Airport Business - 36

AIRLINES
AUTHOR Adnan Saulat

PROACTIVE TECHNOLOGY STRATEGIES FOR AIRLINES

to Succeed Post COVID-19
THE COVID-19 pandemic has brought all travel
to a grinding halt. With several nations and
governments rapidly imposing strict bans on flights,
the airline industry has been greatly impacted by
this black swan event. The World Economic Forum
predicts that restrictions on international flights
alone will cost the industry an alarming $880 billion.
Moreover, aviation experts expect
that COVID-19 will have greater
impact on the industry than 9/11,
which saw several airlines file for
bankruptcy, financial bailouts and a
complete change in aviation's approach
to security, as well as longer-term
repercussions. It is imperative that
airlines act quickly today to plan for
the future to reduce the impact on
customers, employees, stakeholders,
operations and bottom lines.

How Have Airlines
Responded to the
Sudden Shock
Airlines responded to the current
situation with alacrity. For instance,
most reduced capacity by 70-90 percent

ABOUT THE AUTHOR

ADNAN SAULAT

Adnan Saulat possesses two decades of IT Industry experience
primarily in the Business consulting and analysis roles.
Currently he heads 'Solutions & Consulting Group' within
'Travel, Transportation and Hospitality' vertical of Mindtree to
create innovative solutions for Airlines, Hotels, Transportation,
Logistics and Travel service providers.
Adnan possesses extensive experience in Travel &
Transportation application development/management
practices and product development. He is well versed in
consulting, solution architecture and sales support activities
delivering successful outcomes for clients across geos. His
specialties encompass Airports, Airlines, Hospitality, Logistics,
Car Rental, Global Delivery, Business Analysis, Mobility,
Application Development / Management and Agile/SCRUM/
SaFe methodologies.

on long haul or transatlantic f lights
and 20-25 percent on domestic flights,
halted new capital expenditures on
investments and even reduced operating
expenses through deferred payments and
decreased maintenance and partner costs.
From a headcount perspective, airlines
enforced voluntary 'time outs,' froze
hiring and withdrew paid leaves. A
second line of action to further curb
the bleeding involved liquidity infusion
measures such as discontinued pension
fund contributions, deferred share
buybacks, selling mileage points to
card providers in a forward sale and
requesting airports for slot waivers.
Furthermore, airlines continue to run
almost-empty flights in a desperate bid
to retain their takeoff and landing spots
- if they don't use the spots, they could
be lost to competition.
This is the extreme response that is
both expected and necessary in times
of uncertainty as airlines recognize that
COVID-19 presents a situation grimmer
than anything they have experienced
before. Despite these severe measures
and the great efforts being made across
the travel industry, there will ultimately
be airlines that do not make it. However,
as airline stocks continue to falter and
the travel ecosystem frantically tries to
cut costs, it is imperative that airlines go
beyond conventional thinking and use
technology to dig in for the long haul.

36 \ AIRPORTBUSINESS / AUGUST | SEPTEMBER 2020

Preparing for the Post
COVID-19 Era with
Three Technology
Strategies
In the immediate future, the industry
needs to maintain a laser focus on
cutting costs. Simultaneously, it must
keep in mind the action it needs to take
when fears around COVID-19 recede
and normalcy starts to return. There are
three areas that airlines must be ready
with and prepare for to put themselves
in a position to succeed in the post
COVID-19 era.

ANALYTICS FOR RELIABLE,
REAL-TIME INFORMATION
The most urgent need is to analyze
the frequencies of f lights that would
operate on cash loss in the next quarter
and beyond. This means acquiring data
on the spread of COVID-19, imposing
flight restrictions, evaluating customer
sentiment and using predictive analytics
to forecast losses accurately. This allows
airlines to see if they have cash reserves
large enough to sustain flights ahead of
time as well as take realistic measures to
bring down losses on these routes.
Airport Business

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