A TIME OF TRANSFORMATION SITA GROUP ACTIVITY REPORT 2016 A TIME OF TRANSFORMATION
SITA CONTINUED TO PROVE ITSELF AS AN INVALUABLE AIR TRANSPORT COMMUNITY PROVIDER, DELIVERING MAJOR PROGRAMS AND SOLUTIONS FOR THE COMMUNITY TO ‘TRANSFORM AIR TRAVEL THROUGH TECHNOLOGY’.
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SITA BOARD DIRECTORS 4 CHAIR’S STATEMENT 6 CHIEF EXECUTIVE OFFICER’S REPORT 12 COUNCIL PRESIDENT’S STATEMENT 18 SITA COUNCIL REPRESENTATIVES 26 OPERATING REVIEW 30 COMMUNICATIONS & INFRASTRUCTURE 31 AIRPORTS 36 GOVERNMENTS 42 SITAONAIR 46 PASSENGERS 50 CHAMP CARGOSYSTEMS 54 AVIARETO 58 SITA LAB 60 SITA GLOBAL SERVICES 66 OUR PEOPLE 70 CORPORATE SOCIAL RESPONSIBILITY 72
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Omar Jefri Matthew Billings Barbara Dalibard Klaus Goersch Chair Vice Chair SITA CEO
Roland Schütz Damian Scokin A.T. Srinivasan
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THE SITA BOARD IS TASKED WITH SUPERVISING THE ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES TO ENSURE THE EFFECTIVE OPERATION OF THE GROUP.
Elizabeth Haun Laurent Jossart Patrick Naef
Eash Sundaram Robert Webb Thomas Woldbye
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A TIME OF TRANSFORMATION
SITA'S COMMUNITY FOCUS
The air transport industry ended future, with IATA forecasting 4.1% net 2016 strong and healthy, offering profit margin in 2017 on total revenues passengers greater choice and lower of US$ 736 billion. real costs, while reaping continuing benefits from a broad range of new Against this robust business technologies. IATA forecast record environment, SITA delivered a year global airline profits of US$ 35.6 billion of mixed results. As the CEO’s for the year, with Revenue Passenger Report explains, while air transport Kilometres (RPKs) growing 6.3% – well experienced growth in 2016, SITA’s above the 10-year average pace of 5.5% growth relative to the market was – and load factors averaging a record less than anticipated. Several parts of full-year high of 80.5%. the business delivered successfully on their results, while others faced There was significant passenger challenges in what proved to be a growth in all regions, forecast at year of transition for SITA, leading to the time of writing to be around an overall margin performance from 6%, totaling 3.78 billion passenger continuing operations which was lower departures. The Middle East and Asia than prior years and our expectations. recorded the most significant growth, The CEO Report goes into detail on DIGITIZATION IS with RPKs up almost 11% in the Middle page 14. TRANSFORMING THE East. Europe and North America both INDUSTRY AND SITA’S posted less than 4% RPK growth. THE CHANGING MARKET CUSTOMERS, AS THEY Freight was also expected to record MOVE TO OPEN DIGITAL an increase in tonnage of 3.8% (IATA The mixed results should be seen figures). in the context of the changing and TECHNOLOGIES THAT challenging operating environment IMPROVE THE END¦TO¦END Expectations are that air transport of the air transport industry, which is PASSENGER EXPERIENCE sector profits will be lower in 2017, subject to rapid competitive activity AND DRIVE OPERATIONAL though they should remain well as partnership and acquisition EFFICIENCIES. into positive territory even though activities continue, as well as a major the year began with considerable trend towards digitization. This is uncertainties, such as: rising fuel transforming the industry and SITA’s costs, the UK’s pending departure from customers, as they move to open the European Union, the change of US digital technologies that improve the administration, and key elections in end-to-end passenger experience and Europe, Africa and Asia. Nevertheless, drive operational efficiencies. 2016 provides a sound platform for the
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The World Economic Forum’s Digital those of passengers but also of all For the first time, the Board called Transformation Initiative (DTI) stakeholders involved in executing upon the reserved powers granted recognizes that industry, consumer the journey. to the Council in 2015, following the and technology trends are together Governance Review of that year, to redefining markets, operating and Leading that process for SITA is our request approval for this initiative. business models across travel and new CEO, Barbara Dalibard, who The Board believes that this decision transportation, with digital technology officially started in her role on 1 July is in the best interest of the Members ‘shifting from being a driver of 2016. She was quick to meet customers and customers, and have included marginal efficiency to an enabler of and members, to understand and specific Member interest criteria in the fundamental innovation and disruption’. examine the trends impacting SITA and evaluation of partnership proposals. our markets, and to fully engage with Digitization makes possible more the challenges of greater competition, The consequences of this decision effective collaboration and asset- uncertain global conditions and SITA’s are reflected in this year’s financial sharing, while empowering employees own need to continuously adapt. statements. The view of the future with real-time information and value of the SITA PSS business results decision-making support. The DTI In October, the Board fully accepted in a write down which brings SITA into shares SITA’s own experience and changes she and her Executive Team a loss position overall, but does not anticipation, notably through traveler proposed to underpin the company’s impact future cash flows (see CEO centricity, the seamless customer ongoing transformation. The new Report, page 14). journey, end-to-end propositions, organization is already ensuring SITA takes full advantage of the ecosystem convergence and a next THE CONNECTED COMMUNITY generation workforce. This is a opportunities for simplification and powerful narrative and one that collaboration across the portfolio and Now let me turn to SITA’s role in lies at the heart of SITA’s forward platforms, increasing the speed and the process of digitization, and the looking strategies and plans, which agility with which it anticipates and changing market, that I mentioned are responding to industry trends responds to the needs of customers earlier. A prime example is SITA’s and are set to bring about SITA’s own (see the CEO Report, page 16). next generation communications transformation. program. This is evolving the industry’s Another major initiative resulting communications capabilities at over from the changing market was the In line with the World Economic 1,000 airports where SITA already decision to find a strategic partner for Forum’s digital transformation reports, provides around 20,000 connections. our Passenger business, to ensure its I noted last year how next generation In part this is being achieved through future growth in the highly competitive communications and airport SITA’s AirportHub™ program – passenger services system (PSS) connectivity are transforming the air which will cover 80% of all airline market. The Board spent considerable transport industry. With the continued destinations within three years. time evaluating options and, given adoption of mobile communications, AirportHub™ is an airport-wide shared the magnitude of the decision, we travel-related apps, e-aircraft and platform offering cost-effective, exceptionally created a Sub-Committee more, we are facing a new era in high quality communication services of the Board to support management. connectivity and expectations, not only to airlines, ground handlers and
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A STRONG RESPONSE TO THE TRENDS AND TECHNOLOGIES CHANGING AIR TRANSPORT IS A SET OF SITA COMMUNITY INNOVATIONS PROGRAMS ¯ EACH SELECTED BY THE SITA BOARD AND SITA COUNCIL AND EACH OF WHICH REPRESENTS A SIGNIFICANT INVESTMENT ABOVE AND BEYOND SITA’S USUAL R&D AND PRODUCT DEVELOPMENT PROGRAMS.
maintenance companies based at COMMUNITY INNOVATION possibilities opened up through the airport. It simplifies how aviation blockchain technology. companies connect to their central Another strong response to the • Disruption warning – SITA is systems and applications from airport trends and technologies changing air exploring how information and destinations. transport is a set of SITA Community updates can be provided through a Innovation Programs – each selected global disruption warning system SITA will also continue to explore and by the SITA Board and SITA Council and accessible to SITA Members. Trials introduce new ways for technology each of which represents a significant are under way using flight data, to help solve some of today’s major investment above and beyond SITA’s weather, social media and other data challenges facing the industry. With usual R&D and product development – and further trials will continue a stronger focus, SITA will invest programs. SITA’s community-based during 2017. more than US$ 300 million over the approach to such innovation is an next three years in a go-to-market essential part of exploring the potential • The New Distribution Capability approach for the portfolio, research of new technologies. We are stronger (NDC) – SITA is supporting IATA’s and development, and service working together as a community in NDC standard, which has a management. areas where co-operation delivers particular emphasis on helping better results than competition. indirect channels offer customers As the CEO Report comments, a mix of richer, more engaging digital innovation and portfolio development In 2016, the Community Innovation flight shopping experiences. After is critical to SITA’s leading role in Programs included five projects to a successful ‘proof-of-concept’ transforming air travel through tackle air transport industry issues exercise, work is being progressed technology for our 400 members and that are of particular concern to our towards a Community NDC 2,400 customers – be it for airlines, members: Exchange Service. at airports, or on aircraft. Of course, • Baggage tracking – how existing this has been the company’s core • Cybersecurity – following a and new technologies can be used to purpose since it was founded by 11 highly successful CyberSecurity allow airlines, airports and ground airlines in 1949. But the mandate today Symposium held in May 2016 handlers track baggage every step is as strong as ever, to leverage the and the subsequent formation of the way, in conformity with IATA business transformation potential that of a working group of Members, Resolution 753, due to take effect in new digital technologies offer. SITA has developed a platform 2018. to support increased exchange • Identity management – not only of contextualized cyber threat helping airports and governments intelligence, derived from its own improve security, but at the same network, open source intelligence time streamline the immigration and other external sources, some process. SITA is trialing various privileged. SITA’s Cyber Threat versions of the ‘single travel token’ Center was launched in February concept in airports worldwide, 2017. Indeed, cybersecurity aligned to IATA’s ‘One Identity’ is now a major focus of SITA’s program, and including the business. It was good to see SITA’s
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operations and management of its Under the Lab’s lead, specialists and and leadership on developing and airport solutions and services at the community of developers who work innovating future technologies. Singapore’s Changi Airport as the with SITA through the developer.aero first to achieve ISO27K certification portal are also exploring, investigating How well the company delivers these – the specification for a framework and when possible embracing new, services remains a key differentiator of practices for an organization to radical ideas that will deliver improved and strong progress was made manage its cybersecurity risks. services and add value to SITA during the year. Enhanced availability Members and the community at large. targets were met for 22 out of 24 Meanwhile, the SITA Lab continues to The Innovation Day held in November core applications. There was also be fully engaged with resolving core 2016 exemplified that approach, with a 30% reduction in the number of challenges and exploring opportunities discussions ranging across areas as major incidents. All of this driven faced by the industry as a result of diverse as solar energy, near-space, by continued investment in lifecycle evolving technologies. This includes and the blockchain. management of hardware and ground-breaking work in big data, software. analytics, artificial intelligence (AI) ALWAYSON AVIATION and robotics. One highly visible result Measuring SITA’s performance on was the trial of ‘Leo’ at Geneva Airport The impact of digital technologies its service promises is, of course, – a fully autonomous, self-propelling makes it essential for the air transport an essential part of the process. The baggage robot with the capacity to industry to strive for the ‘always- Customer Satisfaction Index score check in, print bag tags and transport on’ availability of their technology- for the year, based on 482 customer up to two suitcases with a maximum driven services for passengers and surveys, reached a record 4.17, weight of 32kg. Leo subsequently operations. With almost every airline compared with 4.16 target (101.2%) toured the world appearing at and airport in the world entrusting and 4.15 in 2015. The company’s Net several major events from Barcelona some or all of their mission critical Promoter Score (NPS) remains above and Amsterdam, to Marrakech, communication and technology those of our key competitors, reaching Casablanca, Singapore, Hong Kong, needs to SITA, service availability and 67.2%, above the 64% and comparing and on to several locations across quality remain business imperatives. to 58.6% two years ago. This metric is America. The scale and complexity of SITA’s being recalibrated in 2017 to provide operations – which extend to almost an external anonymized benchmark Another area of work is the definition every inhabitable part of the world – against peer companies. of use cases for drones. SITA hosted are massive. the first European Unmanned Traffic Our independently run Community Management conference to discuss In 2016 the company delivered: 99.999% Value Index (CVI) – an online survey regulations for the interoperability of mission critical network availability; of all SITA customers and Council drones and aircraft. The Lab has also robust applications to simplify the representatives – once again focused been investigating opportunities for passenger journey, boost productivity on value drivers and overall value, as ‘smart city’ style sensing in airport and add value; strong performance in noted in the President’s Statement, environments. its data centers; achievement on SLAs, with a further improvement over the with a high level of responsiveness; 2015 results.
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ONE OF SITA’S STRONGEST The CVI is based on 10 questions represented over 40% of the company’s ASSETS IS ITS UNIQUE relating to the value SITA adds to the revenues in 2006, whereas by 2016 that COMMUNITY OF MEMBER¦ air transport community covering figure was 17%, with 14% anticipated OWNERS. THE TASK AHEAD areas such as active engagement to for 2019. deliver change, meeting the ICT needs IS TO LEVERAGE THIS of the community, creating a more But SITA is now at its next stage of COMMUNITY ASSET THROUGH price competitive market environment, transformation, ready to evolve with SITA’S THREE YEAR BUSINESS reducing the total cost of ownership, a focus on marketplace requirements PLAN AND LONGER TERM collaborating over the development of for the next 10 years and beyond, TRANSFORMATION PLANS, IN global standards, delivering targeted responding to the challenging operating environment and competitive ORDER TO BEST SERVE THE innovation, and supporting the community ‘beyond business as usual’. landscape. Defining the long-term DIFFICULT AIR TRANSPORT strategy to get there is the remit MARKET. The three areas of community given by the SITA Board to our new value most strongly realized were CEO Barbara Dalibard – to review the collaboration, engagement and SITA’s existing business and its long-term people. Other values reflected well on strategy and to re-energize SITA with a the organization, and they will remain new vision and purpose. areas for continuous improvement. One of SITA’s strongest assets is its unique community of member- FUTURE SUCCESS owners. The task ahead is to leverage Over its long life, SITA has this community asset through SITA’s demonstrated the ability to adapt three year business plan and longer and change, to transform itself as term transformation plans, in order to the needs and opportunities of the best serve the difficult air transport air transport community evolve. The market. This process began in 2016 organization’s last transformation, and progressed swiftly through the during the past 10 years, saw the move first months of 2017. The conclusions of from being a network provider only, Barbara Dalibard’s review and detailed to a much broader business solutions plans for the next three years will be provider. During that period, in a time considered and approval sought at the of overall growth, SITA’s applications Board meeting in July. businesses also grew, with their combined revenues exceeding network revenues. Core network services
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THANK YOU determination to drive SITA to stronger Board is playing a driving role, having success. Finally, I would like to thank established a sub-committee to One of the benefits that flows from all of SITA’s people. Their industry undertake a long-term strategy review SITA’s governance is the nature and know-how and commitment are of SITA with consultants McKinsey & composition of the Board. I thank extraordinary, and critical to the Company, to identify opportunities them for their invaluable support and future of SITA. where SITA can be relevant and guidance in 2016. Last year, as always, deliver value to customers and the we saw some Board changes including Air transport, like many industries, market. This is an exciting initiative those of Hera Siu (Other Director) is in the midst of a far-reaching to position SITA for the future, and I and Lianne Stein (Member Director) technological transformation. As a remain confident that we will progress who left the Board as of SITA’s Annual community player, representing air from strength to strength in the years General Assembly (AGA) in May 2016. transport organizations the world ahead. In June, Joe Locandro (Member over, SITA is central to that process Director) stepped down due to his and indeed, as the CEO Report Dr Omar Jefri departure from Cathay Pacific, while outlines, it has embarked on its own Chair of the SITA Board in July former SITA CEO Francesco transformation plan. The SITA Violante left the Board at the time of leaving SITA. Following the July Board meeting, Paul Coby (Other Director) also left as his term on the Board ended.
The following were appointed to the Board as of SITA’s AGA in May 2016: Barbara Dalibard, who became SITA CEO as of 1 July; Klaus Goersch, Air Canada (Member Director); Damian Scokin, formerly with Ultrapetrol and now Despegar (Other Director) and Thomas Woldbye, Copenhagen Airports (Member Director). In June 2016, we were pleased to be joined by Elizabeth Haun of International Airlines Group.
