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L IA N C E IO 2 SP DIT UE E S IS

I N T E R N AT I O N A L DA I LY 19 OCTOBER 2016

WORLD PASSENGER SYMPOSIUM

Airlines International Daily is sponsored by:

18-20 October 2016 | Dubai

DAY 1 H I G H L I G H T S

The speed of innovation “My dream journey through the airport would offer security processes that are both effective and convenient, constant communication that makes me aware of changes to my journey or opportunities nearby, and a more efficient way of identifying myself to the airline, security staff, and border management,” said Alexandre de Juniac, IATA’s Director General and CEO, in his keynote speech at the World Passenger Symposium. This transformative vision for air travel cannot happen quickly enough, de Juniac stressed. The industry is in a race not only to meet the changing needs of passengers but also to successfully accommodate a doubling in passenger numbers over the next two decades. According to IATA’s latest passenger forecast, some 7.2 billion will use air transport in 2035, up from 3.6 billion in 2015. Calling the passenger, “the most important part of the business”, IATA’s Director General asked three questions to sum up the challenges ahead: • How can the industry understand the passenger well enough to meet or exceed their expectations?

Sir Tim Clark, President, Emirates Airline, yesterday spoke passionately about the need for greater speed in industry innovation. Delivering a welcome address, he said it was a business-toconsumer world. He described his airline’s “unrelenting drive to innovate,” an inevitable consequence of soaring passenger numbers in Dubai, strong competition, and the economic imperative to provide air connectivity for the city. It is even “tapping into external partnerships to help with the speed and scale of innovation.” But, he warned, that speed isn’t being matched industrywide. “We have been talking about improving the passenger experience for years and we have made some progress,” he said. “But we are not moving fast enough.” Sir Tim claimed that inertia was hindering the industry and that the complexity surrounding aviation operations and processes shouldn’t be used as an excuse. Describing his ideal passenger experience in which it is possible to go from home to the aircraft without stopping, he noted that the only part that wasn’t technically feasible today was a central search

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K E E P U P T O DAT E W I T H A L L T H I N G S A I R L I N E S R E L AT E D AT A I R L I N E S . I ATA . O R G

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2 WILDLIFE TRAFFICKING

For us, innovation is about exploring new horizons. Thanks to our SITA Lab team, we’re researching, developing and trialing tomorrow’s solutions with the community. We’re constantly pioneering groundbreaking technology for passengers, airlines and airports. We’re restlessly inventive and continually inspired by the challenges of leading the community into a future where the possibilities are endless.

Explore more at: www.sita.aero/pioneering-spirit

WWW W.. I A T A . O R G . U K

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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

The speed of innovation Alexandre de Juniac - continued from page 1 • How can it efficiently distribute personalized travel products? • And, can aviation make sure that its infrastructure can cope with growth? “A transactional relationship that starts with a reservation and ends when the passenger collects their luggage at the end of the fl ight is simply not enough,” de Juniac said. “We must aim for long-term relationships with our customers to evolve airlines from commodity travel providers into bespoke travel partners.” The roadmap laid out by IATA’s

Simplifying the Business (StB) program will develop the processes that will establish an enduring partnership between airlines and their customers. StB looks at the passenger experience from an end-to-end perspective across all processes, from shopping for travel, to the airport experience, to arriving at the destination, with a special focus on

impacts the passenger experience in the form of fl ight delays, longer routes, and inefficient schedules,” he continued. “Then there is the cost to economies of lost business opportunities, employment, and social development. Remember aviation is a critical catalyst for economic and social development, supporting 62.7 million jobs and some $2.7 in economic impact.”

transformation. Such initiatives as New Distribution Capability, ONE Order, Smart Security and One Identity are set to deliver a very different passenger experience with an emphasis on personalization. But de Juniac noted that the other element in the passenger experience equation—infrastructure—was of greater concern, going so far as to talk of a “crisis” in the years ahead. He warned that, “no matter how much or how quickly we innovative our processes, there is no getting around the need to be both smart and quick in growing airport and airspace capacity. “Inadequate infrastructure negatively

De Juniac called for air transport stakeholders and governments to work together to meet the challenges of growth and rising passenger expectations. He cited the recent historic agreement among member states of the International Civil Aviation Organization to offset aviation’s carbon emissions at the global level as an example of what can be achieved. “The answer is in partnerships,” noted de Juniac. “And even as we implement today’s great ideas, we need to be looking for the next innovation that will make air travel even more compelling to the potential traveler. And we should be prepared to face a future where the cycle of innovation is continuously accelerating.”

