IATA World Passenger Symposium 20th Oct

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I N T E R N AT I O N A L DA I LY 20 OCTOBER 2016

WORLD PASSENGER SYMPOSIUM

Airlines International Daily is sponsored by:

18-20 October 2016 | Dubai

DAY 2 H I G H L I G H T S

Real-time bag tracking The global deployment of Radio Frequency Identification (RFID) technology, which can accurately track passengers’ baggage in real time across key points in the journey, can enable the air transport industry to save more than $3 billion over the next seven years.

Presenting their business case at WPS yesterday, global IT provider SITA and IATA revealed that the highly accurate tracking rates of RFID technology could reduce the number of mishandled bags by as much as 25% by 2022, mainly through efficient tracking.

In particular, RFID will address mishandling during transfer from one fl ight to another by ensuring that airports, airlines, and ground handlers are able to keep track of bags at every step of the journey. The technology supports IATA’s Resolution 753 that requires airlines to track each item of checked baggage, at key points in the journey, by 2018.

Jim Peters, Chief Technology Officer at SITA, said: “The airline industry is at the brink of a revolution in baggage tracking.

Deploying RFID globally will increase accuracy and reduce mishandling rates. This is a win-win situation—passengers will be happier, operations will run smoother, and airlines will save billions of dollars.”

Andrew Price, Head of Global Baggage Operations at IATA agreed. “Over the past few years, we have seen more work to help airlines introduce and reap the benefits of RFID technology through better oversight of their baggage operations,” he said. “The advances in the technology and the immense benefits it brings to the airline industry has prompted IATA to revisit and fully explore the benefits of RFID today.”

Initial deployments of RFID by airlines, such as Delta Air Lines, show a 99% success rate for tracking bags. Speaking at WPS yesterday, David Hosford, Manager of Baggage Performance Strategy at Delta said: “We are investing in RFID to further improve our baggage handling rates and improve the customer experience. RFID technology provides us with more data and more precise tracking information throughout the baggage journey.” Hosford

said that the initial cost of investing in RFID infrastructure was more than being offset by savings versus existing baggage handling processes.

The SITA/IATA business case shows that RFID capabilities can be deployed for as little as 10 cents per passenger on average while generating expected savings of more than 20 cents per passenger. With some big airlines and airports already introducing RFID technology, combined with the fact that it is compatible with existing barcode technology, adoption of RFID across all airports could provide a positive return for airlines, both in cost savings and passenger satisfaction.

The deployment of RFID would build on the already significant savings delivered by the smart use of technology for baggage management. According to the SITA Baggage Report 2016, technology has helped cut the number of mishandled bags in half since 2007, despite a sharp rise in passenger numbers over the same period. It is estimated that this has saved the industry $22.4 billion.

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2 WILDLIFE TRAFFICKING

ABOVE. BEYOND. More than you expected.

Better than you imagined.

Formed by and for the benefit of the air transport community, we constantly go above what’s expected. Look beyond what’s possible now. Tirelessly seeking new ways to transform air travel through technology.

And we’re already exploring the answers to questions you haven’t even asked yet.

Explore more at:

www.sita.aero

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3 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

Innovation: a never-ending story he aviation industry is riddled with legacy processes and systems that are not easily adapted to the pace of change in passengers’ and business partners’ expectations.

As a result, Juan Ivan Martin, IATA’s Head of Innovation, accepts that it might “seem difficult to innovate in a timely manner without breaking something.”

But Martin argues that operations and revenues cannot be put at risk. There is a

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“Innovation is not always complex or technology heavy,” Martin says. “I recently read about a new boarding process that KLM has adopted to reduce the turnaround time of the aircraft, which simply gives a number to the passengers and shows the sequence on the gate display. Innovative tweaks can sometimes make a significant difference. That said, some legacy foundations need to be revisited to ensure there is a sustainable future for the airlines across the value chain.”

compromise to be found between addressing market needs and keeping the business running.

“To improve the speed in innovation, the industry needs to invest, learn and collaborate,” he says. “Indeed the challenge is that new technologies are evolving very quickly and enabling disruptive business models. Airlines and IATA need to continuously invest on innovation. What we did yesterday will no longer be sufficient tomorrow. This is a never-ending and accelerating challenge. We must effectively innovate with speed or we will become irrelevant.”

In many initiatives, outdated regulations have proved a thorn in aviation’s side. But Martin doesn’t necessarily see existing regulations as a constraint. What matters, he suggests, is the ability to be agile, flexible, and responsive to opportunities in a timely manner.

ONE Order standard approved he Passenger Services Conference (PSC) yesterday unanimously agreed a standard for the ONE Order initiative.

Leveraging the data communication advances from the New Distribution Capability, ONE Order will modernize and simplify airline order management, including

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the delivery, fulfi lment and accounting processes related to airline products and services.

For passengers, ONE Order will mean the gradual disappearance of multiple reservation records in favor of one document and a single order number.