My thanks also to the senior management team – and again to our CEO Barbara Dalibard, who has provided fresh perspectives, a strength of purpose and focus, and a A TIME OF TRANSFORMATION
A TIME OF TRANSFORMATION AND OPPORTUNITY
This is my first report as SITA’s CEO which to build their entire operations, since joining the organization in July develop the passenger experience last year. It has been my pleasure to and determine the journeys of the meet my new colleagues at SITA and on future. SITA is deeply involved in this the SITA Board and Council. We are all industry transformation, driven by at the heart of a deep transformation our purpose to ‘transform air travel within the air transport industry and through technology for airlines, at I used my initial months to gain a full airports, on aircraft and at borders’. understanding of the challenges and These digital platforms will also opportunities ahead of us. play an important role in helping the industry to deal with the growing MARKET TRENDS security (and cybersecurity) threat. To facilitate smooth travel, the industry is It is clear that there are powerful turning to IT systems and intelligence market trends shaping the future of to counter the risks and alleviate air transport. They include the rise inconvenience to passengers. of technologies such as biometrics, big data, analytics, robotics and Digitization, while presenting SITA with artificial intelligence – all of which will significant opportunities, is also driving SITA IS DEEPLY INVOLVED radically improve industry processes the rapidly changing competitive IN THE AIR TRANSPORT and the passenger experience, while landscape within air transport. The INDUSTRY'S DIGITAL providing further efficiencies. We market has become increasingly TRANSFORMATION, DRIVEN are seeing the impact of digitization attractive due to higher spend on air BY OUR PURPOSE TO across the industry, driven by travelers transport IT: SITA’s 2016 Airline IT as consumers and end users, with Trends Survey predicted airline IT ‘TRANSFORM AIR TRAVEL spending rising as a percentage of THROUGH TECHNOLOGY FOR increasing real-time expectations about the use of mobile, self-service revenues to 3.0% in 2016, with future AIRLINES, AT AIRPORTS, ON and other technologies at every stage projections considerably more positive AIRCRAFT AND AT BORDERS'. of the journey. than in previous surveys. SITA’s Airport IT Trends Survey also shows As one of the biggest disruptions that over the last three years, airport impacting the industry, digitization is CIOs have seen their budgets grow at a leading air transport organizations compound annual growth rate (CAGR) to establish digital platforms on of 8.41%, compared to a revenue
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growth of 6.36% over the same period. natural interface between industry it through APIs, airline and airport These figures correspond closely to players and systems – providing systems – makes us the logical choice leading analysts’ forecasts for growth real-time interoperability. With for new operational and business in air transportation spend on IT and these characteristics, and as a intelligence solutions. Today, we enable telecoms. This explains why, in the last neutral community player, SITA will as much as 60% of the air transport two years, we have seen a high level further explore industry solutions industry’s data exchange among of consolidation and investment in our that target operations at the airport, airlines, airports, aircraft and border industry. the passenger journey, aircraft agencies. connectivity and community-wide Our long-time role of sharing and STRENGTHS AND applications. Our unique capability bridging within the air transport OPPORTUNITIES to bridge these players will enable us to continue to address industry community – a part of SITA’s DNA since its inception – has never been In close cooperation with the SITA pain-points, with more solutions in so important. We are building on Board and SITA Council, we are areas such as disruption management this foundation as the air transport working with a leading consultancy and prediction, baggage processing, industry’s digital transformation on an ongoing strategic assessment passenger flow and many others. accelerates, looking to further explore of our business and the industry advances in data mining and analytics, environment to determine SITA’s OUR DNA SHARING AND while connecting stakeholders at the direction and evolution over the next BRIDGING airport. Being standards-based, our five and more years, and to leverage solutions enable the interoperability these opportunities. SITA will continue I am excited by these opportunities. of the air transport community in to build on its unique strengths in the They will drive us forward in the all parts of the world, available to marketplace. Our customers value markets where we are growing and all customer segments on a true, our global physical footprint in many leading, such as airports, borders unique, global basis. Ultimately, we airports – enabling local access to and aircraft. The capture, facilitation, will deepen the understanding of the global solutions – and our ability to aggregation and interpretation of data interconnections and operations of our support the air transport community’s will be a vital focus. As air transport industry, enabling change for all low mission critical operations with a sees an ever greater reliance on cost, hybrid and full service carriers, high level of reliability. Along with our growing amounts of data – powering as well as for airports of all sizes. industry-specific expertise and trusted new business models for up-to-the- relationships, these major business second intelligence and analysis, Among these considerable assets present substantial future available across the Internet of Things opportunities, we are focusing on opportunities. (IoT) both on the ground and in the air – those that are most meaningful ‘data is becoming the new oil’. to our Members and customers, But there are many more opportunities delivering technologies and introducing that will come from building on SITA’s SITA’s natural and trusted access to innovations that continue to improve strengths in integrating stakeholders large volumes of air transport data – cross-industry processes along the across the journey, while being the as well as our experience in handling
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OUR LONGTIME ROLE OF SHARING AND BRIDGING WITHIN THE AIR TRANSPORT COMMUNITY A PART OF SITA’S DNA SINCE ITS INCEPTION HAS NEVER BEEN SO IMPORTANT. WE ARE BUILDING ON THIS FOUNDATION AS THE AIR TRANSPORT INDUSTRY’S DIGITAL TRANSFORMATION ACCELERATES.
entire journey. We articulate this in our Our Passenger Solution Line (PSL), vision of ‘Easy air travel every step of which was negatively impacted in 2016 the way’. by the bankruptcy of a large customer but has seen growth over many years, OUR BUSINESS continues to deliver excellent service to numerous customers. Aligning Turning to 2016’s business results, with our long-term strategy and in the operating environment for SITA the light of intensified competition, during the year was challenging. With we formed the view that a strategic revenue of US$ 1.51 billion1, we were partnership would secure its future, 2.4% above the prior year’s figure, but enabling the continued delivery of a had mixed results across our solution strong passenger services offering lines. We successfully delivered to SITA customers, our Members and growth in our Airports business, our the wider air transport community. In CHAMP Cargosystems subsidiary, and consultation with the SITA Board and our SITAONAIR connected aircraft SITA Council in 2016 we decided to business. This compensated for almost seek a strategic partner to consolidate flat growth in our Communications & our Passenger Services System (PSS) Infrastructure (CIS) business and a business, and we expect to include decrease in our Government Solution the agreement in 2017. This decision Line due to lower revenue from one triggered a specific accounting large contract and the extended treatment which had a significant implementation schedules of some negative impact on SITA’s overall of our customers. Collectively, these performance and level of profitability. businesses have achieved CAGR of around 2.2% over the past five years Our commercial entity, SITA N.V., (2012-2016), and they continue to drive absorbed this loss within its retained up the economic value of SITA. earnings. SITA SCRL, our cooperative, has generated an over recovery to The margin for the year included Members close to target. This is a good non-recurring items that negatively level of performance for the year, given impacted the result compared to prior the prevailing business environment. year. The decrease was due to some Critically, thanks to our effective cash exceptional items plus significant management, we maintained a strong restructuring costs incurred and balance sheet, with a healthy free cash provisioned in 2016, reduced margin flow of US$ 167 million, a net cash from lower than expected sales and surplus of US$ 295.8 million and a low delivery delays and increased scope on level of bank debt. some key government projects.
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AT THE AIRPORT players at the airport, representing SITA is well ahead in the provision some US$ 600 million a year of SITA’s of technologies to keep borders Our Airports, CIS and Government business. Indeed, the CIS AirportHub™ secure. Our border solutions optimize businesses provide industry-leading program lies at the heart of airport passenger processing at the airport solutions at airports across the world, communications, aiming to cover 80% without compromising security, with being positioned strongly to achieve of all airline international destinations automated border kiosks “dramatically growth and deliver a strengthening at 700 airports by 2020. In addition, increasing” the number of travelers portfolio for the future. SITA’s SITA Connect, a new generation of processed per minute, according to strategy of leading in ICT provision in communications services, provides in one of our first customers, Orlando our chosen markets centers on the excess of 20,000 channels to more than International Airport. Highlights for our airport, with SITA technologies and 1,000 airports. Government business included 2016 services helping to enable an end-to- contracts and renewals for iBorders® end passenger experience at more On the performance front, a positive with governments in the Middle East than 1,000 airports worldwide. These achievement came as CIS reached and Latin America, as well as new technologies and services meet the a milestone in 2016. CIS has been contracts for Automated Border requirements of industry programs managing a shift in revenues to new Control Gates in Europe and Automated from IATA and ACI, such as Simplifying high value-added services, as they Passport Control Kiosks in the US. the Business, Smart Security and replace legacy services. For the first time in several years, CIS revenues Baggage Services. ON THE AIRCRAFT stabilized, coming in on budget and Looking at 2016’s performance, our providing a solid platform for further Another strong SITA business for the Airports Solution Line increased evolution. At the same time, CIS future is SITAONAIR, which operates in its revenue by 3.9% over prior year. delivered significant cost reductions the highly promising and competitive Examples of contracts during the to our customers. The strength of this connected aircraft marketplace. year include the provision of Airport core business was demonstrated by the While its growth is not yet reaching Management Solutions across the successful retention of large network the double-digit growth ambition we global network of VINCI Airports contracts worldwide, including Hapag have in this domain, SITAONAIR again – a top five airport operator in Lloyd, Alitalia, Air China, LAN Airlines demonstrated its potential, recording the international sector. We also and the World Bank. We also saw 6.6% revenue growth during 2016. supported Miami International Airport an important renewal of network As in-flight connectivity becomes in becoming the first to adopt Day of management services with IAG and a an expectation and nose-to-tail Operations and Day of Travel business Network Guardian contract with Air connectivity moves up high on airline intelligence services, designed to India. agendas, SITAONAIR is well positioned ensure optimized passenger services to meet industry needs and to continue and airport operations. In our Government Solution Line, to develop. In 2016, it saw a 21% year- growth fell below expectations due on-year increase in activated aircraft In the meantime, as a mainstay to the slippage of key contracts into (for cabin connectivity). of SITA’s business, CIS provides a 2017. But this remains a promising part unique portfolio connecting industry of our business, as a market where
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SITA IS A CORE PART OF TWO GROWING AND GLOBAL SECTORS AIR TRANSPORT AND DIGITALLY ENABLED TECHNOLOGIES BOTH OF WHICH ARE SEEING MAJOR SHIFTS IN TRENDS AND ARE EVOLVING RAPIDLY. COMPLEMENTED BY OUR LONG TERM STRATEGY, I BELIEVE OUR TRANSFORMATION WILL POSITION US FOR THE ROAD AHEAD.
OUR TRANSFORMATION As part of the program, we are Let me briefly describe these building on our strengths in market four pillars. By strengthening our Our review of SITA’s business and sectors where we can deliver value customer centricity we are developing strategy led us in late 2016 to embark to our customers and maintain or a customer mindset everywhere on an all-pervasive structural achieve leadership. And we will move across the organization, concentrating transformation program. The program towards a simpler, more efficient investments in portfolio areas where will enable SITA to evolve in order to operating model that will make us we can add the greatest value for capture more growth within the air more competitive, while growing faster them, and further empowering our transport IT marketplace, through than the market in a sustainable and geographies to work more closely and a better focus on customers and profitable way in the years ahead. in a more agile way with customers to increased agility, which is precisely meet requirements. We will develop what our Members and customers Our transformation plan, called stronger relationships with the air have asked us to do. EVOLVE, addresses four main transport community to ensure we pillars: customer centricity, meet evolving needs. Corporate growth, operational excellence and objective metrics for Net Promoter strengthening our people. It is backed Score and Community Value Index will up by metrics monitoring progress and drive us towards our goals. gauging our success. We plan to achieve profitable and sustainable growth by targeting market segments where we can lead, add value and deliver, while resolving problems that the industry faces. One immediate action was to introduce structural change to the company late in 2016, creating an Air Travel Solutions (ATS) division that brings our Airports, Governments and CIS businesses under one roof. The resulting synergies and agility that we anticipate will play an important part in driving future growth. Additionally, through a new corporate objective, we will measure our success in delivering transformational solutions that generate growth, with a business A TIME OF TRANSFORMATION
model focused on delivering complex we will focus strongly on SITA Global crucial component of the air transport solutions and transformational Services teams and the right delivery industry’s critical infrastructure. products to the industry – reducing first time. reliance on legacy products. Our goals are clear: to strengthen our Last but not least, our EVOLVE market relevance and build a long- SITA already has many such solutions, transformation plan places critical term, sustainable, leading market including AirportHub™, as well as emphasis on strengthening our position in our chosen areas of activity. solutions for airport operations, people, which includes upgrading Our strategy draws on the skills kiosks, a digital cockpit, cabin services staff skills and expertise to meet the and talents of staff from across the and borders. We have also seen the needs of customers, both today and company. I commend their knowledge recent launch of solutions for aircraft tomorrow. We are optimizing our and commitment to our company and I data, Airport Operations Control location strategy and bringing in new am grateful to them for their continued Centers (AOCC) and Day of Operations. skills in key locations. We are entering hard work and loyalty during 2016, By speeding up development and partnerships with universities to a year of transition. Finally, with the the transition of innovations to our acquire and nurture skills. And we commitment of our staff, the continuing portfolio, we will quickly build on are developing our people to become support of the SITA Board, SITA Council our transformational solutions in subject matter experts in areas that and our Members, I am confident, response to the opportunities offered will drive growth and innovation, ambitious and excited about SITA’s by advances in areas such as the ensuring that their skills and expertise future. IoT, artificial intelligence, always-on are integral to our organization’s connectivity, mobile, and industry data transformation. Barbara Dalibard and security. Chief Executive Officer, SITA THE ROAD AHEAD Striving for operational excellence demands that we optimize our SITA is a core part of two growing operating model to improve customer and global sectors – air transport experience at a lower cost, addressing and digitally-enabled technologies – the overheads of our global operations. both of which are seeing major shifts The creation of ATS is a step forward, in trends and are evolving rapidly. but we will continue to focus on Complemented by our long-term simplification and agility, as well as strategy, I believe our transformation new, leaner digital and collaborative will position us for the road ahead. ways of working. We will re-engineer We are financially sound – with our delivery processes – as requested a strong balance sheet and little by our members and customers – debt – and we are well placed with and define two business models for the potential to further explore new standard and complex delivery. With technology solutions and ideas, as a corporate delivery metrics in place,
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THE VOICE OF MEMBERS
I am pleased to report on a further year The relationship between the of progress for the SITA Council, in its organization and its Members has role of contributing to the strategic been further enhanced through several direction of the business, providing engagement initiatives, from the guidance and expertise on air transport appointment of SITA’s Membership and community needs, and championing Community Director, to communication the interests of SITA Members. through ‘Air Transport IT Review Member Supplements’, a range of Comprising up to 32 representatives Community Innovation projects and from across the Membership, the specific Membership benefits. Council continued to prove itself as a crucial pillar in the overall governance COMMUNITYDRIVEN of SITA. For the record, the Council’s role includes recommending SITA All businesses must, by definition, Board Directors, as well as the create value. For SITA, that means both SITA Council President and Deputy economic value and value delivered to President, for appointment by the the community. As mentioned in the Annual General Assembly (AGA). The Chair and CEO statements, 2016 was Council has the right of final approval a difficult year for SITA as a business THE SITA COUNCIL IS THE over key matters relating to the high- and while the financial results were REPRESENTATIVE BODY OF level direction of SITA and must be mixed it did not deter the organization MEMBERS, ENSURING THAT consulted on other issues that have from its remit to generate value SITA MAINTAINS A DEEP a material impact on services – a not just for the benefit of individual UNDERSTANDING OF THE matter that for the first time, in 2016, customers but also for SITA’s global NEEDS AND CHALLENGES called for the Council’s attention. It is Membership and the wider community. concerned with membership policy and The organization was, after all, created OF THE AIR TRANSPORT rules, as well as member admissions COMMUNITY ¯ FOR BOTH THE by the air transport industry to provide and expulsions. And it is a channel for communications and information LONG AND SHORT¦TERM. community opinions. technology services that every player in that industry requires in order to be Following the review of SITA’s able to operate. governance structure and its approval in 2015, the two-tier Board and Council That remit underlines the approach was further embedded importance of the SITA Council as during 2016. It remains fundamentally the representative body of Members, sound and appropriate for SITA’s ensuring that SITA maintains a Membership.
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A KEY TOOL IN MEASURING HOW SUCCESSFULLY SITA IS CREATING AND ADDING VALUE TO MEMBERS’ OWN BUSINESSES AND THE INDUSTRY AS A WHOLE IS THE COMMUNITY VALUE INDEX.
deep understanding of the needs business, calling upon the reserved and challenges of the air transport powers granted to the Council in community – for both the long and 2015. The process began during that short-term. Hence the introduction of year, when the Council was consulted five Community Innovation initiatives, about a strategic partnership for identified by the Council and the Board SITA’s Passenger Solution Line, a in 2015, as priorities for the future. The new direction for SITA’s Passenger Chair goes into more detail on these in business which the Council advised his Statement on page 8, but suffice to upon and fully endorsed. During 2016 say, the initiatives cover areas where plans took shape and discussions our Members and the community continued, with 2017 being the year in at large have significant and rapidly which the partnership is planned to be evolving requirements – such as launched. cybersecurity, disruption management, identity management and baggage COMMUNITY VALUE tracking. A key tool in measuring how Of course, these Community Innovation successfully SITA is creating and initiatives are not the only areas adding value to Members’ own where a community response is being businesses and the industry as a delivered. SITA is constantly innovating whole is the Community Value Index and developing across many vital areas (CVI), introduced in 2015 and based for the community. The enthusiasm on 10 community value drivers and with which airports have embraced an overall value question (see ‘SITA beacons, for example, has underlined Community Value Index: community the value of the decision in 2015 to turn value drivers’, page 23). The index is over the common-use Beacon Registry updated annually, when SITA surveys – developed by the SITA Lab – to IATA Members and customers to determine and ACI. SITA continues to work closely how SITA is performing against these with air transport industry associations drivers. The outcome of the survey in global, regional and national is based 50% on input from the SITA forums, including in the development Council and 50% from all customers, of essential new community and forming a core element within SITA’s technology standards. annual corporate objectives. The response of the Council was also sought by the Board with regard to the future of SITA’s Passenger
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SITA HAS ALWAYS HELPED THE AIR TRANSPORT INDUSTRY TRANSFORM IN THE FACE OF SIGNIFICANT CHALLENGES, INCLUDING ADVANCES IN TECHNOLOGY AND SUBSTANTIAL AND GROWING DEMAND FROM PASSENGERS.
