Arline Industry: Appicaion of Business Analytics and Intelligence in Airline Industry

ARLINE INDUSTRY
• The airline industry encompasses a wide range of

businesses, called airlines, which offer air transport
services for paying customers or business partners.
These air transport services are provided for both
human travelers and cargo, and are most commonly
offered via jets, although some airlines also use
helicopters.
• Airlines may offer scheduled and/or chartered services and the airline industry forms a key part
of the wider travel industry, providing customers with the ability to purchase seats on flights and
travel to different parts of the world. The airline industry offers a variety of career paths, including
AIRLINE INDUSTRY IN INDIA

• The airlines industry in India has emerged as one of the fastest growing industries in the country
during the last three years. India has become the third largest domestic aviation market in the
world and is expected to overtake UK to become the third largest air passenger r market by 2024.
• India’s passenger traffic stood at 341.05 million in FY20. It grew at a compound annual growth
rate (CAGR) of 11.13% during FY16-FY20. Domestic passenger traffic stood at 274.50 million
in FY20, growing at a CAGR of 12.91% over FY16. International passenger traffic stood at 66.54
million, growing at a CAGR of 5.01% during FY16-FY20.
• Aircraft movement grew at a CAGR of 9.56% from 1.60 million in FY16 to 2.59 million in FY20.
During FY16-FY20, domestic aircraft movement increased at a CAGR of 9.83% and international
aircraft movement expanded at a CAGR of 3.57%. India’s domestic and international aircraft
movements grew to reach 2,155 thousand and 433 thousand during FY20, respectively.
• To cater to the rising air traffic, the Government of India has been working towards increasing the
number of airports. As of 2020, India had 153 operational airports. India has envisaged increasing
the number of operational airports to 190-200 by FY40.
• Further, the rising demand in the sector has pushed the number of airplanes operating in the sector.
The number of airplanes is expected to reach 1,100 planes by 2027.
APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 1

CURRENT INDIAN AIRLINES INDUSTRY
• The Aviation sector in India currently contributes $72 bn to GDP.

• India has 464 airports and airstrips, of which 125 airports are owned by Airport Authority of
India (AAI). These 125 AAI airports manage close to 78% of domestic passenger traffic and
22% of international passenger traffic.
• The Indian aviation market has grown at an annual rate of 10.2% from 2008–09 to 2018–19.
• India has 91 international carriers comprising of 5 Indian carriers and 86 foreign carriers, which
ensure that India is well connected with most major countries. Revenue passenger kilometer (RPK)
in domestic airline demand growth of 18.6% in 2018 was three times the global RPK growth of 6.5%.
• Indian carriers are projected to increase their fleet size to 1,200 aircraft by 2024.
• Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.
• Government agencies projects requirement of around 250 brownfield and green-field airports by
2020.
• India is the fastest-growing aviation market and is expected to cater to 520 mn passengers by 2037.
• India has been projected to be the second-fastest-growing country in the world for passenger traffic
by the Airports Council International (ACI) in its traffic forecasts between 2017-40.
• Demand for aircraft in India is expected to be 1,750 by 2037.
• Up to 100% FDI is permitted in Non-scheduled air transport services under the automatic route.
• Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.
• Up to 100% FDI is permitted in Ground Handling Services subject to sectoral regulations & security
clearance under the automatic route.

GROWTH OF AIRLINE INDUSTRY
• Over the past five years, India’s aviation industry has grown fast: in 2018, the International Air
Transport Association (IATA) predicted that India would be the world’s third largest aviation
market by 2024, and grow from 158 million passengers in 2017 to 572 million by 2037.
• However, after four years of double-digit demand growth, in 2019, air traffic in India rose 5.1%,
down from 18.9% growth in 2018, according to IATA.
• While India has proven to be a difficult environment for airlines to operate in (ironically, often
more difficult for Indian airlines than for international carriers), the sheer market size and potential
makes it highly lucrative.
GROWTH DRIVERS FOR INDIA’S AIRLINE INDUSTRY
Better airport infrastructure
• Airport Infrastructure as Well as Connectivity to And from Airports Are Critical Success Drivers
for The Industry.
• While Large Cities Like Mumbai and Delhi Have Done a Good Job Upgrading Their Airports,
It’s Only the Start. Firstly, These Cities Can’t Just Be Connection Points or Feeders for Domestic
Routes, But Instead Must Grow Into true hubs that provide connectivity to various international
destinations.
More partnerships with international carriers
• Code shares, revenue sharing agreements and alliance membership can help boost demand for
Indian carriers as well. Indian carrier, Vistara, and United Airlines announced a code-sharing
partnership in 2019 that enables both airlines’ loyalty members to earn and redeem points when
flying on either carrier’s metal.
• IndiGo and Qatar Airways also forged a code-sharing partnership late last year, signaling the
chance for one or a few Indian airlines to join the ME3 (Qatar Airways, Emirates Airlines and
Etihad Airways) for connections to the Middle East or South Asia.

Improved management and operations
• A strong operation – a robust fuel hedging strategy, optimized flight and airport operations and well-
managed corporate functions – is of course critical. But well-run commercial functions and a high
degree of focus on revenue generation is equally important.
• Airlines should continue to invest in network planning, revenue management, loyalty programs,
marketing, sales and go-to-market (including distribution) strategy and e-commerce to deliver strong
and sustainable revenue performance.
• The Indian airline market has always had huge potential for airlines due to its size, but profitability
has remained elusive. On the domestic front strong competition and excess capacity growth have
hindered financial returns, and on the international side overseas airlines have been more
successful than local airlines in tapping into this market.
• However, there is a good chance the airline industry will come out of the pandemic in better shape
for long term success.
• Strong advances into the airline sector by the Tata Group could prompt mergers, and the
privatization of Air India should set it up on a better financial footing. There were already some
signs that the rapid pace of growth was moderating before the pandemic struck and airlines are
likely to be even more cautious, for the immediate future at least.

NEED ASSESSMENT OF BUSINESS INTELLIGENCE IN AIRLINE
INDUSTRY
• So, here to identify the need of airline. We need to ask questions.
• In which area we require business intelligent?
• How we can smoothen our process?
• In what aspect we need to reduce cost?
• And so many different questions and then we can know that where and when it requires.
OBJECTIVE TO INTRODUCE BUSINESS INTELLIGENCE IN AIRLINE
• The airline industry is notorious across the globe for thin profit margins and cut-throat
competition. One wrong move and the entire operation could go up in flames.
• Therefore, the airline industry has realized that the only way to minimize costs and improve
customer satisfaction is by using data. Hence, the airline industry utilizes massive amounts of
data each day.
• Handling this data is no easy feat but luckily there are tools out there that can help to ease the
burden. Among the most prominent of those tools is business intelligence (BI) tools.
• These tools help the airline industry to explore innovative ways of improving their business
models and revolutionize the way they operate with the use of business analytics.

So, here we mention some point that helps us to find out in which areas we require
business intelligence.
Flight-Schedule Management for Reducing Cancellations

• You may have seen reports predicting that pilots will soon be replaced by robots. The current
reality, however, is the opposite, as we’re seeing a looming of human pilot shortages.
Magnifying this problem is the fact that 42% of current US pilots will retire over the next
decade. And to add even more salt to the wound, recent FAA regulations have limited pilot
flight time to reduce fatigue.
• Pilot shortages and FAA regulations are causing the perfect storm of massive flight
cancellations and the PR troubles and even lawsuits that come with them. Along with public
disapproval, these cancellations are also costing the industry millions of dollars.
• Enter eTT Aviation, a company specializing in sophisticated flight schedule management.
Armed with the innovative Sisense business intelligence platform, they’re helping airlines
improve pilot utilization to keep planes flying and reduce the airline industry’s flight-
cancellation crisis. The system developed by eTT takes many complex variables (which
crew members are ready for action when, which vessels are located where at any given
moment) into account and helps airlines to build schedules that maximize pilot availability.
• Further, when delays occur during daily operation, eTT Aviation uses intuitive visualizations
to alert crew schedulers and solve problems before flights get cancelled.

