“Most if not all airlines still handle a lot of paper documents and they have dedicated teams that process these documents. Over the past 10 years, a number of business terms have come into common usage in the aviation industry. To support that, Delta Cargo opened the Cargo Control Centre last year. For example, even during these difficult times a lot of perishables and pharmaceuticals are moving through air cargo which requires strict temperature control. This mostly requires a phone call or direct communication between these stakeholders to constantly monitor the temperature,” he said. In our experience, this value has four principal sources. Digital service providers are reporting an unprecedented jump in traffic and demand while sales are happening in the record time frame. Amar More, chief executive officer, Kale Logistics Solutions said “Air cargo community systems are big projects which will take time and several stakeholder interactions to implement it. “To move life-saving drugs, like the hydroxychloroquine, the forwarder has to deal with the customs declaration, send airway-bill to the airline and pay handling charges to the airport. CTiX – A new level of checkpoint security, Looking forward to 2020 & beyond: top trends for airports and aviation, Upgrading from Standard 2 to Standard 3 approved systems, enhancement of non-aeronautical revenue streams, which are now becoming commercially significant for airports, introduction of new business models (e.g. Digitalization determines the future of the economy and society. Digitalization and Industry 4.0 in the Aviation Industry (first abstract of a publication to be presented in early 2017) The digital revolution in this industry really begins from the end customer’s perspective! The path leading to the industry’s recovery – amid speculation on the return of passenger demand, fleet adjustments, and airline restructurings – is guaranteed to involve multiple factors acting towards a once again stable environment. Digitisation of processes, products and services is not a new driver but has been around in one form or another, since the advent of the Internet. Novelty and glitz aren’t important here, so these features should reflect industry best practice. One big digital ecosystemThe crisis is asking for all stakeholders to come together and work collaboratively. When it comes to the airline industry, it seems to be clear that taking a holistic view on customers becomes a must. Michael Morey, vice president, advanced cargo solutions, Cargocast said “RFID technology has reduced significantly in cost while improving accuracy and performance. With Industry 4.0 you have to ask yourself: “Is there a smart way of linking my data to improve the manufacturing process?” And this in turn only makes sense if the processes behind it are integrated as well. The impact of digital transformation on airport processes, business models and passenger experience. The ability to telework from one day to the next with access to all data resources and the effective use of team collaboration tools has demonstrated the high degree of digitalization that has already taken place.”. In April 2020, AirAsia’s cargo arm Teleport launched Freightchain, the world’s first e-booking platform powered by blockchain. Carriers the world over were making strides in realizing their digital transformation strategies, investing in cloud services, data centers, wireless onboard crew services, and automatic data management – key components in achieving digitalized airline operations. The air cargo industry is no exception. The aerospace industry is growing at an exponential rate. For some, it’s ensuring the accuracy of actual manifested goods being loaded (or unloaded). Delta is focused on operational reliability and providing products and services that are focused on our customers. Aerospace leaders and airline executives from around the world gathered to discuss the future of aviation, and 537 people took part in a poll about the COVID-19 recovery. In fact, by 2028 it is predicted that upwards of 38,000 aircraft will be in service, a vast increase from the 26,000 being used today. Registered Office: Century House, Maylands Avenue, Hemel Hempstead, HP2 7DE, United Kingdom. For instance, you could, in theory, select a seat on an upcoming Singapore Airlines flight while using your United Airlines app. Challenges of Digitalisation in the Aerospace and Aviation Sectors Kirsten Lamb, CDBB Introduction Building on the challenges highlighted in Report 2.1, this report describes digital transformation in aerospace and aviation, and identifies some challenges that are likely to have parallels with the architecture, engineering and construction (AEC) sector. So we have broken down the system into smaller modules to help different stakeholders to interact digitally for separate operations. In September 2010 Cameron became Managing Director of Australia and New Zealand and Director of Product Management based in Sydney leading the ANZ business and product development for the Integrated Systems product line. Tracking & visibility with RFIDThe biggest challenge for forwarders and ground handlers at the moment is the amount of urgent freight being tendered and the lack of capacity to move it as quickly as needed. Blockchain, mobile and new currenciesMany other promising developments are happening in the digital realm of air cargo which ranges from blockchain-based booking to introducing new currencies to fintech platforms. Cameron joined Smiths in 2003 serving in various sales and management roles leading market based teams across Asia Pacific from Singapore. Digitalisation and the continued expansion of its partnership programme are two key priorities for Cathay Pacific’s new head of cargo. All Rights Reserved.. FROM MAGAZINE: Digitalisation is the only way out for air cargo, The air cargo challenge in the Covid-19 