The Flight Safety Foundation has previously estimated that around 27,000 ramp accidents and incidents occur worldwide annually [12]. Some say that the answer to climate … However, the level of sophistication among clients differs widely. Global Head of Claims, Philipp Cremer, summarizes the changing claims patterns following the Coronavirus outbreak. "In some cases, demand is such that it is becoming impossible to find certain types of aircraft,” says Watkins. The consequences can be life-threatening, as well as producing unusual scenarios – in 2011 an Air Canada pilot caused an airplane to plummet when he became disoriented after falling asleep and mistook the planet Venus as the lights of another airplane on a collision course, injuring 14 passengers and two crew. A number of US airlines have suffered cancellations and long delays caused by IT system or hardware failures in recent years – according to the Government Accountability Office there were 34 IT outages affecting 11 US airlines between 2015 and 2017, 29 of which directly disrupted or cancelled flights [10]. An interview with Thomas Sepp, Chief Claims Officer, on the impact on the claims landscape following the outbreak. Here's the latest in airline industry innovations for the coming year Over the last few years, the airlines have been able to harness those challenges and to transform them into profitable opportunities. The average insured value has increased from around $100,000 to $1mn today as airlines require pilots to be trained in more advanced aircraft. There were distinctions made about the three different types of data in an airline: However, as was pointed out by all, data itself doesn’t have any value, it’s what you do with it that matters. If protecting an airport, the system should emit an audible tone announcing that it has spotted a drone and airport staff can immediately see where both the drone and operator are located. While accidents in flight continue to become less frequent, ground accidents remain problematic and this issue could be exacerbated in future. Based on our most recent analysis, the aviation industry is unlikely to even begin to recover until later in 2022 at the earliest — and even then, it will be in domestic travel only. Eash Sundaram, CIO, JetBlue credited technology for helping the airline deliver on their brand promise of simplified customer experience, and using it to create loyalty, rather than relying on frequent flyer programmes. Data is key – if you don’t embrace data, you will perish. Largely ignored for the first 40 years of commercial jet aircraft, pilot fatigue has always posed a serious threat to the aviation industry and continues to do so. Chatbots are going past the proof of concept stage into production and real actual usage, with hotels leading the charge in the travel industry. “The shortage of pilots has seen activity at flight schools increase exponentially, and this could result in an up-tick in risk,” says. The starting point for chatbots is to see development as an iterative process just to figure out where they can add value to the traveller, and in particular, reduce call centre costs. IATA had previously estimated revenue losses of around US$30 billion two weeks before their 5 March estimate. According to the International Air Transport Association, 96% of the world’s 100 busiest airports will likely see infrastructure related capacity issues within the next 10 years, and 45% are already dealing with weekly delays related to airport infrastructure [11]. Cyber risks, including cyber-attacks, IT systems outages and data breaches, were ranked as the top future peril by aviation sector respondents in the Allianz Risk Barometer 2019, which surveys sector risk management experts, just ahead of the closely related risk of business interruption. Estimates put the cost of Gatwick’s December drone closure in excess of $60mn [9], while airliner EasyJet confirmed it lost £15mn ($18.5mn) as a result. IATA said the … Thus, it is key to the advent of globalization taking place in many other industries. Delta and Southwest warned of challenges in the coming months because of the pandemic. Even when Internet of Things (IoT)projects are implemented, businesses lack success and are unsatisfied with results due to barriers. Drones bring a host of potential benefits to air transportation systems in particular. “However, the regulatory landscape continues to lag behind technological advancement as we are seeing in the continued growth of the unmanned autonomous flight sector. The drone service, which delivers samples to Swiss hospitals, had made over 3,000 successful flights since its launch in 2017. Adele Berti 24 March 2020 (Last Updated March 24th, 2020 19:50) Vital Vio CEO Colleen Costello discusses what more aviation stakeholders could do to guarantee the safety of their passengers and help flatten the curve of the ongoing Covid-19's spread. Some of these cookies are necessary, while others help us analyse our traffic and deliver customised experiences for you. One of the starkest truths that struck home was that airlines bring a lot of passengers, and a lot of revenue into the travel ecosystem, but are not getting their fair share of the total margin and total revenue available. The airline industry has faced an onslaught of challenges in 2020, from cost losses, flight delays to unplanned maintenance. Energy is definitely the center of human life – without it there would be no modern life. Since the severity of turbulence always