, it can take about 18months for the airport industry to reach the pre-crisis traffic levels.
While there are a lot of challenges that the industry is currently experiencing, there is something that the airport industry can learn from this experience. The disruption from the normal airport operations presents an opportunity for improving operations, productivity, digitization, automation, reliability, streamlining operations, and developing a risk response that can prepare the industry for when the same instance occurs in the future.
Yes, the airport industry will incur short-term losses with all that is happening. However, they can definitely bolster recoveries with their renewed digital investments. Additionally, they can continue to forge measures that will help boost resilience in the long run.
Strategies to Consider
Airline industry solutions come in various forms and address various needs of the airport industry. Some of these strategies that airport management should consider include:
- Invest Digital Transformation Initiatives
One of the vital strategies to consider would be digital transformation initiatives as they can help lower the cost of customer service, recover lost time, and de-risk the traditional airport business models. It is vital to look into and concentrate on self-funded and agile transformations instead of huge ones. Rapid digitization can help improve passenger flows to ensure real-time monitoring and control and indoor mapping as well as geolocation solutions. Investing in digital transformation can also improve the seamless and contactless passenger experience through facial recognition and biometric scanning.
- Cloud-based Digital Infrastructures
Another airline industry solution to consider is cloud-based digital infrastructure. This solution will enable airports to become future-ready through making use of IaaS or Infrastructures as a Service and using products and solutions that are cloud-based. Airline businesses can also implement new distributed cloud services or multi-cloud services for improved business agility.
- Advanced Technologies
Airline industries should also tap on advanced technologies to help improve customer identification, processing, and resource management. Technologies such as video analytics can help monitor the workforce, real-time conditions, and necessary inspections. This airline solution can help reduce costs, improve operational efficiency, and control asset damage.
- Cybersecurity
Another essential aspect of the airline industry solution is cybersecurity. This plays a vital role in keeping the business operations secure through all kinds of channels to prevent cybercriminals from attacking and to decrease the number of potential threats that the business may face.
- Leverage New-age Hyper-automation Platforms
Hyper-automation platforms are also available and are considered great airline industry solutions. These platforms can help enhance the ecosystem, reduce unnecessary costs and expenses, and decrease human error and intervention while improving efficiencies in airline operations and processes.
- Tap on Digital Business Analytics
This airline industry solution can help create a single source of data and an enterprise-wide data strategy. In addition, this can also provide data-driven real-time analytics that can promote accuracy and real-time observations leading to cost-effective improvements in the services offered. This can also provide insights into airport operations, customers, and the supply chain. With analytics, airline businesses can tailor operations and services in response to the sudden changes and demands in the industry.
The Takeaway
Airline industry solutions come in various forms and types. It is important for airlines to see the opportunities that this crisis has offered. That is to improve business operations through tapping on digital and advancements in technology. Ultimately, the goal is to improve business operations and customer services.
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