Implementing Robotics for Safety and Quality
• In 2015, there were 23 work-related fatalities among air-transportation employees. Some 6.2%
of aviation industry employees reported having sustained injuries that year.
• The more aircraft manufacturing processes that can be automated, the smaller the window for
human error and injury. Boeing spent over a year sifting through data and improving processes
to create an almost perfect Fuselage Automated Upright Build (FAUB) system. FAUB is a
network of assembly robots that work in pairs to install 60,000 rivets into each fuselage of
their 777 line of aircraft.
• Thanks to this advanced process and innovative use of BI, human employees now simply
guide the panels of a fuselage into their proper positions. The robots, using highly-accurate
laser guidance systems, do all the riveting. There’s no human error, no tiring or fatigue, and
quality control is in the forefront of the process.
• With FAUB, air travelers get peace of mind that they’re flying in planes created through
highly-advanced manufacturing processes. Also, Boeing can create meticulously-crafted
airplanes while worrying less about human error, injury or fatigue.
Making your airline standout

• Differentiating yourself from others offering a similar product/experience is the key to success
especially in an industry as saturated as the aviation industry.
• Usage of advanced BI tools will help your airline standout. Using these tools airlines can create
customer profiles targeting just what the customer needs.
• Catering to the whims and fancies of customers and providing just what the customers expect
helps the airlines to differentiate themselves and build a relationship with the customer which
helps foster customer loyalty.

Prescriptive Maintenance for Accurate Decision Making
• Continuing the above discussion of maintenance problems, there’s yet another data-driven
solution that’s poised to make positive changes: prescriptive maintenance.
• Thanks to aviation’s adoption of Internet-of-Things (IoT) technology, as well as the massive
amount of data that flows through today’s aircraft sensors, advanced maintenance methods
will soon replace outdated ones. In other words, prescriptive maintenance will start replacing
the old model of predictive maintenance.
• Today, much of the airline industry uses data for predictive maintenance. This kind of
maintenance utilizes statistical data, machine learning, data mining and modeling to help
analysts forecast “what could happen.” For example, predictive maintenance can give repair
crews information such as how long a part will last under certain conditions and under certain
amounts of use. The maintenance personnel must then use their judgement to make decisions
such as whether to repair a part or replace it altogether.
• Prescriptive maintenance, on the other hand, goes further than making predictions. It applies
business intelligence to prescribe optimal solutions for a mechanical problem. That is, it
clearly tells maintenance personnel what the next steps should be at any given moment – such
as, to repair it or replace it, for a simplified example.
Finding the perfect price point

• Business Intelligence can help your airline set the perfect price point for daily flights. It can easily
read trends and look at multiple data sources to bring the best most competitive prices.
• Furthermore, it helps you get a bird’s eye view of the current circumstances and help you set just
the right price that maintains just the perfect balance of what the customer is willing to pay
without compromising the profit margins.
• Hence, there is no need to manually update prices everyday saving time and labor that can be
utilized elsewhere.

Offering a personalized experience
• The customer is always right. This phrase has been used in advertising and marketing for decades
and rightly so. For any kind of business to succeed, it must know what the customer wants.
• Business Intelligence helps you do just that. It allows the airlines a complete profile of the
customer through various analytics. From their preferred routes to their behavior BI leaves no
stone unturned.
• Doing so allows for a more customer-targeted approach which includes but is not limited to
particular deals and offers, targeted campaigns, etc. which help in customer retention and
improved profitability.
Help with management

• The airline industry is constantly changing. There are multiple factors at play that makes managing
an airline difficult. Using business intelligence airlines can help reduce the impact of these changes
and take the correct decisions promptly without any errors.
• Therefore, it ensures that many issues are resolved before they become too serious and that efficient
operations are carried out 24/7.

NEED ASSESSMENT OF BUSINESS ANALYTICS AMONG BUSINESS
FUNCTIONS IN AIRLINE INDUSTRY
• The airline industry generates billions of dollars every year and still has a cumulative profit margin
of less than 1%. The reason for this lies in this industry’s vast complexity. Airlines have a multitude
of different business issues that need to be solved at once, such as globally uneven playing field,
revenue vulnerability, an extremely variable planning horizon, high cyclicality and seasonality,
fierce competition, excessive government intervention and high fixed and low marginal cost.
• To ensure the best chance for full economic recovery, airlines should fully leverage their most
prolific asset - data. Data used in conjunction with innovative Big Data technologies will provide
the capabilities for a comprehensive intelligent management and decision-making system
throughout the enterprise.
BUSINESS CHALLENGES IN AIRLINE INDUSTRY

• Key to successful deployment of technological advances in airline industry is to be able to
anticipate how the current business model will change to survive in tough market conditions. Some
of the challenges that can be successfully addressed by Big Data Analytics are:
➢ The need for accurate daily and weekly performance measurement reports
(“flash/estimated” revenue, operating costs and net contribution reports for every aircraft’s
actual flight per sector/route).
➢ The Need to better manage all aspects of risk.
➢ The Need for better impact analysis and more effective optimization of all resources as
well as being able to produce accurate passenger-revenue forecasts,
➢ The Need for a holistic, 360 degrees views of the airline industries customers, suppliers,
service providers and distributors.
➢ The Need for expense verification models in order to better control all industry cost aspects.

Performance Measurements Risk Management
• Airlines usually operate in a globally • The complete elimination of risk in
competitive environment and therefore aviation operations obviously is an
require prompt and accurate enterprise unachievable and impractical goal
performance measurements. (being perfectly safe would require
Furthermore, airlines are volume driven stopping all aviation activities and to
and small variations (passengers flown, grounding all aircraft) as not all risks
fuel spent/bought, load carried) can can be removed and not all possible risk
multiply into major effects – therefore mitigation measures are economically
appropriate and timely action is critical. practical.
They also suffer substantial difficulties • The global airline industry has been
to produce daily/weekly reliable subjected to major catastrophes over the
performance measurements. past years. It is accordingly imperative
• Current airlines “legacy” IT systems for airlines to develop various risk
such as Revenue Accounting, require management models and strategies to
several weeks after a month end to protect themselves from negative
generate revenue results for every flight impact of these types of events.
per sector/route. Enterprise Intelligence Furthermore, due to the global playing
Platform and Big Data Analytics can field, airlines often earn its revenues
automate production of daily activity and pay its costs in different baskets of
reports such as number of passenger currencies (USD, Euro, GBP etc.).
flown per flight/sector, distance flown, • As a result, there is frequently a
etc which can be used to provide mismatch between the flow of revenue
estimated performance measurements receipts and expenses of each basket of
such as daily or weekly revenues for currency - creating risk exposure
specific routes or sectors. reports.

Control and Verification Load forecasting
• Airline carriers require a number of • Airport transport industry around the
control and verification models to be able globe has faced extreme challenge of
to control costs arising from its various handling high volumes of passengers
operational activities. To enable this, especially in Asia due to the economy
airlines have a pressing need for a growth and most of them are already
complete and integrated repository of operating at 80% - 90% of their capacity
flight information data gathered from all in the recent year.
its disparate business units. This will • Airlines require the development of an
enable computation of various efficiency effective and holistic forecasting model
analytics - planed fuel usage compared to regularly assess the impact of options
with actual fuel usage per aircraft, crew and alternatives such as increasing
utilization (roster optimization). aircraft seats available, adjusting fares,
• These issues could also be fully addressed introducing new routes etc. Forecasts
by consolidating and analyzing relevant should also take account of actual
flight and aircraft data. In turn this would statistical trends and results. actual
help to create a 360 ° view of each flight passengers carried and actual average
and aircraft, allowing the business users to fares earned. Such forecasts should then
dramatically improve their control and be compared against budgets and prior
verification systems. year performance.

