Author(s)

G. Dragosavac, A. Viljoen & C. Badenhorst

Abstract

If the airline industry could be described in two words, it would be \“intensely competitive”. The airline industry generates billions of dollars every year and still has a cumulative profit margin of less than 1%. The reason for this lies in this industry’s vast complexity. Airlines have a multitude of different business issues that need to be solved at once, such as the globally uneven playing field, revenue vulnerability, an extremely variable planning horizon, high cyclicality and seasonality, fierce competition, excessive government intervention and high fixed and low marginal cost. To ensure the best chance for full economic recovery, airlines should fully leverage their most prolific asset – data. Data used in conjunction with innovative technologies that would allow the creation of an Enterprise Wide Intelligence Platform, will provide the capabilities for a comprehensive intelligent management and decision-making system throughout the enterprise. The ultimate benefits of implementing and using an enterprise wide intelligence platform, together with airline business acumen and experience would include timely responses to current and future market demands, better planning and strategically aligned decision making, and clear understanding and monitoring of all key performance drivers relevant to the airline industry. Achieving these benefits in a timely and intelligent manner will ultimately result in lower operating costs, better customer service, market leading competitiveness and increased profit margin and shareholder value. This paper demonstrates the vision and benefits of establishing an Enterprise Wide Intelligence Platform for the airline industry, based on a leading airline proof of concept case study. Keywords: Enterprise Intelligence Platform for airlines, solution for airline industry.

Keywords

Enterprise Intelligence Platform for airlines, solution for airline industry.