The 2016 end of year survey was This placed SITA above the competition based on results from more – both IT companies as well as telecom than 900 customers and 25 SITA providers. Importantly, higher than Council Representatives, balanced average scores were recorded for geographically. At 3.56, the CVI score three drivers in particular: showed a marginal improvement on • Adds value to the air transport 2015 (3.55), being just short of our community (3.65). demanding target of 3.60. The Council Representatives Index score was 3.59, • Enables transformation through with customers at 3.53. The areas technology that helps provide better showing most favourable improvement customer service (3.50). related to innovation and cost of • Will continue to be relevant in the ownership. future (3.64). The overall results suggest SITA is However, the Index also suggested performing well but there is clearly areas for improvement, which are the room for improvement – something focus of senior management during that the Executive Team under new 2017. CEO Barbara Dalibard is addressing as a key priority within the organization’s transformation agenda. COMMUNITY FOUNDATION Community comes to the fore with A new Brand Health Index was the work of the SITA Air Transport introduced in 2016. This is designed Community Foundation – an initiative not only to assess the strength of fully supported and governed by the the brand, but also to obtain a wider SITA Council. In its second year of stakeholder view and competitive operation, the Foundation continued to measure to understand SITA’s value provide opportunities for young people to the community. More than 1,200 in Africa to access IT and education. customers, Council Representatives and prospects answered the first Foundation work in Ethiopia, Uganda survey, with 87% agreeing that SITA is and South Africa during 2016 delivered an admired brand and 41% absolutely a number of programs, including the or strongly agreeing. The index score building of four brand new ICT suites was 3.43 out of 5. at secondary schools. They involved equipping 25 primary schools with IT equipment, piloting and deploying
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Raspberry Pi devices loaded with THE IMPORTANCE OF Additional benefits are now also a part educational content, providing MEMBERSHIP of the picture. For example, there are computer training for teachers, and preferential Member-only offers on a funding for students and young people. SITA has always helped the air range of SITA products and services. A new project that started during transport industry transform in the Recent offers have included free the year saw 100 women university face of significant challenges, including trials of new products, discounted students in Zimbabwe receive advances in technology and substantial consulting, workshops and free access dedicated computer training with and growing demand from passengers. to Application Programming Interfaces the International Computer Driving Members guide SITA’s direction and (APIs). Seven new offers on products Licence (ICDL) qualification, while strategy. They help to ensure that SITA and services were introduced in early seven computer rooms were created continues to invest in the technology 2016, taking the total to 16. These and equipped in the female halls of needed by the industry today and include three offers available to new residence – enabling access to ICT tomorrow. Members in their first 12 months as 24/7. Also during the year, the Council SITA Members. Details of current approved a set of principles that Membership helps air transport offers can be found at www.sita.aero/ enabled partners to contribute to the companies to tap into the knowledge membership. Foundation, and in May we accepted and understanding of the best brains our first partner – Mindtree. in the sector, not least through During 2017, SITA has committed to the AGA and the Air Transport IT leveraging Community Innovation The results have been impressive. Summit. Members also gain exclusive projects to demonstrate how SITA Since the program started, over 700 access to the detail of SITA’s three IT continues to provide value and PCs have been provided across 43 Trends surveys – airline, airport and to promote the real value-add computer labs, 200-plus teachers have passenger as well as exclusive access potential offered by the work of received ICT training, and 46 students to SITA Lab innovation webinars. the Cybersecurity Work Group have received funding support for Regionally, there is a wide range of forum. Initiatives in 2016 included a their tertiary studies. To date, around activity – such as the Sub-Sahara successful Aviation Cybersecurity 15,000 students have been positively Africa Innovation Day run in 2016 Symposium, the first of its kind, which impacted. Regular monitoring and and regular regional newsletters, brought together air transport Chief evaluation ensures that the projects highlighting issues of concern. And Information Security Officers from continue to meet their KPIs, and that because of SITA’s co-operative status, across the world, along with experts aims of the Foundation remain at the membership ensures that money spent from other walks of security and core of the projects. In 2017, work will through SITA remains in the industry industry. The Symposium offered a continue in the current countries, and for reinvestment in improved services unique opportunity to orchestrate a new initiative will start in Zambia to and advances in technology, again for a community-wide response to build and equip two brand new the benefit of Members. sharing and understanding common ICT labs. cybersecurity challenges faced in air
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transport. The Cybersecurity Work Council; Abe Dev of Etihad Airways 50 years of membership were Adria Group worked proactively towards replaced Rob Putter; Hazem Khalil of Airways, Libyan Arab Airlines, greater collaboration and data sharing Egyptair replaced Osama Anwar Elsisi Meridiana fly, Saudi Arabian Airlines leading to the February 2017 launch of to represent Middle East & North and United Airlines (see page 25 for all the SITA Cyber Threat Centre. Africa Group 2; and Aleksey Sladkov Member anniversaries). was appointed to represent Aeroflot, There will be more targeted content for to be subsequently replaced by Giorgio SITA’s new vision is ‘Easy air travel specific member groups – for example Callegari of Aeroflot. Other changes every step of the way’ while its purpose by further engagement with airline in the month were the appointment of remains to transform air travel Members about resolving baggage Angie Tinsay of Philippine Airlines to through technology. The role of the challenges and with airport Members represent South Asia and India Group, SITA Council is central to that process around issues relating to identity and the resignation of Sang Man Lee of – creating an open and busy channel management and cybersecurity. Work Korean Air Lines. between SITA and its Members to the is also being pursued to create a hub benefit of all. where members can interact with In June and July we saw the resignation each other and SITA, supported and of Lawrence Chai of Malaysian Airline We face many challenges in the next managed by the Membership director, System and the appointment of Tan few years – but we are strongest when perhaps through a discrete Linked In Kok Meng to represent Malaysia we work together around shared group. Airlines; that was followed a little aims and objectives. For its part, the later in the year with the departures SITA Council will continue to reflect the ambitions and concerns of SITA REPRESENTING MEMBERS from the Council of Jay Fredericks of Delta Air Lines, Luc Hennekens of Members to create a strong and In 2017, your SITA Council and SITA will Qantas Airways, and Nelson Tapia successful sector in all parts of the continue to explore new ways to engage of LATAM representing the Latin world. with Members, to provide additional America & Caribbean Group. The Jappe Blaauw value and exclusive opportunities. final change came in December with President, SITA Council the replacement of Philip Hawker by The Council is an evolving body Elizabeth Haun to represent British involving a broad range of committed Airways. individuals. Our thanks are due to those who have moved on and to Our congratulations also to long- new representatives who have taken standing Members: in particular, their place. During 2016, there were to those marking significant a number of changes to the Council’s anniversaries as Members. There composition. In May, Joseph Locandro were many, ranging from 10 years was replaced by Mark Griffith of Cathay of membership right through to 60 Pacific Airways, who was then replaced years. Those reaching 60 years were in June by Kerry Peirse also of Cathay; Air Serbia, Middle East Airlines - Air Philip Hawker of British Airways Liban, Pakistan International Airlines resigned as Deputy President on the and Qantas Airways. Those reaching
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SITA COMMUNITY VALUE INDEX: COMMUNITY VALUE DELIVERING VALUE TO THE 1. Actively engaging with the air DRIVERS AIR TRANSPORT INDUSTRY transport industry to bring about IS A CORE ATTRIBUTE FOR positive change. SITA. THE ORGANIZATION IS 2. Delivering ICT solutions to meet the DEDICATED TO PROVIDING THE needs of the community. COMMUNITY WITH SOLUTIONS 3. Creating a more price competitive THAT ENHANCE PROCESSES market environment that results in AND SERVICES, DRIVE greater customer choice. INNOVATION AND IMPROVE 4. Collaborating with the industry PROFITABILITY. to develop and implement global SITA's recently introduced Community standards. Value Index (CVI) measures the value 5. Delivering innovation which directly SITA provides to the air transport responds to air transport industry community. It is determined by challenges. the responses of the SITA Council, 6. Reducing the total cost of ownership customers and members to the through delivery of shared following 10 community value drivers. infrastructure and community solutions.
7. Ensuring presence with staff and infrastructure wherever airlines fly.
8. The skills, experience and contribution of its employees.
9. Supporting and servicing the community beyond what would be seen as business as usual.
10. Being owned and governed by the air transport community.
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WELCOME TO OUR NEW MEMBERS IN 2016
Name Entry Date Country Sector ARIVL INC July 2016 USA ICT Able2Fly Limited July 2016 UK ICT Blue Air - Airline Management Solutions Srl November 2016 Romania AIRLINE Comlux Aruba NV November 2016 Aruba AIRLINE Hebei Airlines Company November 2016 China AIRLINE Malta International Airport p/c November 2016 Malta AIRPORT West Air Company Limited November 2016 China AIRLINE
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MEMBER MILESTONES
Member name Years Member name Years Air Serbia 60 Swiss Int. Air Lines 25 Middle East Airlines - Air Liban 60 Thomas Cook Airlines Limited 25 Pakistan International Airlines 60 Travelport 25 Qantas Airways 60 AirAsia Berhad 20 Adria Airways 50 Airports Company South Africa 20 Libyan Arab Airlines 50 Avinor 20 Meridiana fly S.p.A. 50 Avio S.p.A. 20 Saudi Arabian Airlines 50 Avio-Diepen 20 United Airlines 50 Beograd Airport 20 Air Niugini 40 Fokker Services BV 20 Hawaiian Airlines, Inc. 40 His Majesty the Sultan's Flight 20 Air Europa 30 Hong Kong Aircraft Engineering 20 Air Koryo 30 Iran Aseman Airlines 20 Air Tahiti 30 KL Airport Services 20 Astar 30 Koltsovo Airport 20 HOP! - BRIT AIR 30 Riga International Airport 20 TACA International Airlines 30 RusAero 20 Aéroports de Paris 25 Siberia Airlines, PJSC 20 Air Dolomiti 25 The Thomas Cook Group 20 Bangkok Airways 25 TunisAir Express 20 Croatia Airlines 25 Xiamen Airlines 20 easyJet 25 Zagreb Airport Air Transport Service 20 Goodrich Control Systems 25 Airports of Thailand 10 Manchester Airport 25 Saman Air Services 10 Mandarin Airlines 25 Sichuan Airlines 10 Panalpina Management 25 TUI Airlines Belgium dba Jetairfly 10 Satair Group 25 Cameroon Airlines Corporation Camair-Co 5 Schenker International 25 Mauritanian Airlines International 5 Shaheen Air International 25
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Jappe Blaauw Brant Venice KLM United Parcel Service President Deputy President
Radin Asrul Adza Matthew Billings Giorgio Callegari Kelly Cunningham Abe Dev (Malaysia Airports) (Virgin Atlantic Airways) Aeroflot United Airlines Etihad Airways Representing the Representing the Airport Group Northern Europe Group
Jassim Haji Elizabeth Haun Daniel Ho Omar Jefri Laurent Jossart (Gulf Air) British Airways Qatar Airways Saudi Arabian Airlines (Luxair) Representing the Representing the Middle East & North Southern Europe Africa Group 1 Group
Kerry Peirse Roland Schütz Cathay Pacific Airways Lufthansa
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Anton Eremin Karamu Ford Richard Forson Takayuki Fujiwara Greg Gilchrist (Siberia Airlines) American Airlines Cargolux (All Nippon Airways) (Sabre) Representing the CIS Representing the Representing the & Russia Group North Asia Pacific ICT Group Group
Hazem Khalil Jean-Christophe Sunita Marwah Tan Kok Meng Phinda Ncala (Egyptair) Lalanne Air India Malaysia Airlines South African Airways Representing the Air France Middle East and North Africa Group 2
Eash Sundaram Laeke Tadesse Angie Tinsay Arnaud van George Wang (JetBlue Airways) (Ethiopian Airlines) (Philippine Airlines) Rietschoten Singapore Airlines Representing the Representing the Sub- Representing the Emirates North America Group Saharan Africa Group South Asia and India Group
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OPERATING REVIEW
In 2016, SITA created a single business travel chain is imperative, making air As an air transport community unit called Air Travel Solutions (ATS). transport practices and processes, as provider and innovator, SITA’s remit is It brings together Communication well as each step of the journey, more to help the community to manage and & Infrastructure Services, Airport intelligent, responsive and efficient. embrace these technologies, trends and Government solutions – which and innovations – to deploy the right IT are all areas where SITA leads the A CONNECTED COMMUNITY in the right way to deliver benefits, and industry. With ATS, SITA will explore to bridge the divides among industry every opportunity for simplification, To achieve this, the industry is turning stakeholders. We express this in our synergies and collaboration across to technology, as we see from SITA’s purpose of 'Transforming air travel our portfolio and platforms, increasing Airline, Airport and Passenger IT through technology for Airlines, the speed and agility with which we Trends Surveys. IT investments will lay at Airports, on Aircraft and at Borders.' respond to the changing needs of our the groundwork for a more connected air transport customers. community in the future, as the majority of airlines and airports focus EASY AIR TRAVEL EVERY on business intelligence and cloud STEP OF THE WAY computing platforms to make greater use of data, while preparing for the Along with our other businesses – Internet of Things. including SITAONAIR and CHAMP Cargosystems – SITA not only provides ASIA PACIFIC AIRPORT one of the broadest portfolios in air IT SOLUTIONS COMPANY OF transport, but also offers a depth of THE YEAR knowledge that is unrivalled in the industry today. As this Operating Frost & Sullivan recognized SITA as the SITA WON Airport IT Solutions Company of the Year in review shows, from our operating units TWO MAJOR the Asia Pacific region (APAC) for the third to the SITA Lab, and from our SITA time in seven years. The award highlights Global Services organization to our INDUSTRY SITA’s leading role in the air transport Human Resources team, SITA is united AWARDS industry across APAC, where it provides in making our vision of ‘Easy air travel solutions to 70% of the region’s top IN 2016 20 airports. every step of the way’ a reality.
We are doing this from our unique IT COMPANY position at the heart of the air OF THE YEAR transport industry, and our ability to span the businesses and operations of For the second year in a row, the Air airlines, airports, aircraft and border Transport News (ATN) Awards recognized SITA as the ‘IT Company of the Year’. The agencies. As the industry evolves, 2016 award was based on SITA’s significant ‘connecting the dots’ across such leadership and innovation in developing organizations and operations within the solutions that transform air travel through technology.
