Abstract
One of the most harmful and unwanted costs in air transport is the cost incurred by airlines on delay. It is said that the direct cost of air transportation delay is USD 32.9 billion which incurs a loss of USD 8.3 billion to airlines. Digital technology may greatly alleviate this problem as well as problems caused to the industry by the rise of mobile, social media, a multi-layered, multi-screen and fragmented travel experience, and digital transformation and Big Data. Against this backdrop, airlines are competing with each other to possess the most data on the basis that “one who owns data owns the world”. As Tim Clarke, President of Emirates has said: “Emirates has to move and move at least at the pace of our competitors. We have put data and technology at the centre of the business. There is no compromise on the spend on technology and digital. Data is key—if you don’t embrace data, you will perish. New platforms in which our future processes are going to sit will be fundamental to our future, so deconstructing and reconstructing the firm in the digital environment is what we must do. The way we go about assembling the resources, and how you use back of house systems, are going to be completely transformed by digital’.
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Notes
- 1.
Ramalingam Thirunavakkarasu, Benaroya, Christophe, Wamba, Samuel Fosso, Assessing the Potential of IoT in Aerospace, Project: IT, Organisationnel, Inter-Organizational and Society Transformation, Conference on e-Business, e-Services and e-Society, October 2017. See https://www.researchgate.net/publication/320186118_Assessing_the_Potential_of_IoT_in_Aerospace.
- 2.
Seven Challenges for Airlines, Openjaw, June 18, 2019 at https://www.openjawtech.com/7-challenges-airlines-18/.
- 3.
5G is the 5th generation mobile network. QUALCOMM records that “It will take a much larger role than previous generations. 5G will elevate the mobile network to not only interconnect people, but also interconnect and control machines, objects, and devices. It will deliver new levels of performance and efficiency that will empower new user experiences and connect new industries. 5G will deliver multi-Gbps peak rates, ultra-low latency, massive capacity, and more uniform user experience”. See Everything You Need to Know About 5G at https://www.qualcomm.com/invention/5g/what-is-5g.
- 4.
LTE is an abbreviation for Long Term Evolution. LTE is a 4G wireless communications standard developed by the third Generation Partnership Project (3GPP) that’s designed to provide up to 10× the speeds of 3G networks for mobile devices such as smartphones, tablets, netbooks, notebooks and wireless hotspots.
- 5.
- 6.
4G has been defined as “the fourth generation of mobile technology which follows the 2G and 3G networks that came before it. It is also sometimes referred to as 4G LTE, but this is not technically correct as LTE is only a single type of 4G. It is currently the most advanced technology that’s adopted by the majority of mobile network service providers”. See Megapath, September 30, 2019, at https://www.megapath.com/blog/blog-archive/what-is-4g-network. 4G will be replaced by 5G which, as already discussed, is fast gaining ground in the aviation industry as a more efficient and vastly quicker mobile technology.
- 7.
See What is the difference between 4G and 5G? Gemalto at https://www.justaskgemalto.com/en/difference-4g-5g/.
- 8.
Mordor Intelligence, 5G Market in Aviation—Growth, Trends, and Forecast (2020–2025). See https://www.mordorintelligence.com/industry-reports/5g-market-in-aviation.
- 9.
The phrase Internet of Things (IoT) was introduced in 1999 by Kevin Ashton. The function of IoT is to connect the real-world objects with speech, vision, hearing, smell and touch, so inanimate things can perform jobs more accurately, responsively, collaboratively with learnings. The internet of things (IoT) has been defined as “a rapidly growing technology which aims connect all devices to the existing Internet infrastructure. At present only Mobiles, Computers, Tablets and Smart TV is connected with internet. By using IoT all the devices (e.g. coffee maker, air conditioner, washing machine, ceiling fan, lights almost anything you think of) having sensors can be connected with internet”. See Aman Kumar, Quora at https://www.quora.com/What-exactly-is-Internet-of-Things-IoT.
- 10.
The term Industrial Internet of Things (IIoT) applies to interconnected sensors, instruments, and other devices networked together with computers’ industrial applications, including manufacturing and energy management.
- 11.
CAGR is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan. See Chris B. Murphy, Compound Annual Growth Rate, Investopedia, June 13, 2019 at https://www.investopedia.com/terms/c/cagr.asp.
- 12.
Fortune Business Insights, Global 5G in Aviation: Global Market Analysis, Insights and Forecast 2019–2026. See https://www.marketsandmarkets.com/Market-Reports/5g-market-aviation-152979610.html?gclid=EAIaIQobChMI89nzk4Pe5wIVRtbACh0jSwvOEAAYASAAEgIZPfD_BwE.
- 13.
The Internet is a public and global communication network that provides direct connectivity to anyone over a local area network (LAN) or Internet Service Provider (ISP). See McIvor et al. (2003), pp. 31–47. Published online 13 January 2003 in Wiley InterScience, 31–47 at 33.
- 14.
Ibid.
- 15.
Mariani, Joe, Zmud, Johanna, Krimmel, Elizabeth, Sen, Rana, Miller, Matt, Flying smarter: The smart airport and the Internet of Things, Deloitte Insights, 1 July 2019, at https://www2.deloitte.com/us/en/insights/industry/public-sector/iot-in-smart-airports.html.
- 16.
The International Air Transport Association is a trade association of the world’s airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airline, IATA also organized tariff conferences that served as a forum for price fixing.
- 17.
Thirunavakkarasu, Benaroya, and Wamba, supra, Chap.1, note 2.
- 18.
