The Use Of Information Technology In Airline Industry Management Essay

The Use Of Information engineering In Airline Industry Management EssayAs the piece of cakeline intentness has become more competitive, carriers have looked to improve performance and competitiveness. Martn-Consuegra (2007) In previous chapters we canvass Time Series analysis of melodylines persistence and estimated the gain separately and jointly. Aksoy(2003) argue that in service industries such as airlines, a major requirement for supremacy is understanding and satisfying customer need and expectations, creating, communicating and delivering customer value. Thus in this Chapter we check our SITA info includes ontogeny of self-service, along with the rise of unst sufficient engine room, which will increase workforce efficacy and compound rider processing.IT execution of instrument research in airlines structure.The reinforcement of e- profession employment in airlines has runed in an increase of sales volume for airlines websites and a flow for the traditional dist ribution channels. Moon (2006) In this segment we analyze SITA data includes evolution of self-service, along with the rise of mobile technology, which increases workforce efficiency and enhance rider processing. Airline Business(2009) The data describes IT implementation in the midst of 2001 till 2009 alike our IATA research duration investigation. IT and Telecommunication Societe internationale de Telecommunications Aeronautiques (SITA) data base enables us to investigate the policy and IT trends of Airlines. We apply SITA data bank provides a benchmark against which mortal airlines and the manufacture as a whole can measure success in meeting the challenges presented by IT and internet revolution. SITA is multinational assertation Technology Company specializing in providing IT and telecommunication operate to the Aviation Industry, and it is around panoptic research of its kind.Table 5.1 Airlines IT and telecommunication spend1Year totalleaden average20091.75%1.74%2008 2.20%2.18%20071.95%2.07%20061.85%2.19%20051.92%2.27%20042.13%2.47%20032.36%2.85%20022.25%2.59%20012.82%3.44%Above Table 5.1 indicates IT and telecommunication spend as a percentage of 116 airlines revenue. We presume that overmuch of the first nine years of twenty-first century spent on IT trends to decrease revenue percent affirm for new technology enthronization. In 2001 the weighted average spent for IT was well-nigh cardinal times bigger than in 2009. The reason for this be travel fuel prices, pecuniary crisis, terrorist attacks and other important factors often caused changes in prospect of industry financial performance.Instead of the expected profit, Air Transport fellowship of America (ATA), an organization connected with the largest airlines in the U.S., announced that in jar against 2009 due to financial crisis passenger traffic was 10% lower than a year before. Thus, our of import research questions goal is to investigate the problems faced by the airline indu stry, and try to find optimal solutions on how international air exaltation system can cope with 21century watershed. Nowadays, IT technology deals mainly with passenger transportation mount, and goods transportation is or sowhat neglected. To reveal strong connection between IT technology investment and development of airline companies we expose intention 5.1 indicates intermediate of rider transportation of main 160 airlines for the same period as in table 5.1 between January 2001 and April 2009. Between Feb2001 and Feb2002 during terrorist attack effect compargond with the honest rider Transportation issue aspect, RPK shrunk by 180000 (A). At the same time Airlines IT and telecommunication spend diminished by o.85%. Moreover, during 12 months of FinancialAB check 5.1 Terrorist attack and Financial Crisis effect for Average Passenger Transportation of 160 major airlinesSource IATA 2009 airlines data reported by carriers at the time of publication. (SAS)2Crisis between Feb20 08 and Feb2009 Average Passenger Transportation decrease by B=80000 RPK. Similarly, in 2009 airlines IT and telecommunication spend 0.44% les of weighted Average than in 2008. That implies that annual revenue Passenger kilometers portentously impacts Airlines IT and telecommunication expenditure. later FC and another budget inconstancy main managers of air transportation companies are more reluctant to invest in Information Technology systems. The main obstacle to improve IT structure and solutions is neglect of investment caused by financial instability. Nevertheless we argue that New Technology outlay is going to accept a profit for air companies and makes them more rival at the market. Pagiavlas et al. (2005) in his paper analyzes mobile logical argument in the context of the airline industry as a strategic tool to create a sustainable competitive advantage through the implementation of an effective mobile cable model. Nowadays, after r severallying around 4.6 billion mobi le cellular subscriptions by the end of 2009, International Telecommunication Union expects the consider of mobile cellular subscriptions globally to reach five billion in 2010, driven by advanced services and handsets in developed countries and increased take-up of mobile health services and mobile banking in the developing world. ITU (2010) New technology of mobile phone check-in, e-ticketing, online or wireless connectivity on-board of the aircraft is becoming popular and crude oblation to airlines passengers self service. Wei (2005) argues