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LEADING THE INDUSTRY are adapting their communication COLLABORATE, infrastructures. And all parties are COMMUNICATE As the world’s leading provider to driving further change in response air transport, after almost 70 years to passenger expectations of real CIS offers two main portfolios, SITA’s Communication Infrastructure time and accurate data providing underpinned by a global services Solutions (CIS) business continues to them with the opportunity to control organization and the ATI Cloud. First, be unique in its provision of network their journeys. Everyone is seeking the ATI (Air Transport Industry) Data services across 220 countries reliable, secure and high performance Collaboration portfolio includes and territories. SITA also remains connectivity. SITA Community Messaging (the the world’s leading air transport community’s single largest access messaging provider, handling 30 At the same time, the industry is point to exchange operational data); billion messages a year for the mission becoming more competitive. One result encompassing message distribution, critical and everyday operations that is an increase in airlines’ expectations operational mail, middleware keep the wheels of the industry in for agility – an ability to change and integration, transformation as well motion. CIS services are used by 100% adapt at a moment’s notice, whether as intelligence services; and NDC of Tier 1 airlines, while the network, severe weather or seasonal demand Exchange, IATA’s New Distribution SITA Connect, provides in excess of spikes. Capability (NDC) enablement program. 20,000 channels to more than One consequence of the period of 1,000 airports. The second portfolio, ATI change and readjustment - as the Communications, includes the With new digital technologies taking market has replaced legacy services global hybrid Wide Area Network the place of legacy systems and such as Type B Messaging Service (WAN) in partnership with Orange driving new digital ways of working, and IP VPN with digital and IP-based Business Services, as well as SITA is transforming communications services - has been a sustained airport communications and shared across the sector – collaborating period of decline in the sales of CIS infrastructure, focused around and delivering enhanced services to generic services, while SITA and CIS AirportHub™. Further developments the benefit of passengers, airlines, have remodeled themselves. In 2016, continue to take place with application airports and the myriad other the market began to stabilize and assurance and cybersecurity, in stakeholders across this US$ 2.7 in a landmark year CIS succeeded addition to device management and trillion global industry. in stabilizing revenues as declining unified communications. services are increasingly off-set by The number of passengers continues growing revenues from new generation NEW GENERATION to grow. To meet capacity constraints, value-added communications and airports are changing the way they infrastructure solutions. These include NETWORKS operate – existing airports will see the continued rollout of AirportHub™, SITA is now operating fully as an their capacity grow by over 40% SITA’s shared connectivity platform integrator of communications and by 2030. By 2030, it is estimated at airports (see ‘At the Heart of the infrastructure solutions worldwide. that there will be 500 new airports Airport’), as well as data management During 2016 the roll-out of the new operating. Both airlines and airports activities and a new portfolio to tackle operating model with Orange Business the growing threat of cyber attacks. Services met major milestones, as
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“SITA AirportHub™ makes opening new routes much quicker and easier. When airlines are connecting their systems at an airport they can now do so within a matter of weeks not months. This streamlined approach is efficient and cost-effective. Many airlines are keen to work with their airport partners who don’t already have SITA AirportHub™ in place to consider its adoption.” Matthew Billings, Chair of Membership Committee, SITA
did interconnection with the four • CorporateConnect@Airports AirportHub™ is designed to provide regional partners – Cable & Wireless Light – a ‘lighter’ version of security, reliability and resilience (Caribbean), CMC (Africa), PCCW CorporateConnect@Airports IP by using hardware and connectivity Group (Asia) and Etisalat (Middle East). connectivity services delivered on diversity to avoid single points of Services are now delivered through a SITA’s AirportHub™ platform at failure. This redundancy ensures high One SITA Network Services Delivery regional airports. availability and reduces the risk of and Operational Center. At the end of any disruption to airline schedules • InternetConnect Edge – ideal for 2016, 90% of customer connections from airport operations as a result small offices to build internet VPN requiring migration were processed of network access issues. When an using IPSec, with firewall to safely and 99% of local network operations AirportHub™ is first deployed at an breakout over the Internet. transferred into the target model. airport, connections are pre-installed • CommunityConnect Internet – a making it considerably faster for Orange Business Services was named footprint increase of 40 airports a airlines to link to their IT systems. The a leader in the ‘Gartner Magic Quadrant year in 2016 and 2017. infrastructure is then securely shared for Network Services, Global’. The across all customers, delivering In 2017, a new service will be 2016 report evaluated 12 network economies of scale. A large portfolio introduced allowing high availability service providers on their ability to of communication services is provided internet-based connectivity with execute, and the competence of their and a new internet service has been enhanced support level options, vision. Orange Business Services was recently launched. positioned highest along the ‘ability to compared to the standard offering. execute’ axis. The goal is to cover 80% of all airline AT THE HEART OF THE international destinations by enabling Following the launch of SITA Connect in AIRPORT AirportHub™ at 700 airports by 2020. 2015, new products and functionalities To meet this goal SITA designed two were introduced during 2016. They SITA kicked off its AirportHub™ new infrastructures to answer the included: program in 2014 – a unique, shared needs of T3 and T4 airports. As of the • CorporateConnect Reach – the infrastructure network platform end of 2016, 350 AirportHub™ were Orange Cloud Galerie provides that allows SITA to relieve airlines running in 120 countries, 90 of which secure access to applications such of the burden of dealing with local were deployed in 2016. Increasing as Office365, Salesforce, WebEx, telecommunications providers at numbers of requests from airlines are Amazon Web Services, Equinix and each airport on their route network. being received as word spreads about more. This makes it considerably faster for this ambitious project to bring quick, airlines to link to their IT systems and simple and resilient connectivity to • SwiftConnect – provision of a 3G/4G provides a single supplier approach in airports all around the globe. temporary connection (where a language of their choice, regardless available) and a temporary internet of geographic location. connection.
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“Having been a long-standing technology partner in aviation, SITA is able to fulfil the vision of passenger experience by identifying appropriate innovations covering network and communications that can help the airline to become more efficient and cost effective. This will help us benefit from the opportunities in the fast-growing Indian aviation market while elevating our international competitiveness.” Ashwani Lohani, Chairman and MD, Air India
OTHER DEVELOPMENTS successful proof-of-concept (IATA NDC This is a new source of ancillary Level 3 certified) in 2016, the company revenues for airports and airlines – Looking at some of the 2016 data progressed with the industrialization backed by the 2016 SITA Passenger IT collaboration developments in further process for a Community NDC Trends Survey, which revealed that for detail, the SITATEX portfolio returned Exchange Service, in partnership every 100 travelers, 65 would access to growth during the year – with with ATPCO. The pilot version was entertainment services on their own volumes increasing 5% year on year – launched in early 2017. SITA continues device and 46 would watch a movie and reinforced its market position with to collaborate with IATA, airlines and on-board using mobile devices. It small and medium sized customers. sellers to explore further opportunities also helps airlines reduce the volume This is a first increase since 2008 and for industry solutions in this area. (and therefore weight) of newspapers is the result of the successful adoption and magazines carried per flight. of SITATEX Online (up by 30%), the In the meantime, the End User DigitalMedia features a large catalog introduction of SITATEX IP V9, with Computing portfolio completed a of content including newspapers and enhanced resilience capability, as significant renewal over the past magazines as well as movies and well as a number of new industry three years. This has enhanced the games. It provides an international and vertical options, such as CargoForm offering, market relevance, delivery varied selection of content, to target and AOS Forms. Additional benefits and operational model of the range, a variety of passengers. The product included a new member pricing offer including an upgrade of the technical was seen “as a major innovation” by and the inclusion of SITATEX in SITA's solution to state-of-the-art standards, SWISS, meeting “a genuine need for digital store for purchasing cloud- a reshaped service offering to match customers”. enabled applications and services – changing market requirements, improved delivery and operations, marketplace.aero. CYBERSECURITY and a strengthened pre-sales Also, in late 2016, MessageIntelligence engagement team. As a result, several Other portfolio developments include was introduced – a self-service web new contracts were signed in 2016, a focus on industry cybersecurity. platform providing insight into airlines’ including one to support hundreds of This has steadily progressed to Type B Messaging traffic activity. kiosks in over 50 locations for JetBlue, become a key topic on companies' The service consolidates disparate as well as a number of contracts for risk agendas. For example, according data across the whole customer low cost and full service carriers in to the 2016 Airline IT Trends Survey, organization in a single self-service Asia Pacific and the Middle East. 63% of respondents indicated application, helping airlines better that cybersecurity is a board level understand usage, uncover potential An exciting new development took responsibility at their airline, while gaps and fix operational issues. place late in 2016 with the launch of 72% of CIOs are investing in major SITA DigitalMedia – a self-service cybersecurity projects, with a further Other data collaboration activity entertainment platform that can 19% engaged in cybersecurity included work to explore the potential deliver any kind of content, through R&D projects. The air transport for community services related to New multiple passenger touchpoints industry, like so many others, has Distribution Capability (NDC) and other directly to a passenger’s smart device, seen a dramatic change as security emerging distribution methods. After a no matter where they are.
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“As we continue to expand our network across the globe, we needed a world-class reservation center that could assist our passengers across our network 24/7. SITA was able to quickly provide us with a global presence with a fully-trained team. It also ensured that the center was able to accommodate our future growth as our network and operation continues to expand.” Osama Al Sadr, CEO, Iraqi Airways
researchers, hackers, criminal number of alerts with members of its on SITA's solutions portfolio, product organizations and nation-states Cybersecurity Work Group. These were roadmap, partnerships and processes. target the vast expanse of global actionable warnings enabling direct air transportation. Cybersecurity is response by those affected. In 2016 the CIAB took place in London expected to become a significant part and was attended by 19 senior airline of CIS activities in the years ahead. Becoming available during 2017, a representatives including American new SITA CyberSecurity solution is Airlines, Cathay Pacific, Ethiopian Stakeholders from across the industry articulated around four pillars: audit, airlines, Japan Airlines, Ryanair, Saudi are calling for joint actions and detection, response and protection. Arabian, Scandinavian Airlines and increased collaboration to actively SITA is leveraging expertise from high United Airlines. Major topics discussed combat the cybersecurity threat. The profile cybersecurity actors such as included tackling cyber threats, ability to share threat information Airbus, who embrace the worlds of disruption management and Software relating to cybersecurity incidents both cybersecurity and air transport. Defined Networking. Also covered affecting the industry has become were new use cases related to data paramount. With such information SHARING IDEAS exchange across multiple stakeholders the industry will increasingly be able to enable a more effective handling to search for those attackers deeply The Communications & Infrastructure of disruptions, extracted areas of nested into the infrastructure and Advisory Board (CIAB) is a forum improvement related to billing, provide a coordinated response to organized by CIS, consisting of 23 validated drivers for adopting Software those who seek to take advantage of member representatives including Defined Networking, and most temporary security lapses. American Airlines, British Airways, importantly, mapping of the greatest Emirates, Saudi Arabian Airlines and ICT challenges and priorities for the During 2016, SITA launched a Singapore Airlines. Through peer to next two years. community-wide initiative for peer discussions and workshops, the a response where cyber threat CIAB gives member customers and information can be shared with guests the opportunity to share what members to counter the common is currently driving them from an IT threats. SITA has already shared a perspective, and to provide feedback
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CONNECTIVITY FOR AIRLINES AT AIRPORTS
A NEW ERA IN No.1 air transport network provider with NETWORK more than 20,000 COMMUNICATIONS connections in more than 1,000 airports.
THIS CHANGING Orange Business AirportHubTM to offer Services main network greater flexibility for WORLD OF partner and integrator. seasonal routes. Enables COMMUNICATIONS airlines to order seasonal 4 regional partners (CMC, Community Connect PCCW Group, Etisalat and DCS and Community- Cable & Wireless). 2,500 new generation Connect Internet THE AIR No.1 aircraft to be in operation connections at locations Together SITA and Orange TRANSPORT within the next 5 years. where shared COMMUNITY’S Business Services operate infrastructure is available. a new One SITA Network By 2025, we expect that NETWORK Services Delivery and more than 50% of Connecting the air Operations Center to commercial aircraft will transport industry deliver a best in class WORLD’S 95% of all international be connected. through the Internet destinations covered by service that is exclusively of Things. LEADER designed for, and SITA’s network. SITA 400,000 parameters to be dedicated to, the global operates global WANs for monitored on an Airbus 350 airports in 2016 used air transport industry. Run TM 100% of the top 30 airlines A350 and 1,400 software AirportHub . No.1 Provider of air by industry specialists, it transport communication and around 25% of parts on a Boeing 787. domestic networks. operates 24/7 to deliver, 90 additional airports to and infrastructure integrate, manage and TM 87 AirportHubTM introduce AirportHub services. Unique in support all of SITA's 13,500 air transport sites wireless sites in 2017. providing network network services globally. services across 220 connected by SITA’s VPN to provide Gatelink and 700 airports will have countries and territories. Networks. wireless services. One-stop shop: One AirportHubTM by 2020. premium ordering service 30 billion messages in 400 airports desk. 471 CommunityConnect 2016 making SITA the pre-connected by SITA’s ATI Cloud infrastructure, DCS sites. world’s No.1 industry 60% network market messaging provider. as well as 17,000 air transport sites and 15,000 share with full-service commercial aircraft. carriers.
2,400+ air transport companies use SITA Messaging. 100m Type B messages sent every day.
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airports
THE PROVIDER OF CHOICE through end-to-end integration, Once verified there is no need for the information and intelligence. passenger to present a boarding pass, Against the backdrop of ever- a passport or travel documents again. increasing complexity within the LANDSIDE TO AIRSIDE airport ecosystem, rising passenger As an evolutionary solution linked to expectations and robust growth The strong performance of SITA’s IATA’s Fast Travel and Smart Security in demand for travel, airports are Airport Solution Line is helped by the programs, Smart Path™ is modular, undergoing a profound transformation. company’s leading position in end-to- allowing airports to augment new It is a transformation that demands end self-service passenger processing self-service touchpoints as required. the digitization of airport processes, solutions, as the industry looks It has been trialed in a major Middle touchpoints and interactions, a task increasingly towards the achievement Eastern airport and a multi-touchpoint for which SITA’s Airport Solution Line of a seamless landside to airside proof of concept has been developed is well positioned, as market leader passenger experience. These solutions with Brisbane Airport and Air New and provider of the broadest airport continue to play a vital role in the Zealand. Developments continue solutions portfolio across the entire realization of industry programs that apace, including work using biometrics ecosystem. aim to simplify travel for passengers. as the single travel token for digital For this reason, as part of its identification for travelers at the Recording another solid year’s dedication to air transport community various journey control points. progress in 2016, SITA’s Airport requirements and initiatives, SITA Solution Line continues to strive INTELLIGENCE remained fully involved throughout the towards its vision as the provider of year in programs from IATA and ACI, A lynchpin in the delivery of a smooth choice for airports. This is founded including Simplifying the Business, end-to-end passenger experience on the company’s expertise across Smart Security, Fast Travel, Passenger and efficient airport operations is the core airport ecosystem, its global Facilitation and Baggage Services the ready availability of intelligence, presence and constantly increasing (including helping airlines to meet both business and operational. SITA’s capabilities across the key operational IATA Resolution 753). Airport IT Trends Survey 2016 shows areas of flows – which provide the airports’ high level of commitment necessary data for SITA to drive Further evidence of SITA’s involvement to business intelligence initiatives collaboration and furnish critical in industry programs came with – current and planned (end of 2019) – intelligence at airports. the launch of SITA Smart Path™ at particularly in the areas of passenger Passenger Terminal Expo in 2016, To that end, SITA’s Airport Solution Line flow management (77%), airport exemplifying SITA’s steps towards works closely with the world’s airports, operations (73%), airport security self-service security which integrates airlines and ground handlers – as (71%) and baggage operations (70%). biometric technologies into stages well as governments – to improve the The survey highlights equal vigor of the journey. Smart Path™ is a new passenger experience and operational among airports in implementing or solution that allows passengers to processes, while enhancing planning operational intelligence move through the airport and board collaborative decision-making, services, including operational and the aircraft simply by presenting financial performance and security business intelligence (BI) dashboards themselves for a biometric check.
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“The system from SITA supports us by providing all the information we need to decide on how best to deploy our resources while enabling our operations teams to respond proactively to changes in our operating environment.” Steve Rick, SVP Support Services, Menzies
for airport staff (87%); ground, Among other activity, the year saw the Enhanced offerings include Airport vehicle tracking systems and Moving launch of Miami International Airport’s Collaborative Decision-Making Maps (73%); and flight updates through ground-breaking mobile app designed (A-CDM) capabilities, leveraging SITA’s Aviation Information Data Exchange for passengers and all airport users acquisition of delair Air Traffic Systems (68%). – described by the airport as ‘Your in 2015. The acquisition reinforces Personal Travel Assistant’. As a clear SITA’s leadership position in AMS by SITA’s increasing capabilities in indication of the kind of services to offering a suite of modules enabling harnessing data throughout the expect from the Internet of Things, A-CDM that is in increasing demand airport enables the provision of this became the first airport app in the by airports around the world. It was such intelligence. This remained a US to use latest technologies, such as pivotal in aligning for and delivering major focus in 2016. Back-end data Bluetooth Beacons, to give travelers A-CDM consultancy for Toronto management can create significant personalized updates, directions and Airport. value by delivering actionable up-to- tips based on their location and needs – the-minute insights for airports, key all through a highly intuitive interface. A major contract for airport operations stakeholders and passengers through “Our app can guide you from driveway in 2016 came with the decision by VINCI user-friendly tools such as operational to runway with personalized, user- Airports – a top five global player in the dashboards and mobile apps. friendly instructions,” commented international airport sector operating Launched in late 2015, the Business Miami-Dade Aviation Director Emilio T. more than 35 airports in Europe, Asia Intelligence portfolio saw further González. and Latin America – to implement evolution through 2016 and adoption by SITA’s AMS across its global network. customers. It includes: This operational unification will help AIRPORT OPERATIONS the group deliver new efficiencies and • Day of Operations BI. This synergies across its network. Another provides situational awareness to Results from the Airport IT Trends operations contract of note was enhance operational efficiency and Survey in 2016 also show that airport Orlando International Airport’s work to collaboration by allowing airports operations are one of the industry’s set a new standard in airport displays and stakeholders to monitor real- top three priorities for IT investment. with a new display that spans the time conditions more efficiently. In response, SITA’s comprehensive length of five football fields – creating a Early adopters include Adelaide and Airport Management Solution (AMS) fun and interactive check-in experience Orlando International Airports. – an integrated system that supports and enhances airport operations from for the 42 million passengers who • Day of Travel Services. Leveraging landside to airside, from landing to travel to and from the airport every beacons and sensor technology, Day take off – expanded its capabilities year. of Travel Services are able to push to include Cloud and Software-as-a- A further 2016 landmark was laying out relevant contextual information Service (SaaS) models. This work is the groundwork for a new integrated and content to passengers on ongoing, embracing airports of any solution for airport control centers, smartphones through mobile apps, size, as additional airport operational launched in early 2017 and called SITA augmenting their experience with models are explored in more depth. real-time situational awareness as ControlBridge. Bringing together a they progress through the airport. blend of professional services and a
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AIRPORT THOUGHT LEADERSHIP
SITA’S AIRPORT SOLUTION RFID for Baggage Tracking LINE PLAYS A KEY ROLE AS New research shows that the air INNOVATOR AND THOUGHT transport industry could save US$ LEADER IN THE GLOBAL AIR 3 billion and dramatically reduce mishandled baggage with the use TRANSPORT COMMUNITY, AS of Radio Frequency Identification EVIDENCED BY WHITE PAPERS (RFID) technology. This paper by SITA DEVELOPED IN THE YEAR and IATA outlines the benefits that INCLUDED: highly accurate tracking using RFID technology can provide through a better record of baggage across all steps of the journey.
