Airline future faces flack from new technology

The future of the airline industry? Not so clear. Even with recent successes and more profitability, there are dark clouds. The reason: new technology that may reducing the need to travel.
 

“Over the last two decades a number of new technologies have become so ubiquitous that we now take them for granted and don’t realize how much they have changed our lives and our world,” writes Ron Ashkenas, a consultant and senior partner with Schaffer Consulting.
 

The Internet and other new technologies have created solutions that are fast, inexpensive, and relatively simple to use — while quickly outmoding and disrupting long-standing industries that provided old and suddenly less competitive solutions. It’s happening very fast.
 

“One of the next candidates for rapid disruption is the airline industry,” he writes in Forbes. Coming up: a disruptive set of technical solutions that will dramatically reduce the need for air travel altogether.
 

He is referring primarily to virtual meetings, including teleconferences; web-based meetings attended on personal computers and handheld devices; and video conferences.
 

“The problem (for the airlines) is that these solutions get people together in real time in a way that they can interact naturally, build relationships, solve problems, and share information — without having to travel,” he writes.
 

But virtual meetings may be only the beginning of technology changes.
 

“Most firms already use some form of web-based meeting where people can view slides or data together in real time while participating in a teleconference. Many others are installing high-end video rooms in key locations so that managers and executives who would ordinarily travel to meet with each other can hold virtual meetings with greater frequency and less downtime,” Ashkenas writes.
 

And businesses are not the only users.
 

“Parents with children living or studying abroad are staying in touch through Skype-based video chats — as are families who are geographically distant. And during the holidays, soldiers in Afghanistan are given access to video technologies that enable them to have virtual meetings with their families back home,” he writes.
 

These technologies are shrinking the world at little cost.
 

“It’s a nightmare scenario for the airlines and their suppliers — even though they may not yet realize it as they continue to buy bigger planes and plan larger airports. But for the rest of us, it might just make the global world an easier place to do business,” he concludes.
 

Others have also recognized how technology is saving business and personal costs. Aaron McCormack, CEO BT Conferencing said:
 

"In a period when budgets are being scrutinized and businesses want to cut costs, organizations must assess the need for travel when real alternatives such as conferencing exist, which not only reduce emissions but also improve efficiency and save money."
 

One possible solution for the airlines: embrace the technology
 

“If major airlines were to offer virtual meeting rooms and real-time business collaboration tools as part of a business travel package, they could maintain customer loyalty and longer term profitability," says the IAPA (International Airline Passenger Association).
 

By David Wilkening