The speed of innovation Sir Tim Clark - continued from page 1 where bag and passenger are screened at the same time without the need for divestment. Rather, the missing ingredient is true collaboration among the aviation value chain. As an example, Sir Tim said it was time to stop squeezing passenger processes into buildings and instead build around the processes that technology is capable of delivering today and tomorrow. To underline his argument, he noted that “passengers don’t see silos.” To the airline end customer, the travel experience starts and ends with the airline. And that

means “airlines cannot do it alone.” All stakeholders must buy in to the vison of an improved passenger experience and provide the tools and infrastructure that allow that vision to become a reality. Part of the answer is technical. All stakeholders need a common platform from which to operate and innovate. But Sir Tim stressed that “data is not useful in itself,” no matter how much you have. The key idea is how a business responds and uses that information. Airlines must look outside the industry and to throw away legacy thinking,

according to Sir Tim. “The clever use of technology can create whole new business and opportunities,” he advised.

K E E P U P T O DAT E W I T H A L L T H I N G S A I R L I N E S R E L AT E D AT A I R L I N E S . I ATA . O R G

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RFID to save industry $3bn over next seven years By Peter Drummond, HEAD OF BAGGAGE AT SITA

The deployment of Radio Frequency Identification (RFID) technology is back on the agenda for airlines and airports globally. The business case is compelling: the rollout of RFID, which can accurately

track passengers’ baggage in real-time across key points in the journey, holds the potential to save the air transport industry more than US$3 billion to 2022. Research by SITA and the International Air Transport Association (IATA) – to be discussed at this morning’s Baggage of the Future session at the World Passenger

and the industry. In particular, RFID will address mishandling during transfer, a key area identified by SITA and IATA where the technology could help improve baggage handling rates. RFID technology will ensure that airports, airlines and ground handlers are able to keep track of bags at every step

Symposium in Dubai – reveals that the accurate tracking rates of RFID technology could reduce the number of mishandled bags by up to 25% over the next seven years. That is good news for passengers

of the journey and ensure the right bag is loaded onto the correct aircraft. To read more about the benefits of RFID visit www.sita.aero

Welcome reception and conference photos

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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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. W W W. I A T A . O R G . U K

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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

IATA survey reveals latest travel trends

IATA’s 2016 Global Passenger Survey (GPS) shows that passengers are looking for technology to smooth travel hassles. Released at WPS yesterday, the GPS was conducted with support from PwC, LLP and analyzed the responses of nearly 7,000 passengers from more than 145 countries. It reveals that passengers are looking for a different travel experience based on: • arriving at the airport ready to fly • passing through security and border control once without having the hassle of removing personal items • uniquely-tailored travel options—for which they are prepared to offer their personal data • having the same connectivity in the air as on the ground. There is a clear preference for moving traditional airport processes “off airport.” In 2016, the percentage of passengers who checked-in online and used a mobile boarding pass rather than a printed one at least once

increased from 69% in 2015 to 71%. Additionally, 33% of those surveyed wanted to self-tag their bags and 39% wanted to use electronic bag tags. The GPS also reveals that 26% were interested in having their luggage picked up from home and delivered to the airport and 24% would like to be able to drop off their luggage away from the airport. A majority (61%) expressed interest in tracking their bag throughout the journey. To facilitate these demands, airlines are adopting IATA’s baggage Resolution 753, which requires the ability to track bags at major journey points. “Passengers want to arrive at the airport ready to fly by taking advantage of “off airport” digital self-service options,” said IATA’s Director, Passenger and Facilitation, Pierre Charbonneau. “IATA is helping the industry make this a reality for more travelers through its Fast Travel Program. If the industry meets its internal program goals, then, by 2020, 80% of global passengers will have

