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Challenges Facing Commercial and Private Airlines in 2015

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Rising fuel prices, global economic forces, competition, and changing passenger expectations are all combining to make profitability a constant struggle for airlines of all sizes. Let’s look at some of the most pressing challenges that airlines are facing.


The first challenge is to
cut costs and ensure efficient operations. Cost cutting has been a daily mission for airlines’ operations for a long time. With rising fuel prices and an uncertain global economy, operating costs must remain as low as possible. Every airline is looking for cost savings that give them a competitive advantage in the marketplace.

Improving customer service and loyalty is also an ongoing challenge. When serving thousands of passengers a day, customer service is both very important and very difficult to get right. And when you don’t get it right, too often passengers are taking to social media to air their frustrations, impacting brand perceptions and loyalty. Airlines must provide compassionate and timely responses to passenger complaints in order to keep their seat-yields high.

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Your top crew members know how to manage customer issues well. But managing your mobile workforce also presents tough challenges. Airlines have always relied on dispersed crew members. As new technologies emerge to support mobile workforces, airlines must adapt their management tools and processes to retain top performers and realize efficiency gains.

Finally, airlines are relying more heavily on generating ancillary revenues, which presents challenges on the ground and in the air. The fastest growing contributor to airline profits is ancillary revenues, which have grown from 0.5% of contribution in 2007 to over 5% in 2013*.  Monetizing optional parts of the passengers’ experience is essential for the bottom line, but it can also help improve passenger satisfaction.

These challenges can all be addressed with the right technology solutions. Starting by looking in to tablets for airlines to address those challenges and get / stay ahead of the competition. 

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