How Unified Technology Platforms Produce Actionable Insights That Lead To Optimal Decisions
When considering investing in information technology, one question comes to mind: Will it save money? While the answer is often “Yes” in the long run, the notion that better technology can help airlines deliver on their respective brand promises, and even deliver improved financials, can help reframe the capital-expenditures conversation.
The price of inefficient airline operations is measured around the world in the form of higher costs and lost revenue. What airline leaders may not realize, however, is how key operating factors can be measured and controlled by their own systems and processes.
In the United States, major airlines lose as much as US$3.2 billion annually from poor operations, despite controlling 80 percent of the factors that affect whether their flights land on time, according to Michael R. Baiada, a longtime industry consultant for ATH Group. Major carriers land a little more than 60 percent of flights either at their scheduled time or before, likely driving further inefficiencies across the airline. By harnessing data from real-time operations to adjust and optimize flight schedules, airlines can maximize revenue while at the same time rein in major costs such as crew time and fuel burn.