“With ONE Order, the only thing that passengers will need

to be instantly recognized is their order number,” said Aleks Popovich, IATA Senior Vice President, Financial and Distribution Services. “It will greatly simplify the passenger experience and remove one of the hassles of travel—trying to fi nd the correct document or number when dealing with an itinerary change or a travel

disruption,”.

The full adoption of ONE Order will be a multi-year, multi-stage process that will involve many participants in the travel value chain including airlines, travel agents, global distribution systems, passenger service system suppliers, airline e-commerce platforms, and others.

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4 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

A step into the future of ID management

By Jim Peters CHIEF TECHNOLOGY OFFICER AT SITA

As we move deeper into the digital age, the more our lives and the transactions we undertake will be managed and verified digitally.

This shift in technology provides the air transport industry the opportunity to build a new vision of the future where passengers are able to walk through an airport’s screening processes without breaking their stride using a single persistent identity. The One Identity initiative is a central plank of IATA’s Simplifying the Business (StB) program and one that SITA is fully committed to making a reality.

SITA has identified single identity as a key area of exploration in 2016 and is working with stakeholders across the industry to trial various new technologies.

This program has already made significant progress. In an early proof of concept using blockchain technology, SITA is creating a verifiable ‘token’ stored on a mobile device which contains biometric and personal data. Travelers will use this single identity to verify themselves as an authorized traveler no matter where in the world they travel.

There is way to go before this becomes a reality but a fast, simple passage through the airport is within reach.

To find out more visit www.sita.aero

Commercial team

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Your IATA team communications, commercial and session owners

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5 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

In association with

HALF DAY EXECUTIVE BRIEFING

PARTNERING FOR PERSONALIZED TRAVEL The modern passenger expects a personalized experience. This half-day event organized by the official IATA magazine, Airlines International, in association with KPMG, will examine these expectations and how airlines will counter legacy processes and technology to deliver journeys tailored to the individual traveler.

FREE EVENT* BOOK YOUR PLACE AT: BIT.LY/IATA_EXECBRIEFING

WHO SHOULD ATTEND? THE EVENT IS AIMED AT: C-SUITE AND DIRECTOR LEVEL AVIATION EXECUTIVES

Date: Friday 28 October 2016 Time: 08.30 – 14.00 Venue: KPMG, 15 Canada Square, Canary Wharf, London, E14 5GL *Numbers are limited. Your registration is subject to confirmation.

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6 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

Hackathons promote innovation “Hackathons are a great example of how the New Distribution Capability (NDC), by modernizing the communication protocols between airlines and travel agents, creates opportunities for developers to build innovative solutions using the NDC standard,” states Yanik Hoyles, IATA’s Director, NDC Program. “When you put teams of developers in a room and ask them to come up with a solution within 24 hours, the creativity that is unleashed is amazing.”

Hackathons are also a great opportunity to build a relationship with the developer community, fundamental to the successful development of technology driving the adoption of NDC. The first NDC Hackathon was held in Hamburg in October 2015. This year, IATA organized two hackathons. The first took place in Berlin in May and focused exclusively on NDC-based solutions for business travel. The second, held here just a few days ago, addressed challenges in both leisure and business travel.

The winners are eligible to participate in a two-month online incubation program where mentoring is provided to ensure projects can move one step further. Additionally, IATA provides winners with the chance to present their ideas at WPS.

Empowered to make decisions ften it seems that you can just put the latest technology in the hands of the customer and everything will be okay,” says Rob Broere, Vice President of IT for PSS Transition at Emirates Airline and Co-chairman of the IATA Simplifying

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the Business Steering Group and Think Tank.

“Although that certainly will be a good step, it addresses only part of the challenge.”

Broere believes that transforming the passenger experience will require that the frontline staff responsible for delivering the passenger experience always have the relevant information at their fingertips. Information is everywhere and often a passenger can be better informed than the airline staff. “As such, it is key that airlines focus on giving their staff the tools and the empowerment to make the decisions they need to make,” says Broere.

The passenger experience, however, is not under control of the airlines alone but is also dependent on other partners in the travel chain including airports, immigration authorities, and security providers. “Nobody would argue against safe and secure borders and security, but if all entities that touch the passenger work closer together it is a win-win for all,” Broere notes. “The agencies will have better information available that allows them to focus on the small group of passengers that require more attention. The airlines, which are seen by the passenger as responsible for the entire journey, will be able to provide a more seamless passenger experience.”

Broere also points out that the passenger also has a role in contributing to an improved experience. Governments and airlines need information, like passport data and contact numbers, and passengers should supply those in a timely and correct manner. “With all parties working together in harmony, everybody is a winner and that is where the ultimate focus should be,” Broere concludes.

T O S U B S C R I B E T O A I R L I N E S I N T E R N A T I O N A L F R E E O F C H A R G E , V I S I T W W W. I A T A . O R G / O P T I N

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7 I ATA W O R L D PA S S E N G E R S Y M P O S I U M

Scenes from WPS

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8 WILDLIFE TRAFFICKING

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