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2016 AIR TRANSPORT INDUSTRY INSIGHTS SITA INSIGHT
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Page 1: airline-it-trends-survey-2016

2016AIR TRANSPORT INDUSTRY INSIGHTS

SITA INSIGHT

Page 2: airline-it-trends-survey-2016

THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20162

FOREWORD

We have heard a lot in recent years about the potential of the Internet of Things (IoT) and our survey indicates, for airlines at least, the hype is starting to turn into reality.

Most projects are currently small scale trials used to gain knowledge on what might be possible. But a sizeable number of airlines are investing in smart systems to deliver accurate information, such as queue lengths and time to gate, to passengers via mobile apps and, further down the line, smartwatches.

Technology is also making aircraft smarter. We have taken a look at how fast the industry is moving towards connected aircraft and the expected impact they will have. Currently two-thirds of airlines plan to have them in their fleet by 2019.

This year we have also looked at the hot topic of cyber security. Encouragingly, more than 60% of airlines place oversight for cyber security at the board level rather than within IT departments, suggesting it is starting to be viewed much more as a business risk.

Overall, IT spend as a percentage of revenue has stayed broadly flat since our last survey, but it is forecast to pick up this year and we note an unusually high proportion of CIOs predicting budget increases for 2017.

Much of that money is earmarked for maintaining existing IT services and infrastructure, but innovation projects are starting to take a larger slice with a particular focus on making mobile apps the go-to technology for self-service, information or customer service.

For the last 18 years we have been tracking the key technology trends of airlines. We appreciate it is only possible to provide such a comprehensive view through the generosity of time given by the many respondents. We thank you and ask for your continued support in the years to come.

This is one of three complimentary SITA surveys covering IT trends from the perspective of airlines, airports and passengers. Together they provide a unique 360 degree view on how IT is shaping the way people fly.

For more information on all our surveys and accompanying features and analysis, visit www.sita.aero/surveys.

Francesco Violante CEO, SITA

Max Kingsley-JonesEditor, Airline Business

Page 3: airline-it-trends-survey-2016

THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20163

CONTENTS

ABSOLUTE IT SPEND STABLE 4

IOT DRIVING NEW TECHNOLOGIES 6

INDUSTRY HOT TOPICS 8

CONNECTED AIRCRAFT 9

MOBILE DRIVING SELF-SERVICE GROWTH 11

FOCUS ON CHINA 13

METHODOLOGY 16

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20164

ABSOLUTE IT SPEND STABLE

CONFIDENCE GOING FORWARDOverall IT spend by airlines in 2015 was 2.7% of revenues, marginally below the 2.8% spent in 2014. Two-thirds of this was controlled by the CIO, with the remainder spread across other departments’ budgets.

In 2016, airlines predict their IT spending will grow as a percentage of revenues to 3.0% and that confidence looks set to extend to 2017 with 52% of CIOs predicting their operating spend and 57% expecting their capital spend, to increase compared to 2016. This is considerably more positive than projections in our previous surveys.

This year’s survey continued to show a growing shift of operational IT spend away from internally delivered services towards outsourced or external contractors. In 2015, 35% was spent on the internal IT department, down on the 42% spent in 2014 and 2016 looks to follow a similar pattern with 34% budgeted for internal IT departments and 66% for outsourcers or external contractors.

57%OF AIRLINES EXPECT CAPITAL IT SPEND TO INCREASE IN 2017

Majority of airlines expect IT spending to increase in 2017 % of airlines expecting IT spend change for next year

Increase

Same

Decrease

2016

Operating spend

2017

39% 37%

39%

22%11%

52%

2016

Capital spend

2017

49% 31%

38%

13% 12%

57%

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20165

Service continuity consumes the largest proportion of IT budgets with maintenance taking the biggest slice grabbing 29% of the total IT spend. However, there are signs of an increasing focus on advancing capabilities in 2016, particularly in software development where the proportion of budget spend has grown compared to the 2015 survey.

