Declaration

I, hereby declare that this Report Titled “The Future of the Air Transport Industry in
Social Technology” is my work and has not been submitted by any other person for any
degree or qualification at any higher institution. I also declare that the information
provided are mine and those that are not mine are properly acknowledged.

Sign............................... Date..............................

Loretta Ban shin _yiap

ID 21716241 BAAM1807413
 CERTIFICATION
This is to certify that this report titled “The Future of the Air Transport Industry in Social
Technology” was carried out by Loretta Ban shin _yiap in the Department of Malaysia airlines
management, at Bucks University.

Sarah Barry
Norulbaiti Mohd Nor ________________

Module Leader Date & Signature

 ACKNOWLEDGEMENTS
I give thanks to Almighty God for sparing my life up to this moment; I would also love to

express my gratitude to my parents.

I appreciate my Module Leader Sarah Barry Norulbaiti Mohd Norhe has been a good supervisor
to me
I thank all the lecturers of the Department of Malaysia airlines management, at Bucks University.

I thank my Family, Friends, Lecturers, Fellow students, and the entire Bucks University

Community for their direct and indirect influence on me.

Executive summery

This report focuses on the future of air transport industry on the key area which is social
technology. The future of air transport will be driven by a digital transformation in the
industry, according to Barbara Dalibard, CEO of global IT provider, SITA. The Asia
Pacific is leading the tremendous growth in the air travel industry. By 2036, the region is
expected to handle over 4.1 billion passengers – more than half of the world’s
passenger traffic. With this growth comes challenges and stresses on infrastructure and
processes. The industry also faces increased complexity and security regulation
globally. The industry outlined how technology can provide real value and help the
industry navigate the future. The air transport industry is being buffeted by the winds of
unexpected change. It is in the middle of a storm whipped up by new competition,
changing business models, rising fuel costs, increasing regulatory oversight, heightened
trade protectionism, spiraling customer expectations, catastrophic weather events, and
rapid technological development. And yet, there has never been a better time in the
history of aviation: the industry posted a record $38 billion in profit in 2017. While the
business environment is highly challenging, the rewards are large enough for veterans
to seek out the key business and aviation technology solutions that will shape air
transport, in the near future.

SWOT analysis of the air transport industry

A SWOT analysis looks at the strengths, weaknesses, opportunities and threats faced
by air transport industry. As a general rule, strengths and weaknesses are internal
issues, while opportunities and threats are external.

STRENGTHS WEAKNESSES
Speed Over capacity
Safety Slow adoption of new technologies
Security Complexity
Healthy competition Lack of transparency & comms between
stakeholders
 
OPPORTUNITIES THREATS
E-commerce growth Terrorism
Bali Package trade agreement New players (Amazon, Alibaba, etc.)
Growth of economy & trade Fuel costs
Drones Trade protectionism
New technologies (IoT, digital platforms, big Night restrictions
data, automation) Airport congestion
Alternative fuels, solar power, etc. Increased regulatory oversight on
Capacity increase in extra European airports aircraft loading
  Ground waiting times (clearance