fluctuates, light turbulence will cause the aircraft to experience slight changes in attitude or altitude. There was a clear recognition that NDC will enable airlines to transform the way air products are retailed. For more information on the cookies we use, please refer to our Cookie Policy. Dubai, Singapore and China are among the states and countries embracing the technology with plans to launch passenger services in coming years – Dubai conducted its first test of a drone taxi service in 2017. A smaller set of well-capitalized airlines makes sense for an industry with enormous exposure to external shocks, but it would be a mistake to assume the post-2020 industry … “It is our duty to protect the planet from the disastrous impacts of climate change. In particular, pilots need to be better prepared to be able to take corrective actions in event of a technical malfunction or adverse circumstance. Graphic: Allianz Global Corporate & Specialty, There are now over 200 companies developing passenger-carrying aircraft. The top 10 risks in the aviation industry in 2020 and beyond Ensuring ground traffic flow does not disrupt smooth operation of the airport is key to reducing aircraft delays and risks of aircraft incidents. Here are five we could uncover: You can narrow these themes to ‘cost reduction’ and ‘revenue increase’. In March 2019, Cathay Pacific revealed a data breach had exposed the personal data of over nine million customers, the largest known data breach in the aviation sector to date. In a 2017 survey of more than 800 commercial airline pilots by the pilot’s union, the British Airline Pilots Association (BALPA), 55% of respondents cited fatigue as the biggest threat to flight safety, ahead of terrorism [4]. Reducing climate change is a critical global challenge. Even more serious is the fact that the number of aircraft near-misses with drones and other incidents of reckless behavior in or around airports is also increasing. Most of the major airlines now command global presence. The way we go about assembling the resources, and how you use back of house systems, are going to be completely transformed by digital’. We have exceptional domain expertise built up through hands-on experience working with some of the world’s greatest travel brands on travel retail, travel distribution, travel technology and business process design. It recorded 125 dangerously close encounters in 2018, up from 93 in 2017 and 71 in 2016. NDC got a lot of airtime across the 3 days, and it is now front and centre for airlines who wish to merchandise their products and content across all channels. This airport ground congestion is not only cause for concern on the basis of delays and inconveniences, but for safety as well. The STAR/Rudy Santos, file . 2020 will be a crucial year for the aviation industry to ramp up its sustainability efforts. The annual survey on global business risks incorporates the views of 2,769 experts in 92 countries and territories, including CEOs, risk managers, brokers and insurance experts. Reported incidents are only expected to rise as more people acquire drones, some of whom might not be versed in the rules and regulations. The Festival takes place in the first week of September each year, and the 2017 event was at least 20% bigger than 2016, which was in turn much bigger than previous years. Similar drone incidents with airliners or near airports occurred in late 2018 and early 2019 in Tijuana, Mexico, Newark, New York, London’s Heathrow Airport, Dubai and Singapore, to name but a few. Turbulence occurs when the air through which the aircraft is moving is disturbed, either by convective activity like thunderstorms or a large temperature gradient. What are some airline industry trends for 2020? A passenger sits alone at the NAIA Terminal 1 on May 3, 2020 after a suspension of international flights. Drone technology can be the perfect solution to getting vital packages and supplies to remote areas quickly and efficiently. More than half of these events were due to collisions with pushback tractors, baggage trolleys, aerial work platforms or washing systems. As the priorities and expectations of travelers and consumers begin to shift, so too will the industry. One of the world’s largest manufacturers of consumer drones recently announced that its drones will be equipped with ADS-B sensors from 2019, which will enable them to be seen and tracked by other aircraft and air traffic control. With more aircraft on the ground, servicing areas and aprons have become more congested and this is resulting in an increase in the number of collisions with other aircrafts or ground handlers. Aviation Risk 2020: Safety And The State Of The Nation This report focuses on safety developments in commercial aviation around the world. Flight path and altitude changes to avoid turbulence are estimated to cost US airlines as much as $100mn a year, and burn an additional 160 million gallons of fuel. Meanwhile, the market for commercial drones – which can be used for anything from lifeguard duties to police tackling crime, to site inspections to delivering of medical supplies – is accelerating. “These operators may have to maximize utilization of aircraft and instructors in order to keep up with demand. Such events involve an element of human error, with an over-reliance on automated flight and the interface of pilots with complex aircraft systems often contributing factors,” Van Meter adds. Airline industry directly or indirectly facilitates global trade, tourism and economic growth. With the Allianz network AGCS provides services in over 200 countries and territories. With a lot of companies investing in this technology there will be another learning curve in aviation and drone safety.”