INVESTMENT PRIORITIESMobile continues to dominate the IT investment agenda for passenger services. Nearly 80% of airlines plan major investments in passenger services via smartphones over the next three years, while 71% of airlines expect to do the same for tablets. Other major investments in the passenger experience are centered on generating ancillary revenues with 64% of airlines planning programs that will achieve this.

Two passenger areas where most airlines are still at the R&D or pilot project stage are self-service for irregular operations and IATA’s New Distribution Capability, which 43% and 40% of airlines are evaluating, respectively.

On the operational side, major investments include implementing Electronic Flight Bags (EFB) (71% of airlines), while around half of airlines plan to equip staff and ground handlers with mobile technologies. There is also growing interest in collaborative platforms, such as Yammer, for staff, with 36% of airlines planning major programs and a further 41% initiating R&D projects.

This year there has also been a marked increase in the number of airlines making investments in the Internet of Things (IoT). 68% of airlines have committed budget to major projects or research and development over the next three years, up from just over half in the 2015 survey.

Growing focus on development and innovation 2015 operating and capital IT spend split across categories

Innovation/enriching assets

Service continuity

Maintenance

Software development

Telecommunications/network

Data centre

New deployments

Devices

29%

21%

66%

34% (+1.7pt)

(-1.7pt)16%

14%

8%

12%

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20166

IOT DRIVING NEW TECHNOLOGIES

There are high expectations that Internet of Things (IoT) technologies can play a big role in making air travel more efficient and improve the passenger experience.

In our 2015 survey airlines indicated there were clear benefits to be had from the IoT and this year we are seeing many airlines back that belief with serious money. In fact, 29% of airlines have embarked on major IoT programs, up from just 16% in the 2015 survey, while another 38% of airlines are planning research and pilot projects over the next three years.

Today, the IoT is still in its infancy within the industry and that is underlined by the fact that the most common IoT-enabled initiative of fuel/engine monitoring has been implemented at only one in five airlines (22%). The second and third most commonly implemented - managing equipment condition/consumable levels and managing the aircraft environment – have been achieved at less than one in ten airlines.

Nevertheless, there is a good level of interest in R&D projects around IoT. Just over 60% of airlines are investigating smart baggage tagging over the next three years, while 47% and 66% of airlines, respectively, plan to evaluate single travel token and fuel/engine monitoring.

IOT CONNECTIVITY BEING DEPLOYEDThe number of airlines showing interest in IoT gateway technologies like beacons and sensors to provide passenger information has grown sharply since our 2015 survey. For example, the number of airlines with ‘no plans’ to provide ‘walk to gate’ times to passengers has fallen from 66% to 38% of airlines. Similarly, the ‘no plans’ for notification of bag collection details has dropped to 37% of airlines from 60% in our last survey.

These technologies will also support airline plans to grow ancillary revenues. Currently, the key data used to determine the offers that customers receive is based on frequent flyer information, but our survey suggests the passenger’s location will play a greater role in future.

Smart baggage tagging to enable

continuous tracking

61%

Fuel / engine monitoring to

generate efficiencies

66%

Passenger identification (single travel

token)

47%

Monitoring location/condition

of assets

42%

Manage equipment condition

/consumable levels

50%

Major focus on IoT for passenger and operational benefits % of airlines focusing resources on IoT initiatives over next three years

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20167

CHALLENGESWhile momentum behind the IoT is starting to gather pace, airlines still see a number of potential issues that could slow progress. Top of the list is the upfront cost of implementing IoT devices, cited as a major challenge by 53% of airlines, while developing machine-learning techniques is a major concern for 49% of airlines.

For passenger-related projects, 97% of airlines believed the perceived invasion of passenger privacy was an IoT challenge to some degree.

WEARABLES ARE CATCHING ON - BUT SLOWLYAmong emerging technologies starting to appear in the industry are passenger wearables, such as smart glasses or watches, which are seen as having the most potential over the next five years. Currently, 11% of airlines are in the process of trialling services for these, with another 28% expecting to over the next five years.

Wearables for staff have been adopted less by airlines so far, but in five years, 40% of airlines will undertake R&D projects or trials, putting it on par with passenger wearables.