INDROCTION

Overview of the future of air transport industry in social technology

The adoption of new technologies has grown significantly in recent years, and
passengers increasingly want more. Today, more than three-quarters of passengers
use airline apps and 56% want connectivity so that they can use their smartphone,
tablet or laptop for in-flight entertainment. Passengers also expect more personalized
apps and services delivered to their phone or tablet via social media. For example, 53%
of passengers would like personalized alerts about delays sent directly to their phones
and 30% expect support via social media when things go wrong. The air transport
industry needs to be at the forefront of new technologies. This will enable airlines and
airports to engage directly with their passengers and create a more seamless,
personalized passenger experience. Looking forward ten years, we can expect five
major trends to continue to shape the passenger experience: a shift to apps, the
Internet of things and the subsequent data explosion, wearable technology, biometrics,
and proximity sensing and beacons. A shift to apps: We are in the midst of a shift from
web browsers to mobile apps. There are now apps available to control everything from
the electronics in our homes to our health. The App for Everything world is around the
corner and it will complement the Internet of Things.
As an early example, downloads from Apple’s App Store are estimated at more than 50
billion, with around 800 apps downloaded every second. Airlines and airports globally
are actively developing mobile apps to enhance the passenger experience. According to
our recent industry surveys, 84% of airports plan to launch mobile apps over the next
three years, and 95% of airlines are focused on enhancing their mobile apps, we must
recognize that no airport is the same and accordingly, airports will have different needs
and priorities when it comes to implementing social technologies, airports are at various
stages when it comes to implementation. While most airports are transitioning away
from Airport 2.0 (self-service and process efficiency) to Airport 3.0 (using digital to
optimize flow monitoring and passenger processing) this masks a number of differences
in airports’ understanding, freedom of action and overall strategy. Some key aspects of
social technology the majority of airports interviewed wish to see implemented. Cloud
computing and big data and analytics were highlighted most frequently, but also other
technologies such as smart machines and robots, virtual modeling and simulation and
the Internet of Things (IOT). Cloud computing can enable airports to be more agile and
deploy new solutions with greater ease for instance and analytics and virtual modeling
can assist in monitoring passenger flows.

The Importance of the Latest Developments Supporting Passengers in air

transport sector

Airline Own Websites

Today, passengers have a range of options for actually booking airline tickets, with
online purchases being one of the most common. The first option for customers looking
to book airline tickets is to do so directly through an airline website. This is the most
important distribution channel for airlines, because unlike with bookings made through
online travel agents or met search engines, they do not have to pay a commission fee
on the booking. For passengers, airline websites may offer exclusive deals or flights that
cannot be found on other platforms, and many offer price match guarantees

Social Technology Trends within Air Transport

For businesses in the airline industry, technology is a key driver of success, helping to
distribute products, promote services and improve overall efficiency. It is also crucial for
passengers too, whether it is a single tourist looking for flights, or a travel management
company arranging business travel for multiple clients.

Travel Software Packages

Increasingly, the best travel companies are recognizing the value of software for
improving efficiency and accuracy. From revenue management software helping to
optimize financial results, through to marketing, distribution and reputation management
solutions, and these packages can make a significant difference to overall business
results.

Importance of developing skills and abilities to support employability in the Air

Transport Industry

The skills and experience needed by workers in the air transportation industry differ by
occupation. Some jobs may be entered directly from high school and others require
specialized training. Most positions in the airline industry involve extensive customer
service contact, requiring strong interpersonal and communication skills. Mechanics and
pilots require specialized formal training and must be certified by the Federal Aviation
Administration (FAA). A bachelor's degree is increasingly required or preferred for most
pilot and flight attendant jobs. Skills for many other air transportation occupations can
be learned on the job or through company-sponsored training.

It’s also important for an employee to accept responsibility for his/her failings within a
team setup. During flight training, students are actively encouraged to take responsibility
for their actions and decisions. In the modern world of recruitment, professional skill
sets are just as important as any qualifications or experience as they are vital to the
candidate’s success within their role. Working in the air transport industry will bring an
employee into direct contact with different ethnic backgrounds from around the world, so
ability and skills are absolutely essential. Having awareness and understanding of
different cultural viewpoints and communicating respectfully will give an employee a
significant competitive edge in the Air transport industry job market
How the air transport industry will look like in the coming years

Artificial Intelligence

A new market study predicted a CAGR of 46.4% for AI in air transport industry by 2023.
AI is being used to deliver a personalized traveling experience to the passengers in
order to generate the maximum customer satisfaction. Artificial intelligence is
personalizing, optimizing and up scaling the digital interactions between airlines and
passengers. AI and ML applied on the social sentiment of the passengers is helping
airline industry to curate their services as per the needs of the passengers.

Big Data

The shift towards democratization of data is empowering the sector to take strategic
decisions backed by facts. Coupled with AI and ML, big data is helping the industry to
predict and forecast consumer behavior in order to fine tune their strategy. As data is
gaining the reputation of the most valuable asset in the technology age, it is only wise to
proactively utilize data mining techniques for developing a robust plan that has high
probabilities of succeeding.

