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What Needs to Change to Get Aviation Fit for the Twenty-First Century

The digital revolution empowers the consumer and determines ever increasing expectations. At the same time, latest tech developments such as artificial intelligence (AI), machine learning (ML), blockchain, voice and more create opportunities never seen before. It also means that in contrast to some years ago, technology now enables everything - at a much lower cost than the industry got used to. We just have to be smart to use those opportunities. However, the aviation industry to a large extent has remained stuck in legacy processes and their decades old technology. It also suffers from low profit margins. With a few exceptions aviation management overall struggles how to adapt to the real time and agile environment.

Digital transformation activities have started both in operational as well as commercial areas, but fundamental underlying platforms and culture change in most cases have not yet been addressed. Yet the risk of doing nothing or being too slow is probably the biggest one the industry faces. It just gives direct competitors and new players in the field the advantage to take over.

Time to do things differently and implement more radical change. Learn about the 4Bs model, a transformation framework developed by Ursula Silling with agile mindset that management can use to turn the current challenges into success

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Are airlines missing the trick?

Amazon, the world’s biggest online retailer has started domestic ticket sales in India, teaming up with OTA Cleartrip and offering better details for their Amazon Prime customers. Yet they do not own any of the expensive airline assets and regulatory problems - they just take the “cherry on the cake” and use their distribution power and offer convenience to travellers when booking with them.

According to Sebastian Mikosz, Group MD & CEO at Kenya Airways, during his keynote speech at CAPA Seoul, airlines operate in a highly regulated environment with high fixed costs. They should think more like digital retailers to achieve favourable distribution margins and customer data. “If we do not adopt an OTA (online travel agency) business model, we will become subdivision of technology companies” he said.

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Don’t be afraid of leaving the comfort zone and experience how effective it is to work with agile suppliers

Don’t be afraid of leaving the comfort zone and experience how effective it is to work with agile suppliers

XXL Solutions` CEO Ursula Silling moderated a panel with four super innovative and super smart best-of-breed providers for the airline industry at the IATA AIR in Rome in October 2018. Alexander von Bernstorff at inteRES, Hélène Millet at Conztanz, Peter Schoeber at LHSystems and Urs Kipfer at Datatrans demonstrated how they could deliver more speed AND more innovation compared to one-stop-shop vendors, with smart solutions based on NDC and ONE Order..

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blockchain made simple

Blockchain is the new kid on the block that everyone talks about. It seems to open huge new opportunities in aviation and travel alone. 

Yet when asking what blockchain is all about, many people have difficulties to grasp it.

The shortest explanation: Decentralized network with a memory / therefore unchangeable /secure data transfer

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