access to more self-service options.” There are challenges to overcome with airport security and border control processes, two of the biggest passenger pain points. The top frustrations were the wide variation in security screening techniques at different airports and the intrusiveness of having to remove personal items. In fact, 40% of passengers choose their route based on their airport transfer experience, making this a vital area for improvement. Part of the answer will certainly be Smart Security, which is designed to make the airport checkpoint faster and more efficient for passengers. The latest GPS also confirms the clear trend for constant connectivity, even in-flight. Some 51% of passengers—a 12% increase on 2015—would prefer to use their own devices on-board to access entertainment options. With availability of Wi-Fi connectivity continuing to have a direct impact on the overall air travel experience, adopting the latest on-board Wi-Fi technology remains an effective way for airlines to distinguish their brand. “Passengers want convenience and quick results with their bookings and check-in, a seamless and secure airport experience, and unique tailored experiences throughout their journey,” said Nick Careen, IATA’s Senior Vice President for Airport, Passenger, Cargo and Security. “They are ready to embrace the benefits of new technology when it comes to enhancing their travel experience. Airlines and airports that recognize this and provide passengers with easy-touse mobile services, self-service options, and one-stop security checks will improve the travel experience and passenger satisfaction.” To gain access to the GPS 2016 full report and the highlights, visit www. iata.org/gps

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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Putting the customer first lively WPS leadership panel held an in-depth discussion regarding the current state of innovation in aviation and the challenges ahead if the industry is to implement truly customer-centric technology and business models. In her opening remarks,

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Caroline Strachan, Managing Partner, Festive Road asserted the need to put the consumer at the heart of the airline business but it was agreed by all that this concept is only just beginning to gain traction. Paul Griffiths, CEO, Dubai Airports, argued that the industry is a dinosaur in many respects and that customer choice must go beyond “chicken or beef?” He continued: “We will not become consumer-centric if we do this incrementally. We must treat customers very differently to the very structured relationship that is in place today.” Griffiths worried that the industry was not thinking big enough. He suggested that technological change is not happening in the back rooms full of servers, it is happening in the pockets of consumers. So, whereas most of the advances to date have been done to serve the business and make a process cheaper and more efficient, future changes will be driven by the consumer. Amir Amidi, Managing Partner, Plug and Play agreed that there was still a lot of work

The participants AARON HESLEHURST, BBC World News (Moderator) PAUL GRIFFITHS, CEO, Dubai Airports CHRISTOPH MUELLER, Chief Transformation Offi cer, Emirates AMIR AMIDI, Managing Partner, Plug and Play GARETH WILLIAMS, CEO and Co-Founder, Skyscanner CAROLINE STRACHAN, Managing Partner, Festive Road

to be done. “The passenger experience hasn’t been transformed over the past few years,” he said. “There have been some improvements but updating inflight entertainment is not a transformation.” The answer to the challenge of putting the customer first most probably lies in open source technology. This would allow even more companies to become involved in the aviation ecosystem and speed up the adoption of new technologies. “Companies must build software for the person that uses it,” said Gareth Williams, CEO

and Co-Founder, Skyscanner. That means understanding the individual passenger in detail and incorporating the flexibility to accommodate a plethora of requirements. The point was taken up most emphatically by Christoph Mueller, Chief Transformation Officer, Emirates. “With personalization, you have an infinite number of product combinations,” he said. “The retail potential is endless.” But he warned that every customer has multiple personalities. What a customer does on the first leg of journey

may be completely different to what he or she wants to do on the second leg. Mechanisms and technology need to be in place that enables the customer to tell the airline what is required. “We can’t have guesswork,” as Amidi put it. The panel agreed that personalization fundamentally changes the value chain and existing processes. In theory, every price will be different so mechanisms and categorization based on price will disappear, for example. Mueller insisted that innovation is not about coming up with a new version of an existing product or process. It is about constant change. Resistance to such change doesn’t come from the consumer, employees or regulations. Rather, it is for airlines “to make flying exciting again,” he concluded. “It must be an adventure.”

K E E P U P T O DAT E W I T H A L L T H I N G S A I R L I N E S R E L AT E D AT A I R L I N E S . I ATA . O R G

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8 WILDLIFE TRAFFICKING

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