Longer term, the single biometric travel token is expected to become a viable alternative to current passenger identity processes. In the next ten years, just over half of airlines (54%) plan to evaluate the technology, while 43% will do the same for artificial intelligence (AI).

Next 5 years Next 10 years

40% 39% 30% 23% 20%

51% 53% 54% 44% 37%

Single biometric travel token for

identity management

Wearables for staff

(Smartwatch / Smartglasses)

Virtual reality services for passengers

Specific wearable-enabled

services for passengers

Artificial Intelligence

19%

37%

Virtual reality services for

staff

Mid term trials planned for wearables % of airlines expecting to trial new technologies in next five to ten years

68%OF AIRLINES PLANNING IOT PROJECTS BY 2019

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20168

CYBER SECURITYCyber threats have become a hot topic for CIOs in recent years and this is reflected in our survey with 63% of respondents indicating it is a board level responsibility at their airline.

With its higher visibility, a large majority of CIOs (72%) are investing in major cyber security projects, with a further 19% engaged in R&D projects.

It means most airlines believe they are better positioned to deal with potential threats than a few years ago. In fact 48% of airlines indicate they are prepared for the common types of cyber threats, compared to only 17% that believed this was the case three years ago.

In addition, while only 5% of airlines were robustly prepared three years ago to deal with any type of cyber threat, that has now increased to 24% of airlines. More than 70% of airlines have beefed up education and training around cyber security and that will be the norm across almost all airlines in the next three years.

Other initiatives around cyber security, such as software development, incident response, and intelligence and analytics, will all be almost universally adopted within the next 3 years.

BAGGAGE TRACKINGThe industry is working towards making baggage as easy to track as parcels. Much of the work around this has been driven by IATA Resolution 753, which calls on airlines to ensure end-to-end tracking of baggage from June 2018.

Interestingly, compliance with the resolution figures fairly low in airline IT investment priorities over the next three years. Only 24% of airlines have a major program focused on it, while 26% have no plans at all. The remaining airlines are evaluating technologies through trials or pilot projects with smart bag tagging a key area of evaluation.

Looking behind these numbers airlines are citing a number of challenges they face to comply with the resolution. The major issue most commonly mentioned by airline respondents is the lack of visibility of the investment and running costs of a baggage tracking solution - 43% of airlines report this as a major challenge.

Poor communication with airports also appears to be a common factor. Nearly two in five airlines (39%) cited airport collaboration as a major challenge, while 37% indicated lack of awareness of airport readiness.

Despite the challenges, airlines expect a number of business benefits to materialize from making the investment. Most airlines (77%) believe improving customer satisfaction is the major benefit. That will be helped by being able to provide passengers with visibility on their bags. In fact, 61% of airlines noted more accurate and timely baggage information for passengers as a major benefit.

INDUSTRY HOT TOPICS

26%OF AIRLINES HAVE MADE NO PLANS FOR COMPLIANCE WITH IATA’S BAGGAGE TRACKING RESOLUTION 753

Cyber security is an investment priority % of airlines investing in major programs over the next three years

24%

72%Cyber security

initiatives

Compliance to IATA

Resolution 753

(bag tracking)

24%

72%Cyber security

initiatives

Compliance to IATA

Resolution 753

(bag tracking)

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 20169

CONNECTED AIRCRAFT

Aircraft with advanced communication capabilities are starting to enter the fleet. These so called connected aircraft open the door to better aircraft utilization through efficiency improvements and the introduction of new services for passengers and crew.

This year we have extended our survey to gauge where the industry is and where it sees the benefits of connected aircraft.

Slightly over one-third of respondent airlines (37%) operate connected aircraft today, but this will nearly double to 66% within the next three years. Just over one in four airlines (27%) have yet to place any orders for connected aircraft.

There is a strong consensus that the main benefit from these aircraft will come largely from service improvements for passengers rather than operations. Just under half (46%) of airlines cite improving the passenger experience as the main expected benefit.

