Hour of Power: FTE APEX Think Tank Delivers Actionable Business Solutions
Share
With an honest and unflinching look at the challenges facing the aviation industry, followed by actionable solutions to help overcome them, the latest FTE APEX Think Tank at Virtual Expo is a must-see for those looking to future-proof their business. This article originally appeared in Expo Daily Experience. Read the full issues and register for FTE APEX Virtual Expo — the platform will remain open as a resource until January 8.
After a year that has transformed the entire airline industry, the question of how to move forward was the topic of discussion at the exclusive FTE APEX Business Model Transformation Think Tank.
The Think Tank team, made up of Think Tank captain Satyaki Raghunath, chief strategy & development officer, Bangalore International Airport Limited (BIAL), as well as Javed Malik, COO, AirAsia; Christina Cassotis, CEO of Pittsburgh International Airport; Juha Järvinen, CCO, Virgin Atlantic; and Robert Carey, chief commercial & strategy officer, easyJet, all agreed that post-COVID-19, a great reset is warranted.
Behind the Screen
Health screening is here to stay, the Think Tank concluded, but there are still significant roadblocks before the industry can scale up testing efforts. “Every single state [in the US] has a different set of rules. We have a large domestic market that is absolutely depressed and suppressed because there’s no confidence that state-by-state the rules are the same,” Cassotis says. Malik responds by saying that airlines, airports and outfits like the World Health Organization (WHO) and the International Civil Aviation Organization (ICAO) need to present a united front if they want lawmakers to hear their concerns. “Governments are currently overwhelmed,” Järvinen stresses. “We can’t wait and see what happens; we need to work together as an industry.”
Home Away From Home
The pandemic has really forced the industry to rethink the entire passenger journey, and it will need to pursue out-of-the-box business strategies, particularly when it comes to food & beverage (F&B), retail and baggage in order to ensure a positive travel experience. For instance, airport space can be converted into pickup points where travelers go to collect preordered meal kits to bring on the plane, Malik suggests. Cassotis thinks these types of initiatives take care of the passenger, while also unlocking important new revenue streams. Meal kits could be co-branded, for instance, and distributed on either end of the passenger journey, she says. “What would it mean if I could get off my flight, know that I could pick up dinner, and just ‘be home’?” But in order to pursue any of these ideas, there needs to be a platform that connects F&B service providers with airlines and airports, says Järvinen, who encouraged IT professionals attending Virtual Expo to take up the challenge.
Shopping Surge
The aviation industry has a lot to learn from the e-commerce giants of the world, the panel agreed. Airports and airlines should pursue an Amazon-style approach and broaden the scope of available products beyond the traditional travel retail and duty-free offers. Passengers can then pick them up at the airport or have them delivered to their home. By moving baggage processing off site in lieu of kiosks, airports can reclaim that space for revenue-making commercial activities, Raghunath adds. “We could possibly save 20-30% of terminal area, and transform its design, development and expansion” he says.
Golden Opportunity
While the Think Tank convened for just over an hour, they could have stayed on the call for much longer. Ultimately, Malik opines, the industry should view COVID as an opportunity, not just a threat. “In my view, it’s the best thing to have happened to aviation in a way: it has made us come together and say ‘drop those barriers,’” he says, referring to the large-scale collaborations that have emerged between airlines, airports and their suppliers like e-commerce companies, delivery services and electronic bag tag vendors. Raghunath says that the Think Tank’s final report has got potential. “This is the sort of session that should energize everyone in the industry.”
Virtual Expo Connection – Event Agenda
The Business Model Transformation Think Tank will be available until January 8, 2021. Share your comments on the Think Tank with FTE.