The Impact of ICT on Indian Aviation Where is technology taking the Indian aviation industry? Produced jointly by SITA and KPMG, this paper examines the impact technology will have on Indian aviation over the next two decades. It highlights various trends that are prevalent globally and contrasts them with the Indian reality, offering a panoramic view of the aviation industry in India today and into the future. A TIME OF TRANSFORMATION
“Given that we operate in airports that are geographically spread out and diverse in terms of size and markets served, we needed a solution that brought some commonality in the operational systems used by our airports yet was able to accommodate the unique requirements in each location. SITA understood our requirements and provides a fit-for-purpose solution.”
Nicolas Notebaert, CEO VINCI Concessions and Chairman, VINCI Airports
technology platform, ControlBridge – ENDTOEND BAGGAGE SITA’S INCREASING as with SITA’s other airport operations CAPABILITIES IN HARNESSING SITA’s baggage portfolio centers on the solutions – aims to improve airport DATA THROUGHOUT THE provision of an end-to-end baggage operational efficiency, increase AIRPORT ENABLES THE collaboration among stakeholders, and tracking and management solution to reduce delays and costs for airports reduce mishandled baggage volumes, PROVISION OF CRITICAL and airlines. Yangon Aerodrome improve passenger satisfaction and UP¦TO¦THE¦MINUTE Company Limited, in Myanmar, will comply with IATA Resolution 753. But INTELLIGENCE. SITA IS be the launch customer of SITA’s it is also exploring deeper services COMMITED TO BUSINESS AND ControlBridge solution. around the baggage process – OPERATIONAL INTELLIGENCE directing, tracking and tracing baggage In fact, delays and disruption remained INITIATIVES ACROSS A RANGE throughout the passenger journey, OF AREAS, FROM PASSENGER issues high on the year’s agenda for from check-in to final destination. SITA. Airlines worldwide achieve FLOW MANAGEMENT AND an average on-time performance of Once again, the unlocking of critical AIRPORT OPERATIONS, TO 77%, with flight delays resulting in an data is vital. IATA Resolution 753 DASHBOARDS FOR AIRPORT estimated direct cost amounting to as requires that by June 2018 airlines STAFF, AND MORE. much as 4% of global airline revenues keep track of every item of baggage (US$ 28 billion in 2016) leading to a from departure to arrival. This is loss of competitiveness and passenger key to decreasing the number of loyalty. To improve resilience, Airline mishandled bags while reducing Operations Control Centers (AOCC) the costs for airlines. Through a and Hub Control Centers (HCC) need strong collaboration between SITA’s to collaborate and make decisions Airport Solution Line and SITA Lab, more effectively. SITA worked hard the company is investigating and during the year on the development of developing cost-effective technology an innovative disruption management that will allow airlines to track bags solution for launch in 2017, a unique across their journey. This includes market-leading capability that will smart tags, scanning infrastructure address this costly issue. This is on and common back-end systems as well top of SITA’s current real-time flight as new bag tracking technologies. performance tool that provides end- An early proof-of-concept is providing users with critical flight information APIs and smartphone apps to enable through 3D visualizations, Gantt charts airlines to track bags at remote and dashboards. airports; and to confirm that delayed bags arrive at the destination airport and are handed over to couriers to be
SITA | GROUP ACTIVITY REPORT 2016 39 A TIME OF TRANSFORMATION
“Abu Dhabi International Airport continues to experience double- digit passenger growth and therefore we are investing in new airport facilities that will allow us to accommodate the forecast future increase in passengers. In order to achieve this we require a trusted technology partner, such as SITA, to provide one-stop, integrated IT solutions across the airport.” Eng. Ahmad Al Haddabi, Chief Operations Officer, Abu Dhabi Airports
delivered to their final destination. SITA’s suite of intelligent solutions partnering with SITA Lab on SITA’s APIs offer huge potential in the airport within the Passenger Processing and Baggage Community Program (see no matter what the platform, offering SITA BagDrop portfolios. page 61), and trialing an automated the potential to unlock data and baggage robot, ‘Leo’, again with the advance technology-driven services. SITA’s BagDrop either leverages SITA Lab. Leo provides a glimpse into SITA’s BagJourney, for instance, existing check-in desks or can be the future where robots can make a harnesses the 3.1 billion baggage installed as a new-fit solution for real difference in managing baggage information messages (BIMs) a year new terminals. Passengers can opt at every step from check-in to delivery that SITA manages for the global for self-service bag-drop or a mix at the destination. Starting its trial airline and airport community through of self-service and agent-assisted at Geneva Airport, Leo subsequently its message distribution service, approaches. An innovative mobile app toured the world during 2016, BagMessage. gives operational staff a complete attracting global headlines and making overview of the live status of all SITA appearances at multiple airports and More than 250 airports and 550 airlines BagDrop units and sends push- industry events. around the world use BagMessage to notifications about passengers who exchange information on the location may need extra assistance. CONTINUOUS EVOLUTION of passengers’ baggage. BagJourney Among a broad range of new contracts, frees up this immense amount of data SITA’s ongoing developments and Adelaide Airport announced late created about baggage, making it innovations are focused sharply in the year that it had signed a new available and creating value for the air on professional services, service five-year contract with SITA including transport community. operations and management, a move to common-use self-service airport master systems, information In another growing area, SITA launched (CUSS), with the installation of 32 security management, and airport its complete modular SITA BagDrop check-in kiosks and 14 bag-drop units. IT outsourcing – an area which saw solution in 2016, strengthening the Not long after, Mumbai International a SITA agreement in 2016 with Malta company’s position as a leading Airport announced the introduction International Airport to take over the provider of end-to-end technology of Scan&Fly at Chhatrapati Shivaji airport’s day-to-day ICT operations. solutions that enhance the passenger International Airport, the country's As the airport business forges ahead experience. The solution is at the second busiest. The units are available with the evolution of its capabilities, it forefront of the market, helped by to passengers of Air India, Jet Airways, continues to strongly differentiate SITA SITA’s strategic acquisition in 2015 of SpiceJet, Go and Indigo. in the industry. Type22, the Dutch market innovator with an established customer base in Other key developments in 2016 Europe and Asia. Its two core products, included extending solutions to Scan&Fly and Drop&Fly, complement support baggage delivery companies,
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16024 Activity Report - ASL COMMON USE
Leading common use provider, with 45,000 workstations worldwide tracking more than 70% of the world’s luggage.
More than 1.3 billion passengers checked in using SITA’s CUTE (Common Use Terminal Equipment).
SITA has installed 5,500+ kiosks OPERATIONS at 400+ common-use airports.
Using SITA AirportResource Manager, dispatching functions can be cut by 50% and labor costs can be cut by up to 25%.
Self-boarding gates can reduce the number of agents required by 50%.
BAGGAGE HANDLING
Since 2008, SITA has played a major role in the 50% reduction of mishandled baggage.
44 airlines and 27 airports worldwide deploy almost 320 units of SITA’s bag drop solutions.
40% reduction in operational costs and improved efficiency with 60 passengers an hour processed by a self-bag drop unit, versus 24 using desks.
The bag drop process can be completed in as little as 60 seconds for a passenger with one self-tagged bag.
WorldTracer, the No.1 baggage tracing network, is used at over 2,800 airport locations with 460 customers worldwide.
WorldTracer Kiosks typically save up to 40 minutes in reporting lost baggage compared to queuing to speak to an agent.
BagConnect can resolve almost 100% of baggage handling issues caused by transfer baggage that has no associated baggage information message.
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WORLD LEADERS IN BORDER governmental budget constraints add a Eastern government, along with a MANAGEMENT further strain on capabilities. range of renewals with governments in the Middle East and South America, The imperative for safe and secure SITA has been successfully addressing including Brazil. borders is a fact of life worldwide – but this requirement through an evolving global air borders are under increasing portfolio for more than 20 years. In the significant US market, an extra pressure. The Global Terrorism Index In 2016 the company maintained 177 Automated Passport Control shows an 89% increase in terrorism its position as world leader in (APC) kiosks were deployed, bringing year on year, with nine attacks on air the provision of a complete set of the total in that country to some 550. transport targets since mid-2015. Of capabilities to transform border New US airports were added to the 30,000 people leaving home to fight security and facilitate travel. These scheme – including Honolulu, Kona and wars in other lands, 25% have returned include information, intelligence, Southwest Florida International Airport and are creating fresh concerns over optimized interactions with travelers at Fort Myers. More kiosks are being risk. As a consequence, a growing and comprehensive insights to enhance implemented in 2017 as US Customs & number of governments are placing every aspect of border operations. Border Protection continues to expand tighter restrictions on immigration. the APC program, particularly to Positioned at the center of air overseas pre-clearance sites. The negative economic impact of transport’s IT infrastructure, SITA is ® these events on air transport is uniquely placed to help governments In Europe, 27 self-service iBorders significant. For example, as a result respond to their border challenges. BorderAutomation ABCGates were ® of the attacks in Paris in November SITA’s iBorders portfolio provides added in Italy (doubling the installed 2015 and Brussels in March 2016, Air government agencies with the base), including for the first time at France-KLM estimated the cost to be information they need to make Bologna Airport. Replacement gates around €70m in lost revenues, easyJet informed decisions. At the same time were installed in Rome’s Leonardo reckoned a 7% decline in revenue per SITA is using technology to simplify, da Vinci-Fiumicino Airport, following seat, and Lufthansa saw a marked speed up and facilitate the processing major damage as a result of a fire that decline in long-haul services to of legitimate passengers without swept through Terminal 3 in May 2016. Europe. Of course, the consequences compromising security. Elsewhere, significant enhancements run more deeply as well, having a were delivered to United Arab Emirates direct impact on the affected nations’ A YEAR OF CONSOLIDATION and New Zealand customers. The ® image, trade and tourism. major iBorders project for the Following record results in 2015, Government of Oman achieved a Increased security measures SITA’s Government business faced milestone during the year, while, as implemented to provide a safe pressure on growth in 2016, in part noted in the Airports report, a environment inevitably affect due to contract delays. However, the Smart Path™ pilot was completed at a passengers, airlines and airports alike business remains robust, with a strong major Middle Eastern airport, which is – which helps explain why passengers’ pipeline of new opportunities, together set to become an important reference negative sentiments about air travel with renewals of and enhancements point for SITA in demonstrating a are highest with regard to security and to existing business. This included a simple, fast, secure whole journey border control. Meanwhile, widespread new iBorders® contract for a Middle
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“The new (SITA) technology has helped improve the passenger experience at Naples Airport by speeding passengers through immigration while ensuring that we meet the highest security standards at Italy’s borders. The ABCGates are really a win-win technology for airports.” Alessandro Fidato, Director of Infrastructure & Operations, Naples International Airport
identity management solution. The government stakeholders and The portfolio works according to a multi-government Passenger Name coordinating local suppliers. four-layered approach: Record (PNR) system went live with • Information — comprehensive three government services: the PORTFOLIO EVOLUTION traveler information from airlines system now processes PNR data from and other carriers, as well as multiple airlines to the US, Romanian SITA’s iBorders® Border Management integration with external data and Turkish Governments, helping solution delivers effective border sources such as government airlines bridge the gap between their security by identifying high-risk databases. legacy systems and government data travelers and reducing document requirements. and identity fraud. It lowers the • Intelligence — powerful risk cost of dealing with unwanted and assessment tools combined with In April, Australia’s Department of inadmissible travelers by preventing travel document and identity Immigration and Border Protection them from arriving at the border. verification to transform traveler introduced an Advance Passenger It simplifies and speeds up the data into actionable intelligence. Processing (APP) program using processing of low-risk passengers – ® • Interaction — pre-clearance for iBorders for departing travelers. freeing immigration officers to focus passengers in advance, secure Airlines are required to provide data on high-risk travelers. for all travelers leaving Australia, in risk-assessed self-service border advance of their flight. Passengers iBorders® also combines available clearance for travelers holding pre-cleared for departure through this information from multiple agencies biometric travel documents. process are allowed to quickly self- to provide real-time insights into • Insight — comprehensive metrics on process through immigration control the border operation and complete border performance combined with by using the SmartGate in Australia’s situational awareness. Advanced predictive analytics to enable risk- international airports. Implementation reporting and performance analysis based allocation of resources and coincided with the commencement of tools ensure efficient and risk-based management of border operations. the Government’s Foreign Fighters resource allocation. legislation amendments. The Outward APP program includes all airlines and all flights out of Australia. In total, 47 airlines are now fully certified and running around two million transactions a month through the Australian Outward APP program powered by iBorders®.
A significant APP service in South East Asia has now been implemented, including facilitating airline engagement and data submission, providing consulting services to A TIME OF TRANSFORMATION
“We needed seamless passenger processing and to be able to get new airlines up and running quickly. SITA’s common-use self-service kiosks and workstations make it easy for us to welcome new international airlines to this great facility and make this unique border crossing smooth and fast for all travelers.” Juan Francisco Martinez, CIO, Grupo Aeroportuario del Pacífico (Tijuana Airport)
Also introduced were the Multi-PNR watch-list checks (to identify known Mobile border control is another Gateway – an enhancement to the undesirables) and profiling (to identify natural growth extension to border iBorders® TravelerData product potential high-risk unknowns) to security. Mobile applications will designed to make it easier for airlines sophisticated business analytics tools enhance the traveler’s experience to comply with government data that allow the data to be viewed and and further enhance the efficiency requirements by providing a central manipulated dynamically. The goal is of border patrol agencies at ports location through which to send to mine the data to identify and act on of entry and exit. Mobile technology data to multiple governments. This patterns that correspond to threats, will not replace other self-service enhancement will also lower delivery including uncovering networks of border control solutions (such as gates and deployment costs for government individuals involved in a criminal or and kiosks) or border management customers. terrorist enterprise. systems. However it will become an important technology complement. In addition, governments are MARKET GROWTH demonstrating a greater interest in Finally, security enhancements The focus on innovation will continue end-to-end Advanced Passenger achieved within the air transport sector in 2017 and beyond, with the additional Information (API) and/or PNR – such as advance border security aim of diversifying SITA’s Government solutions. These entail not only systems and border automation – are business into adjacent markets. data transmission but also risk now sought after for land border management tools: carrier portal, crossings and sea ports. Governments The business is strongly positioned to reporting, visualization, storage, and are increasingly enquiring about meet ever developing market trends. integration with external systems such integrated solutions that integrate all Within existing areas of the border as Interpol and government watch- three border sectors – air, land sector, for example, the automated lists. and sea. border control market continues to expand with more than a 20% market New market opportunities are opening Overall, the twin challenges of global growth a year. The US has been one up. For example, a growing number of security and passenger facilitation will of the primary growth countries with airports worldwide are also showing continue to drive strong growth for more than 1,400 Automated Passport interest in end-to-end identity SITA’s Government business, which Control kiosks and it is expected that management. The much sought after has now set ambitious targets for its an increasing proportion of countries prize is to improve the experience growth and scope in the future. worldwide will be implementing of the traveler by shortening the automated border control programs processing required to undergo airline over the coming years. check-in, security control, immigration control and aircraft boarding. Governments are also demanding Biometric technology will make end- more sophisticated tools for risk to-end identity management a reality assessment of traveler data, from and it will become a natural extension of a nation’s border security objectives.