46%OF AIRLINES SEE IMPROVING PASSENGER EXPERIENCE AS MAIN CONNECTED AIRCRAFT BENEFIT

Two thirds of airlines to operate connected aircraft in next three years % of airlines with connected aircraft plans

Already operating connected aircraft

37%

Already operating & currently taking delivery of connected

aircraft

45%

Already operating and taking delivery of connected aircraft

by end of 2019

66%

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201610

Only 15% of airlines see maintenance/aircraft health monitoring as the main driver for purchasing connected aircraft, while 12% see benefits for pilots and 7% cabin crew improvements, such as tablet apps and credit card payments, as the main benefit.

WI-FI TO CHANGE IFE STRATEGIESInterest in installing Wi-Fi on board for both crew and passenger usage is rising. Around half of airlines are planning major projects in this area over the next three years, up from around 40% reported in the 2015 survey. Around 30% of airlines expect to initiate trials by 2019.

This trend is leading to declining interest in traditional seatback IFE systems. In this year’s survey there has been a sharp reduction in the number of airlines offering or planning to offer services to passengers through seatback screens, including voice calls and SMS, internet access and file streaming.

Conversely airlines are attaching growing importance to providing connectivity and entertainment through the passenger’s own device. In fact by the end of 2019, nearly three-quarters (74%) of airlines will provide wireless internet access to passengers and 70% will provide multi-media streaming to the passenger’s own device.

Airlines driving on-board services to passenger devices % of airlines planning in-flight services

Passenger devices Airline supplied devices

33%Today Today Today Today Today

By 2019 By 2019 By 2019 By 2019 By 2019

24% 21% 23% 19%

74% 70% 58% 57% 61%

Mobile phoneInternet InternetMulti-media file

streamingMulti-media file

streaming

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201611

MOBILE DRIVING SELF-SERVICE GROWTH

Airlines are positioning their mobile apps as the go-to place for passengers by adding self-service functionality, ancillary services, as well as providing more information and better customer service options.

STEADY GROWTH OF MOBILE CHECK-INThree out of four airlines have already made check-in and boarding passes widely available through their mobile app and these services will become almost universal - surpassing the 90% mark – by 2019.

Passenger usage of them is also picking up as familiarity with mobile services increases. In 2015, check-in via a mobile app (smartphone and tablets) accounted for 12% of passengers, a steady growth on the 9% seen in the previous survey. Airlines forecast this to reach nearly one-third (31%) of passengers by 2019.

REVENUE GENERATIONMonetizing mobile investments through revenue generation is well underway. Today, around two-thirds of airlines offer flight booking through their app, and by 2019 a further 18% plan to implement the service.

Currently the value of sales through mobile apps is low with airlines globally stating around 4% of their total revenue comes this way. However, airlines predict this will nearly triple to reach a global average of close to 12% in the next three years.

The expectation for non-ticketing sales is even higher. Although just over 4% of ancillary revenues are generated through mobile apps today, by 2019 that figure is expected to jump to just over 14%.

To help build usage, airlines are adding ancillary services to their apps in greater number. Initially the focus is on airline-related offers, such as lounge access, Wi-Fi and seating, but by 2019 the number offering non-airline services on their app, such as car rental and travel insurance, will jump from 45% of airlines to 80%.

INFORMATION SERVICES ENHANCING MOBILE APPSMore airlines are adding notification services to enhance the value of their mobile app and provide customer service support via smartphones and tablets.

Flight status updates are already common, but there has been a surge over the last year in the number of airlines providing location-based notifications, such as ‘time to gate’. This has doubled from 7% in last year’s survey to 14% this year and this will continue to rise in the next three years to reach 70% of airlines.

Resolving customer service issues, such as missed flights, is another mobile functionality that has been widely added to apps since our last survey with around one-third now offering the possibility, compared to only 8% previously.

The focus for future mobile notification services has moved to baggage. The majority of airlines (circa 60%) are planning to introduce baggage-related features to their smartphone and tablet apps over the next three years, including baggage location updates, missing bag communication and lost bag reporting.

