The airlines category is anticipated to grow at a CAGR of 7% from 2023 to 2030. The North America region accounts for the largest share. This category is expected to experience significant growth due to the rapid increase in air passenger traffic, and a strong focus on improving the passenger experience. This category expansion is being driven by ongoing advancements in wireless technology and a rising preference for intelligent airport designs. One of the major technologies in the airline industry is the use of blockchain to track luggage, improve passenger comfort and flight data security while obtaining greater transparency and efficiency.
Intelligent airports are growing because of the development of Metaverse, a technology that uses a mix of virtual, augmented reality, and advanced internet. For instance, in 2022, Qatar Airways launched QVerse, where visitors can experience Qatar's website through novel virtual reality. Similarly, in 2022, Bangalore International Airport in collaboration with Amazon Web Services (AWS) launched BLR Metaport to offer a 3D virtual experience of its newly launched terminal.
Autonomous robots are revolutionizing the baggage handling process at airports. They are designed to transport luggage from the check-in counter to the aircraft or from the aircraft to the baggage claim area. For instance, in 2022, in the U.S., Cincinnati/Northern Kentucky International Airport and Pittsburgh implemented autonomous robots, named Ottobots, to deliver retail, food and beverages.
The utilization of IoT technology enables the tracking of luggage, monitoring equipment performance, and enhancement of aircraft maintenance. For instance, sensors installed on aircraft engines can identify potential issues and notify maintenance airline crews in advance, averting any breakdowns. Additionally, cloud-based networks and IoT technologies help the passenger from the check-in to boarding process autonomously.
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In the airlines category, the use of blockchain traceability can aid various functions related to maintenance, repair, and operations (MRO). By generating digital product passports, it establishes a documented history of parts and components, including their composition and origins. These passports may also incorporate disassembly manuals or instructions. Consequently, airline companies can prolong the lifespan of their products and effectively monitor the subsequent reuse of parts and components. For instance, in August 2022, Boeing partnered with Canada's TrustFlight and RaceRock to create a digital aircraft record system using blockchain technology for aircraft maintenance. The system is an expansion of Boeing-Honeywell's GoDirect Trade platform. The maintenance system would help the company improve productivity and efficiency by 25%.
Labor and fuel cost are the major expenses in the airlines category. Labor costs, which account for 20 - 30% of the airline's operating expenses are generally fixed in the short run. Whereas fuel costs highly depend on the price of oil. Fuel costs account for approximately 10 - 12% of the operating expenses. In January 2023, the freight rate reduced due to a decrease in cargo volumes. The Europe region saw a decrease in cargo ton-kilometers of 20.4%, followed by Asia Pacific, which saw a reduction of 19.0% in January 2023 compared to January 2022.
Airlines Category Procurement Intelligence Report Scope
• Airlines Category Growth Rate (CAGR): CAGR of 7%, from 2023 to 2030
• Pricing growth Outlook: 10 - 18%
• Pricing Models: Dynamic pricing model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: Inflight services, entertainment, storage space, analytics and reporting modules, integrations, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
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Key companies
• Qatar Airways
• Delta Air Lines Inc.
• American Airlines Group Inc.
• Southwest Airlines Co.
• United Airlines Holdings Inc.
• International Airlines Group (IAG)
• Lufthansa Group
• Air France-KLM
• Emirates Group
• China Southern Airlines Co. Ltd.
• Singapore Airlines
• ANA All Nippon Airways