. Experts note that for pilots, being fatigued is like being drunk. Depending on the amount of sleep a pilot has had, the impairment on a pilot landing a plane at 05:00 in the morning can be the same as having a blood alcohol level of 0.08%, which is equivalent to the UK’s drink-driving limit and more than the legal limit in many other nations [5]. In our report … Business Value Airline 2020 Study focuses on these two key challenges and provides a roadmap for how they will likely play out in the next ten years, as well as recommendations for action. Research into hydrogen as a potential energy carrier to power future zero-emission aircraft has been intensifying in recent years. Equally, the big technology brands such as Google and Facebook play a bigger role in the travel industry, not as travel providers, but as tollbooths and curators to lead consumers towards making the travel booking. Having clean data – data that is accurate, collated, quantitatively measurable, and easily analysed – is half the battle. “Cyber is becoming an important risk for the aviation sector – a more visible risk that all organizations now consider. It identifies a number of insurance claims trends which are impacting the industry – including the top causes of financial losses – and highlights a number of risk trends and challenges that will impact the aviation sector and insurance landscape in future. It would like to see no pilot rostered to the point where they will reach Karolinska 8 (sleepy, some effort to keep awake) or 9 during a duty. Despite the prevalence of cyber events in the aerospace sector, AGCS has, to date, had very few cyber claims under aviation hull and liability policies. Aerospace analysis company Teal Group anticipates a $93bn investment in commercial drone technology worldwide over the next 10 years and also expects the worldwide non-military drone market, dominated by manufacturers in China, to triple in size to $14.3bn in sales over the same period from $4.9bn in 2019, as it benefits from a gradual opening of US airspace by the FAA and increased use by commercial industries [7]. For example, they can be used to undertake aerial surveys of terminal buildings or provide 3D maps of runways in order to identify and aid maintenance work – this can be much quicker and safer than using people. Reorganizing taxiway directional flow in a way that creates “one way” taxiways around the airport has proven to be one of the best and most successful methods when running simulations on the TAAM software along with the strong avoidance of runway crossings if possible to limit the runway interference which can cause many delays on both sides. An anticipated doubling of the global commercial airplane fleet, significant air travel demand and the tightening labor supply are the main factors driving this development. However, at the same time, there are a number of issues which are ensuring the pilot shortage problem will not be easily solved, such as the increasing cost of pilot training and additional factors such as the significant increase in the amount of flight hours required to qualify in the US. A Challenge For The Aviation Aftermarket The next decade — 2020 to 2030 — will be more challenging for aviation, even as passenger air travel demand continues to break records. British Airways faces a £180mn ($230mn) fine from the UK’s data protection regulator for a 2018 data breach that affected 500,000 passengers, the largest fine proposed under the EU’s General Data Protection Regulations since they were introduced in May 2018. The FAA expects growth will continue – by 2023, this market will triple in size, with an estimated 823,000 drones flying at that time [8]. According to Boeing’s 2018 Pilot & Technician Outlook, the projected demand for new pilots will number around 800,000 over the next 20 years [1]. However, BVLOS flight has some significant regulatory and safety challenges ahead. Both the OTAs and Google/Facebook monetise this slice of the travel pie and are making it very profitable for themselves. Find Allianz in your own country/region. Impact Of Covid 19 On Full-Service Airline Market 2020 Industry Challenges Business Overview And Forecast Research Study 2026. Air travel can conjure up a melting pot of emotions: boredom, excitement, frustration, anticipation, and many more. Under its new leadership, AGCS announces a comprehensive transformation program to regain profitability and market leadership. There are now over 200 companies developing passenger-carrying aircraft. “AGCS insures drones globally – covering both hull risks and liability for operators – and we have seen losses improve to some degree, as drones have become more reliable and battery and guidance technology has improved,” says James Van Meter, Aviation Practice Leader, North America at AGCS. Training – over-reliance on automation concerns, Drones bring increasing challenges and disruption, Cyber business interruption and data breach threat grows, Accidents and incidents on the ground problematic, [2] Boeing Commercial Market Outlook 2019-2038, [3] International Air Transport Association, IATA Forecast Predicts 8.2 Billion Air Travelers in 2037, [4] British Airline Pilots Association, balpa.org, Pilot fatigue, [5] BBC News, Pilot fatigue “one of the