2014 Global Airline Survey: Strategic sights set on transformation and innovation

July 2014
2014 Global Airline Survey: Strategic sights set on transformation and innovation

At a glance

Important megatrends, such as shifting global economic power, technological advances, and demographic changes, are identified as top-of-mind issues for global airline CEOs, according to our latest report, the 2014 Global Airline CEO Survey. As the changing balance of economic power is expected to have a drastic effect on the industry in the next five years, the report highlights three key areas in which CEOs are planning to respond: organizational structure, technology, and talent.

Following is a sampling of the findings from our 2014 Global Airline Survey, which are based on the responses of airline CEO members of the International Air Transport Association (IATA):

  • Technological advances, shifts in the global economy, as well as demographic changes are the top trends expected to transform the airline industry.
  • Airline CEOs are responding to these transformative trends with major change programs to become more customer-centric.
  • Better and more sophisticated use of data analytics will pave the way for a transition from strictly capacity-driven pricing to customer-driven pricing.
  • Being well aware of their innovation lag compared with other sectors, airline CEOs are developing strategies to their R&D and innovation capabilities.
  • While current M&A activities in the airline sector are limited, nearly two thirds (63% of airline CEOs) are looking at a longer time horizon and say they are planning to change their M&A strategies.
  • Airline CEOs see over-regulation, an increasing tax burden, and inadequate infrastructure as great barriers to their business.