Automation

As machines are becoming smarter with the latest advancements in technology,

pilotless planes can soon become a reality. Hybrid RPA, integrated with the cognition of
AI, can make it feasible for an aircraft to complete a journey without manual
intervention. Even today, planes complete the major part of the flight on the auto-pilot
mode, with manual pilots taking over control only during the time of takeoff and landing.
However, given the uncertainties and risks involved during a flight, it is highly unlikely
that a flight, in the future, will not have any manual pilots on board. The unpredictable
nature of machines makes them unreliable during an emergency, thus, requiring a
human pilot to man the plane and complete the flight safely.
Workforce and skills

Although we are moving towards the future of advanced planes and automated flights, it
is not possible to successfully realize the vision without bridging the existing skill gap in
the present workforce. From pilots, employees, and engineers to air-traffic controllers
and safety inspectors, everyone needs to up skill their capabilities in order to stay
relevant and competent in the upcoming digital future of aviation. There will be a lot of
legal and moral changes involved to oversee the transition from manual to automation.
With the prevalence of automation, some jobs in the sector will be taken over but new
positions for the manual resources will be created as well.

Biometrics

Biometric technologies such as facial recognition, fingerprint authentication, and retinal

scanning will become the default way of verification. With the integration of biometric
systems for border control, airport check-ins, on-boarding, migration formalities, the
entire verification process will soon become paperless. This will further extend to
baggage claim process, allowing passengers to keep real-time track of their luggage.

In-flight connectivity

The world is increasingly getting interconnected and connectivity is becoming a

business necessity. The airline passengers will expect even in-flight connectivity in the
coming days, getting rid of the need to disconnect phones in the air. After the free Wi-Fi
services across airports, now airlines are also starting to offer the provision inside the
flight. Recently, Delta airlines took the initiative to provide Wi-Fi in all its domestic and
international flights to let passengers experience an entertaining flight journey.

The Role of future technology in reducing environmental impact

New technologies can help to reduce the environmental impact of aviation. It is

generally accepted that the threat of regulation is the major driver behind development
of such technologies, except those technologies that offer improvements in fuel
efficiency and hence reduced costs.
Future technologies offering environmental improvements include:

• Better aerodynamics;

• New, more efficient engine designs;

• New combustor technologies for achieving substantial reductions in emissions; and

• Engine and airframe design developments to reduce noise at source.

Improvements will also result from advances in on-board systems and equipment
contributing to improved air traffic management; and operational procedures that
improve fuel efficiency and reduce noise. However, even taken together, we expect
these developments to reduce but not offset the environmental effects of forecast
aviation growth.

At a global level, fuel efficiency improvements of up to 2 percent a year from engine,

airframe and operational development. However, global air traffic is forecast to grow at
5 per cent a year. Therefore, the effect on climate change will continue to grow. In terms
of impact on local air pollution, Nitrogen oxide reduction technology is being developed
which has the potential to reduce emissions in the landing and takeoff cycle. However,
we need advancements in low Nitrogen oxide technology to offset the continuing
development and use of higher pressure ratio engines which improve fuel efficiency but
contribute to higher Nitrogen oxide per unit of burnt fuel.

Incremental improvements in engine and airframe technology will also help to reduce
noise. Rolls Royce has set a target of reducing aircraft engine noise. This would
correspond to a near-halving of the area of contours, assuming the reduction applied to
all aircraft at any specific airport. However, given the slow rate of fleet renewal, even
such improvements are unlikely to provide much headroom against the forecast growth
in demand for air travel.

Therefore, despite the improvements offered by incremental changes, to enable real

improvements in environmental impact, a step change in technology seems to be
required
AIRPORTS OF THE FUTURE

Air transport industry will build relationships with those responsible for urban planning
(not just air infrastructure authorities) to ensure industry needs are linked into
infrastructure planning, particularly when there are major plans for developments
around airports. It will also use the strategic review of the Worldwide Slots Guidance as
one mechanism to improve the efficient use of capacity and guard against revenue
commitment and market allocation of slots.