Fendt, Martin, quoted in Sillers, Paul, High Five: 5G Set to Turn Aircraft Into IoT-Flying Devices, Connectivity, 2 July 2018 https://apex.aero/2018/07/02/high-five-5g-turn-aircraft-into-iot-flying-devices.
- 19.
SITA is a multinational information technology company providing IT and telecommunication services to the air transport industry. The company provides its services to around 400 members and 2800 customers worldwide which it claims is about 90% of the world’s airline business.
- 20.
Bloch-Morhange, Gilles, ATS Products and Solutions, Head of SITA, quoted in 5G Takes Off At World’s Airports And In The Skies at https://worldaviationfestivalblog.com/5g-takes-off-at-worlds-airports-and-in-the-skies/.
- 21.
Supra, Chap. 2, note 12.
- 22.
https://www.iata.org/en/programs/stb/e-ticketing/ United Airlines was the first airline to issue electronic tickets, back in 1994. A decade later however, only 20% of all airline tickets were electronic. The industry was missing out on an opportunity to save costs and make travel for passengers easier. In June 2004, IATA set an industry target of 100% ET in 4 year. It took only 4 years to reach 100% ET. Together, IATA and airlines, travel agents, airports, system providers, and GDSs have moved an entire industry from the paper age into the full electronic era. Armed with a mandate from the IATA Board, Stub was able to mobilise the industry.
- 23.
Manual on the Regulation of International Air Transport, Doc 9626, Second Edition 2004 at 4.7. The European Union echoes this concern: “Computerised Reservation Systems (CRSs - also known today as Global Distribution Systems - GDSs) act as technical intermediaries between the airlines and the travel agents. The CRSs provide their subscribers with instantaneous information about the availability of air transport services and the fares for such services. They permit travel agents, whether brick-and-mortar or on-line, to make immediate confirmed reservations on behalf of the consumer. As these distribution channels might influence the consumer choice, a 1989 Regulation (No 2299/89), last amended in 2009, ensures that air services by all airlines are displayed in a non-discriminatory way on the travel agencies’ computer screens”. See https://ec.europa.eu/transport/modes/air/internal-market/distribution-networks-crs_et.
- 24.
Minick (2000), p. 901. Also, see United Airlines v. C.A.B 766 F 2d. 1107 at 1113. Per Posner J.
- 25.
- 26.
Section 2 of the Sherman Act is discussed later under Legal and Regulatory Issues.
- 27.
United Airlines’ case supra Chap. 2, note 20 at 1117.
- 28.
69 Fed.Reg. at 992, 998.
- 29.
Exploring the benefits of deploying the IoT in aviation: Traveling at the speed of knowledge, https://www2.deloitte.com/nl/nl/pages/consumer-industrial-products/articles/exploring-the-benefits-of-deploying-the-iot-in-aviation.html.
- 30.
948 F.2d 536 (1991).
- 31.
148 F2d 416 (2nd Cir 1945).
- 32.
See Hartford Fire Insurance Co. v. California 509 US 764 (1993).
- 33.
221 U.S. 1 (1911).
- 34.
Id. 3.
- 35.
727 F. Supp. 564 (C.D. Cal. 1989), US District Court for the Central District of California, 727 F. Supp. 56.
- 36.
Associated General Contractors of California, Inc. v. California State Council of Carpenters, 459 U.S. 519, 103 S. Ct. 897, 74 L. Ed. 2d 723 (1983).
- 37.
Id. at 538-47, 103 S. Ct. at 908-13.
- 38.
Ibid.
- 39.
Version of the Treaty on the Functioning of the European Union, 2012/C 326/01, Official Journal C 326, 26/10/2012 P. 0001–0390, http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:12012E/TXT.
- 40.
The Treaty of Rome, 25 March 1957. See http://ec.europa.eu/archives/emu_history/documents/treaties/rometreaty2.pdf.
- 41.
Michelin v. Commission, Case 322/81 [1983] ECR 3461.
- 42.
- 43.
Deutsche Telekom AG v. Commission, [2010] ECR 1000.
- 44.
See Hoffmann-La Roche v Commission [1979] Case 85/76] ECR 461, paragraph 38, and Case C-202/07 P and France Télécom v Commission [2009] ECR I-2369, paragraph 103).
- 45.
GDPR was approved by the European Parliament in April 2016 and the official texts and regulation of the directive were published in all of the official languages of the EU on May 2016. The legislation came into force across the European Union on 25 May 2018. See https://gdpr-info.eu/art-3-gdpr/.
- 46.
Paragraph 3 provides that the Regulation applies to the processing of personal data in the context of the activities of an establishment of a controller or a processor in the Union, regardless of whether the processing takes place in the Union or not. Furthermore the Regulation applies to the processing of personal data of data subjects who are in the Union by a controller or processor not established in the Union, where the processing activities are related to: the offering of goods or services, irrespective of whether a payment of the data subject is required, to such data subjects in the Union; or the monitoring of their behaviour as far as their behaviour takes place within the Union. The Regulation also applies to the processing of personal data by a controller not established in the Union, but in a place where Member State law applies by virtue of public international law.
- 47.
Harik, Mario, To Be More Data Driven, Look for the Right Business Partner, Harvard Business Review, February 13, 2020, https://hbr.org/2020/02/to-be-more-data-driven-look-for-the-right-business-partner.
- 48.
Eric Haller, Eric and Satell, Greg, Data-Driven Decisions Start with These 4 Questions, Harvard Business Review, February 11, 2020. See https://hbr.org/2020/02/data-driven-decisions-start-with-these-4-questions.
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Abeyratne, R. (2020). Aviation and the Internet. In: Aviation in the Digital Age. Springer, Cham. https://doi.org/10.1007/978-3-030-48218-3_12
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