Holistic customer view
• Airlines would greatly benefit from knowing and understanding its business environment
along some of the key business issues, such as performance, behavior, risk, profitability,
etc. Using customers as an example - the main objective would be to enrich the knowledge
about individual customers leading to new strategic customer segments.
• These analytics would allow airlines to reap the host of benefits such as successful, targeted
customer promotions, cross-selling and up-selling campaigns for different flights and
booking classes leading to improved yield and revenue.
• For example, it would give airlines the power of knowing to limit discounts on flight routes
which are usually over-booked, allowing the large number of passengers to compete for
high profit seats immediately prior to departure. Such multidimensional views of the
business can help the airline to better serve its customers through more effective, efficient
and personalized service, receiving in return customer loyalty, support and market share, all
leading to higher profitability.

HOW AIRLINE INDUSTRY USES BUSINESS INTELLIGENCE
BIG DATA AND AIRLINE INDUSTRY
• Airline industry, generates huge quantities of data (that can be considered big data), this fact being
both an opportunity and, in the same time, a challenge for the companies doing business in this
industry.
• Airline industry, generates huge quantities of data (that can be considered big data), this fact being
both an opportunity and, in the same time, a challenge for the companies doing business in this
industry.
• The accumulation of large data volumes in the aviation industry, as in other fields of activity, can
be seen as an opportunity to exploit these data through bestialized tools, obtaining valuable
information that can be used by managers and other people in charge to develop and improve the
processes that are carried on by the aviation companies. Aviation data come in large volumes,
having varied fonnats and continuously, having all the characteristics of big data. Big data with
provenance from the airline industry, according to the paper Cross-Platform Aviation Analytics
Using Big-Data Methods can have multiple sources:
FLIGHT PASSENGER AIRPORT

AIRCRAFT
TRACKING DATA, INFORMATION, OPERATIONS,
MARKET
AIRLINE INFORMATION
INFORMATION WEATHER DATA
INFORMATION AND AIR SAFETY
REPORTS

• As we can observe in above picture, coming from various sources in the aviation industry are
integrated into a common big data repository before they can be analyzed using specialized
software. To explore big data and offer decision support at all levels in company special software
systems have to be used, also known as business intelligence/ business intelligence type systems.
• Airline companies can use with micess any of the business intelligence software products
described in the previous table. As airlines are usually large companies, they have to choose
business intelligence software that best suits their needs, offering business solutions at all company
levels.
• Airline specific business intelligence products Over the 1st years, some business intelligence
systems specific to the airline industry were developed. These systems are optimized to operate on
data specific to the airline industry as presented in the first part of the present paper.
• passenger management functionalities that help

airlines to maximize airplane usage while
avoiding overbooking.
• Shows passenger trends/ behavior according to
the available data.
• Offers insight into the causes of trends that are
observed.
• Multiple analysis tools:
➢ Ad-hoc analysis
Teradata Airline Decisions ➢ Exception alerts

IATA Business Intelligence
& Statistics Services
Statistics Services
• Is different from other business intelligence software providers through the fact that it
also offers access to industry specific data.
• Access to airline specific databases (Airport IS database).
• Benchmarking tools related to customer satisfaction (Air SAT).
• Different reports related to the airline industry (cargo, market analysis etc.).
• Is useful not only to airline companies, but also to other agents operating in the
transportation domain.
• Offered at a global level, with globally gathered data.
The market size of Big Data Analytics in the global aviation industry
was valued at $2,52 million in 2016. By 2023, it is expected to reach
$7178 million with a CAGR of 17.5%.

Application of business analytics in airline industry
COST REDUCTION
Baggage Management Fuel Management

Airlines are very concerned about Airlines track real-time fuel
baggage handling metrics like lost- consumption data on Dashboards
bag tally, SLAs. They rely on real- from take-off to landing. This
time baggage tracking data to monitoring is crucial to be ultra-
avoid losing damaging or delaying efficient in reducing fuel costs and
bags and face compliance issues. airline emissions.
Aircraft Maintenance and

Yield Management & Pricing Reliability
Insights from structured and Predictive Analytics helps Airline
unstructured data from Internal Carrier in conductive prognostic
& external data sources to maintenance. This improves
understand predictability on procuring parts
inventory, fleet reliability and
reduces huge operational costs.
Crew Performance & Ground Handling

Crew Cost is the 2nd largest expense
category for Airlines. What-if scenarios,
optimized rosters and real-time alerts on
crew data behavior help Airlines improve
crew utilization, efficiency and
transparency.

Application of business analytics in airline industry
Revenue maximization
Customer Experience Scorecard

Booking analysis
Big Data Analytics helps Airlines
Airlines segment customers, target capture real-time customer
with personalized offers, optimize behavioral data from multiple
pricing in real-time using touch points and process
predictive analytics techniques structured and unstructured data
such as modelling and forecasting. sources to improve overall
customer experience.
Marketing Campaign Analytics Loyalty Programs Analysis

Marketing automation blends with Airlines invest a lot in creating
advanced targeting and analytics data modelling, Balanced
abilities to analyze channel Scorecards and retention analytics
performance, media spend, goal for tracking Loyalty value and
conversion, campaign performance engage passengers with offers in
to improve cross-selling and real-time across FFPs and co-brand
upselling. card programs.
Loyalty programs influence

64% consumers on where they make purchases.
50% on what they buy.
Brand Buzz / Social Listening
Text Mining & Analysis helps Airlines in proactively
understanding customer sentiments, predicting safety and
maintenance issues. Valuable insights from this analysis
help in improving the bottom-line.

APPLICATION OF SOCIAL MEDIA ANALYTICS IN AIRLINE
INDUSTRY
• Power of social media is becoming more influential with its expansion,

with more people connected there is
tremendous data to explore, analyze and take
corrective actions. Social media provides insightful
information about customers which helps to improve
customer service, improve and explore new business
opportunities. As per a study about 50% customers are now preferring to reach out to service
providers on social media than customer care desk.
• Another study says, a user interacts with an industry or brand, such as a reply or a retweet, the
sentiment in the related text likely shows this user’s opinion toward that industry or brand. This is
an example which shows, how a simple social media action may reflect customer sentiment and
this data can further used for business analytics. Therefore, customer feedback is very important
for any airline industry. There could be several possible ways to collect the customer feedback.
COLLECTING DATA FOR SENTIMENT ANALYSIS

• Collecting the data with the help of Feedback form or questionnaire is easiest and traditional
way available for an airline. However, as per a recent study most of the passengers do not
show much interest in filling feedback forms Other traditional methods could be feedback via
text, email etc. All these traditional methods have limited scope and flexibility, since
customers often don't put extra effort to give feedback unless its really required, such as a
complaint.
• Social media is the most convenient mode to expressing sentiments which can be used as
feedback, such as a retweet of particular tweet by a customer can tell a lot about his sentiments.
Social media provides a platform where a user can freely express his feedback on any issues
they observed during flight. Social Media data such as Twitter data is available and it can be
combined with the traditional feedback data to have a robust feedback method.

COLLECTING DATA FOR SENTIMENT ANALYSIS IN AIRLINE
INDUSTRY
• Similar to any business transaction or service

there are issues in Airlines which affects the
emotions of a customer’s positively or
negatively, such as cabin crew behavior, quality
of beverages or food, handling of baggage, seat
allocation, flight timings and delays, boarding experience etc. A surge in positive or negative trend
for an airline can impact its business prospects likewise.
• Therefore, it is important to understand the issues that give rise to negative tweets so that the
respective airline company can take appropriate action on time. Similarly understanding the reason
for positive sentiments can provide useful insights for business decisions such as customer
retention. There are a large number of airlines operating every day to connect different
geographical locations. The sentiments can be grouped in three categories , positive, negative and
neutral and then can be mapped against different business functions, business events or products.
• In the article for 'McKinsey and Company' Gordon , Grüntges , Smith and Staack explained the
power of social media and how unfiltered conversations regarding a product , company or
customer experience can be explored for business benefits and competitive advantage. This article
gives example of a textile company where the company effectively uses the specific complaint on
social media to change product and increase business benefits. This is evident that the real-time
use of data from social media platform is a very effective way to generative wide range of
feedback. For airline Industry the data from social media channels such as Twitter, Facebook and
Instagram can be modeled to get a feedback on customer sentiment and what are different
influential factors.
• Similarly, the social media data for Airline can be used to get a unfiltered sentiment and then be
used in, Marketing to improve services, in Sales to provide offerings which enhances the positive
sentiments, in procurement to identify how the allocation of crews is related to customer
experience and then making right allocations.