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A TIME OF TRANSFORMATION 60% of G20 members and all Gulf Cooperation Countries (GCC) use PROTECT SITA iBorders®. THE BORDER 100+ ? airlines are connected to SITA iBorders® to supply traveler data to border agencies globally. 192 million 20 million travelers per year are processed Number of unique biometric by governments using SITA identities handled by SITA iBorders® Intelligence. iBorders® ldentityAssurance to verify the true identity of 500+ million travelers in one Far East nation. traveler data records per year are processed using SITA iBorders® 50,000 Information products. A European government uses SITA iBorders® Intelligence 300 million products to identify more than passengers handled through 50,000 high-risk travelers SITA iBorders®. per year. SPEED UP FACILITATION
TRUSTED 15 seconds PARTNER Average time it takes for SITA PROFILE IDENTIFIED biometric gates to process travelers at the Irish Naturalisation & Immigration Service (INIS) at Dublin Airport.
SITUATIONAL 89% AWARENESS satisfaction with automated immigration gates. (2015 IATA Global Passenger Survey) Up to 60% reduction in wait times 10+ countries at border crossing for users of have a comprehensive view of SITA iBorders® border operations with SITA BorderAutomation ABCKiosks. iBorders® BorderOperations; powering collaborative 1.5 million decision-making and risk-based During the 2010 FIFA World Cup, OPTIMIZE targeting of resources. South Africa used SITA iBorders® RESOURCES TravelerData to swiftly process 30 million more than 1.5 million annual border crossings in passengers. a Middle Eastern country are managed using SITA iBorders® Insight. 1:5 One border officer can manage up to five iBorders® BorderAutomation ABCKiosks from an immigration counter. 92% of eligible travelers successfully processed in less than 10 seconds with no operator intervention using SITA iBorders® BorderAutomation ABCGates. (SITA e-gates trial)
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SITAONAIR
PIONEERING CONNECTED INFLIGHT REVOLUTION NOSETOTAIL AIRCRAFT SOLUTIONS Inflight connectivity is increasingly Within this dynamic, rapidly- Set up to help airlines realize the full seen as an integral part of airline changing environment, SITAONAIR’s potential of the connected aircraft, travel. For example, while 37% of unique combination of airline SITAONAIR is a successful and growing airlines currently operate connected cockpit communications and IT and part of the SITA business. As leader aircraft, this figure is expected to connectivity expertise places it in in its field, SITAONAIR is pursuing increase to 66% by 2019, when 60% the best possible position to provide the mission to address the strategic of airlines plan to offer mobile device connected aircraft solutions to enable imperatives airlines face in ground services inflight, compared to 21% connected aircraft for every airline and inflight connectivity; cockpit data today. According to SITA’s 2016 Airline in the world. By the end of 2016, services and air traffic management IT Trends Survey, 92% of airlines are SITAONAIR served over 400 airline solutions; aircraft communications focusing on smartphone applications to customers operating more than 16,000 and infrastructure solutions; interact with passengers. aircraft overall. and application development for Today the principal driver for SITAONAIR solutions include passengers and crew. upgrading to a connected aircraft technology, applications and services SITAONAIR has long been a pioneer in is improvements to the passenger created in partnership with airlines, inflight connectivity, with OnAir set up experience (46%), followed by original equipment manufacturers in 2005 as a joint venture with Airbus, maintenance and aircraft health (OEMs) and airframers, to address who then sold their 33% stake to SITA monitoring (15%), benefits for pilots the challenges and value-generating in February 2013. In January 2015, (12%) and improvements for cabin opportunities of the air travel industry. SITA and OnAir formed SITAONAIR crew activities, such as tablet apps and Regardless of fleet size, route as part of the SITA Group, combining, credit card payments (7%). structure or aircraft type, ‘nose-to- SITA’s global experience of airline tail’ connectivity solutions aim to help One major game-changer for the cockpit communications and IT, and airlines grow ancillary revenues, airline industry has been the move OnAir’s expertise in supplying inflight improve customer experience, enhance to ‘bring your own device’, which connectivity. airline and passenger safety, and brings the potential not only to deliver increase operational efficiency. SITAONAIR grew across its two better inflight connectivity and a more lines of business in 2016, recording tailored passenger experience, but This unique approach enables the solid organic growth for its aircraft also to consider removing seat-back digital transformation of aircraft, and cockpit business, while seeing screens altogether – saving weight and bringing the airline IT department for inflight connectivity an increase fuel costs. closer than ever to the aircraft, and in the number of activated aircraft providing complete connectivity on a (780 by year-end, an increase of 25% nose-to-tail basis, with a full service over 2015), as well as higher average to passengers, crew, cockpit, aircraft, revenue per aircraft helping to drive flight operations and air traffic control. strong revenue growth in this part of The use of apps and Application the business. Programming Interfaces (APIs) brings
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“Indian aviation has an immense growth potential. This will be one of the world’s largest aviation markets within the next five years and Vistara has a prominent role to play in that expansion. We are putting all the right tools in place to make sure we are best positioned to leverage the growth opportunity. The efficient communication and network technology that SITA and SITAONAIR have delivered are both essential for smooth operations and facilitating our expansion.” Phee Teik Yeoh, CEO, Vistara
integration and a consistent experience solution to the airline’s fleet will be Inmarsat that confirms SITAONAIR’s across the function of the airline, while easily implemented. position as a distribution partner for enabling airlines to unlock and handle Inmarsat’s SwiftBroadband-Safety vast amounts of aircraft data. SITAONAIR’s EFB is fully cloud-hosted, (SB-S) service. We will be ready comes with full back-end integration, to provide this innovative cockpit allows the integration of/switching IFE AND EFB broadband IP service to our customers, to third party applications and has enabling future applications enhancing SITAONAIR recorded several a highly intuitive pilot interface that flight tracking such as “black box” data significant successes during the year. simplifies workflows during briefings streaming. August saw the announcement of a and while in flight. It is the market’s partnership with AeroMod International only EFB to include all of these In November, SITAONAIR announced – an industry leader in avionics and features. a new partnership with US companies SM aircraft structural modification and Aireon and FlightAware to provide repairs – to install SITAONAIR wireless TRACKING its airline customers with Aireon’s inflight entertainment (IFE) services space-based automatic dependent on Philippine Airlines aircraft. The One critical area of need in the industry surveillance-broadcast (ADS-B) adaptation was achieved swiftly, with is aircraft tracking. With ICAO’s Global data. Launch customer was Malaysia one wireless IFE-installed aircraft Aeronautical Distress and Safety Airlines, announced in early 2017. returned to service every day. System (GADSS) Concept of Operations Starting in 2018, SITAONAIR airline mandating automatic flight tracking customers with ADS-B Out equipped The decision by the airline was from November 2018, airlines now aircraft will have access to 100% supported by evidence from SITA’s need to incorporate this technology global flight tracking data, in real annual Passenger IT Trends Survey: into legacy fleets to meet upcoming time, through SITAONAIR’s AIRCOM® two thirds of passengers would tracking requirements. FlightTracker product. be happy to access entertainment services via Wi-Fi on their own device. SITAONAIR has worked closely with In July, it was announced that airlines to understand the challenges Rolls-Royce had selected SITAONAIR’s Earlier in the year, Royal Brunei presented by this enormous task, and AIRCOM® FlightMessenger to Airlines adopted SITAONAIR’s has developed its ground-breaking collate and distribute Engine Health Electronic Flight Bag (EFB) solution, AIRCOM® FlightTracker in response, in Monitoring (EHM) data from its delivering paperless operational operation with 50 airlines by year end. engines, which fly on over 6,000 information to pilots onboard its aircraft and collectively operate for SITAONAIR has also been focused Airbus A320-200 fleet, and as backup over 100-million hours per year, on the evolution of cockpit on the airline’s Boeing 787-8 fleet. generating thousands of messages a communications, working closely The move to EFBs was part of the day. The EHM data is used to anticipate with key partners such as Inmarsat airline’s digital transformation – having maintenance needs and maximize the to ensure SITAONAIR is at the already initiated flight planning, operational life of engines. datalink services and flight tracking forefront in this core area. With this in in partnership with SITAONAIR. As a mind, SITAONAIR put in place a new Finally, in April, Polish Air Navigation result, the integration of this digital Memorandum of Understanding with Services Agency (PANSA) selected
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SET UP TO HELP AIRLINES REALIZE THE FULL POTENTIAL OF THE CONNECTED AIRCRAFT, SITAONAIR IS A SUCCESSFUL AND GROWING PART OF THE SITA BUSINESS.
SITAONAIR to supply the data link in the 2016 independent analysis • Grow ancillary revenues: key to this service required to comply with by Routehappy – the first of its kind will be to offer a mobile, social, and EU Data Link Regulations for the merchandising content platform for local experience that the passenger Single European Sky – mandating flight shopping – on the state of inflight values. that European air navigation Wi-Fi. Eleven SITAONAIR customers • Improve the passenger experience: service providers and airlines were placed in the world’s top 20 the passenger experience of the implement Controller Pilot Data for long-haul flights, measured by future will be personalized and Link Communication (CPDLC). This available seat miles. updated in real time for each enables the exchange of text messages customer. between pilots and air traffic THINKING AHEAD controllers, supplementing voice with • Enhance airline and passenger the more reliable datalink. Today, The inflight connectivity revolution safety: digitization of the cockpit SITAONAIR enables CPDLC for more is well advanced, with airlines will empower the airline’s technical than 14 air navigation service providers investing heavily in the latest crew with more applications, (ANSPs) in Europe, which together satellite broadband and connectivity which will lead to new connectivity manage 90% of air traffic across technologies. However, many airlines requirements. the EU. are struggling to fully realize the • Increase operational efficiency: opportunities for development. the effective, real-time transfer Current operational limitations across INDUSTRY ENDORSEMENT and utilization of aircraft data can platforms, technologies, fleets and provide airlines with the ability Awards are valued as an expression service providers make integration, to enhance operations, lower of significant achievement in the innovation and unifying the passenger maintenance costs and improve industry – and in 2016 SITAONAIR portfolio and experience, complex, turnaround time. received a number of them through time consuming, and cost ineffective the year. Two accolades were given at for airlines. The connected aircraft is a fast the 2016 InFlight IFEC Awards – Best changing market with very active Fulfilling its role as innovator and Global Connectivity Provider and Best players and stiff competition. As thought leader, SITAONAIR set out an Innovation in Commercial Airline a global leader in this market, agenda for radical change in October, Cabins. SITAONAIR will continue to build a calling for services to be provided sustainable business for the future – In April, SITAONAIR and partner, consistently on every broadband by providing services, IP connectivity network policy controls solution communication technology with an and data management across cabin, provider Sandvine, were named the open architecture – ushering in the cockpit and aircraft to empower the ‘Most Innovative Policy-Enabled second inflight connectivity revolution. air transport industry through tailored Project or Application’ at the 2016 nose-to-tail connectivity solutions that Policy Control Awards, a deployment For the future, SITAONAIR is focused deliver true connected aircraft value. which ultimately delivers a high quality on what it sees as the four strategic Internet experience in the sky for imperatives of airlines – and its our airline customers’ passenger. responses: Also, SITAONAIR featured strongly
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A TIME OF TRANSFORMATION
280,000 passengers served 1,300 connected flights DAILY CABIN 35,000 internet sessions
85,000 Best Global hits on the hotspot Connectivity Provider Inflight IFEC Awards 2016 400 Best Innovation airline customers in Commercial operating more than Airline Cabins 16,000 Inflight IFEC Awards 2016 aircraft LEADERSHIP COCKPIT 1,500 aircraft / flights actively tracked per day Over 6,000 37% flight plans generated of airlines currently operate per day connected aircraft +10,000 Expected to rapidly increase to ADS-B stations 66% in the next 3 years CONNECTIVITY ON AN IMPULSE
SITAONAIR was involved in the Solar SITAONAIR provided broadband Impulse project from its earliest satellite technology for real-time stages and joins prestigious industrial pilot voice and data communications, and scientific partners including and a specially-designed ground Schindler, Omega, ABB, Google, Bayer, infrastructure to assure global Altran, Moët-Hennessy and Swisscom. air-to-ground communications for the aircraft. This connectivity allowed In July 2016, Solar Impulse completed the Solar Impulse team to track and the first round-the-world flight by monitor the aircraft in real time, giving a solar-powered aircraft, reflecting them access to real-time weather SITAONAIR's spirit of innovation updates, as well as providing access to through their support for this project. real-time biometrics data.
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THE NEXT GENERATION OF UNIQUE IN THE MARKET And customers such as Air Seoul PASSENGER SERVICES and SAGAT are now generating close The portfolio includes a self- to 100% of their load sheets using In today’s connected world, administered code-share package Horizon® Weight & Balance. passengers’ experience of air travel that is unique in the market and is increasingly impacted by how much enables airlines to self-manage MOMENTUM they have choice and control over their configuration, processes, parameters, journey. SITA’s 2016 Passenger IT business rules, workflows and product The year was characterized by growing Trends Survey, for example, reports definitions. It addresses business momentum towards major product that 93% of passengers reported an objectives as well as technical and launches in 2017. First, next generation enjoyable experience when booking, functional requirements. Another Horizon® Departure Control Services which they can do online, using their unique for SITA is its sole focus on the was successfully beta-tested in smartphones, or talking with an agent. airlines' objectives, as unlike Global November with an SAS flight out of Distribution Service (GDS) providers Funchal Airport in Madeira. Testing More than half of all passengers of Passenger Services Systems (PSS), continued with a weekly Norwegian Air already use some self-service SITA has no third-party distribution charter flight. technology during their journey and system to protect. they prefer interacting with technology By the end of the year, product for travel tasks rather than people. In 2016, more than 100 airlines and performance fulfilled the major This is particularly true if they own – ground handling agents used Horizon® functions of check-in, baggage and therefore control – that technology to board over 123 million passengers processing, printing of bag tags and in the shape of a smart mobile device, and check in 158 million, though the boarding passes, seating, boarding, an approach understood by Air India figures were lower than 2015 as a interline through check-in and close- through their launch in October of result of the demise of SITA customer out. Deployment of the first production SITA’s iTravel® state-of-the art mobile Transaero Airlines in late 2015. customer, Air Arabia, is scheduled for platform to its more than 18 million 2017. New customers included Bhutan passengers. Airways, Charlie Airways, Egyptair, Second, the first beta test of Horizon® Within a rapidly evolving environment, Eva Air, Air Europa, Mid Africa Aviation Consumer – designed to provide an SITA’s next generation Horizon Company Limited, Sky Prime Charter, optimal user experience irrespective of Passenger Management and Taban Airline Company and Tehran whether the customer uses a desktop, Distribution portfolio offers one of Airways. Renewals included Air Bagan, smartphone or tablet – was launched the most comprehensive ranges of Fly Jamaica, Iraqi Airways, TAAG and in December with RwandAir. This first passenger management services TACV. release of Horizon® Consumer allows available in the market, with an customers to search, shop and make Existing customers also increased infrastructure built on a flexible bookings, view and print completed their usage of the portfolio. Domestic platform of core systems including bookings on a fully responsive site. A Russian airline S7, for example, reservations, ticketing, inventory, further release includes additional recorded a 22% volume increase in check-in, departure control and weight passengers boarded in 2016 over 2015. and balance.
