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Air Transport IT Summit 2010

23-24 June, Brussels

The Next Digital Decade

How is technology supporting the airlines’ visionfor industry transformation?

The Airline IT Trends Survey 2010

Jürgen KölleSenior Director Portfolio Marketing



Airline IT Trends | 23rd June 2010 | 3 ©SITA

17%

33%

19%

31%

Respondents breakdown

US$ 1,000-4,999 million

US$ <499 millionUS$ 500-999 million

US$ 5,000+ million

19%

33%

26%

22%

Africa/Middle East

EuropeAsia Pacific

Americas

Revenue Region



The Airline IT Trends Survey 2010 | June 23, 2010 | 8 ©SITA

IT&T spend stabilises

Operational IT&T Spendin $bn

1.8%

5

10

2005 2006 2007 2008 2009 2010

2010 IT&T operationalspend as % of revenue




Spend 2011 compared to 2010:Positive outlook

• Increasing businessconfidence translates

into expectation forhigher IT spendingin 2011

• Regional Differences

Decrease

Increase

The same




IT priorities return from short-termback to long-term and strategic focus

IT staff hiring freeze

Defer IT projects(capital expenditure)

Renegotiate IT suppliercontracts

Accelerate IT projects

with short RoI

Extend partnerships withstrategic IT suppliers

23%47%

37%48%

48%76%

57%

54%

52%39%

2009

2010*

20092010*

2009

2010*

2009

2010*

2009

2010*

*Planned


http://slidepdf.com/reader/full/session-f-juergen-koelle0 7/26The Airline IT Trends Survey 2010 | June 23, 2010 | 11 ©SITA

IT Priorities: Areas for investment

82%

Low High

44%

37%

35%

33%

35%

46%

41%

35%

Passenger operations& related services

Flight operations

Aircraft operations

Passenger security

“Reducing cost of business operations”is top priority in driving IT investments



IT supporting the vision for industrytransformation, to

increase self-service in passengeroperations

change the channel mix in traveldistribution

grow ancillary revenue



Travel Distribution:Continuous shift in distribution channels

Call CentresGDS (incl. OTA) Airline Direct

Today Today TodayBy 2013 By 2013 By 2013

50%

30%

40%

20%

60%

10%



Travel Distribution Evolution:Web, Booking Portals & Mobile

Mobile as a sales channel

Adding web functionality

Next wave for online distribution




Adding web functionality:Change/Cancel/Rebook (52% done)Onsite shopping tools (61% done)Frequent flyer redemption (51% done)







Next wave for online distribution:Booking portals…for travel agencies (41% done, 43% with plans)for corporate customers (44% done, 38% planned)







Mobile as a sales channel:70% of airlines plan to use the passengers mobilephone as an additional sales channel






Grow ancillary revenue

63%of responding airlines will

invest in IT solutions thatcan support the

• expansion of ancillaryservices;

• unbundling; and• dynamic packagingwithin the next 3 years




17.0%

29.0%

50.4%

41.4%

Distribution strategy for service fees unbundled

Tickets Sold

Ancillary revenueStrategy for distribution

GDS (Including OTA) Airline Direct

Currently By 2013

41.0%

50.0%

25.8%

37.9%

Currently By 2013




Passenger Operations & Self Service

50,7%

28,9%

21,6%

35,5%

19,5%

19,9% 12,4%

Currently

By 2013

Check-In:• Key element in self-service

• Multi Channel as reality

0% 100%

Agent Internet Kiosk Mobilephone

2.4%





end-to-end self service in passenger operations

by 2013

40%of

airlines have investment plans for

− Flight Transfer Kiosks

−Disruption Management(e.g. flight rebooking)

− Lost baggage reporting





61%Kiosks as additionalsales channel




Mobile: Transition from“push information” to ...

Notificationsabout flight

status & delays

Online check-in

via mobilephone

Send BarCoded BoardingPass to mobile

45%

28%

23%

30%

32%

31%

11%

20%

22%

13%

20%

25%

Already doneBy end 2011

By end 2013No plans




44% 13%

21%

23%

32% 18%

26%

24%

Mobile: ...to “business transaction”

70%of airline plan to use thepassengers mobile phone asan additional sales channel

Targetingpassengerswith travel

offers

By end of 2013

Already doneBy end of 2011

Targetingpassengerswith retail

offers

No plans




39%

39%

21%

Mobile: Transition from“push information” to “business transaction”

Pricing Strategy forMobile Phone Services

Considerto charge

For Free

Undecided




Virtualisation: high expectations

Supports the

No. 1 IT

investment priorityto “reduce the

cost of business

operations”




Virtualisation: Strong adoption confirmed

of airlines state the ambition tohave a virtual infrastructureenvironment by 2013

of airlines claim to have somevirtual infrastructure alreadydeployed or will in 2010

prefer “Infrastructure as a Service”via private cloud instead of apublic/3rd party cloud

85%

40%

73%




The Airline IT Trends Survey 2010

For more info seehttp://www.sitasummit.aero/



Air Transport IT Summit 2010, 23-24 June, Brussels

• Any use, republication or redistribution of this content is expressly prohibitedwithout the prior written consent of the Author. Permission to copy andreproduce content may be granted by the Author, at his discretion, and byrequest only.

• Source: Presentation of Juergen Koelle, SITA, at the 2010 SITA Air TransportIT Summit, Brussels.

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