BUSINESS QUESTIONS FOR ANALYSIS
• Social Media can be used to get answers to targeted business questions. As per studies (Hu et al.,
2017) the social media sentiment data can be used to answer various question to compare
competitors and industries. Based on that for airline industry following can be the business
questions.
• What is the opinion of customers towards other airlines?

• What is the users’ sentiment towards different flights?
• What are the frequent topics that users mention related to industry when they interact over
social media?
• What is their sentiment towards those topics?
• How sentiments relate to fares, upgrades, delay in flights etc.?
• How inside and outside of flight experience relate to sentiments and with each other?
These are few examples where different models can be built to take advantage.
• Social media can also be used to know the customers which include understanding the users’
perception of industries, brands and associated topics Based on this we can say that the Social
Media data can be used to “know your customer” which may not be a very specific information to
a customer, however can give a lot of information for customers emotions towards specific events,
such as delay or cancellation of flight, change in rout, problems at boarding or a upgrade etc.

APPLICATION OF DATA MINING IN AIRLINE INDUSTRY
• The airline industry generates billions of dollars every year but still has a cumulative profit margin
of less than 1%1. Many Airlines are trying to recover from deep debt. The reasons for these are
multifold- fuel prices, high cyclicality and seasonality, fierce competition, high fixed costs and
many other issues related to security and passengers’ safety.
• To ensure for the best economic outcome, Airline companies are trying with their most creative
asset – data. Data used in conjunction with data mining techniques allows comprehensive
intelligent management and decision-making system. Achieving these benefits in a timely and
intelligent manner may help in resulting lower operating costs, better customer service, market
competitiveness, increased profit margin and shareholder value gain.
PREDICT THE NUMBER OF PASSENGER

• in the case of Air travel, lot of seasonality and cyclicality involved. Passengers are more likely to
fly to some destinations based on the time of the year. Business travelers are likely to travel
weekdays than weekends. Early morning and evening flights are desired by business travelers who
want to accomplish a day’s work at their destination and return the same day.
• To forecast the number of passengers, artificial neural network (ANN) can be used. The purpose
of a neural network is to learn to recognize patterns in a given data. Once the neural network has
been trained on samples of the given data, it can make predictions by detecting similar patterns in
future data.

The growth factors which might influence the air travel demand depend on several things.
Personal
GDP Disposable Adult Populations Airline Yield
income
Fleet/route
Passenger Load Labor cost and Fuel cost/Fuel
structure/Average
factors productivity efficiency
Aircraft Size
Airline cost other Passenger Traffic

than Fuel and Allocation New technology
Labor Assumptions
Factors 1 to 5 are related – demand side of the forecast
Factors 6 to 9are related to operations and supply side
Factors 10 and 11 represent the structural changes
• This historical data is called the estimation set. A fraction of the overall available data is reserved
for validating the accuracy of the developed forecast model. This reserved data set is called the
forecasting set because no information contained in it is used in any form during the development
of the forecast model.
• The data in the forecasting set are used for testing the true extrapolative properties of the developed
forecast model. The estimation set is further divided into a training set and a testing set.
Information in the training set is used directly for the determination of the forecast model, whereas
information in the testing set is used indirectly for the same purpose.

Figure1: Forecasting Process Model
• For a given ANN architecture and a training set, the basic mechanism behind most supervised
learning rules is the updating of the weights and the bias terms, until the mean squared error
(MSE) between the output predicted by the network and the desired output (the target) is less
than a pre-specified tolerance.
• Neural networks are can be represented as layers of functional nodes. The most general form of
a neural network model used in forecasting can be written as:
➢ Y = F [H1 (x), H2 (x), â€¦., Hn (x)]+ u
➢ Where, Y is a dependent or output variable,
➢ X is a set of input/ influencing variables,
➢ F & H’s are network functions, and u is a model error.
• This input layer is connected to a hidden layer. Hs are the hidden layer nodes and represents
different nonlinear functions. Each node in a layer receives its input from the preceding layer
through link which has weights assigned, which get adjusted using an appropriate learning
algorithm and the information contained in the training set.
Figure2: ANN Architecture

• For example: we did the study to forecast the number of airline passenger in Saudi Arabia. He
selected the most influencing factors to forecast the number of domestic passengers in the
different cities of Saudi Arabia. For Dhahran he selected factors like: Oil gross domestic product
for last 6 years, private non-oil gross domestic product, Import of goods and services for last 10
years, and population size for last 2 years.
• The domestic and international actual and forecasted number of passengers for the city of
Dhahran for the years 1993 through 1998 is shown below. Forecasts underestimated the actual
travel. The Mean Absolute Percentage Error (MAPE) for domestic travel is about 10%, while
for international travel is about 3%.

Figure3: Forecasting results
• The take away from the above figure is that the efficient forecasting model can be invented using
ANN if we using the right influencing indicators.
• In this study some indicators which influence are oil gross domestic product and per capita
income in the domestic and international sectors. In view of the fluctuating nature of the
passenger usage of airline services in Saudi Arabia, certain suggestions were made.
• Most of these recommendations were in order to improve the flexibility of the system to the
fluctuations in demand and supply. Hub and spike model was also suggested as solutions in
certain sectors to increase the flexibility in adjusting their capacity allocations across markets as
new information about demand conditions become available.
UNDERSTAND THE IMPACTS OF SEVERE WEATHER

• Severe weather has major impacts on the air traffic and flight delays. Appropriate proactive
strategies for different severe-weather days may result in improvement of delays and cancellations.
Thus, understanding end-route weather impacts on flight performance is an important step for
improving flight performance.
• Zohreh and Jianping in their study proposed a framework for data mining approach to analysis of
weather impacts on Airspace system performance. This approach consists of three phases: data
preparation, feature extraction, and data mining. The data preparation phase includes the usual
process of selection of data sources, data integration, and data formatting.

FRAMEWORK PROPOSED BY ZOHREH AND JIANPING
• He used three data sources: Airline Service Quality Performance (ASQP), Enhanced Traffic
Management System (ETMS), and National Convective Weather Forecast (NCWF) supplied by
National Center for Atmospheric Research. He used NCWF data from April through September
2000 to represent the severe weather season.
• These data-sets included the scheduled and actual departure and arrival times of each flight of ten
reporting airlines, tail number, wheels off/on times, taxi times, cancellation and diversion
information, planned departure and arrival times, actual departure and arrival times, planned flight
routes, actual flight routes, and cancellations, flight frequencies between two airports, intended
flight routes between two airports, flight delays, flight cancellations, and flight diversions.
• The image segmentation phase resulted in a set of severe-weather regions. Then for each of these
regions, a set of weather features and a set of air traffic features are extracted. A day is described
by a set of severe-weather regions, each having a number of weather and traffic features.
• As a result of this study, it was found that there is strong correlation of blocked flights, #of bad
weather regions, bad weather airports, blocked distance, bad weather longitude, by pass distance,
bad weather latitude, # of bad weather pixels with flight performance.
• Similarly, the clustering algorithms (like K-means) can be applied. The expectation is that the
same clusters have similar weather impacts on flight performance. Zohreh and Jianping8 generated
clusters for the entire airspace It was found that a cluster with worse weather almost always had
bad performance. The clusters with large percentage of blocked flights, bypass distance, and
blocked distance had a worse performance. These results were promising and showed that days in
a cluster have similar weather impacts on flight performance.
• Other data mining approach which can be applied is Classifications. Application of Classification
can help us discover the patterns/rules that have significant impact on the flight performance.
Discovered rules may be used to predict if a day is a good or a bad performance day based on its
weather. For example

• Rule for Good:
➢ if %BlockedFlights <= xxx
➢ and BypassDistance <= yyy
➢ then Good (n, prob)
• There can be different ways where we can apply data mining approach to analysis of weather
impact on airline performance. It seems to be that results obtained from clustering and
classifications were very meaningful for airline and passengers to plan ahead.
Along with this there are many areas where data mining in very useful like:
To Predict the Airline Passengers No-Show Rates

To Strategies Customer Relationship Management
To Ensure Safety and Security of Airlines Passenger
On an average, a six-hour flight collects around 240 terabytes of data from the
aircraft. The aircraft A350 has around 6000 sensors in an aircraft and generates
2.5 terabytes of data every day.

