Data Analysis in the Airline Industry: Digital Transformation and Business Imperatives
Overview
This paper analyzes the business imperatives driving the airline industry and explores how data analysis, artificial intelligence, and cloud computing technologies enable revenue generation and operational efficiency. The analysis examines next-generation aircraft data capabilities, industry consolidation through mergers and strategic alliances, and the implementation of data-driven innovations in maintenance and customer service.
What this coursework covers
- Business Imperatives in the Airline Industry: examination of cost pressures, revenue challenges, and customer expectations
- Digital Technologies and Next-Generation Aircraft: analysis of data generation capabilities in modern aircraft like Airbus A350 and Boeing 787
- Industry Consolidation and Strategic Alliances: discussion of mergers, composite branding strategies, and economies of scale
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Data Analysis: Airline Industry
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Data Analysis: Airline Industry
The Business Imperatives in The Airline Industry
The business imperatives in the airline industry are driven by increasing construction costs, decreased funding, increasing number of passengers, periodic downturns, and increasing customer expectations. Most airlines operate in a business environment with skinny margins and revenue. Consequently, revenue generation is one of the biggest imperative in the airline industry by delivering best-in-class passenger experience. However, in today's digital economy, revenue generation can only be increased by leveraging data, artificial intelligence (AI), and cloud computing to scale, adapt, and grow. The primary reason airlines must invest in these digital technologies is the enormous data generation capacities of next-generation aircraft (Weerasinghe & Ahangama, 2018). Many airlines are operating next-generation aircraft like Airbus A350 and Boeing 787, which come with enabled in-built data generation systems: these aircraft are not just contraptions capable of conveying people and cargo across continents but also huge data-generating computers.
Unlike legacy types, next-generation aircraft are prognostics powered, and their systems can try to troubleshoot when mechanical issues arise. Airlines can integrate this ability with adaptive aircraft maintenance to reduce time and costs. The immense data generation capacities of next-generation aircraft mean that airlines can analyze the information to implement incremental innovations towards higher revenues and lower costs.