< PreviousJANUARY 2025 40 INTERVIEW | GE AEROSPACE Integrating AI involves training and development for all employees Aziz Koleilat, President and CEO of METCIS at GE Aerospace AI is a tool to compliment employee activities Challenges and lessons in AI deployment While the rapid development and rollout of AI Wingmate highlights GE Aerospace’s agility and innovation, it wasn’t without its challenges. One of the primary hurdles was ensuring that an open, generative AI platform could be safely integrated into GE Aerospace’s secure network. The company prioritised cybersecurity to maintain data integrity and compliance, allowing employees to fully leverage the platform while operating within a protected environment. Koleilat explains, “Ensuring security and compliance was central to the design of AI Wingmate. By embedding the platform within our network, we’ve given employees the tools they need without compromising safety.” This careful balance between openness and protection enabled the platform to become a trusted and widely adopted resource. The adoption of AI Wingmate has also been a continuous experiment. With over 1.2 million queries already processed, the platform’s capabilities are still evolving. Looking to the future, GE Aerospace plans to expand AI Wingmate’s functionality by integrating internal and external data, enabling employees to conduct even more comprehensive searches and analyses. The inclusion of FLIGHT DECK, GE Aerospace’s Lean operating model, promises to enhance engagement and provide further support for the company’s core values of SQDC. These early successes and lessons learned have set the stage for ongoing innovation in the future, ensuring that AI remains a cornerstone of GE Aerospace’s operations as the company adapts to new challenges and opportunities that are to come. AVB_Jan2025_38-41_Interview_13488171.indd 4026/12/2024 20:0641 JANUARY 2025 GE AEROSPACE | INTERVIEW Just like ChatGPT, AI Wingmate helps employees access critical information more quickly, improving daily tasks and enabling us to better serve our customers Inside GE Aerospace Collaboration plays a central role in AI adoption The role of strategic partnerships Collaboration has been a key driver in GE Aerospace’s successful AI initiatives, with partnerships playing a pivotal role in bridging capability gaps and accelerating innovation. While GE Aerospace boasts extensive expertise in AI and digital solutions, Koleilat emphasises the importance of knowing when and where to seek external expertise. “Who and how you partner are critical decisions when it comes to AI developments,” Koleilat notes. The collaboration with Microsoft to develop AI Wingmate is a prime example. By leveraging Microsoft’s Azure AI platform, GE Aerospace created a customised generative AI solution tailored to its workforce’s needs. This partnership not only provided advanced capabilities, but also ensured robust security and compliance, which were integral to the platform’s deployment and success. Beyond generative AI, GE Aerospace has worked with other technology leaders, including Accenture and Amazon, to develop solutions in areas such as asset records management and data integration. These collaborations enable the company to focus on its core offerings and strengths while accessing cutting-edge tools and expertise from its partners. Strategic partnerships allow GE Aerospace to deliver innovative solutions that align with its broader business goals. By fostering these relationships, the company continues to push the boundaries of what AI can achieve in the aerospace sector, driving effi ciency, safety, and employee engagement. Aviation’s technological evolution GE Aerospace’s integration of AI into its operations marks a new chapter in the aviation industry’s technological evolution. From the AI-enabled BIT, which revolutionises maintenance processes, to the AI Wingmate platform, transforming workfl ows and enhancing employee productivity, the company demonstrates the immense potential of AI in solving complex challenges. Through strategic collaborations with technology leaders like Microsoft, GE Aerospace has not only bridged critical capability gaps but also set a benchmark for how partnerships can drive innovation and operational excellence. As the company continues to evolve its AI platforms, incorporating tools like FLIGHT DECK and integrating broader data sources, it is clear that AI will remain central to its mission of improving SQDC. Koleilat’s insights reflect GE Aerospace’s commitment to staying at the forefront of technological advancements while fostering a culture of innovation and effi ciency. By harnessing the power of AI, GE Aerospace is not just adapting to the future of aviation—it is shaping it. AVB_Jan2025_38-41_Interview_13488171.indd 4126/12/2024 20:06JANUARY 2025 42 FEATURE | AIRLINE STRATEGIES FOR 2025 2025 AND BEYOND As 2025 approaches, the global aviation industry stands at a crossroads, facing an era defi ned by rapid change and complex challenges. Geopolitical tensions, climate regulations, technological advancements, and shifting economic dynamics are reshaping the skies. Airlines are navigating a turbulent environment where adaptability and strategic foresight are essential. The new year is poised to usher in transformative policies, heightened expectations for sustainability, and accelerated adoption of cutting-edge technologies. For airlines, success in 2025 will hinge on balancing resilience with innovation, creating sustainable growth paths while meeting evolving customer demands. There are several key strategies airlines must adopt to thrive in this ever-changing landscape. By anticipating the forces shaping the industry, airlines can prepare to soar above the challenges and seize the opportunities ahead. Adapting to geopolitical changes In 2025, geopolitical dynamics are expected to play a pivotal role in shaping airline strategies. Rising protectionism in major economies such as the United States and the ADAPTING AIRLINE STRATEGIES FOR A CHANGING WORLD AVB_Jan2025_42-47_Feature_13481873.indd 4226/12/2024 20:0943 JANUARY 2025 AIRLINE STRATEGIES FOR 2025 | FEATURE AVB_Jan2025_42-47_Feature_13481873.indd 4326/12/2024 20:10JANUARY 2025 44 FEATURE | AIRLINE STRATEGIES FOR 2025 By investing in the right technologies, airlines can benefi t from cost-savings relating to operational effi ciencies European Union, coupled with evolving trade policies, is reshaping global supply chains and market access. For airlines, these shifts demand proactive adjustments to maintain operational continuity and competitiveness. One key strategy involves diversifying operations across multiple regions to mitigate the risks associated with geopolitical disruptions. Airlines can ensure smoother navigation through complex political landscapes by strengthening partnerships with regional stakeholders and aligning with local regulatory frameworks. Furthermore, airlines must stay agile in responding to protectionist measures like tariffs or restrictions on aviation technology exports. Leveraging local manufacturing and supply chain networks can help mitigate the impact of such policies. worldwide are implementing stricter carbon compliance mechanisms, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and China’s expanding carbon trading markets. Airlines must adapt to these regulations while striving to meet ambitious net-zero targets. A significant focus area is the adoption of sustainable aviation fuels (SAF), which offer a pathway to reducing carbon emissions. Investment in SAF production, partnerships with energy providers, and integration into fl eet operations are critical for airlines to meet sustainability goals and comply with emerging regulations. Additionally, the physical impacts of climate change—such as intensifi ed storms, fl ooding, and extreme weather patterns—pose operational challenges. Preparing for disruptions through In an increasingly fragmented global market, collaboration is essential. Airlines can work with governments and international organisations to advocate for open skies policies and ensure the continuity of global aviation networks. Airlines can position themselves as resilient players in an unpredictable world by adopting a forward-looking approach to geopolitics. Tackling climate change challenges With climate change driving regulatory and operational shifts, sustainability is at the forefront of airline strategies for 2025. Governments and organisations In 2025, geopolitical dynamics are expected to play a pivotal role in shaping airline strategies AVB_Jan2025_42-47_Feature_13481873.indd 4426/12/2024 20:1045 JANUARY 2025 AIRLINE STRATEGIES FOR 2025 | FEATURE The future of aviation is now enhanced weather prediction systems, fl exible scheduling, and robust risk management frameworks will be vital. Water stress, a growing global concern, also affects operational planning, especially for airports and regions facing resource scarcity. Airlines must factor environmental risks into their decision-making processes, including airport partnerships and route planning. By prioritising environmental accountability, airlines can not only mitigate risks but also align with growing consumer demand for sustainable travel options, solidifying their role as leaders in the transition to greener skies. Leveraging technological advancements Technology continues to reshape the aviation industry, and 2025 is set to be a breakthrough year for airlines embracing innovation. From artifi cial intelligence (AI) to automation, leveraging cutting-edge tools is essential for enhancing effi ciency, reducing costs, and meeting evolving passenger