VISUAL ANALYTICS
• visual analytics is widely used analytics across different sectors and activities.in airline industry
also visual analytics is very much useful and it also helpful to fulfill data requirement in particular
time in dashboard format so, that airlines predict customer’s load, weather, security, air traffic,
runway clearance etc.
• so, to develop the visual dashboard first need to process data and here data is really key variable
so what kind of data airline industry generates.
• So, to understand what kind of data we needed we have here taken dataset of “Crowdsourced air
traffic data from The Open Sky Network” to understand what kind of data require to create
dashboard.
The dataset has the following features:
➢ callsign: the identifier of the flight displayed on ATC screens (usually the first three letters are
reserved for an airline: AFR for Air France, DLH for Lufthansa, etc.)
➢ number: the commercial number of the flight, when available (the matching with the callsign
comes from public open API)
➢ icao24: the transponder unique identification number;
➢ registration: the aircraft tail number (when available);
➢ typecode: the aircraft model type (when available);
➢ origin: a four letter code for the origin airport of the flight (when available);
➢ destination: a four letter code for the destination airport of the flight (when available);
➢ firstseen: the UTC timestamp of the first message received by the OpenSky Network;
➢ lastseen: the UTC timestamp of the last message received by the OpenSky Network;
➢ day: the UTC day of the last message received by the OpenSky Network;
➢ latitude_1, longitude_1, altitude_1: the first detected position of the aircraft;
➢ latitude_2, longitude_2, altitude_2: the last detected position of the aircraft

THESE ARE SOME VISUAL ANALYTICS THAT IS USE IN AIRLINE
INDUSTRY IN DASHBOARD AS KPI.

• Counter
➢ defined your KPI set. With your airline KPI dashboard you simply want to show, if you’re
performing well or not.
➢ Use a counter.
➢ Counters are suitable for the visualization of exactly one KPI in a bold, unmissable way. Ideally,
you combine it with a reference value (the year’s daily average). Or you add the daily trend.
• Donut
➢ Another way to display one single KPI are donuts. They are obviously not as eye-catching as
counters. However, thanks to its unique shape, value changes in a donut are easier to track and
evaluate.
➢ Consider choosing donuts over counters if your KPI is able to reach a maximum. This is the case
for
• goal fulfilment tracking (34 of 90 flights departed).
• KPIs measured as percentages (otp at 79.3%).
• Tables
➢ Use tables for all kinds of lists. But don’t forget to color-code the most important information,
such as

➢ delays,
➢ delay reason codes,
➢ cancellations,
➢ and any other trouble.
• Flight Map
➢ Real-time airline operation is all about flights. Flights, aiming to reach their destination on time.
➢ Using a flight map, you are
able to monitor your aircrafts
from departure to arrival.
Color-coding highlights a
flight’s most important KPI:
On time performance.
➢ Thus, the map provides an
immediate overview of the
current operational
performance. In particular, it
allows you to predict the load
factor at your destination airports.

• Benchmark
➢ Benchmarks are well structured, compact overviews. Use a benchmark to compare similar objects
(stations, aircraft types or business units) under equal aspects. This is how you find black sheep.
• Heatmap
➢ At some point of the day, your punctuality breaks down?
➢ Integrate a heatmap in airline KPI dashboard to understand early how trouble spreads!
➢ The example monitors the status of all ground processes until departure throughout the day. Small
delays in the morning had no further effect. But from 1 p.m. on, there was trouble with fueling
which messed up operations.

• Bubble Chart
➢ For me personally, the bubble chart is the holy
grail when it comes to process optimization. It
only takes one glance to find out what is
hindering you from reaching your goals.
➢ This is what you need to know, to set up this
killer chart:
➢ Your goal (the optimization of the fleet
maintenance process).
➢ A main KPI that represents this goal (aircraft
downtime).
➢ Factors, that influence your goal (aircraft type,
rate of planned and unplanned events).
➢ Reference values that help you evaluate these factors (number of departures).
➢ And this is what you get:
• in this example you want all your bubbles to be on the chart’s left side (no unplanned events).
Shining in green (short aircraft downtimes).
• But that’s not the case for all aircraft types.
• Instead, the increasing number of B747 departures seems to have a negative effect on the fleet’s
unplanned event rate. Also, the A320 fleet is under-maintained. With fatal consequences for
aircraft downtime.

HOW ANALYTICS USED IN AIRLINE INDUSTRY FOR HUMAN
RESOURCE AREA
• In the airline industry, companies evaluate flight attendants’ work ethic based on a number
of behavioral indicators. Indeed – the online career platform – recommends hiring candidates
who are “poised and resourceful” especially since they will move in a socially diverse and
physically demanding environment.
• At JetBlue Airways, for example, the hiring team recruits flight attendants who are helpful –
but this wasn’t always the case. The lesson came with the aid of data analytics.
HELPFUL VS NICE
• In the past, JetBlue considered candidates’ ability to be friendly to passengers as the most
important attribute of flight attendants. The hiring team used psychological assessments, structured
interviews, and video interviews.
• “We had always looked to find the nicest people we could possibly find to be in the sky with
[customers],” said Ryan Dullaghan, JetBlue’s general manager of people data insights.
• When the company conducted a customer data analysis with the Wharton Business School, the
feedback from passengers set the company on a new trajectory. Intuitively, choosing an amiable
flight attendant made perfect sense. But customer data showed being helpful was more important
than simply being nice.
• “People will tell you they know the right kind of person for a given job,” Dullaghan said at a people
analytics conference at Wharton. “But what we think isn’t always what is best.” This new insight
led the hiring team to tweak their standards and sift through more than 125,000 flight crew
applications received yearly.
• “Once you get through all the noise and beliefs that people have and identify that right profile, you
can have some solid impact in your organization,” said Dullaghan.
Better candidate profiling leads to better hiring outcomes, and these in turn lead to higher employee
engagement and retention, he said.
JetBlue has decreased employee absences by 12% and increased customer satisfaction with a half
point rise in its Net Promoter Score. “When one point of NPS means a whole lot of money,
tweaking your hiring process can have a huge impact on the rest of the company,” Dullaghan said.
ANALYTICS AND INTELLIGENCE APPLICATION IN OPERATION

DEPARTMENT IN AIRLINES
AIRPORT MANAGEMENT WITH DATA AND BUSINESS INTELLIGENT

APPLICATION
• Many airports have defined and implemented highly efficient and effective processes to perform
aircraft, passenger, baggage and cargo operations. Having reached high standards of airport
operations, the room for improvement diminishes, while the effort to identify, define and test novel
processes is increasing exponentially.
• Airport data analytics are considered as the enabler to unleash key information and knowledge that
will help to address many of the key areas where airports face challenges. These areas extend to
almost every facet of airport process, from purely operational ones,
➢ such as airport resource usage optimization, maintenance and airport capacity