that through the expanded use of the internet-establish ticketing, airlines are able to reduce labor costs and in some cases eliminate commissions exclusively so as to improve profit margins. Hence, main international organizations necessitate in business programs to lover industry costs and improve Passenger mobile based services.Figure 5.2 Mobile based services to passengers profess mobile phones3Compared with other mobile services iss ue perspectives in the Figure 5.1 the best developed system already exists in thirdly airlines inform passengers about flight status and delay. Furthermore, optimised webside for mobile phones and payments via mobile phone systems are implemented by every 6th Passenger Transportation company. In contrast, 73% of Airlines has not sent baggage receipts to mobile phones yet, and 71% has not track/direct passengers at the airports with mobile phones. Nevertheless, plans for next two years position majority of responding airlines in the utilization mobile based service area close to the level of 50%. Nothwithstanding, in 2004 International Air Transport Associations set up Simplifying the Business program (StB). Thus, discontinue Coded Boarding Passes (BCBP), IATA e-freight, Baggage Improvement and other programs and facilities are available. In the future day Fast Travel Program which consists of four projects that the association says will keep the airline industry over US$14 billi on each year. IATA(2009) Therefore, in this segment we conclude our analysis of airlines performance and investigate IT investment effects on the profitability, their growth and survival. Since the tragedy in September 2001, the cyberspace or legacy carriers have sought ways to improve business values and minimize losses by cutting jobs, eliminating routes, decreasing infrastructure, streamlining payoff costs, improving customer services, and creatingFigure 5.2 Major IT successes in 2009. Source SITA (2009)a profitable market Will(2004). One of the well-nigh effective solutions for increasing business values attracting more customers, and increasing customer satisfaction is to provide Internet-based low-fare air travel tickets Marks (2004), i.e. to sell low-fare air travel tickets and expedite embarkment processes through company web sites. Figure 5.2 indicates 2009 IT implementation success of upgrading practical(prenominal) infrastructure, self service implementation, and on/o ffline distributions upgrade. Currently, many airlines are utilizing Enterprise Resources formulation systems (ERP) and their induce web sites to market and sell their products to current and potential customers. around airlines also offer discounts to customers who purchase their tickets online Hanke (2003). The main IT success in 2009 was 11% level of E-ticketing implementation, and 9% upgrading of Reservation Inventory System but crosswise the world, 38% of airlines do not provide any mobile services yet, mainly via cellular phones. Hence, as a reason they claim that there is no clear business case yet, although 20 percent currently offer mobile phone check-in. SITA(2009) In Asia current number of issued embarkment passes is sent directly to mobile phones as barcoded boarding passes (BCBP) to every third passenger, and it is the best result before Europe (23%) and North America (22%).Figure 5.2 major IT failures of the nett 12 months. Source SITA (2009)Through the expanded use of the internet-based ticketing, airlines are able to reduce labor costs and in some cases eliminate commissions altogether so as to improve profit margins. Wei (2005) Nevertheless, from the perspective of major failures of the last 12 months Figure 5.3 has identified a number of factors that determine adoption problems for IT implementation. Above figure reveals that biggest failure in the last year was implementation delay. Additionally, IT technology infrastructure and virtualization was unable to be upgraded with significant failure value of 9%. Compared regulation compliance, self service implementation and Sourcing of IT providers achieved the same 1% level.ConclusionsAirlines representatives due to last financial crisis are much less optimistic in 2009 about their future IT spend. Thus, managers of air transportation companies look for savings in decreasing expenditure and developing passenger self service processes. The main obstacle to improve IT structure and solutions is lack of investment caused by financial instability. In general, as a result airlines market seen of most potential to reduce costs as via own website in through adding additional products. Mobile based services most likely already implemented to passengers own mobile devices are most likely to be notifications of flight status and delays. SITA (2009) argue that around 5% in their sample respondents currently send BCBP to mobile phones (although three lodge do not offers this facility) with 13%anticipating checking in 2012 (with 18% not offering this facility). Eventually, services most likely to be implemented currently to support on board aircraft are to enable to exchange data and important credit card transactions in real time. Eventually, IATA Simplifying the Business (STB) passenger process project accomplished its e-ticket program on June 1, 2008. STB rebuilt the airline industry to 100% e-ticketing during four years. Finally, air transportation companies industry saved the US$3 billion, according to the association. The Economist (2010).Sprawdz tohttp//www.iata.org/html_email/NS1001812/NS1001812-full.html