London | February 6, 2017– According to the latest procurement intelligence report from Technavio, the global air travel services market is expected to grow at a CAGR of close to 4% over the next five years due to the increase in corporate traveler spending.

The research report titled ‘Global Air Travel Services: Procurement Intelligence Report 2016-2020’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.

“Rapid pace of globalization and rapid expansion of large organizations into emerging markets such as China, India, and Brazil have increased the need for air travel. Growing demand from corporates is a major driving factor. The corporate travel sector is expected to grow at a CAGR of 5% through 2017,” says lead Technavio procurement expert Angad Singh for category spend intelligence.

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Cost saving opportunities in air travel services

Adoption of various cost optimization levers allows buyers of air travel services to not only realize direct cost savings but also enhance category management and value benefits (such as reduction in procurement complexities).

Technavio procurement experts have segmented the cost saving opportunities in the air travel services market into the following value-enhancement opportunities:

  • Adoption of technology
  • Supplier Competition
  • Adoption of negotiation strategies
  • Optimization of procurement practices
  • Bundling of services

Adoption of technology saving aspects

New types of seating, including economy smart seats with fixed headrests for sleeping and 6-inch adjustable reclining capabilities for spine support, were introduced to enhance ergonomics and differentiate services effectively.

Big Data allows managers to make data-driven decisions and respond appropriately to the fast-changing dynamics in the air travel sector. Smart, analytical tools help marketing and finance departments to sort data rapidly before converting them into actionable insights.

Optimization of procurement practices saving aspects

The performance of suppliers can be linked to a portion of their fee and can be paid upon rendering of services in a satisfactory manner. It is important for category managers to track and measure the performance of suppliers against a set of defined KPIs (that are agreed upon by both parties during the contract negotiation phase).

Before the commencement of contract-related discussions with suppliers, category managers must ensure that they have clearly identified and listed down potential negotiation levers.

Bundling of services saving aspects

Bundling of services allows buyers to mitigate the risks involved in managing multiple aspects of travel management such as booking of hotels, and local transit and destination management. This offers buyers visibility on spend and allows them to negotiate costs better.

  • Boeing-COMAC Sustainable Aviation Technology Center to pursue mutually beneficial research in materials recycling, air travel for aging populations, workplace safety

Zhuhai, China | November 1, 2016– Boeing [NYSE:BA] and Commercial Aircraft Corp. of China (COMAC) today signed a new agreement to expand their joint research collaboration in support of the long-term sustainable growth of commercial aviation.

The two companies, which signed an initial collaboration agreement in March 2012, have been researching ways to improve aviation’s fuel efficiency and greenhouse-gas emissions reduction, including sustainable aviation biofuel and air traffic management (ATM) efficiency.

Through this new agreement, signed at the Zhuhai Airshow, the companies will explore six areas of mutually beneficial research through the renamed Boeing-COMAC Sustainable Aviation Technology Center. They will also continue to exchange commercial aviation market forecasts.

“As we approach the 45th year of collaboration between Boeing and China’s aviation industry, Boeing and COMAC are expanding our efforts to ensure commercial aviation’s long-term sustainable growth, improve its efficiency and reduce environmental impact,” said Ian Chang, vice president, Supplier Management China Operations & Business Development, Boeing Commercial Airplanes. “Our mutually beneficial research with COMAC supports Boeing’s global effort to enable growth and partner to address challenges for our industry.”

“The two companies have enhanced mutual trust and understanding during five years of working together,” said Wu Guanghui, Vice President of COMAC. “The agreement signed today extends and will bring our cooperation to a new level, enabling the two companies to leverage their own advantages for win-win results that can benefit not only China, but also the rest of world.”

Research areas for the Sustainable Aviation Technology Center will include:

  • Technologies supporting sustainable aviation fuel development and assessing the benefit to aviation of using these technologies;
  • ATM technologies and applications;
  • Environmentally sustainable manufacturing, including enhanced recycling of materials;
  • Technologies to enhance the airplane cabin environment related to environmental stewardship and air travel by aging populations;
  • New industry or international standards in aviation energy conservation and emissions reduction;
  • Improvements in workplace safety during cabin and ground operations.

As they have since 2012, Boeing and COMAC will jointly select and fund research by China-based universities and research institutions. Their initial agreement created the Boeing-COMAC Aviation Energy Conservation and Emissions Reductions (AECER) Technology Center. Since then, the Boeing-COMAC AECER Center conducted 17 research projects, leading to an aviation biofuel demonstration facility that turns waste “gutter oil” into jet fuel and three ATM software prototype systems. The Center has attracted participation of 12 domestic and international research partners.

In addition, Boeing and COMAC plan to open a joint venture facility in Zhoushan, China, that will install interiors and paint 737s before Boeing delivers these airplanes to Chinese customers.

China is one of the world’s fastest-growing aviation markets. The Civil Aviation Administration of China has forecast that passenger traffic in China will reach 485 million this year and will reach 1.5 billion passengers in 2030. Boeing has estimated that Chinese airlines will need to purchase more than 6,800 new airplanes through 2035 to meet fast-growing demand for domestic and international air travel.

    • 2015 Air Transport News Awards Recognize SITA’s Leadership and Innovation

Geneva | March 24, 2015– For the second time in the past three years, the Air Transport News (ATN) Awards have recognized air transport IT specialist, SITA, as IT Company of the Year. The 2015 award was based on SITA’s influential leadership and innovation, new solutions and achievements, social responsibility, financial performance and contribution to the air transport community.

Dave Bakker, President, SITA Europe, accepted the award on behalf of Francesco Violante, CEO of SITA, at a special ceremony in Geneva on 21 March. He commented: “SITA is honored to receive this award bestowed on us from our peers. We work with nearly every airline and airport in the world, collaborating to create community value, while exploring new technology that will help shape the future of the industry.”

In recent years, technology has driven substantial changes in both the passenger experience and industry operations. SITA provides the broadest portfolio of solutions for the air transport industry all around the world, in response to community needs. This includes solutions such as SITA’s iBorders Border Management, a fully integrated border management portfolio that helps governments modernize border security and facilitate the travel experience, and AIRCOM® FlightTracker, which guarantees regular flight position updates for flight tracking, but does not require modifications to aircraft.

SITA OnAir is working with airlines to realize the full potential of the connected aircraft, including setting the benchmark for true nose-to-tail connected aircraft solutions for both airlines and passengers. The company’s strategic technology research arm, SITA Lab, innovates on behalf of the air transport community, working with customers to pilot emerging technologies such as wearable technology, geo-localization and big data.

“SITA is 100% owned by the air transport industry, so we make strategic investments, develop new solutions and explore innovations for the benefit of the entire community,” said Bakker. “This award is a true endorsement of our direction and our strategic areas of focus and is thanks to our employees and partners, who are always looking for new ways to add more value.”

ATN has a strong subscription base of more than 42,000. The website’s readers selected all award winners based on two months of online voting, and they were later validated by a jury of industry leaders. SITA also won the ATN IT Company of the Year Award in March 2013.