➢ to non–aeronautical revenue intensification and passenger experience maximization.
• The unprecedented volume, diversity and richness of aviation data that can be acquired, generated,
stored and managed provides unique capabilities for aviation-related industries (airlines, airports,
passengers, service providers, manufacturers, local authorities, etc.) and pertains value that
remains to be unlocked.
• In fact, big data from airlines, airports, aircrafts and extra-aviation service providers, combined
with open linked data (e.g. for weather, environment, population, etc.), have the credentials to
reassess the mentality of the aviation ecosystem by predicting early critical failures and
maintenance needs, optimizing flight paths, rescheduling routes in real-time, improving

operational efficiency, serving a seamless ground/air passenger experience, safeguarding the
environment and monitoring safety and risk threats (like epidemics and terrorist attacks).
DATA ANALYTICS AND THE AVIATION LANDSCAPE
• The purpose of data analytics in aviation is to examine the vast amount of data generated daily and
provide useful information to airlines, airports and other aviation stakeholders so that they can
improve their operational planning and execution, as well as any related products and services.
• Nowadays, aviation data derives from diverse sources and usually lacks the standardization,
uniformity and fault controls required for reliable integration in a common analytics platform. A
mere examination of the relative literature shows an evolving domain that takes data collection
and mining very seriously but faces a real obstacle when it attempts to scale up and combine data
sources. In order to cope with this challenge, many participants in the aviation industry have
implemented their own isolated solutions, which may improve particular processes but fail to
capture the whole picture.
• Today, with the use of big data analytics and technologies, the accumulation and processing of
massive datasets has become easier, while, at the same time, the increasing application of machine
learning techniques has led to advanced predictive analytics, extracting trends and insights from
heterogeneous data sources able to address modern operational needs and requirements.
https://www.internationalairportreview.com/article/155857/value-data-analytics-airports/

APPLICATION OF BUSINESS ANALYTICS IN ACCOUNTING IN
AIRLINES
• Airline financial management is a multifaceted challenging task. Most of the airlines rely on the
conventional MS Excel to generate various financial statements. Selecting and implementing the
right solution for cash management is the key challenge the airlines often face. Today, many
airlines are availing Treasury Management System (TMS) that provides finance handling
solutions.
• Although the scope of managerial accounting in airlines has expanded over recent years,
management accountants have not fully utilized all the functions of enterprise systems, including
descriptive, predictive, and prescriptive data analytics, and big data from internal and external
sources. potential advantages of combining enterprise systems, big data, and data analytics into
managerial accounting, and to provide a management accounting data analytics framework that
combines these concepts and techniques using the four perspectives of the balanced scorecard.
Enterprise Systems with Big Data and Business Analytics
There are a number of challenges related to enterprise systems, big data and business analytics
that include the following:
1. Complex data extracts, data fluctuations, duplications, security weaknesses, and multiple
analytical tools and languages (SAS, SAP, R, SQL, Python, SPSS, and Tableau).
2. Traditional analytical and machine learning methods may create problems in a big data
enterprise system. The analytic model and the associated data will need to be transposed into
the enterprise system format, typically SQL. Some current enterprise systems now provide the
capability for cleaning, normalizing, and formatting the data prior to extraction as indicated
below.

BALANCED SCORECARD THEORY
• This section includes a description of balanced scorecard theory and methodology. framework
includes the balanced scorecard as a way to integrate data analytics into enterprise systems for the
purpose of measuring corporate performance. See MAAW's Balanced Scorecard section for many
related article summaries, as well as summaries of books about the balanced scorecard by Kapan
and Norton.
Managerial Accounting Data Analytics Framework or MADA
• In the MADA framework, management accounting is separated into three categories:
Cost accounting is focused on internal data to generate financial reports.

Performance measurement is also mainly
MADA Framework
focused on internal data, although external data

Cost Accounting
may be used for benchmarking. Planning and
decision-making focuses on the internal data
Performance
generated by cost accounting and performance
Measurement
measurement, as well as related external data
Planning And that is typically unstructured. Data analytics is
Decision Making applicable to all three categories: Descriptive
analytic tools are useful for cost accounting, both
descriptive and predictive tools are used for performance measurement, and all
three tools, descriptive, predictive, and prescriptive are utilized for planning and decision making.

DATA ANALYTICS AND THE BALANCED SCORECARD PERSPECTIVES
• Descriptive analytic techniques are used to provide information from the balanced scorecard's
financial perspective, e.g., ratio analysis to compare return on investment with historical data.
Predictive analytic algorithms are also useful in estimating future financial performance. These
results can then be utilized to apply prescriptive analytics to generate recommendations for optimal
solutions based on estimated outcomes.
• All three types of data analytics are applicable to the customer's perspective, where the customer
is concerned with time, quality, performance, service, and cost. For example, ratio analysis can be
used to measure defect rates, product returns, and warranty claims. Predictive analytic tools are
also useful for generating estimates related to all four concerns of the customer, e.g., tools such as
genetic algorithms, log regression, time series regression, structural models, analytical hierarchy
processes and Monte Carlo simulations. Prescriptive analytic tools can then be used to estimate
optimal solutions related to time, quality, and service versus cost.
• From the internal process perspective, the condition of internal processes (e.g., cycle time, quality,
employee skills, productivity) can be summarized with descriptive statistics, e.g., clustering, text
mining, and process mining. Predictive analytic tools can be used to build models to estimate future
values. Prescriptive analytic tools can provide a way to optimize internal processes, e.g., employee
skills, process complexity and production quality.
• Descriptive analytic tools are useful for measuring a company's focus on learning and growth, e.g.,
using visualization and text mining
to evaluate the learning process.
Predictive algorithms can be applied
to predict the results of various
learning and growth initiatives, e.g.,
time series regression, ANN, and
probability models. Prescriptive
tools such as machine learning can
also be applied to find optimal
solutions for learning, innovation, and growth.

HOW BUSINESS ANALYTICS FULFILL NEED OF AIRLINES
• The key reason for this can be explained by the industry’s extremely complex
landscape and by the fact that modern airlines have many pending business issues, such as
globally uneven playing field, revenue vulnerability, an extremely variable planning
horizon, high cyclicality and seasonality, fierce competition, excessive government
intervention and high fixed and low marginal cost.
Increase in airline revenue

Data analytics helps the industry to understand customers’
preferences and other maintenance issues. For instance, analysis of
ticket booking helps the industry to target the customers with
personalized offers while optimizing the price in real-time using
predictive analysis techniques. As a result, by gathering meaningful
data, airlines can fetch more bookings in the given timeframe.
Smart maintenance
Due to the use of smart data analytics, passengers will avoid many
issues with baggage tracking. While radio-frequency identification
prevents mishandling the baggage, predictive analysis assists in
improving the predictability of fleet reliability. With the airport
traffic increasing day by day, big data analytics will enable the
airlines to keep on working on the optimization of the airspace use,
especially when it comes to runway bandwidth, flight routes, types
of aircraft, etc.
Customer satisfaction
With the help of predictive analysis, sentiment analysis, and
travel journey analysis, the airline industry keeps its customers
up-to-date in real-time, promoting special offers based on their
needs, habits, and unique experiences. By collecting and
crunching data about customers, airlines understand
passengers’ tastes and behavior well enough to offer them
transportation options they prefer and, more important, are
ready to spend money on.

Cost reduction
The introduction of analytics into the aviation industry will
result in cost reductions in case of baggage loss. As a rule, the
damages are repaid by the industry, but when using real-time
baggage tracking, data helps avoid losing, damaging, or
delaying bags. On the other hand, when the fuel real-time
consumption data is collected and analyzed, one can achieve
an improved level of fuel use efficiency. According to IATA’s
2012, airlines spend 33% of their operating costs on fuel.
Digital transformation
With a purpose to deliver higher standard services to the
passengers, big data and analytics considerably transform
the commercial aviation industry. Some solutions have
been launched to provide the perfect platform for the
custom-made technology suppliers to showcase their
products and services to airlines and airports in order to
offer the passengers a more connected travel experience.
Performance measurements
Airlines usually operate in a globally competitive
environment and therefore require prompt and accurate
enterprise performance measurements.
big data analytics can automate production of daily activity
reports such as number of passengers flown per flight/sector,
distance flown which can be used to provide estimated
performance measurements such as daily or weekly revenues
for specific routes or sectors.

