IBS Cargo Forum: A digital future and the anatomy of innovation

Despite registering a growth of over 90% over the past decade as per World Bank statistics, certain structural deficiencies - slim margins, low yields and low predictability - have held back the air cargo industry from fully capitalizing on the heavy demand for freight movement. High impact, sustainable solutions are essential and the signals are strong for a digital future. The IBS Cargo Forum, which recently concluded in Abu Dhabi, focused on the digital evolution of the air cargo industry landscape, and how the iCargo platform stands to generate tremendous value for the astute customer. &nb...
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Dynamic Pricing: Oxymoron for the airline industry - Part 1

Airline companies have traditionally employed flexible pricing concepts in very creative ways to offset the risks associated with unsold inventory and overbooking. But it would be plain wrong to call it "dynamic pricing" in the truest sense. A big part of the problem is that airline companies just don't have sufficient control over the pricing process. How are airfares typically calculated?In the traditional model, airline companies publish their schedules (via intermediaries) to the GDS and file their fares with the Airline Tariff Publishing Company (ATPCo). When a passenger or a travel agent...
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Pilots on demand: Airline staffing strategy of the future?

Airline companies generally have the odds stacked against them; operating a flight on time without any untoward incidents is the result of meticulous planning and implementation, offering very little room for error. Some issues reveal themselves early enough to be solved by an astute operations control (OCC) professional, but sometimes they occur without warning. One particularly troublesome issue is having a flight full of passengers getting ready to taxi down the runway and take off into the skies, only to realize that two of the most important people onboard (the pilots) cannot – or just wi...
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Delivering digitization: A reality check on air cargo today - Part II

​In my previous blog post Game Changers: A reality check on air cargo today - Part I, we explored the anomalous capacity paradox as the core reason behind the decreased yield in the cargo industry. As profitability dips, the most viable solution for the sustenance of the industry begins with increasing productivity of output and must proceed through intense customization of product. Technology, or more specifically digitization, is not a mere enabler here but the very foundation on which the industry must be rebuilt.IATA proposed to achieve this in 2016 through a portfolio of transformational ...
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The hidden value of loyalty in airline disruption management

When the officers of The Titanic – while facing the mother of all disruptions to service delivery - had a tough choice to make about which group of passengers would get a better chance at survival, they evidently applied a principle:  Offer maximum assistance to the cream of the crop. by AuthorYes, that is an extreme example, and those were very different times. We have more mature, tangible and less discriminatory metrics to evaluate customers today. So in modern business, the principle translates to this:  Which customers would be better for the company in terms of future spending ...
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