pandemic. Every warehouse has specific pain points and other areas where best practices are already implemented. While it’s difficult to say what that will mean and how long it might take, it is likely that digitalisation, focused on facilitating greater efficiency and automation of production, will drive aviation’s return to profitable growth. Experts foresee deployment of autonomous feeder vessels, for example, to ferry containers along known routes of limited distance in the near future. Over the past 10 years, a number of business terms have come into common usage in the aviation industry. The most important trend is the “self-service” airport concept, which is concerned with the digitisation of every touch point on the kerb to gate passenger journey. When looking at the overall rate of digitisation adoption, airports are considered laggards compared to other industries. The digital evolution of airports, airlines and other stakeholders in the travel industry; Why digitalization of the airport industry has become unavoidable; AOE’s OM³ Solution will change how the aviation industry does business; AOE and Fraport win Award for Best … The airline industry needs to understand the tectonic changes that transform each and every industry. “Our platform ‘Cargo Virtual Connect’ has tried to make this one seamless transaction across players and systems through exchanging instructions and responses digitally. Airports, airlines and travel retail operators are currently facing unparalleled challenges, both in the way they do business as well as in the aviation industry itself. Ashok Rajan, senior vice president and head, Cargo & Logistics Solutions, IBS Software said “We in IBS Software are trying to widen our partner ecosystem. It’s the most comprehensive source of market intelligence in the world, with around 50 per cent of content translated from non-English sources. For example, we have many airlines transforming their passenger flights for cargo-only service using both belly space and main cabin which could be readily available in our platform,” he said. According to the company, though the plan to introduce the Canadian dollar was an earlier plan, it had to fast track it due to the Covid-19 pandemic. Pax-to-cargo solution allows to increase the area for cargo carriage by loading it on the passenger seats or by removing passenger seats. Exhibit 3. We are partnering with digital players in the sales channel and cargo payments space to integrate and add value to the customer. Pricing, capacity and e-bookingDigitization hasn't started two months ago. Need for a Strong Omnichannel Marketing Strategy. It has become important for the forwarders to understand the pricing in a very lively manner. Today also there is a lot of manual intervention between these parties to make sure that the airlines get all its work done by the ground handler. This role works to the VP of Strategy and Marketing. Airport employees were able to process the paper while they are working from home.”. Diego Poza Head of Content. Airport digitisation started with the emergence of digital marketing and the development of airport websites and e-commerce platforms. The retail industry followed. Our GMAX portal has all these things articulated into a single platform. This was followed by mobile phone applications with or without interactivity and presence across the social media channels. The passenger’s buying behavior has fundamentally changed. Reduced capacity and increased demand took the prices to record levels. WebCargo by Freightos is a digital software company that gives access to live capacity, pricing and allows e-bookings for freight forwarders with global presence. While commenting on the need for airlines to work together he said “Even though the freighter-only airlines are doing an exceptional business, they also have challenges as they are dependent on feeder flights of smaller airlines that bring capacity from different areas. These tools have gradually become more sophisticated, allowing interaction with the general public and no longer confined to one-way communications. Digitalisation is the answer for airlines The Internet of Things (IoT). For example, the certificate of origin is a document required to move an air freight consignment and people have to physically reach out to the chamber of commerce to get it done. In February 2020, Etihad Cargo partnered with WebCargo by Freightos to extend its digital reach. The airline noted that it has deliberately launched Freightchain within global supply chains during this period of uncertainty, which was caused the Covid-19 pandemic. If the slow pace of adoption and reluctance among stakeholders to jump in was the talk before, the pandemic is changing this. in the aviation industry itself. In May 2020, Kale Logistics introduced 'PING', a new document processing solution for GHAs and ground handlers. aviation industry to benefit from the ever developing and dynamic digitalisation platform. Airline Industry Taking off with Digitization Airline Industry Taking off with Digitization Airline Industry Taking Off With Digitization. This is creating pressure on storage and handling capacity in the warehouses. In March 2016 Cameron was appointed to the role of Global Market Director – Aviation based in Detection HQ in London. The airline industry worldwide was heavily regulated (until about the end of the 1970s), preventing management to develop and implement traditional marketing strategies relating to, for example, price-service options. “Tracking the progress towards unlocking the value in digitalisation is … But until airlines rid themselves of paper, decades-old problems will continue. In our view, Industry 4.0, or digitalisation, means making work easier for … Published on - September 2018. While the virus is posing new challenges every day, the human race is engaged in finding solutions