Evolution and changes of air passenger transportation

Evolution and changes of air passenger transportation

The aeronautical world lives with constant internal and external transformation. On the one hand, it is an industry made up of dreamers who work constantly to reach more places in the safest, fastest, and most economical way possible. On the other hand, it is a sector completely connected to the environment that surrounds it, and for that reason any social or economic change has an impact on its activity.

Right now, we find ourselves in a context in which the large aeronautical groups have changed the rules of the game, the increase in supply has transformed the competition, and the consumer and the price of oil sets the pace. We can summarize the current situation in seven points:

  1. There is a duality between the great offer that the consumer perceives and the reconcentration phenomenon that the airlines experience. In recent years, the number of airlines has grown exponentially. In this context, IAG has become the largest aviation holding company in the world, owner of short-haul airlines in Europe as well as long-haul airlines.
  2. The competition has also undergone a transformation since, even beyond the groups, the airlines no longer work in isolation. Synergies are generated to offer more options to travelers through alliances. One world consists of 13 airlines, Star Alliance 27, and Sky team has 5 members.
  3. This new paradigm goes beyond commercial alliances : airlines competing within the same market become allies in order to make requests and promote change in matters that affect their operations in Europe. This alliance is called Airlines for Europe, and it has been founded by: Air France-KLM, Easyjet, IAG, Lufhtansa Group and Ryanair.
  4. The incursion of more players in the sector, with the consequent increase in the offer, gave rise to the price war that has completely transformed the way of traveling. The low-cost airlines were the ones that caused the great revolution, first, in the European short radio, changing the rules of the game forever. Recently, the low cost has moved to the long radio, highlighting Norwegian and LEVEL (from the IAG group). Its entry into the market has propelled a paradigm shift in these trips and has changed the client’s perspective on these types of flights. Although there are still differential values ​​related to customer treatment, the price is a determining factor when selecting the airline.
  5. In a context in which price is a key factor, oil oscillations directly influence the development of the business. Recently, the price of oil has shown increases which has generated uncertainty in the sector, and questions about how it would affect the prices of tickets and the results of the airlines.
  6. The environment and sustainability are on the public and political agenda worldwide, and both directly affect the aeronautical sector. Social awareness has increased in recent years, and airlines work to reduce the CO2 footprint and to be as sustainable as possible, generating new procedures and collaborating with organizations. All these actions are reflected in their Corporate Responsibility policies. Apart from internal work, there are external factors that affect the operation and the business, such as the application of the Ecotasa applied in France, a rate that will be applied to all aircraft that take off from French country. The objective is to apply it throughout Europe, which would directly affect the finances of the airlines.
  7. Clients are demanding, and social networks are becoming the best tool for claims due to the public repercussion they may have. The news is communicated at a speed much greater than a few years ago and the airline is exposed to delicate situations, both in terms of delays or loss of luggage, and conflicts within the plane, such as, for example, a discussion between a member of the crew and a passenger or an unusual noise recorded on video, both of which can become viral.

In short, this context is characterized by complexity and change , but also by opportunity. Communicating in an environment of these characteristics is a constant challenge that offers us the opportunity to reinvent the way we work every day . Interface Tourism Spain love,s it!


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