Implemented today

Planned by 2019

Missing baggage communication

Real-time baggage status information for passengers

Location-based notifications

Baggage location status updates

72%(+8%pts on 2015)

70%(+5%pts on 2015)

14%

12%

7%

71%(+8%pts on 2015)

11%

66%(-4%pts on 2015)

More airlines planning location based smartphone/tablet services % of airlines planning smartphone/tablet based services

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201612

47%OF AIRLINES WILL OFFER SMARTWATCH BOARDING BY 2019

SMARTWATCHESA number of airlines are looking to extend their mobile services to smartwatches with three areas garnering strong attention – check-in, boarding passes and flight updates. Within the next three years, nearly half of airlines will have implemented these services on smartwatches with flight updates and boarding passes the most commonly available at 47% of airlines.

WI-FI IS AN ISSUEFor all the good intentions of airlines to drive passenger usage of their mobile apps with new features and functionality, many believe access to Wi-Fi is an obstacle, particularly on board aircraft. In fact 89% of airlines see inadequacy of Wi-Fi and Internet access in-flight as an issue with 55% believing it to be a major challenge.

EXTENDING SELF-SERVICE INFRASTRUCTURE Outside of mobile investments, airlines continue to expand self-service to other passenger pain points, particularly around baggage and flight boarding.

Self-printing of bag tags from airport kiosks is already a fairly common experience for passengers and the vast majority (86%) of airlines will have implemented this service by 2019. Much newer is home printing of bag tags. Only 10% of airlines offer this today, but there is strong growth predicted over the next three years with a further 49% planning to make this option available to passengers.

Closely associated is the availability of bag drop facilities. Nearly two-thirds of airlines (63%) have already introduced the assisted version, significantly up on the 37% reported in last year’s survey. A further 24% of airlines plan to do so in the next three years.

Unassisted bag-drop has been less prevalent among airlines up to now, with only 23% having deployed it, slightly up on the 17% reported in the 2015 survey. However, as passengers grow in confidence with baggage processing technology, a further 50% of airlines plan to introduce unassisted bag-drop in the next three years.

Self-boarding gates are further behind the self-service curve and they are not always within the jurisdiction of airlines. Today, only 10% of airlines have implemented them, but if investment plans are realized this will grow to 42% of airlines by the end of 2019.

Inadequate coverage or speed of Wi-Fi

At airport

On board

Passengers not willing/able to use Wi-Fi

Inconsistency/inadequacy of Wi-Fi

Passengers not willing/able to use connectivity on board

27% 78%

Major challengeChallenge

11% 52%

55% 89%

29% 72%

Major connection challenges are on-board and in airport % of airlines stating challenges to deliver services to mobile devices

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201613

FOCUS ON CHINA

Last year was another stellar year for Chinese aviation with traffic growth of 15%, helped by soaring international traffic up 33%. Not surprisingly, confidence among Chinese CIOs is high. None of those responding is expecting a budget decrease for 2017, while just over half (52%) expect their budget to increase.

Overall airline IT spend at 2.9% of revenues is outpacing the global level. Driving the figure is capital investment, which in 2016 is projected to be 40% higher per dollar of revenue than global counterparts.

Looking deeper at where that money is being spent reveals that most airlines have a number of major IT programs for passengers planned over the next three years. In particular, 80% of airlines are planning to upgrade their passenger management system and a similar number will implement passenger services via smartphones and social media.

In terms of investing in specific technologies, 80% of Chinese airlines have plans for a major program on cloud, 44% on predictive analytics, and 90% on data centers.

SELF-SERVICE ADOPTIONCurrently, passengers of Chinese airlines are behind the curve on using self-service technologies for check-in. Globally, airlines say 48% of passengers use self-service to check-in, compared to 39% reported by Chinese airlines, with most of the difference accounted for on mobile usage. Worldwide, 12% of passengers use either a smartphone or tablet to check-in versus 7% in China.

However, airlines are predicting aggressive adoption of self-service by passengers over the next three years, which will see them catch up to the global level by 2019.

Despite the lower passenger adoption, Chinese airlines are ahead of global levels for many self-service technologies.

For example, 70% of Chinese airlines have already deployed automatic check-in, more than double the number of airlines globally, although only 3% of passengers are currently using it according to airlines in China, slightly below global levels.