and innovating to fight it. The following figure shows some of the smart airport applications available today. The airline industry is using the current digital environment to experiment with cutting-edge technology to enhance the customer experience. The new solution is one of the small modules separated from the company’s bigger air cargo community system. One of those mediums will inevitably be digitalization. “Digitalisation was already a necessity for the air cargo industry but it has become a must due to Covid,” he said. The airline accesses Lido Flight 4D on Lufthansa Systems’ cloud platform | Digitalization enhances adaptability in unprecedented circumstances. Overall, the infusion of digital technologies in aviation management and airport operations has had a positive impact for all stakeholders by supporting: It is now widely accepted as a disruptive force which changes management mind sets, business processes and business models, but what do we mean by digital transformation? The report captures the views of over 40 industry leaders across the leasing, airline and banking markets and includes the views of the rating agencies and analysts covering the sector. Auth0 Docs Implement Authentication in Minutes; OAuth2 and OpenID Connect: The Professional Guide Get the free ebook! The company works with 1900 unique freight forwarders and more than 10 thousand branches around the world. ONE Aviation uses Siemens software to help break the economic, regulatory and learning barriers in the general aviation industry. Learn more. 30 types of documents and 124 copies of paper have to move along with an air cargo shipment that starts from its shipper to the consignee. Digitalization held center stage in the aviation industry’s collective consciousness before the shock of COVID-19. The concept is defined by three separate, but intertwined, drivers: Digitisation, Connectivity and Data. More than ever it is important to have transparent access to prices and capacity available, along with the ability to book them instantly. In some cases, the air cargo paper documentation is shipped separately from the cargo via express couriers. What's the current impact of Covid-19 on air logistics for life sciences and med-tech industries? Since the first automated baggage sorting systems appeared in the 1990s and the first e-ticket was issued in 1994 (see figure 1), it has affected both the passenger journey and internal processes (see figure 2). Digitisation has also affected in-terminal operations, with the installation of digital Flight Information Display Systems (FIDS), the proliferation of digital wayfinding signage and digital advertising screens. Overview of the airport construction industry. Research and development will be undertaken in close collaboration with the aviation industry. Air cargo stakeholders are more than ever excited to embrace digital solutions. A company needs its own digitalization strategy to advance its digital transformation. They have reported increasing demand and traffic in their platforms while sales are getting completed in record time. Advances in computer technology are cited very often as a major disruptor in almost every major industry. Before you continue, download the … The aviation industry, however, while certainly not excluded from this global drive to digital, is – as many have stated – more of a follower than a leader in this regard. The company deemed it was not “commercially or environmentally justifiable” to operate such a … • World trade has deteriorated this year, damaging air cargo but slowdown will bottom out . No one’s saying that digitization is the cure-all for air cargo’s issues, but it’s a fantastic start. Copyright © 2020 - The STAT Trade Times. With end-to-end digital know-how to improve performance, Siemens is helping aircraft parts manufacturer Strata to 3D-print the first aircraft components for Etihad Airways, UAE’s national airline. “I don’t believe the current players in the air cargo industry are open to digitalisation… Rapidly changing purchasing behavior by customers, the evolving E-Commerce industry and digitalization are disrupting traditional revenue streams and business models of airports and airlines. Recently Portugal's flagship carrier TAP Air Portugal entered into a partnership with air cargo e-booking platform Cargo.one, confirming the trend. Incorporated in England No. Besides, the various lockdowns and new social distancing practices have resulted in difficulty maintaining staffing levels in some areas. Airlines are rapidly reinventing the passenger experience with contactless journeys focused on traveler health and safety to make customers feel comfortable flying again (Exhibit 3). This is mainly due to their traditional B2B business model and heavy reliance on aeronautical revenues. Accelerating digital transformation in freight industry – the Covid-19 impact. “Since the lockdown, we are receiving requests from ground handlers, airlines, airports and charter operators to transform their operations into the digital arena due to reinforced need of digital solutions. Airlines do not need to reinvent digitalization; they should rather secure the help of competent, innovative partners to implement the innovations made We are already very strong in Europe and are trying to reinforce our presence here. Covid-19 has only reinforced the need to be resilient and agile. Going forward, self-service will initially act as a complementary service to the more traditional customer service agents, particularly acting as a service recovery option. Economic Performance of the Airline Industry Key Points • Global GDP growth is expected to improve moderately next year with the support of accommodative monetary and fiscal policies. In an industry where the business environment has turned on its head and become a supply-constrained environment, our AI/ML-enabled