According to IATA, the Indian players are likely to account for $1 in every $3 of losses in the global airline industry this year. It is an overwhelming amount for a nation that accounts for only 2% of the world air traffic. All airlines have suffered major losses in revenue… but have managed to stay afloat by sticking together, with the Government moving in to help.

The coming year will hold some promise if airlines tighten their own seatbelts, by being more realistic with their expansions and hiring.

Cut IT budgets?

In a market environment as volatile as this, organizations including airlines use all means to improve efficiency, which is critical to their performance and profitability. Profitability being the prime focus for all airlines, the temptation to reduce or put off technology investments is real. Yet, as cost is a major concern, the cost of doing nothing for the end customer is far greater and potentially damaging in the long run. Organizations that fail to see technology as an investment run the risk of steadily increasing overheads with inefficient systems that disrupt optimal use of resources and opportunities.

IT - a bailout option

Innovative IT options can boost airline profitability. Through integrated, multi-hosting technology solutions, airlines can eliminate redundant processes and procedures, increase efficiency, and reduce the risk of errors, thereby lowering cost of operations and scaling productivity. This will enable devoting lesser time in administrative and operational issues and more time to concentrate on strategies and utilizing opportunities, with the goal of improving results. In the absence of such technology, manual processes slow down operations and limit the airlines’ ability to follow through on their investment directives.

Technology advancements will continue to help in increasing efficiency, and organizations that ride on new technology will be able to navigate in these uncertain economic times and emerge stronger. After all technology stabilizes and transform businesses.