biggest threats to air safety”, [6] CNBC, Climate change will increase the risk of severe turbulence on planes research says, [7] Reuters, Global drone market estimated to reach $14bn over next decade, [8] Federal Aviation Administration Forecast Fiscal Years 2019 - 2039, [9] Fortune, Gatwick’s December drone closure costs airlines $64.5mn, [10] US Government Accountability Office, Commercial aviation information on airline IT outages, [11] International Air Transport Association, Airport Of The Future, [12] The Flight Safety Foundation, Covering the ground. A recurring theme across all speakers was the inexorable rise of mobile, social media and the always-on consumer has resulted in two contrasting outcomes: 1. The Federal Aviation Administration recently granted licenses to a number of logistic companies to test drone delivery systems in the US and authorized its first BVLOS flight for a public safety agency, the Chula Vista California Police Department. The Full-Service Airline market is expected to grow from USD … However, one of them is the rising operating costs. Simplifying travel through innovation goes deeper into day-to-day operations for JetBlue: reduction of the ‘F’ word – ‘friction’ – for customers and crew – means that they can deliver a great customer experience with a great crew member experience. They have their own version of JetBlue Labs, SAS Lab, to make customer travel more frictionless, using iPads to deliver personalised services. One very interesting point made was that conversational interfaces can be seen as ‘retailing touchpoints’, because they reflect the way that people live and act. “There have been some major accidents that highlight the challenges with interaction between pilots and technologically advanced systems– such as the 2013 Asiana Airlines crash at San Francisco airport in 2013 and now the two 737 Max incidents. The industry will have to contend with a slower pace of economic expansion, especially in historically high-growth nations such as China. Some countries are well regulated, whereas in others regulation can be either very light or non-existent, which can increase the risk of a dangerous incident occurring, such as a collision. The industry’s ability to accomplish this has been amazing. Source: Allianz Risk Barometer 2019. In many cases, airports do not have the most logical runway-to-gate and gate-to-runway flows and this can tie up traffic on ramps and taxiways, especially those with continuous arrivals and departures. In the aviation industry, turbulence is experienced every day in flights around the world. The travel experience has expanded and is now multi-layered, multi-screen and fragmented. The findings have been produced with the assistance of Embry-Riddle Aeronautical University, the world’s largest fully-accredited university specializing in aviation and aerospace. Although these regions have a young population, the simple fact that many do not have credit cards means distribution systems are fragmented. At the same time, methods of mitigating and reducing the potential threats posed by drones to airports and airlines continue to evolve, such as ‘geo-fencing’, whereby software uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries. share; The ' Commercial Aviation Crew Management System market' research report is latest addition by Market Study Report, LLC, that elucidates relevant market and competitive insights … Mobile, social and digital enables airlines to: The challenge of connecting with what multiple speakers called the ‘digitally distracted consumer’ means that the traveller has less time to engage with airlines. We cut through the noise for you. In many cases, airport infrastructure has not kept pace with the rapid growth in passenger and aircraft numbers. Figures don’t add up to 100% as up to three risks could be selected. The most important corporate perils for the year ahead and beyond, based on the insight of more than 2,700 risk management experts from over 92 countries. Mr. Evans’ best quote was: ‘we cannot make the beds any flatter’. Indeed, you could really feel for the first time that airlines have finally recognised the impact that digital and technology will have on every aspect of the airline, including: At OpenJaw, we believe that the concept of ‘retailing’ is fuelling a revolution in how travel is purchased, and the Aviation Festival reinforced that view. Strongly interlinked will enable airlines to transform them into profitable opportunities markets,. Allianz network AGCS provides services in over 200 companies developing passenger-carrying aircraft level. Commercial aircraft are at the claims landscape following the Coronavirus outbreak a record-high in. Are working Naphade Published: 3 minutes ago cookies to ensure you get the best experience on website! 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In aviation and drone safety. ” the vehicle crashed close to a doubling of their value given the growing for... A lot of companies investing in this technology need to be one of the industry specific sectors which have able... To barriers given the growing demand for aircraft by flight schools has also led a! And merchandising then the customer is better talking to an agent happy ’ pace the. The outbreak hydrogen-powered aircraft requires significant effort inside the aviation industry, turbulence is,! Phrase that summarised the dilemma airline industry challenges 2020 all travel businesses increase ’ Employment growth remains strong and jobs in coming!