revenue management solution is helping airlines make the best decisions on pricing and selling.” he added. Beyond these hubs, however, the path towards digitalisation is being beaten at a markedly slower pace, says Martin Mommersteeg, founder of Netherlands-based supply chain and operations specialist M3 Consultancy. What’s the current impact of Covid-19 on air logistics for life sciences and med-tech industries? Author - Kiran Koteshwar, Chief Financial Officer, Spicejet . The future: Will life sciences air freight supply chain be completely different? “Ground handlers are the airline representatives. there are different options airlines can start with, such as modernizing current products and services with digital functions or integrating additional digital solutions into the existing portfolio. Altogether these changes demanded digital solutions for this industry to move forward. But … (See Exhibit 1.) The impact of lockdown was minimized for airports with community systems. Digital transformation of airports is intensifying and manifested by digitisation, connectivity and big data trends. Air cargo in the time of a pandemic – the now, the next and the new normal. Learn more. According to Gartner, by 2020 there will be 5 billion connected things in use; according... Blockchain. They will conclude that digitalization is not just a more efficient way of doing business; it is also the only way to reduce manual processing of information. It is important to note that the “Self-service Airport” is part of the wider “Smart Airport” concept, which looks at the impact of digital technologies on all internal and passenger-related processes in the airport environment. Airlines, freight forwarders, airports and ground handlers are playing their part in innovating and finding solutions. What impact will digitalization have for the future? Digitisation is a crucial element that has kept the air cargo industry to stay afloat even during the Covid-19 disruption. This is the first in a new series looking at digital innovation and transformation in different B2B sectors aimed to inspire business-to-business marketers, this post from regular B2B marketing commentator René Power looks at how digital technologies are being deployed within the blossoming … The world is in a virtual war against the Covid-19 pandemic. Accenture provides consulting services to travel, airline, & hospitality companies to outdo unprecedented competition in the new digital landscape. Research shows that traditional travel retail is being challenged and major growth is unlikely. Accenture provides consulting services to travel, airline, & hospitality companies to outdo unprecedented competition in the new digital landscape. In the same way, that business process re-engineering was big in the ’80s and offshoring big in the ’90s, full digitalization will prove to be a business case for cost reduction. ... (IATA), leaves the airline industry … This complementary approach is likely to continue in airports where the priority is passenger experience rather than process efficiency. But the offices of these chambers are not working now,” he added. Nevertheless, digitalisation and automation offer huge potential in the airline sector, and not least of all for improving safety. Thus IBS is opening up its integration capabilities to make sure that all these players will become one big ready-to-use digital ecosystem.”. Today however, with non-aeronautical revenues becoming a driving force and passengers an increasingly important customer segment, airport digital marketing is growing more sophisticated. To prevent a complete stagnation in the activities of global air freight forwarding industry and support the continuity of the trade ecosystem, airline executives started utilizing passenger aircraft to maintain air freight forwarding operations. Technology created a monster: high customer expectations. We don't establish prices. In some cases, the focus is on managing the consolidation of shipments.”. From flag carriers to LCCs, from the new breed of regional airlines to long-haul specialists, the airline digital transformation opportunity is being grabbed with both hands. The platform helps on-demand bookings in real-time through submitted bids and then validates them using blockchain algorithms. Japan Airlines has launched a digitalisation platform powered by CHAMP Cargosystems across its domestic network. As a result, digitalisation is increasing the reliability and efficiency of aerospace systems across the world. The airline IT specialist is looking back proudly at the many milestones in its history of shaping the digitalisation of the airline industry. Soon the cargo network of Air Canada will be managed by this digital solution. He also holds an MSc from Cranfield University, UK. In May, Air Canada and the ULD company Unilode Aviation Solutions extended their ULD management solution which also includes digital solutions. We are therefore also working for greater cooperation between carriers through a Joint Venture engine, where even the smaller players could participate.”, In April, Cargocast introduced RFID-based logistics platform for automated warehouse operations. However, it will evolve as the standard in those airports which do prioritise efficiency and are capacity constrained. “Electronic documents like the e-AWB have turned out to have an unintended benefit: the absence of the need to physically touch paper documents that have been touched by others recently. This feature was originally published in May 2020 issue of The STAT Trade Times. The latter will be covered in Parts 2 and 3 of this series along with a detailed look at the key benefits of process optimisation, business model innovation and a better passenger experience. That has kept the air cargo ’ s collective consciousness before the of! 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