Emerging technologies are allowing airlines to overhaul traditional business models by identifying customer needs more closely and opening up new markets.

Business class-only airline Silverjet is planning to use new technologies such as radio frequency identification (RFID), mobile devices and call centre systems to distinguish it from rivals and lure business travellers from traditional carriers.

IT can help Silverjet offer a more personalised service, which is attractive to business travellers, says IT director George Henderson.

‘The customer is central to every technology change we embark on because it is the personal touch that ensures a passenger flies with us again,’ said Henderson.

‘As a business, we are taking a fresh approach and want to challenge everything about how traditional airlines operate – this includes delivery of IT.’

Silverjet recently tested mobile devices at its Luton terminal with a view to improving the customer experience, rather than the more traditional aim of boosting staff efficiency.

Using Samsung Q1 devices, staff can issue boarding passes to passengers in the lounge area, so they do not need to wait, queue or even leave their seat. There are also plans for a mobile reader to scan the passport’s biometric signature and transmit the data via Bluetooth to the mobile device, which is linked into passenger departure systems.

‘At present, we have to take the passport away to scan and issue the boarding pass before returning it to the passenger,’ said Henderson. ‘But mobile devices will allow us to check the passenger in without leaving their side.’

The airline hopes such services will help to secure a foothold in a niche market area.

‘It is about finding innovative ways to use technology and now that we have the infrastructure in place, we can look at other ways to exceed customer expectations,’ said Henderson.

The strategy of using IT to distinguish itself from more established rivals has been in place since Silverjet set a launch date, despite having just nine months to develop the infrastructure.

The nascent airline acquired a private terminal, with its own network and IT infrastructure, to ensure it had sufficient control over all aspects of check-in to eliminate queues and appeal specifically to the business traveller.

‘We used IT to equip the terminal and lounge with systems that will take the stress out of travel, because that is what business travellers want,’ said Henderson. ‘That is our ethos and the IT department must have one foot in technology and one foot in business.’

Technology is leading to fragmentation in the airline industry because carriers can align their service more closely to consumer preferences and target specific types of traveller, says the International Air Transport Association (Iata).

‘Since the advent of online tools, airlines have been able to segment their audience,’ said Iata spokesman Lorne Riley.

But once one carrier introduces an innovation, others are swift to follow.

‘There will be an advantage in being the first to apply such new technologies but it does not take long for competitors to catch on,’ said Riley. ‘Once a technology becomes mature, it is picked up by other companies, at which point the volume using the technology brings greater cost and efficiency savings.’

The Silverjet model is gaining ground already. Maxjet and Eos both offer business class-only flights between the UK and US. And both British Airways and Virgin Atlantic have plans for a similar service between the US and Europe.

Business class-only carriers may be the first wave of several new types of airline, says Butler Group analyst Michael Azoff.

‘Some market segments require different levels of service, and technology can support this by allowing airlines to identify clearly with their customers,’ he said.

‘Technology such as mobile devices can allow firms to distinguish themselves from rivals and separate their customers. I think we will see more of this in the future and IT will underpin it.’

Launching Silverjet... in 30 seconds

• Silverjet announced in May 2006 that it had raised more than £25m from investors and would launch a daily service from London to New York just nine months later. Typically, an airline can take up to two years to launch.
• The airline acquired a private terminal to provide total control over passenger check-in procedures. Pervasive Networks installed network infrastructure to support internet access for passengers and mobiles.
• Silverjet’s internet booking engine, reservation system, departure control systems and booking tools are integrated into its web site and hosted by Videcom. The firm wanted robust, reliable systems ready to use, to ensure it could be rolled out quickly.
• The company is insourcing its call centre and rolling out two new systems that will allow staff to identify passengers and their customer history when they call. IT systems will be hosted by New Voice Media.