expectations. AI is transforming operations by enabling predictive maintenance, optimising fuel efficiency, and improving route planning. Airlines are also utilising generative AI to refi ne customer service, from personalised travel recommendations to seamless problem resolution. However, successful implementation hinges on robust data infrastructure, with integrated dashboards and early warning systems becoming industry standards. Automation in ground operations, baggage handling, and ticketing systems is reducing labour costs while improving speed and accuracy. Airports and airlines that invest in robotics and machine learning are better positioned to enhance throughput and reduce delays, particularly during peak travel seasons. Additionally, technology is playing a pivotal role in sustainability efforts. Tools for real-time carbon tracking and reporting enable airlines to transparently manage their environmental impact, aligning with both regulatory requirements and consumer expectations. By investing in advanced technologies, airlines can streamline operations, improve the passenger experience, and position themselves as leaders in the next phase of aviation innovation. Diversifying operations and revenue streams As airlines navigate an increasingly complex global landscape, diversifi cation has emerged as a critical strategy for resilience and growth in One key strategy involves diversifying operations across multiple regions to mitigate the risks associated with geopolitical disruptions AVB_Jan2025_42-47_Feature_13481873.indd 4526/12/2024 20:11JANUARY 2025 46 FEATURE | AIRLINE STRATEGIES FOR 2025 which surged during the pandemic, remain a profi table avenue, particularly as e-commerce continues to grow globally. Enhanced cargo capabilities, including specialised services for perishable and high-value goods, offer lucrative opportunities. Airlines are also exploring new passenger services tailored to evolving traveller preferences. Premium experiences, such as luxury lounges and personalised travel packages, cater to the rising demand for exclusive, high-quality options. At the same time, integrating multimodal transport solutions ensures a seamless journey from doorstep to destination. By broadening their operational focus and revenue mix, airlines can strengthen their position in a volatile market, ensuring stability and sustained growth in the future. Enhancing customer experience In an era of heightened competition and changing passenger expectations, airlines in 2025 must prioritise delivering exceptional customer experiences. Travellers are seeking more personalised, seamless, and sustainable journeys, making innovation in customer engagement a vital component of airline strategies. Personalisation is at the heart of modern customer experiences. Leveraging data analytics and artifi cial intelligence, airlines can offer tailored travel recommendations, dynamic pricing, and individualised service upgrades. From seat selection to meal preferences, customisation fosters stronger brand loyalty and enhances passenger satisfaction. Digital integration plays a pivotal role in creating a frictionless journey. Airlines are investing in mobile apps, biometrics for check-ins, and real-time updates to streamline the passenger experience. Features like bag-tracking technology and virtual customer service assistants ensure transparency and convenience throughout the journey. Sustainability is also becoming a key factor in the travel decision-making process. Airlines are incorporating eco-friendly initiatives, such as carbon offset programs and sustainable in- fl ight options, to align with the values of environmentally conscious travellers. 2025. By expanding operations across different regions and markets, airlines can reduce reliance on single sources of revenue and mitigate risks from geopolitical or economic disruptions. Geographic diversifi cation is key to this approach. Airlines are establishing hubs and partnerships in emerging markets with high growth potential, such as the Middle East, Africa, and Southeast Asia. These investments not only provide access to new customer bases but also safeguard operations against regional instabilities elsewhere. In addition to geographical expansion, airlines are diversifying revenue streams by tapping into ancillary services. Cargo operations, In an era of heightened competition and changing passenger expectations, airlines in 2025 must prioritise delivering exceptional customer experiences Airlines must strive to deliver exceptional customer experiences AVB_Jan2025_42-47_Feature_13481873.indd 4626/12/2024 20:1147 JANUARY 2025 AIRLINE STRATEGIES FOR 2025 | FEATURE upskill their employees, ensuring they are proficient in managing advanced technologies like predictive maintenance systems, robotics, and AI-driven customer