Risk management
The truth is that global airline industry has been subjected to
major catastrophes over the past years Some crew management
solutions allow addressing fatigue risk that pilots are in danger
of due to a constant change of time zones, long duty days,
scheduling changes, etc. For example, developers of Crew
Rostering solution from Jeppesen started integrating bio-
mathematical models of fatigue into flight crew scheduling
software. Their goal is to provide schedulers with the ability to
rely on data about predicted fatigue to reduce risks in the
planning phase.
Control and verification

Airline carriers require a number of control and verification
models to be able to control costs arising from its various
operational activities. To enable this, airlines have a pressing
need for a complete and integrated repository of flight
information data gathered from all its disparate business units.
Thus, creation of a 360 ° view of each flight/aircraft will allow
the airlines to considerably improve their control and
verification systems.
Load forecasting
Airlines require the development of an effective and
holistic forecasting model to regularly assess the impact
of options, such as increasing aircraft seats available,
adjusting fares, introducing new routes, etc. Forecasts
should also take account of actual statistical trends and
results.

PRIVACY ISSUES IN APPLICATION OF BIG DATA RELATED IN
AIRLINE SERVICES
1) At The Stage of Collecting Data
• In the 21st century, the airline industry has undergone reforms in several aspects, such as boarding,
ticketing, and passenger identification processes. All of these measures are due to security reasons.
However, a number of additional vulnerabilities may result from these initiatives.
• When a consumer plans to purchases a ticket online or booking a ticket from a third-party platform,
it is required to register on the website and submit a series of personal information, including
limited name, date of birth, address and passport number. Several airline companies can provide
online services, but they lack of protection of their consumers’ private information or even infringe
their privacy.
• When a user selects a seat or meal preference through clicking manage preferences, the booking
ID, passport ID, full name and other related information will be passed to approximately 14
different third-party trackers, such as Crazy egg, Box ever, Core metrics, Google and Facebook,
etc. If a user books a flight ticket online, the ticket could be inexplicably edited or canceled due to
Case of Umetrip of disclosing personal information
• Umetrip App is accused of exposing personal information. Umetrip is the first travel service
mobile product launched by China Civil Aviation Information Network Co., Ltd. in 2012.
It can provide passengers with complete information services, from travel preparation to
things to know in destinations.
• In early 2018, Umetrip launched a new social function, which results in a series of privacy
issues. After booking a flight ticket, a user could click "seat number" function to check
which seat has been already reserved and which one is not. However, information about the
user of the reserved seat could be visited by anyone else. “Personal tag” can be generated
based on the user’s behaviors. Hence, it shows some characteristics of this passenger, and
“heat map” shows which city this user usually visits and it is easy for other people to infer
more information according to this map.

such personal information leakage. When a user complete booking on Emirates Airline Company
website, he or she will receive a confirmation letter from the company.
2) At The Stage of Storing Data

• There are challenges in IT security as well. Clearly, there is a good progress that the percentage of
airports providing cybersecurity management service have risen steadily since 2013. However, it
still has the room for improvement. Just 55% of airports admitted they have matured and
operational cybersecurity plans, while further 41% claimed that their IT security plans are still at
the development stage. 4% of airports have no plans for IT security.
• After the user register in an airline industry website and submit their personal information to
purchase a flight ticket, it is the company that has the responsibility to store these virtual properties
safely. Unfortunately, several airlines have not fulfilled their obligations.
• Lee (2018), a journalist from South China Morning Post, reported that Cathay Pacific announced
that approximately 9.4 million passengers’ information was stolen. The data contains the passenger
names, nationality, date of birth, telephone number, etc., as well as 860,000 passport numbers and
245,000 Hong Kong identity card numbers. In addition, due to the failure of Cathay Pacific to
confirm and announce the information leakage in a timely manner, the incident immediately
attracted a lot of attention.
• According to the incident report, Cathay Pacific announced to the public it five months later after
the security breach happened. This could not allow passengers enough time to renew their credit
cards and possibly any information related to financial loss.
• Gottsegen (2018), a reporter from Cnet, revealed that hackers attacked the British Airways website
from August 21 to September 5. During this period, personal data and financial data of 380,000
passengers who booked flights online via debit or credit cards were stolen. The data leakage has
affected all customers who booked flights online or using the app, from 10:58 pm on August 21st
to 9:45 pm on September 5th. British Airways insists that customers have been notified as soon as
possible and have reported to the police.

3) Negative Effects
There are numerous data theft cases in the airline industry, and all of them have a significantly negative
effect on the airline company and on the whole society
A) Impact on Business
• Users’ personal information leakage causes a series of company operation problems. It is

noticeable that there is a negative reaction in the stock market, which shrinks the market value of
the related company. British Airways parent IAG's stock falls 3% after the release of hacking news,
wiping out about $648 million in the market value. Breach incident has severely affected Cathay
Pacific Airways’ stock price. Cathay Pacific shares fell 6.8 percentage to close at 9.90 Hong Kong
dollars, a nine-year low. Cathay Pacific has suffered losses for two years and is scurrently working
to reduce costs and increase revenues in order to better compete with low-cost airlines in the
Middle East and China. This data leakage news undoubtedly posed a negative impact on the
company.
• In addition, the occurrence of such information leakage incidents will damage the reputation of
these companies and let consumers lose trust in them. There are some users who expressed concern
about their information security. Some users claim that they will never use the services of these
companies in the future. Moreover, these related companies have to pay a large sum of money to
compensate their users. British Airways CEO Alex Cruz has apologized for the data theft incident
and claimed that the company will work with any customer affected and they will compensate for
any financial hardship suffered. British Airways may also face hundreds of millions of pounds fine
by the Office of the Information Commissioner (ICO).
• According to the EU's new data protection rules (European Data Protection Regulations 2018), the
institute may impose a fine, which is up to 4% on British Airways' turnover. If this fine applies to
British Airways, it may face 488 million pounds fine. If the penalty percentage is applied to
International Aviation Group, the parent company of British Airways, the amount may reach 825
million pounds.

B) Impact on Society
• While bringing business opportunities to enterprises, the utilization and sharing of passengers'
private data also has had a negative impact on individuals. For example, some airline companies
recommend special products or new travel routes for their users based on the consumers' past flight
behavior and preferences.
• Obviously, this information can be obtained from the analysis of big data. The concern about
privacy is an important factor influencing customers’ behaviors in buying flight ticket online.
Furthermore, the utilization and sharing of such data pose a risk to the user. The frequent
occurrence of personal privacy leakage threatens personal life safety and also becomes a major
factor affecting public security.
CASE ON PASSENGERS’ PRIVATE INFORMATION SHARING
• According to the statistics of Beijing Zhongguancun Police Station, the number of telecom fraud
cases in 2012 account for 32% of whole crime cases. There are 6 types of fraud. When personal
or friends circle information is stolen, the criminals pretend to be official staff members to commit
crimes. Pretending to be a seller to implement fraud after acquiring the consumption information.
Sending prize-winning notice to individuals, after obtaining contact information such as
telephone, QQ or email. Distributing false recruitment information after the job information is
leaked. Pretending to be a friend of the victim after the social information is leaked. Kidnapping
after the leakage of family information.
• As a result, this evidence shows that many companies cannot protect their users’ personal
information to varying degrees. Additionally, the leakage of personal privacy information has
caused panic among users, who are worried about the loss of private data or malicious theft. A
poll report shows that 72% of people are worried that their online behavior is tracked and analyzed
by the company. Therefore, most people have raised their awareness of privacy protection.
However, Zhang et al. demonstrate that several companies have paid insufficient attention to user
privacy protection, resulting in serious economic losses.