Providing staff with mobile devices to help with check-in and boarding is also twice as common in China, compared to elsewhere. 80% of Chinese airlines have staff with mobile devices for passenger processing versus 41% of airlines globally.

Another area where Chinese airlines are well ahead of their global counterparts is self-boarding gates. One-third have deployed them, more than three times the global level.

For baggage self-service, Chinese airlines are largely in line with global levels. Home bag tag printing is available at 11% of airlines, while 44% allow bag tag printing from airport kiosks. The majority of Chinese airlines have implemented either assisted or unassisted bag-drop, although there is a much stronger implementation of unassisted bag-drop (33% of airlines) than seen globally (23%).

78%OF AIRLINES IN CHINA PLAN MAJOR IOT PROJECTS BY 2019

Increase DecreaseSame

48%

0%

52%52%

ChinaGlobal

2017

37%

11%

Airlines in China more positive on future operating spend % of airlines expecting IT spend change for next year

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201614

BUILDING REVENUESSelf-service technologies have revolutionized the way airlines can generate ancillary sales, and that is no different in China. Today, around 40% of total ancillary sales for Chinese airlines are made through the airline website or mobile app, and while slightly below the 46% globally, it points the way to the shifting mix of airline distribution in the country.

By 2019, these two channels will represent 52% of total ancillary sales, with mobile driving the increase, climbing from 6% to 16% of ancillary sales as Chinese airlines rollout revenue generating services on their apps. Among the types of services being implemented by all airlines are, seat booking, baggage fees, Wi-Fi access and lounge access.

Currently, frequent flier status is the main piece of data used to determine which offers to present to passengers, but by

2019 three in four Chinese airlines will be using the more sophisticated techniques of customer behavior and location to attract sales.

GROWING INTEREST IN THE IOTInterest in the opportunities offered by the IoT is higher in China than in the rest of the world. Nearly 80% of Chinese airlines plan to invest in major IoT programs by 2019.

Currently the only IoT initiative already implemented at Chinese airlines is fuel/engine monitoring and this by just 10% of airlines. Nonetheless, one in five Chinese airlines is evaluating IoT though R&D projects, with smart bag tags, asset tracking and monitoring the aircraft environment the main areas of focus. Another 40-50% of Chinese airlines expect to initiate projects in these three areas by 2019.

Major focus for airlines in China on IoT for passenger and operational benefits % of airlines in China focusing resources on IoT initiatives over next three years

Global61%

Smart baggage tagging to enable

continuous tracking

50%

Passenger identification (single travel

token)

50% Global47%

Global42%

Global50%

Monitoring location/condition

of assets

40%

Manage equipment condition

/consumable levels

40%

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201615

LESS FOCUS ON NEW TECHNOLOGIESFor the most part Chinese airlines show less appetite to invest in emerging technologies than seen globally. The main exception is wearables, such as smart watches or glasses, where 90% of Chinese airlines expect to carry out some pilots or trials over the next ten years, compared to only 51% of airlines globally.

Chinese airlines are also planning R&D projects with other emerging technologies. Over the next five years, 44% will evaluate biometric travel tokens, while artificial intelligence, which could provide longer term opportunities, will be trialed by 55% of Chinese airlines over the next decade.

CHINA WELL POSITIONED FOR CONNECTED AIRCRAFTThe growing need to acquire new aircraft to cope with soaring passenger numbers means Chinese airlines have comparatively modern fleets so are well ahead of global levels for connected aircraft. In fact, 80% of Chinese airlines already fly or are just taking delivery of connected aircraft versus a 45% global average. In addition, only 10% have no connected aircraft on order, much lower than the 27% of airlines globally.

Chinese airlines largely agree with the global consensus that the key benefit of connected aircraft will be improving the passenger experience, but there are 20% of Chinese airlines that see the key benefit as operational improvements in the cockpit, such as advanced Electronic Flight Bags (EFBs) and real-time weather tracking, compared to a global average of 12%.

