Air Transport IT Summit 2013 - www.sitasummit.aero - @sitasummit

1. JAMES HOGAN
PRESIDENT & CHIEF EXECUTIVE OFFICER
THE POTENTIAL OF
COLLABORATION
Creating the ideal journey
SITA Air Transport Summit
La Hulpe, Belgium - 20 June, 2013

2. AIR TRAVEL TAKES OFF
In 1910, commercial air
travel became a reality.
The German Airship Travel Corporation
launched flights from Frankfurt to Baden
Baden and Dusseldorf.
Services were operated by Zeppelin airships.

3. FROM HOT AIR TO WINGED FLIGHT
1914.
The St Petersburg –Tampa
Airboat Line operated the
first commercial flight with a
winged aircraft.
A two-person floatplane flew
35 kilometres across Tampa
Bay, Florida.
The journey took 22 minutes.

4. WE’VE COME A LONG WAY
Aircraft: Benoist X-IV Airbus A380
Capacity: 2 people 525 passengers + crew (X 262)
Length: 7.9 metres 72.7 metres (x 9)
Wingspan: 13.4 metres 79.7 metres (x 6)
Range: 200 kilometres 15,700 kilometres (x 78)
Speed: 103 km/h 900 km/h (x 9)

5. Source: IATA / Air Transport Action GroupTHE AIRLINE INDUSTRY TODAY
• Over 1700 airlines, 23,000 aircraft, 3750 airports
• 3.6 billion passengers expected worldwide in 2016
• 3.13 billion passengers expected worldwide in 2013
Image source: Artist Ryu, Ho-Yeol

6. CUSTOMERS ALSO HAVE EVOLVED
• Sophisticated buyers
• Highly mobile
• Confident with technology
• Constantly connected
• Informed and value-focused
• Expect 24/7 service

7. AIRLINE CUSTOMERS WANT CONTROL OF THEIR TRAVEL
• Loss of time biggest cause of passenger stress (SITA)
• 70 per cent of air travellers carry smartphones or tablets (SITA)
• 75 per cent want more self service (IATA)
• After 2015, 90 per cent interaction with airlines via smartphones (IATA)
• Up to 8.5 billion mobile devices by 2016 (Ericsson)
China and India among
greatest users of smartphones

8. TODAY’S TECHNOLOGY ENABLES …
• Online price comparison and purchase
• Online check-in and seat selection
• Boarding passes – printed or electronic
• Ancillary service purchases
• 24/7 online communication with customers
• Self-service baggage check-in kiosks
• Electronic “self boarding”
• “Personalisation” of information or offers
• Crowd-sourcing of information about
problems or delays
• Fast dissemination of opinion – good or bad

9. ETIHAD - SITA COLLABORATION
• 10 year strategic partnership
• Evolving global IT infrastructure to
accommodate Etihad growth
• Cloud network for timely data access,
globally
• Etihad Airways CrewTab for inflight,
online guest support
• Ongoing innovation, research and
support

10. BUT DOES THIS CREATE THE IDEAL JOURNEY?
It all helps.
But it still can’t replace the human touch

11. ETIHAD AIRWAYS
• National carrier of the United Arab Emirates
• Established 2003
• Based in Abu Dhabi
• Full service, international
• Key partner in Abu Dhabi 2030 Plan
• No legacy airline constraints
Fastest-growing network
carrier in airline history

12. OUR MANDATE

13. OUR GUIDING PRINCIPLES
We are a people business
• We have guests not passengers
• Full service international airline
• Service based on Arabian hospitality
• We benchmark against world’s best
hotels and restaurants
• Business model based on partnering
• Growth through collaboration

14. IN OUR FIRST DECADE …
• Focus on building scale
• Over 15,500 employees from
138 nationalities
• 78 aircraft, more than 80 on order
• 94 direct passenger + cargo destinations
• 10.3 million passengers in 2012
• 45 codeshare partners, virtual network
over 350 destinations
• Profitable
We have big plans for the future

15. OUR THREE-PILLAR STRATEGY
Build scale through
• Organic growth
• Codeshare partnerships
• Minority equity investments in other carriers
A new, collaborative business
model for the airline industry

