6. supersonic airliners on The horizon

Chapter 1

Advancing Aviation Ecosystem

The pandemic is far from over and its impact will stay long-term, transforming entire landscape of the industry operations and infrastructure. An amalgamation of airlines, airports, and authorities will be a crucial aspect in evolving the ecosystem of the industry as we navigate the new normal.

By Ayushee ChAudhAry

Second year into the pandemic, and we are still far from normalcy at least in its entirety. We are now well aware that getting back to the normal as we knew before the pandemic is absolutely uncertain. We are in a new normal that we have to navigate through. The aviation industry’s landscape can also no longer stay as it was. Keeping the financial concerns aside, the long-lasting impact of the virus on the industry is evident as certain transitions are here to stay.

Digitisation Dose

We are all aware how the pandemic transformed the world with digitisation, shifting technology, years ahead. Transfer of many human tasks to contactless during the course of travel is going to be the key. This digitisation will also activate most of the work through apps and phones with increased touchless check-ins, face recognition technologies, RFID bag-tags, paperless immigration, etc. In hindsight, the contactless transition has brought in a valuable shift in enhancing the customer experience.

Many countries and organisations are deliberating on digital certificates as well that would include an individual’s update around the vaccines, infection, etc all in one place.

Like it or not, airlines will have to invest more on digitisation. A McKinsey report noted that before the pandemic, airlines spent roughly five per cent of their revenue on IT. Now this will have to go up because in a progressively digital world, “bytes carry more value than bricks if used well”. Investing in befitting tools and technology can not only help monetise assets better but also significantly improve operating efficiency and customer experience.

The use of artificial intelligence and other innovations like automated gates have been introduced even earlier but the post-coronavirus world will witness an acceleration of such trends to facilitate socially-distanced journeys. Even though most airlines are stuck in financial crisis, they will have to consider stepping up automation investment. Using data in smarter ways to enhance decision making, requiring some investment but yielding significant payoffs is also going to be a way forward.

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regional connectivity As international travel still remains suspended in get Your copY now! A McKinsey report noted that before the pandemic, airlines spent roughly five per cent of their revenue on IT. Now this will have to go up because in a progressively digital world, “bytes carry more value than bricks if used well”.

Chapter 2

Middle East Aviation –Adapting to a Changing Landscape

The migration to fleets of more fuel-efficient and versatile aircraft is underway with Emirates moving to a simplified fleet of smaller airplanes, Qatar Airways embracing the smaller-jet philosophy and Etihad Airways positioning itself as a mid-size carrier

By BYRON BOHLMAN

The Middle East has always been at the crossroads of global trade. Today’s airline mega-hubs at Dubai, Doha, Abu Dhabi and even Istanbul are testament to the region’s ability to adapt to changes in the flow of world commerce.

Those hubs are uniquely positioned to capture both north-south and east-west movements of cargo and people, and thrive on vast non-stop regional and intercontinental flight connections. Yet those very links that are their lifeblood are at risk with the contraction of passenger traffic resulting from the pandemic. Can airlines in the Middle East withstand the downturn and emerge stronger when demand eventually recovers? With a little help from government handouts, it appears they are already adapting to the new landscape.

A Region Hit HARd

Secretary General Abdul Wahab Teffaha painted a grim picture in his remarks to delegates at the Arab Air Carriers’ Association annual general meeting in Doha. He cited an 80 per cent decline in passenger traffic (RPKs) among member carriers in the first half of 2021 compared to the same period in 2019. Demand has still not shown signs of recovery given that traffic was down 72 per cent in the first half of last year.

The pandemic has hit the region hard. AACO blames disparate international health regulations, the inequality in access to vaccines, and a reliance on open borders as causes for depressed demand. The cost of continued uncertainty is high. Prior to the onset of the pandemic, tourism accounted for 14.4 per cent of GDP in the region. That contribution dropped to 5.4 per cent, as did the number of tourism-related jobs, from 334 million in 2020 to 272 million in 2021.

One bright spotis the success of LCCs, namely Air Arabia. The airline reported a $152 million profit for the quarter ending September 30, a 575 per cent jump compared to the same period in 2020.