Airline industry, page-7

https://www.ifs.com/-/media/assets/2022/01/06/aviation-digital-transformation-whitepaper.pdf

The gold is on page 5. Sound familiar to anyone? No wonder demand is “ Pent up”.


“According to recent research, digital transformation programs in the airline industry could generate an incremental value of $5-$10 for every passenger, annually. Such extraordinary value generation would derive mainly from improved productivity, cost savings, and new ancillary revenue streams”.

“Unlocking these benefits doesn’t necessarily require large scale digital overhauls. IFS has found some airline and MRO organizations are turning to technology tools which tackle key recovery plans, such as unlocking predictive maintenance efficiencies, allowing remote collaboration and addressing safety issues”.

“The long road back to profitable travel goes through aviation maintenance technology”

“For the most forward-thinking airlines, it’s now a race to see who is going to emerge on top and as such, many airlines are seeking new competitive advantages for them to leverage as they look to be first out of the gate”.

“Digital transformation directly links to an airline’s bottom line on every flight across every route. Consider airline revenue as a 100-seat aircraft, once operating costs are covered, only one seat generates profit. As a cost center, maintenance typically fills 11% of these seats. That means a 10% reduction in maintenance costs could more than double profits”.

“On a flight with 100 passengers, it takes fares and fees from 99 seats to cover all costs. Profit = 1 seat.Maintenance is typically 11% of an airline’s costs. With profit margins nudging 1%, reducing that cost by 10% could double profit”.