16. THE WORLD’S FIRST ‘AIRLINE EQUITY ALLIANCE’
• Equity ensures commitment and obligation
• Streamlines entry into new markets within foreign investment limits
• Avoids drawn-out process for mergers, larger investments
• Enables rapid expansion via established brands
• Delivers revenue and cost savings
• Stronger customer proposition
*Jet Airways subject to regulatory approval
29% 40% 10% 3% 24%*

17. COLLABORATION BRINGS …
• 475 destinations
• 500+ aircraft
• Over 95 million passengers
• Revenue US$20 billion
• Lower cost, higher productivity
• More choice for guests
*Jet Airways subject to regulatory approval
*

18. VERTICAL INTEGRATION
• Travel and tour operations
• Event planning
• Dubai Travel Mall
• Airport ground handling
• Flight catering
• Loyalty program “House of
Brands”
Further investments to help deliver the ideal journey

19. WHAT WE WANT FROM TECHNOLOGY
• Scalable to accommodate growth
• Tailored solutions for Etihad Airways and partners
• Multi-market capabilities and support
• New revenue opportunities
• Lower costs, higher productivity
• Improved reliability
• Ability to customise guest experience
• Flexible to adapt to circumstances

20. PASSENGER SERVICES TECHNOLOGY OVERHAUL
Our biggest single investment for the next decade
• Single platform for reservations, inventory, e-commerce,
check-in and dispatch
• Significant enhancement of mobile communications
access
• Commitment to development and continuous
improvement
• Enables guests to take greater control of their journey
• Compatible with key partner airlines

21. OUR LATEST TECHNOLOGY COLLABORATION
A first for the airline industry
• Predictive maintenance partnership with Taleris
• Assesses performance data in aircraft computers
• Predicts likely failures of components and systems
• Recommends preventive action
• Reduces aircraft downtime
• Guest benefit: Fewer flight delays, greater reliability
Another step towards the ideal journey…

22. IT’S ALL ABOUT THE GUEST
Our strategy requires…
• Product and service to surpass
competitors
• Maintaining the human touch – not
eliminating it
• Technology which strengthens
airline – guest relationships
• Partners who can help deliver our
vision

23. OUR GREATEST CHALLENGE: AIRPORTS
• Need to differentiate full service from “commodity” carriers
• Guest experience crucial to Etihad Airways product
• Airports a key touch point in our guest relationship
• Security and immigration experience beyond our control
• Both functions crucial …
• But both can “dehumanise” guest experience
OUR IDEAL JOURNEY CANNOT BE DELIVERED UNDER
TODAY’S CONDITIONS

24. COLLABORATION ON INDUSTRY ISSUES
• Lost time, too much process are biggest
concerns for travellers
• Security must be faster, more sophisticated
and less intrusive
• Immigration documentation: electronic,
inflight lodgement?
• Faster, more intelligent processing using
existing customer data
• Need for global consistency
TECHNOLOGY PARTNERS MUST WORK WITH INDUSTRY ON FRESH SOLUTIONS

25. TECHNOLOGY MUST SUPPORT OUR VISION
• Current airport technology designed
for legacy requirements
• Etihad Airways is not a legacy airline
• We need all-new technology tailored
to our guests’ requirements
• Our vision cannot be constrained by
limits of existing technology
• We need to deliver the ideal journey
for the whole of the trip

27. WHERE FROM HERE?
• Etihad Airways will be a prominent and
positive participant in the ideal journey.
• Next-generation technology must be
developed to deliver the ideal journey
• Proliferation of new technology and
providers – where will SITA fit?
• What is the next step in creating the
ideal journey?

28. JAMES HOGAN
PRESIDENT & CHIEF EXECUTIVE OFFICER
THANK YOU

29. DISCLAIMER
Any use, republication or redistribution of this content is
expressly prohibited without the prior written consent of
the Author. Permission to copy and reproduce content
may be granted by the author, at their discretion, and
by request only.
Source: presentation of James Hogan, Eitihad Airways
at the 2013 SITA Air Transport IT Summit, Brussels.
2013 Air Transport IT Summit