Conclusion

Although the technologies are advancing and the industry is stepping forward to adopt
them in the most optimal way, everything can fall flat without effective implementation.
In order to ensure a successful adoption and implementation, extensive and meticulous
testing is critical, Testing will be key to getting this highly complex program right – this
takes a lot more creativity, investment and planning to bring to life than a simple flip of a
switch. The greater sprawl of technology also brings along newer threats in the scope of
cyber security and user privacy. To avoid getting attacked by such threats and
vulnerabilities, it is essential that the industry players take a proactive approach and
integrate a robust testing plan within their plan for future.

The 21st century has seen the continued internationalization and globalization of the
world’s economy. There is also evidence of deeper globalization of cultures and politics.
Air transport industry has played a part in fostering these developments, but airlines,
and to a greater degree, air transport infrastructure has had to respond to changing
demands for its services. Air transport is a facilitator and, as such, the demands for its
services are derived from the requirements for high-quality, speedy, and reliable
international transport. Globalization, almost by definition, means demands for greater
mobility and access, but these demands are for different types of passengers and
cargoes, to different places, and over different distances than was the previous norm.
International air transport industry is less than a century old, but is now a major
contributor to globalization and is continually reshaping itself to meet the demands of
the economic and social integration that globalization engenders. Economically, in static
terms, globalization occurs to facilitate the greater division of labor and allows countries
to exploit their comparative advantage more completely. Perhaps, however, more
importantly, in the longer term, globalization stimulates technology and labor transfers
and allows the dynamism that accompanies entrepreneurial activities to stimulate the
development of new technologies and processes that enhance global welfare. To allow
the flows of ideas, goods, and persons that facilities both static and dynamic efficiency
on a global scale, air transport has played a role in the past, and it seems inevitable that
it this role will continue in the future.
Recommendations

NEW MARKETS AND GLOBAL ECONOMY

Air transport industry should increase its engagement with stakeholders from Africa and
Asia-Pacific (governments, think-tanks and other bodies that influence government
policy) to deepen the industry’s knowledge of how decisions are made and how those
decision-making processes will evolve. This will ensure that regulations introduced do
not limit the potential of these markets. The industry should create an internal early
warning group with the task of ensuring that the industry is prepared for possible
threats. This group could distill a set of early warning indicators from this scenario report
and similar publications, create a timeline of expected developments, and update it
regularly

HUBS AND SMALLER AIRPORTS/ WORKFORCE AND SKILLS

Air transport industry should foster relationships with secondary and tertiary airports.
These may offer additional capacity in situations where hubs become overcrowded, or
where new technologies, automation and business models allow airlines to bypass hubs
and establish new intermodal connections. Air transport industry should develop a plan
for educating and influencing the next generation of airline industry employees and
users. As new technologies and value shifts change how and why people work, the
industry will need to invest in skills for future aviation leaders and workers, and
communicate the benefits of working in the sector.
CYBERSECURITY AND TECHNOLOGY

Air transport industry should consider establishing an information exchange mechanism

for airlines to share information on cyber security threats (as part of cyber security
strategy). Cyber security is likely to be a major issue that will require the air transport
industry to work with companies across the entire supply chain, as well as governments
to manage risk. Air transport industry should engage with novel transport providers
(hyper loop, drones, unmanned aircraft, and space travel companies) to explore
potential cooperation as well as shared needs. In a future where passengers want to
travel faster and prioritize convenience, seamless travel and connections between
providers will become increasingly important. One option may be to widen air transport
industry membership to include air transport operators who are not airlines.

References

Layton, C., P. Smith, and C. McCoy. 1994. Design of a cooperative problem-solving system for en route
flight planning: An empirical evaluation. Human Factors 36(1):94–119.

Pritchett, A. 2001. Reviewing the roles of cockpit alerting systems. Human Factors in Aerospace Safety
1(1):5–38.

RTCA Free Flight Steering Committee. 2002. National Airspace System Concept of Operations and Vision
for the Future of Aviation. Washington, D.C.: RTCA, Inc., p. v.

Sarter, N., and D. Woods. 1992. Pilot interaction with cockpit automation: Operational experiences with
the flight management system. International Journal of Aviation Psychology 2(4):303–321.

Wiener, E., and R. Curry. 1980. Flight-deck automation: Promises and problems. Ergonomics 23(10):995–
1011.