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“As Saudi Arabia’s leading private aviation operator, we have customers that demand the very best experience from the moment they make their booking to when they leave the aircraft. SITA has recognized our unique requirements and through the Horizon® platform are able to provide a solution that positions Sky Prime as the best aviation services company in the region.” Salem Abaid Al Muzaini, CEO, Sky Prime
payment options and support for In 2016, a centralized channel-agnostic airline to make better-informed RwandAir’s new A330 Premium Horizon® Merchandising API was decisions and improve business Economy cabin. launched, paired with the responsively planning. In 2016 the number of BI designed Merchandising App. licenses had more than doubled, with Subsequent releases will add features nine airlines and 55 licensed users by such as Integrated Check-In, Manage INTELLIGENCE AND year end. My Booking, Sales of Ancillary services, Multiple Payment Options HEALTH CHECKS Strong intelligence depends on an (including via mobile) and greater optimal working environment and a Business intelligence tools are language support, including right to healthy system based on prevention no longer a luxury. According to left reading. rather than cure. Horizon health SITA’s 2016 Airline IT Trends Survey, checks and consultative support every airline is looking to analytical A new development program has been are increasingly in demand, with 60 ® capabilities to improve their introduced with Horizon Consumer delivered in 2016 – three times the performance and gain a competitive that moves the product from a number commissioned in 2015. A edge. However, there are many ‘thick client’ application, to a ‘thin further increase is anticipated in 2017. user interface’ approach. The aim challenges in extracting meaningful is to leverage the technology stack and actionable insights from the NDC being implemented and deployed as millions of megabytes of data that airlines hold. It takes expertise to part of the Horizon Next Generation IATA’s New Distribution Capability manage, integrate, analyze and report Transformation program along with (NDC) is a communications protocol data in ways that contribute to fast, a new Content Management System that allows a richer dialog between well-informed decision making. (CMS), enabling a reduced time to airlines and distribution partners, market with simplified configuration Horizon® Business Intelligence based on the exchange of XML requirements. removes that complexity. Airlines messages. It supports the ability to respond in real time to a request from Meanwhile, a growing number of can clearly and quickly see what a seller with a specific, priced offer of customers are integrating Horizon® their data is telling them – they can services, including flight seats on the Merchandising to offer ancillary identify, evaluate and take action on airline and its interline and code share services through consumer-facing trends, challenges and opportunities. partners as well as ancillary services. channels, including lounge access, It monitors the business 24/7 – taking It also supports airline merchandising extra bags, in-flight meals and each passenger journey into account initiatives as well as personalization entertainment, and seat selection. This from booking to arrival. and the use of rich media, such is a solution based on Horizon® Service At the heart of Horizon Business as graphics and video in the sales Fees, which provides ancillary pricing Intelligence (BI) is next generation process. to call centers and airport agents technology, accessible by the web, the and is also available through SITA’s cloud and via any desktop or mobile Thanks to a rapid development e-commerce and mobile applications, device. The dashboards provide a program, in 2016 IATA awarded SITA making it easy for travelers to buy holistic view of data, enabling the the ‘NDC Capable’ Level 2 and 3 status services directly.
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123 million Passengers Boarded
“Today the market for airfares is extremely competitive and can change rapidly. SITA’s Airfare Insight gives us an immediate and 60% clear view of what is happening in the market, allowing us to increase in Electronic make informed and timely changes to our pricing, providing our Miscellaneous Documents passengers with the most competitive airfares available.” Tomi Hänninen, VP Revenue Management & Pricing, Finnair 158 million Passengers checked in
POPULAR for Horizon PSS. Level 3 is the highest Earlier in the year, an Airfare Insight LOOKING FORWARD PASSENGER status available to providers and Sub Working Group meeting included means that SITA can support airlines 24 participants from 13 airlines. The past couple of years have seen SERVICES whenever they are ready. Subjects covered included how unprecedented competitive activity in industry trends are affecting the the passenger services market, which WORKING AND LEARNING fares management practice and the has changed the landscape for SITA’s implications for Airfare Insight, as well next generation Horizon portfolio. The Horizon Working Group is a vital as an update on the product roadmap The intensified competition and rapidly part of a collaborative approach to and planned enhancements. changing Passenger Services Systems future PSS solutions and a cornerstone market led SITA to embark on a search of SITA’s Customer Community Model. Working together and learning for strategic partners to accelerate The 10th meeting of the Group took together is a constant theme within DELIVERING and achieve further growth and place at the end of 2016 in Greece, the passenger arena. SITA University NEW TECHNOLOGY development (see CEO Report, attended by 47 customers from 20 supports the learning process page 14). SOLUTIONS airlines and ground handlers. Subjects for SITA’s passenger solutions, covered included a general product providing product-specific training for With the support of and the key roadmap overview, a demonstration customers primarily via e-learning partner evaluation criteria set by the ® of Horizon Consumer – including and classroom. It has expanded both in SITA Board and Council, the process is Level 2&3 feedback from beta customer achieved for terms of users and courses, with more ongoing and expected to conclude ENGAGING RwandAir – and a broad range of than 7,600 students registered, 216 in 2017. ‘NDC Capable’ status product demonstrations, interactive active courses available and over 1,000 WITH discussions and forward-looking sub-modules released. CUSTOMERS discussions. 1st In 2016, the University’s scope was airline to check in using extended to all of SITA’s solution lines, Horizon® Departure Control providing a single interface for all 71 customer training and reducing costs Participants at Horizon across the business. 17 Working Groups Weight & Balance deployments 60 customer health checks 7,600 students of SITA University
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123 million Passengers Boarded 60% increase in Electronic Miscellaneous Documents 158 million Passengers checked in
POPULAR PASSENGER SERVICES
DELIVERING NEW TECHNOLOGY SOLUTIONS
Level 2&3 achieved for ENGAGING ‘NDC Capable’ status WITH CUSTOMERS 1st airline to check in using Horizon® Departure Control 71 Participants at Horizon 17 Working Groups Weight & Balance deployments 60 customer health checks 7,600 students of SITA University
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CHAMP CARGOSYSTEMS
CONNECTING THE CARGO provides the most comprehensive customers and major ground handling COMMUNITY range of integrated IT solutions agents using Cargospot worldwide, and distribution services for the air millions of cargo messages sent The air transport sector now carries logistics community. Its portfolio through CHAMP’s distribution services more than 35% of global trade by spans Cargo Management Systems, Traxon cargoHUB, and millions of value – equivalent to US$ 6.8 trillion a messaging and integration services customs declarations processed by year. This is driven by the evolution of through the Community Integration CHAMP's Traxon Global Customs Global Value Chains (GVCs), which is a Platform and a comprehensive suite of solution. complex web of trade links resulting eCargo solutions. in component production, assembly, As the air cargo industry faces or research and development, In 2016, the company continued with the need to transform, CHAMP is producing finished goods such as cars, consistent growth, successfully uniquely positioned to bring this computers, cellular phones, and even implementing major customer about. The trends that show the aircraft. According to an IATA report projects, securing important new need for transformation are in clear on GVCs at the end of 2016, the World business with carriers of all sizes evidence. For the air cargo sector, time Trade Organization estimates that across the world, as well as major has become an increasingly crucial almost half of global trade now takes renewals with Lufthansa, Ethiopian differentiating factor, driving the need place within GVCs. Airlines, and Air France-KLM. Further for technology and seamless processes achievements in the year included across supply chain stakeholders. At a time of global volatility, it is more 10 Cargospot new wins, a dozen new important than ever that all those Traxon Global Customs customers (and Shippers today are also demanding involved in the air cargo business – many existing customers subscribed greater transparency, which is whether they are shippers, forwarders, to new countries), three new airline generally provided by integrators Ground Handling Agents (GHAs), connections to CargoHUB, and 6.1 such as DHL, UPS, Fedex, and TNT. General Sales Agents (GSAs), airlines, million Traxon Global Customs But other industry stakeholders lag customs, legislators or IT service declarations. behind. Transformation and effective providers – are able to coordinate collaboration will only be achieved seamlessly to facilitate the secure and TRANSFORMATION through the right IT being in place for time sensitive transport of freight. efficient and secure sharing of critical CHAMP is at the heart of global Timely and accurate flow of information information at the right time. This is air freight, evolving as a virtual parallel to the physical flow of goods is a core area of focus for CHAMP and integrator for the air cargo industry. essential for successful, cost effective thanks in particular to the availability The company’s goal is to move all processes and customer satisfaction. of cloud-based software solutions, the stakeholders into using 21st century industry’s transformation to newer To this end, CHAMP Cargosystems technologies to help facilitate technologies can be made faster connects the cargo community. As collaboration. CHAMP’s breadth and no longer means high-risk, high a leader in air cargo connectivity, it includes 150-plus Cargospot expense, and low return on investment.
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“We are very pleased with the cutover of CHAMP’s Cargospot software, customized to meet our exacting needs. The team has successfully implemented a solution which will benefit Cathay Pacific’s worldwide cargo business both in the short and long term. CHAMP’s technology and ongoing support will keep us at the forefront of an ever-changing air cargo industry.” Simon Large, Director, Cargo Cathay Pacific Airways Ltd
Another driver for transformation is Other business highlights in 2016 were EXPANDING PORTFOLIO the impact of e-commerce on what major project implementations and is flown and where. The sector lags cutovers for Alitalia, CargoExpress, At a portfolio level, 2016 saw the behind passenger evolution, but freight Egypt Air, Quantem Airport Services, 25th anniversary of electronic data forwarders and ground handling Asam Mali, Inversiones Albri, Total communication under the Traxon agents are increasingly looking to Airport Services and Airbridge brand, originally launched in 1991 automate processes to increase International Agencies. by Air France, Cathay Pacific, Japan efficiencies in the supply chain. Again, Airlines and Lufthansa. The company CHAMP is positioned to enable this. It Also completed at the end of the year became part of CHAMP Cargosystems requires tools and services that will was Weight & Balance implementation in 2011. enable the exchange of electronic for one of the leading cargo carriers Traxon Global Customs continues information, at the same time reducing in the US, Kalitta Air, with a fleet of 16 to make the provision of Advance manual or paper driven processes, Boeing 747 freighters. Customization Customs Information quick, efficient and delivering real-time monitoring included the planning and reporting and easy, regardless of format, of shipments via the introduction of to be in lbs or kg, support for military communications protocols or new technologies, or the integration flights, and some enhancements to processing rules – serving close to 50 of existing services to generate new the desktop version. Kalitta Air have countries. In 2016, nine more countries services. obtained Forward Freight Agreements (FFA) approval for Weight & Balance were added: Canada, Republic of for their fleet of aircraft in October and Congo, Jamaica, Egypt, Nicaragua, CUSTOMER PROJECTS went live in November 2016. Mexico, Paraguay, Philippines, and Senegal. Planned for 2017 are Jordan, The completion of major projects for Lebanon, Eurasian Economic Union, JAL Cargo and Cathay Pacific has been ACE export, and Saudi Customs. a key milestone. For Japan Airlines Further work is being progressed in (JAL), this included implementation 2017 to facilitate customs reporting across 35 airports worldwide, while for export. for Cathay Pacific this covered their worldwide cargo operations to more than 100 destinations worldwide. The final rollout of revenue accounting is due to be completed mid 2017. These projects affirmed CHAMP’s complex project management and consultancy capabilities in helping customers deliver change management.
A TIME OF TRANSFORMATION
“CHAMP provided us with extensive support and knowledge helping us implement Advance Electronic Information in Senegal. The expertise and client coverage of their customs solution was crucial in our decision making process in selecting CHAMP.” Colonel Alioune Dione, Director of Customs IT Systems, Senegal Customs
CHAMP continues to develop its The year began with the announcement the benefits of its solutions. CHAMP Hybrid Cloud Strategy, aimed at of a partnership with Dutch company also launched its social media providing the optimal solution to CLIVE bv. This company’s allocation presence in 2016 and will continue customers, independently of size, management tool, when integrated using LinkedIn and Twitter to regularly location, distribution or other specific with CHAMP’s Cargospot suite, share information and engage with the requirements. Next to its own private further streamlines the airline’s cargo air cargo community. cloud, the company integrated into its allocation process. service portfolio the SITA ATI Cloud, In September CHAMP was endorsed Amazon Web Services and Microsoft In September, CHAMP announced as IT Industry Partner of the newly Azure cloud services – aiming to a partnership with another Dutch created African Airlines Association improve geographical presence and company – CargoXS – to provide Cargo Task Force (AFRAA CTF). increased capability of tailoring its its Cargo Quality Center service CHAMP will be represented at all CTF solutions for each customer. to CHAMP’s clients. This state-of- sessions and have the opportunity the-art real-time warehouse work to be part of the recommendation Finally, with the emergence and progress monitoring product offers and decision-making process. increased popularity of cloud services, airlines and ground handling services Endorsement also came in the shape of CHAMP has seen growing interest tools to enhance quality of work and the Stat Times International Award for among Cargospot customers for improve client satisfaction. CHAMP Excellence in Air Cargo in the category Software-as-a-Service (SaaS), and also partnered with freight forwarder International IT Systems Provider of in particular the avoidance of upfront associations – including Pangea and the Year. capital expenditure in data centers Penta Solutions – to accelerate the and IT operations, as well as the participation of network members in With e-Commerce being both a major advantages of a ‘pay-as-you-go’ IATA’s e-AWB and e-freight initiatives. opportunity and risk to the air cargo commercial model. community driving – together with the Partnership and collaboration time sensitivity of air cargo – the need The launch of a new online customer are essential components of the for more efficiency and automation, IT self-service portal, ServiceNOW, community approach. CHAMP’s will continue to play a crucial part to underscored a fresh approach towards collaboration efforts involved the setup maximize the cost effectiveness of air engagement with customers and of a CHAMP Advisory Board, a renewed cargo stakeholders. With the increased prospects. African Airlines Association (AFRAA) use of SaaS technology, which makes membership and Cargo Task Force IT investments more affordable due COLLABORATION member to demonstrate its focus on to the lack of upfront costs, CHAMP is the African air cargo community, and well positioned for a strong 2017 and CHAMP’s approach to service partnering with other service providers beyond. development consists not only of that can help enhance CHAMP’s continuing to design and build the service capability and offering. key strategic services, but also of partnering with service providers who The e-learning portal, The CHAMP can enhance the company’s service Academy, ensures CHAMP staff and capability and offering. clients are fully trained to maximize
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170081 Activity Report - CHAMP
Traxon cargoHUB
+35% net messages 110+ vs 2015. Airlines and ground handlers by year-end deploying CHAMP’s customs solution for electronic filing with customs authorities in Traxon cargoHUB Cargospot AWB 45+ countries – in compliance with the EU-ICS (Import Control System) and other national customs +17% +17% requirements. distinct shipments year-on-year handled vs 2015. growth of Air Waybills processed. 1,500+ Collaborating with stations in more than 100+ Traxon Global countries around 20 300m Customs the world. key industry messages stakeholders and a year. +20% partners. year-on-year growth. 200 Traxon Global 450+ Air cargo carriers, general Customs CHAMP sales agents and handlers, professionals is available and 3,000+ freight forwarders in more than – as part of the world’s focused on 20m biggest cargo community with air cargo IT. shipments connectivity all along the 45+ supply chain. countries. a year.
15,000+ USERS 6,800+ individual partnerships within the community. THE WORLD’S BIGGEST CARGO COMMUNITY A TIME OF TRANSFORMATION
TOGETHER, THE COMMUNITY REDUCING THE COST OF Aviareto Limited, jointly owned by HAS DRIVEN FINANCE AIRCRAFT FOR AIRLINES the Irish Government and SITA, is RISKS OUT AND COSTS GLOBALLY a not-for-profit company based in DOWN, BRINGING GREATER Dublin, Ireland, with the sole remit of When an airline adds an aircraft to its operating the International Registry, as EFFICIENCY FOR ALL. fleet, a key decision is how to finance required by the Cape Town Convention this expensive asset. In financing and Aircraft Protocol. aircraft, airlines carefully manage the balance between leasing, balance CRITICAL ROLE sheet funding, secured mortgages, unsecured loans and capital markets. Due to its critical role in the industry, Getting these decisions right can mean the International Registry is regulated the difference between the investment by ICAO in Montreal. In 2016, Aviareto being a success and a failure. In the was reappointed by the Council of ICAO aviation industry, it is sometimes easy to operate the registry until 2021, a to forget the critical role our aviation measure of the general acceptance of finance colleagues play in making the system and its popularity with the aviation available to the public at industry. reasonable cost. The International Registry is a highly A legal regime was introduced in secure, cryptographically enabled 2006 which has proven successful in website, developed by a team of driving down aircraft finance costs software and security experts based and which has made more funds in Letterkenny, Ireland, part of SITA’s available, particularly from the capital development center of excellence. markets, for the world’s airlines. One The website itself is highly resilient, North American Carrier claims to operating across three data centers to have saved over US$ 100 million in ensure valuable data can never be lost. the last five years due to this regime. The figures speak for themselves. Part of that regime is the International There were over 118,000 registrations Registry where loans, leases and in 2016 and over 60 countries have sales are registered online, and SITA is ratified the legal regime, with more in playing its part in this vital community the pipeline. As an international trade initiative.
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treaty, the Cape Town Convention and Aircraft Protocol is considered to be one of the most successful ever in terms of acceptance and its ability to deliver the benefits that had been anticipated.
As a community service supported by SITA, this must be considered an exemplar. It is something that no airline could do on its own, but together, the community has driven finance risks out and costs down, bringing greater efficiency for all. Other industries, such as rail and satellites, are eyeing this success closely.