service platforms. Automation is reshaping roles within the aviation sector, particularly in areas like ground operations and logistics. Airlines must balance the need for automation with preserving job opportunities. Airlines can address these changes responsibly by redeploying staff to higher-value roles and supporting transitions through retraining initiatives. A diverse and inclusive workforce enhances problem-solving, innovation, and overall organisational resilience. Airlines are implementing DE&I programmes to attract and retain talent from varied backgrounds, strengthening their global operations and brand appeal. With the aviation industry still recovering from pandemic-related disruptions, prioritising employee well-being is critical. Airlines are adopting fl exible work arrangements, mental health support, and incentive programs to boost morale and productivity. By building a future-ready workforce, airlines can not only navigate the complexities of 2025 but also position themselves as employers of choice in a competitive industry landscape. Soaring above the challenges of 2025 As airlines prepare for 2025, the industry faces a pivotal moment, shaped by a convergence of geopolitical shifts, climate imperatives, technological advancements, and evolving customer expectations. Success in this transformative year will depend on strategic agility, sustainable innovation, and a commitment to enhancing operational resilience. Airlines can turn challenges into opportunities by proactively addressing geopolitical uncertainties, investing in sustainability, leveraging cutting-edge technologies, diversifying revenue streams, prioritising customer- centric initiatives, and empowering their workforce. These strategies not only ensure survival but also position airlines to lead the way in a dynamic and competitive global market. The skies of 2025 are fi lled with both challenges and possibilities. With a clear vision and decisive action, airlines can chart a path forward, delivering value to stakeholders and redefi ning the future of aviation. The journey ahead may be turbulent at times, but for those prepared to adapt and innovate, the potential to soar is limitless. Moreover, expanding luxury services caters to high-end customers seeking exclusivity. Enhanced lounges, premium cabins, and bespoke travel packages enable airlines to differentiate themselves in an increasingly competitive market. By focusing on customer-centric innovation, airlines can strengthen their brand reputation, foster loyalty, and attract the next generation of travellers. Emphasising workforce transformation The rapid evolution of the aviation industry demands a workforce equipped to manage new challenges and leverage advanced technologies. In 2025, airlines must prioritise workforce transformation to maintain operational efficiency and foster innovation. The integration of AI, automation, and sustainable practices requires specialised skill sets. Airlines are investing in training programs to Global connectivity is crucial for airlines to continue operating to the highest level Governments and organisations worldwide are implementing stricter carbon compliance mechanisms, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and China’s expanding carbon trading markets AVB_Jan2025_42-47_Feature_13481873.indd 4726/12/2024 20:12REPORT | IN NUMBERS 48 JANUARY 2025 DOMESTIC DEMAND GLOBAL DEMAND The aviation sector has experienced solid growth in passenger demand in October 2024, according to the International Air Transport Association’s (IATA) latest report. Globally, total passenger demand, measured in revenue passenger kilometres (RPK), was up 7.1% compared to October 2023. Total capacity, measured in available seat kilometres (ASK), saw a 6.1% year-on-year growth, while the global load factor rose to 83.9%. On domestic routes, demand saw a 3.5% rise and capacity grew by 2%, while the load factor improved by 1.2%, reaching 84.5%. INTERNATIONAL DEMAND International demand surged by 9.5% year-on-year, mirroring a 8.6% growth in capacity, and a modest 0.6% improvement in the load factor to 83.5%. IN NUMBERS AVB_Jan2025_48-50_In Numbers_13481865.indd 4826/12/2024 20:13IN NUMBERS | REPORT 49 JANUARY 2025 EUROPE HIGHEST LOAD FACTOR LATIN AMERICA SECOND PLACE European airlines posted a 8.7% increase in demand and an 7.3% growth in capacity. Meanwhile, the region’s load factor climbed to 85.7%, up 1.1% from October 2023. In Latin America, passenger demand experienced a 10.9% year-on-year increase, with a 11.6% capacity rise. However, a 0.6% fall in the load factor to 85.3% was recorded. NORTH AMERICA THIRD PLACE North American airlines reported a 3.2% rise in demand, while capacity climbed 2.9% and the load factor grew by 0.3% to 84.2%. AVB_Jan2025_48-50_In Numbers_13481865.indd 4926/12/2024 20:14Next >