Global airlinesAlready operating & currently

taking delivery of connected aircraft

45%

ChinaAlready operating & currently

taking delivery of connected aircraft

80%

Airlines in China ahead of connected aircraft global curve % of airlines already operating and taking delivery of connected aircraft today

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THE AIRLINE IT TRENDS SURVEY 2016 | © SITA 201616

METHODOLOGY

ABOUT SITA’S AIRLINE SURVEYSITA’s Airline IT Trends Survey, conducted in association with Airline Business, is well established as the global benchmarking survey for the airline industry. The surveys (www.sita.aero/surveys) investigates emerging trends and technologies that are set to transform the industry in the years to come. Business Intelligence, Mobile Travel and Passenger Management are at the forefront of this change, and tracking their evolution is an important element in this survey. Many other emerging and established trends are tracked, and, as every year, we benchmarked the industry IT spending in the current year and beyond.

The survey was first produced in 1999, and was designed to offer all air transport industry stakeholders the latest facts, figures and trends related to technology adoption and spending. Comparisons to previous surveys are made where appropriate, although the respondent sample may vary between years.

During Spring this year questionnaires were sent to senior IT executives in each of the top 200 passenger carriers, including low cost operators, together with carriers representing important players in the regional and leisure sectors. The survey represents the views and insights of over half of the top 100 carriers, providing a clear insight into IT strategic thinking and developments for the industry.

The responses to this survey are confidential, and are received by an independent research company. The data analysis is based on the aggregated response of all airlines.

For more information go to: www.sita.aero/surveys www.sita.aero/resources/it-trends-hub

Africa/Middle East

Africa/Middle EastAsia-Pacific

Asia-Pacific

Europe

Europe

Americas Americas

25m+Passengers

25m+PassengersUp to 3m

PassengersUp to 3mPassengers

10-25mPassengers

10-25mPassengers

27%

29%

34%

10%

31%25%

20%24%

Passengers carried

Regions

31%25%

20%24%

Passengers carried

Regions

3-10mPassengers 3-10m

Passengers

25m+Passengers

Up to 3mPassengers

10-25mPassengers

31%25%

20%24%

Passengers carried

3-10mPassengers

Africa/Middle East

Asia-Pacific

Europe

Americas

27%

29%

34%

10%

Regions

31%

20%

23%

14%

34%24%

28%

23%

34%

Split of respondents

RESPONDENTS PROFILEThe survey is truly a global one, and we received a significant response from major carriers in every geographical region.

Page 17: airline-it-trends-survey-2016

For further information, please contact sita by telephone or e-mail:

Americas+1 770 850 4500 [email protected]

Asia Pacific+65 6545 3711 [email protected]

Europe+41 22 747 6111 [email protected]

Middle East, India & Africa+961 1 637300 [email protected]

Follow us on www.sita.aero/socialhub

© SITA 2016 All trademarks acknowledged. Specifications subject to change without prior notice. This literature provides outline information only and (unless specifically agreed to the contrary by SITA in writing) is not part of any order or contract.

#SITAINSIGHTS

SITA AT A GLANCE

SITA transforms air travel through technology - for airlines, at airports and on aircraft.

Our vision is to be the chosen technology partner of the industry, a position we will attain through flawless customer service and a unique portfolio of IT and communications solutions that covers the industry’s every need 24/7.

We are the innovators of the industry. Our experts and developers keep it fuelled with a constant stream of ground-breaking products and solutions. We are the ones who see the potential in the latest technology and put it to work.

Our customers include airlines, airports, GDSs and governments. We work with about 400 air transport industry members and 2,800 customers in over 200 countries and territories.

We are open, energetic and committed. We work in collaboration with our partners and customers to ensure we are always delivering the most effective, most efficient solutions.

We own and operate the world’s most extensive communications network. It’s the vital asset that keeps the global air transport industry connected.

We are 100% owned by the air transport industry – a unique status that enables us to understand and respond to its needs better than anyone.

Our annual IT surveys for airlines, airports and passenger self-service are industry-renowned and the only ones of their kind.

In 2015, we had consolidated revenues of US$1.7 billion.

For further information, please visit www.sita.aero


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