ETHNICAL ISSUES IN APPLICATION OF BIG DATA RELATED IN
AIRLINE SERVICES
• Although big data has brought a lot of opportunities to aviation companies, if it is used improperly,
it will also generate many ethical problems.
Overbooking
Overbooking is a revenue strategy and almost all airline companies measure this method to promote
profit. The airlines count the data of each route, annual data, daily data, summer and winter data, and
get the average seat rate of the route, and calculate the percentage of the empty seat. When a flight
attendance rate is low, the cost will naturally pass on to other passengers. Then they could set the
overbooking strategy. Overbooking is a revenue management measure of airlines companies, aiming
at reducing or eliminating the negative economic impact of customer no shown up (cancel or change
flights). It means that the actual number of seats exceeds the actual carrying capacity of the flight so
that it is very frequently for passengers who have purchased tickets but were denied boarding. This
oversell system solves the problem of the seat emptiness causing by absence.
The Unfair Price Strategy
Some companies utilize big data technology to set inequitable price strategy for their customers. In
general, merchants classify consumers according to analysis of these consumers' historical
consumption data. They divide customers into different groups, such as price-sensitive group and
price-insensitive group. For the same products, different prices are offered between price-insensitive
and non- price insensitive customers. In fact, price discrimination is not a new strategy. For example,
many Internet service companies provide multiple services, including flight booking service, travel
service, movie ticket service, and these companies use big data to analyze users’ different habits and
their demands, then provide higher prices for old or rich users. In short, the price of goods or services
for a rich user who frequently uses this app is higher than the one for new users. Same flight has a
different price on different devices. Price from IOS and from Android, and the device with IOS is
usually more expensive than the one with Android.
Faulty software design
On 29 October 2018, Lion Air Flight 610, from Soekarno-Hatta International airport to Depati
Amir Airport, crashed into the Java Sea, and all the 189 people (181 passengers, 8 crew) on board
were killed. Nearly 5 months later, on 10 March 2019, Ethiopian Airlines Flight 302, from Addis
Ababa Bole International Airport to Jomo Kenyatta International Airport, crashed near Bischofite
after 6 minutes takeoff, which killed 151 people. It may be that pilot may not have enough control
power or adequate time to against this software system. In this case, all designs must be
undergone vigilant tests and ethical system design. It cannot be because one problem cannot be
fixed, and then another solution is designed, and in this process, it then creates another problem.
We would argue that ethics will require a comprehensive review in the aircraft design, tests and
test flights thoroughly before making any commercial flights in actions.

IMPORTANCE OF DATA ANALYTICS IN AIRLINE INDUSTRY AT
GLOBAL PLATFORM
• We will understand it with certain case study so, that we able to grasp how companies are
benefitting them self with business analytics.
UNITED AIRLINE CASE: ENHANCING CUSTOMER

SATISFACTION AND LOYALTY
Using Big Data Analytics, United Airlines has increased 15 % year-on-year
revenue
With each booking, the customer generates lots of data. Even a single booking
can provide lots of information about the customers. Each customer profile
consists of more than 100 variables related to past travel details, search history,
response to discounts/offers, etc.
United Airlines analyzes these variables in just a few seconds and comes up with
lots of fascinating offers.
Customer profiling helps in developing tailor-made offers according to the

customer’s needs. This helped United Airlines increase the year-on-year revenue
by 15%.

UNDERSTANDING THE
CUSTOMER MORE
PRECISELY
With the help of the smart “Know me” feature, BA provides personalized search
results to its customers. Big Data Analytics helped British Airways identify the
characteristics of its customer base. What they find is that its customer base mainly
consists of time-pressed and busy-professionals who require immediate service.
This insight again helped in offering customized services and thereby enhancing
customer satisfaction. Due to this, BA received positive feedback from the customers
for understanding them.
By implementing Big Data Analytics EasyJet saw an increase in profits per seat by
almost 20%
EasyJet is the British Low-cost carrier that has implemented Data Analytics to improve
its decision making. The Airline implemented a differential pricing strategy to generate
maximum revenue from the available capacity.
Big Data analytics helped in customer segmentation which opened the path for
differential pricing. As a result, between 2010-2014, the company overserved the
increase in profit per seat by almost 20%.

CONCLUSION
Today, market cycles are growing ever shorter while customer expectations increase at an
accelerating rate. Cost cutting and flexibility have reached their limits and the industry now
strives for ideas, innovation, exceptional products and services that supplement the
continuously applied costing initiatives. To stay in the game, flexibility with fast operative and
strategic decision making are crucial and they are expected to be fact based. This is why
business intelligence (BI) solutions are gaining increasing presence in the aviation industry: BI
handles massive amounts of data in seconds while, at the same time, allowing users to focus on
analytics instead of data and information gathering.
Today, business intelligence is not only ‘nice to have’; it is a ‘must have’. BI starts with: ‘you
can’t manage what you can’t measure’… but BI is more than that. BI is: ‘if you do not know
your business you can’t be competitive’, ‘if you do not know your strengths, weaknesses,
opportunities and threats you will be developing strategy in the dark’.
Data helps airlines have a better understanding of the individual passenger, identify patterns in
his/her behavior, determine preferences and foresee future requests. By leveraging Big Data
insights, airlines have the ability to make strategic decisions and differentiate themselves in the
extremely competitive market.
The global fleet could generate more than 98 million terabytes of data by 2026. By the end of
this year Rolls-Royce will receive more than 70 trillion data points from our in-service fleet.
There is still room for innovation as there are gaps in data collection and analysis. Our R2 Data
Labs – a digital analytics and application development hub, which we recently established along
with Tata Consultancy Services in Bengaluru, enables us to take advantage of fast-paced data
innovation and further develop in areas such as AI and the Internet of Things (IoT). By
harnessing the power of data insights, airlines can maximize aircraft availability, optimize
operations and create a more positive passenger experience.

REFERENCES
• https://www.aircraftit.com/articles/white-paper-business-intelligence-more-than-information-
alone/
• https://www.traveldatadaily.com/how-big-data-is-changing-the-way-we-fly/
• https://www.id1.de/2020/03/10/23-visuals-to-boost-your-airline-kpi-dashboard/
• https://seleritysas.com/blog/2018/11/17/flying-high-aviation-data-analytics/
• https://www.analyticsvidhya.com/blog/2021/04/how-aviation-industry-uses-data-science/
• https://techvidvan.com/tutorials/big-data-aviation/
• https://blog.datumize.com/9-incredible-ways-data-analytics-is-transforming-airlines
• https://www.internationalairportreview.com/article/155857/value-data-analytics-airports/
• http://www.bigdatanalysis.com/big-data-analytics-airlines/
• https://blog.ducenit.com/big-data-and-analytics-in-aviation

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ARLINE INDUSTRY

• The airline industry encompasses a wide range of

AIRLINE INDUSTRY IN INDIA

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 1

• The Aviation sector in India currently contributes $72 bn to GDP.

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 2

GROWTH DRIVERS FOR INDIA’S AIRLINE INDUSTRY

Better airport infrastructure

More partnerships with international carriers

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 3

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 4

OBJECTIVE TO INTRODUCE BUSINESS INTELLIGENCE IN AIRLINE

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 5

Flight-Schedule Management for Reducing Cancellations

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 6

Making your airline standout

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 7

Finding the perfect price point

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 8

Help with management

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 9

BUSINESS CHALLENGES IN AIRLINE INDUSTRY

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 10

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 11

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 12

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 13

FLIGHT PASSENGER AIRPORT

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 14

• passenger management functionalities that help

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 15

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 16

Baggage Management Fuel Management

Aircraft Maintenance and

Crew Performance & Ground Handling

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 17

Customer Experience Scorecard

Marketing Campaign Analytics Loyalty Programs Analysis

Loyalty programs influence

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 18

• Power of social media is becoming more influential with its expansion,

COLLECTING DATA FOR SENTIMENT ANALYSIS

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 19

• Similar to any business transaction or service

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 20

• What is the opinion of customers towards other airlines?

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 21

PREDICT THE NUMBER OF PASSENGER

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 22

Airline cost other Passenger Traffic

Factors 1 to 5 are related – demand side of the forecast

Factors 6 to 9are related to operations and supply side

Factors 10 and 11 represent the structural changes

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 23

Figure2: ANN Architecture

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 24

UNDERSTAND THE IMPACTS OF SEVERE WEATHER

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 25

APPICAION OF BUSINESS ANALYTICS AND INTELLIGENCE IN AIRLINE INDUSTRY 26

To Predict the Airline Passengers No-Show Rates