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INNOVATION FOR THE airlines, airports and technology in-flight applications to the first COMMUNITY specialists, the Lab encourages and iPad-based kiosks for plane tickets. participates in a broad range of cutting APIs are made easily available from Step changes in technologies are edge pilots and trials within a secure the developer.aero site – where driving radical innovation across the air environment, across the industry and a growing range of APIs enable transport community. IT-as-a-Service, in all parts of the world. developers to simply tap into a rich cloud computing and software defined store of aviation data that will open networks (SDN) feature highly among SITA Lab’s work has resulted in eight up an area of enormous potential for these technological breakthroughs, patent applications to date, including thousands of innovators, start-ups as do innovations around the Internet SITA’s first ever US patent. In 2016, and small technology companies of Things, which through the use of the Lab maintained its drive to resolve worldwide, resulting in game-changing sensors are enabling greater control challenges and opportunities faced by innovations for passenger experience, over the journey. the community. Pilots, trials, launches airport management, flight operations, and investigations took place across a and the connected aircraft. Combined with the capabilities wide range of technologies and work of big data, we are seeing fresh streams, which include: The beauty of having simple API access opportunities in business intelligence, to a wealth of data is that this data can • APIs data and predictive analytics, and both be reused over and over again across cognitive and artificial intelligence. • Resolution 753 multiple applications and customer Prominent in the rapidly evolving mix touchpoints. Nowhere is this more • Name Matching are mobile solutions and Application clearly demonstrated than in the Programming Interfaces (APIs) • Smart Identity diverse utilization of the BagJourney which are tied in with new payment • iTravel© and WorldTracer APIs that put baggage technologies and on-board connectivity management and tracking firmly back options. Meanwhile blockchain is one of • Robotics. into the hands of the passenger from the technologies promising new levels the start of their trip to their arrival at of cybersecurity – a critical capability API ADVANCES their destination. that underpins everything digital. SITA Lab works with highly experienced The challenge of big data is magnified This is the landscape in which the and dynamic developers who are tightly when confronted by terabytes of data SITA Lab – the company’s strategic focused on researching and developing produced in-flight. The answer relies technology research arm – works solely for the air transport community. on a combination of rapid and robust closely with the air transport These developers pioneered the API connectivity, flexible platforms, APIs community to stimulate innovation for platform approach to unlocking vast and the creative drive of the app the community’s benefit. At the same amounts of operational and other data community. time, its remit is to help introduce to meet the industry’s expectation emerging technologies into SITA’s for up-to-the-minute information at portfolio of products and services, and various steps of the journey. This has onto the air transport community’s resulted in a number of air transport agenda. Through collaboration with world firsts – from the first mobile
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“MIA Airport Official 2.0 is the latest example of how we are leveraging new technology to make travel through our airport easier than ever … Thanks to the installation of data beacons, our mobile app can now guide you from your driveway to the runway with personalized, user-friendly instructions.” Emilio T. González, Director, Miami-Dade Aviation
COMMUNITY INNOVATION One of the first proofs of concept The NameMatching solution has been being developed is the WorldTracer® implemented as a RESTful API to Much of SITA Lab’s time in 2016 was Baggage Delivery Service. Using SITA’s enable developers to integrate a name directed at leading three of the five WorldTracer ®, the Lab is developing match into any booking, check-in or initiatives set out in SITA’s Community an API and a mobile application that other security check application. The Innovation Programs: Baggage will allow airlines to track delayed API was made available for testing Tracking, Identity Management and bags once they arrive at the destination from developer.aero and comes with Disruption Warning Systems. airport and are handed over to couriers a default ruleset that can be tuned to be delivered to their owner. according to local requirements. The Baggage Tracking initiative is strongly linked to the adoption of IATA’s Identity Management is another The third Community Innovation Resolution 753, which requires that item on the SITA Lab’s Community initiative - Disruption Warning by June 2018 airlines keep track of Innovation agenda – the challenge Systems - has dealt with one of the every item of baggage from departure faced by airlines in manually carrying industry’s most pressing challenges, to arrival. It will boost bag tracking out name checks, particularly what which costs the air transport industry and enable airlines to provide better happens when the names don’t match around US$ 25 billion a year. The information to passengers about the exactly between the reservation and objectives were to report as quickly status of their bag. It implies that the passport or other identification as possible any major issue affecting bags will be scanned at additional document. This can be the case for airline and airport operations reading points. This is where RFID as many as 25-50% of Asian and (‘disruption detection’) and to predict can help with lower marginal costs of Middle Eastern names, for example, disruptions based on historical data implementation and very high reading due not least to the finite limits of the (‘disruption prediction’). The main goal performances. The SITA IATA business machine readable zone on passports or is to be able to predict the vast majority case published in 2016 shows that boarding passes. of delays well in advance, which will industry adoption of RFID could lead to be a first for the industry. The work a US$ 3 billion saving over seven years. Many airlines will accommodate began with the search, acquisition and a near-enough match, subject to validation of various historical and live Collaborating with colleagues in the government and/or law enforcement data which can be used to detect and Airport Solution Line and with third requirements. Some airlines require predict disruptions. party companies, SITA Lab has been an exact match or otherwise impose researching and developing solutions an administrative charge. In a proof- that will allow airlines to track bags of-concept exercise in mid-2016, every step of the way. The objective is SITA Lab proposed an automated to propose a Resolution 753 kit airlines solution to address the issue. It was and airports can use according to found that algorithm-based name their specific needs. This is achieved matching is very fast, far exceeding the by leveraging the existing baggage performance of eye-ball comparison portfolio to make it fully 753 compliant of names, and eliminating errors due (see also ‘RFID for Baggage Tracking’, to human fatigue from repetitive data page 38). comparison.
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For data decoding, the Lab tested carrier, with promising early results, process is SITA’s Smart Path™ various Natural Language Processing especially on short delay predictions. solution, which captures a passenger’s (NLP) techniques, with two proof-of- The priorities in 2017 are to focus biometric details with a facial scan concepts running in parallel: one with on long delays and begin creating during an enrolment process at a kiosk IBM to test the capabilities of Watson a model for airports. The year will or bag-drop, whichever is the first services to understand and classify also see work underway to launch touchpoint in the journey. NOTAMs (Notice To AirMen); and the first version of an innovative another one with an Irish startup called disruption detection/prediction and Once checked against the passenger’s Aylien, to collect, filter and categorize management solution for airline Hub travel documents, a secure single publicly available news. For flight delay and Operational Control Centers – token is created and stored in a predictions, various machine learning based on flight schedules, airline secure biometric database within the and data mining techniques were tried rules, aircraft tail assignments and airport – for use at every interaction to predict aircraft departure, taxi in- external events. through the airport, for the duration of out and arrival times. the passenger’s journey, after which all biometric information is deleted. SMART IDENTITY As part of a six-month trial starting Successful trials were completed at a in late 2016, delay predictions were SITA Lab has been exploring single major Middle Eastern airport. validated with operational data token travel as well – an innovation This project is part of SITA’s Identity provided by a leading Asia Pacific that will allow travelers to pass Management Community Innovation through borders with a single, digitally Program (see Chair’s Statement, verified identity. The first stage in the page 8), led by a team of six SITA Lab
architects and developers. Further
work was undertaken during the year
to create a reusable mobile token
that can be stored securely on the
passenger’s mobile device – instead
of in an airport database – and then
used in every airport. This would leave
passengers in control of their data.
Records of transactions in relation to the capture, encryption and storage A TIME OF TRANSFORMATION
“The smart use of new technologies is undoubtedly the key to improving the passenger experience while helping airlines better manage a growing number of travelers in a more sustainable way. This requires out-of-the- box thinking and Leo is exactly the sort of innovative exploration that will help airlines and airports manage the new challenges we as an industry will face in the next decade.” Abdelhamid Addou, Chairman & CEO, Royal Air Maroc (Commenting on ‘Leo’, SITA Lab’s fully autonomous, self-propelling baggage robot.)
of biometric data for the passenger – check-in flows. The apps added LEO GOES TRAVELING and all gate and border transactions innovative features such as passport – would be stored on the blockchain, scanning and credit card scanning, It was a major year for robotics at the allowing independent verification and check-in notifications and integration SITA Lab. In May, passengers arriving further guaranteeing data integrity into Apple Wallet. at Geneva Airport – including delegates without compromising data privacy. to SITA’s Air Transport IT Summit In October of the year, the apps were and Annual General Assembly – were Once the work is successfully launched for Air India too, both Android offered help with their baggage from completed, APIs and Software and iOS. They were well received, with Leo, a baggage robot developed by Development Kits (SDKs) will be a four-star rating for both Android and SITA Lab. Leo is a fully autonomous, made available on developer.aero to iOS versions. Important elements of Air self-propelling baggage robot with manage all functionality regarding India’s digital strategy, the apps enable the capacity to check in, print bag tags the registration of the user identity, a passenger to book and pay for a flight and transport up to two suitcases with storage and encryption of biometric by securely scanning both passport a maximum weight of 32kg. It has an data. and credit card. They can then fully obstacle avoidance capability and can manage their booking from their navigate in a high-traffic environment Eventually it will include interaction mobile device, including seat selection, such as an airport. between the mobile device and airport itinerary changes, additional services, equipment (kiosk, gate and security, for meal selection and check-in. The Leo is the first step to automating the instance) as the concept of the token app has also been integrated with Air baggage process from the moment is accepted globally as the verified India’s Flying Returns loyalty program. passengers drop their bags to when identity and ticket of the passenger. SITA Lab will continue to innovate with they collect them. Using robotics and Additional information may later be Air India and add new features to the artificial intelligence, bags can be added to the token for subsequent native apps. collected, checked in, transported and releases, including visas, landing loaded onto the correct flight without cards or ETAs (Electronic Travel The iTravel® API was also adopted ever having to enter the terminal Authorization). to be used as the mid-tier service layer for Horizon® Consumer, the iTRAVEL MAKES PROGRESS Horizon portfolio’s next generation e-commerce platform. This enabled ® iTravel saw important progress in the successful 2016 launch of 2016 with the relaunch of the Malaysia Horizon® Consumer with RwandAir Airlines iTravel native apps which (see page 50). included a brand new user interface to streamline both the booking and
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“Increasingly passengers are demanding more control over their airport experience. They want to personalize the services they receive from the airport to their own requirements or needs. SITA’s beacon technology allows us to deliver on this expectation and offer a highly tailored experience to our passengers, in particular our frequent flyers. Indeed this technology will facilitate access to Fast Track Security for Airport Premier Gold members, allowing them to use their frequent flyer card automatically.” Jean-Pierre Torres, Head of IT, Nice Côte d’Azur Airport
building or be directly handled by Meanwhile work continued in 2016 drones providing communications anyone other than the passengers to explore the potential use cases infrastructure for governments, to themselves. Leo went on its own for unmanned aerial vehicles (UAVs) augmented reality platforms for travels later in the year, visiting or drones. In April, SITA hosted the aircraft mechanics, and chatbots – industry events in Hong Kong and first European Unmanned Traffic intelligent conversational interfaces Singapore during October, before being Management (UTM) conference, providing concierge style services to hosted by Air Maroc in Marrakech, in Geneva, with participants from passengers through a mobile app. Morocco for the COP22 climate talks in NASA, EUROCONTROL, skyguide November. (the provider of civil and military air For the future, SITA Lab will continue navigation services in Switzerland) evaluating new technologies with the potential of enhancing and contributing SHARING INNOVATION and other bodies concerned with agreement over regulations for to SITA’s portfolio of products and Collaboration is the essence of success the interoperability of drones and solutions, and adding value to the air in innovation. This was demonstrated aircraft. Following the conference, the transport community. This will include in a number of ways during the year. In Global UTM Association was founded emerging ideas from the Internet of October, the second SIA App Challenge (based in Lausanne, Switzerland and Things, mobile and APIs, business – organized by Singapore Airlines including SITA as a Founder Member) intelligence infrastructure, wearable and sponsored by SITA Lab – saw and was due to publish results from technologies, and biometrics – solving 280 participants compete in a week its first working group in March real problems and building solutions of intensive brainstorming, coding 2017. Additional working groups that can translate into improved and prototyping. SITA Application and initiatives were scheduled to be passenger experiences, and better, Programming Interfaces (APIs) and announced in 2017. more efficient ways of working. beacon technology were integrated into a range of solutions to improve In November, SITA Lab hosted its travelers’ experiences, whether in the Annual Innovation Day, when 10 airport, inflight or at the destination. companies, working at the cutting edge of IT, showcased technologies and SITA APIs that were available and development ideas, from innovations used by the teams and other finalists in space to those anchored firmly on included BagJourney, Boarding Pass, Earth. Members of the SITA Board FlightInfo, WaitTime and Weather and SITA Council were also invited to APIs, in addition to a Bluetooth Beacon the event. The demonstrations varied infrastructure supported by the SITA from a project to harness the sun's Beacon API and Common Use Beacon energy for electrically powered aircraft Registry. and solar-powered stratospheric
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170081 Activity Report - SITA LAB
BAG STATUS 1st-plus 3 The SITA Lab has of SITA’s five Community achieved many world Innovation programs involve firsts – from the first the SITA Lab: Baggage mobile in-flight Tracking, Identity applications to the first Management and Disruption iPad-based kiosks for Warning Systems. plane tickets, and more.
US$ 25bn 1st is the estimated cost caused autonomous self-propelling to the air transport industry baggage robot, ‘Leo’, with by disruption every year. The the capacity to check in, print SITA Lab’s work is leading bag tags and transport up to the way, aiming to predict two suitcases with a the vast majority of delays maximum weight of 32kg. Leo has already traveled the well in advance, which world appearing at several will be another first for major events. the industry.
1 US$ 3bn travel token. The SITA estimated savings for 8 Lab is making blockchain the air transport patent applications the basis for virtual or industry over seven to date owing to the digital passports in the years through use of SITA Lab’s work, form of a single secure RFID technology – SITA including SITA’s first travel token on mobile / IATA research. ever US patent. and wearable devices.
10 Name companies at the cutting edge of IT showcased ideas and technologies at SITA’s Matching annual Innovation Day in SITA Lab developed an 2016. From technologies in algorithm-based name space to those anchored matching solution to address firmly on Earth, they all offer the issue of matching names huge promise for air travel between passports and in the future. boarding passes.
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SITA GLOBAL SERVICES
A KEY ASSET FOR AIR For example, in the past three years, class operational quality. In addition, TRANSPORT SITA has successfully reduced ISO20K certification will be sought for downtime hours by 80%. In terms ITIL-based central operations. In 2016 SITA Global Services (SGS) of dealing with incidents when they made significant strides towards do occur, 89% of major incidents are CUSTOMER CENTRIC its vision as a world class service resolved in less than two hours. organization dedicated to the air Hardening customer environments transport industry, driven by a strategy OPERATIONAL EXCELLENCE to protect and secure information focused on four dimensions: customer from cyber threats is a primary centricity, operational excellence, SGS continued to deliver strong focus area. In 2016 the Airport commercial performance and high results in 2016 for the critical strategic Security Project was established to performing people. dimension of operational excellence, drive this at airports. The project notably in three areas. First, will continue in 2017 and beyond to As a key SITA asset, SGS staff deliver availability targets were increased in assess vulnerabilities, protect against advanced services to customers 2016 compared to 2015 – and were met malware, harden infrastructure, around the world, as experts with for 23 out of 24 SITA core applications upgrade locations that still run end- unparalleled air transport industry- supported by SGS. Across those of-life Windows operating systems dedicated experience across more core applications, 99.98% overall and more, leading to additional than 125 countries. SGS provides the availability was achieved. Second, sites achieving ISO27K certification. service capabilities, the reach, and performance was boosted with a year- Singapore’s Changi airport was the the understanding that are essential on-year reduction of 29% in the rate first to achieve this certification in to keep IT and communications up of incidents per asset. And third, there October 2016. and running to ensure a secure and was a 30% reduction in the number of successful air transport technology major incidents, resulting in a year-on- SGS also worked with a pilot group environment. year reduction of 40% in major of customers and SITA’s Customer outages duration. Advisory Board to gain a deeper The SGS service model combines understanding of how SITA’s services global 24/7 Command Centers, with These results were driven by continued contribute to customer business technical experts and smart technology investment in lifecycle management outcomes. This will enable SITA to supported by people on the ground of hardware and software in SITA’s jointly identify with customers’ areas to to continually monitor and optimize Data Centers, which further improved further improve value and quality, and service performance. They aim to pre- stability and supportability, integration to provide differentiated services. empt and proactively resolve problems of data center environment support before these problems have a chance into the SITA Command Center and a to impact service. focus on best practice processes.
In 2017, the infastructure will benefit from an investment program designed to refresh the compute, storage and network architecture to cement world
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“The SITA team's responsiveness makes it great to do business with. I especially appreciate the work the team does when the problem is not theirs, but they still assist. The follow-up and support of our SITA team makes the difference.” Wayne Moss, Director - IT Global Field Operations, Delta Air Lines, Inc A TIME OF TRANSFORMATION
AS A KEY SITA ASSET, SITA GLOBAL SERVICES STAFF DELIVER ADVANCED SERVICES TO CUSTOMERS AROUND THE WORLD, AS EXPERTS WITH UNPARALLELED AIR TRANSPORT INDUSTRY DEDICATED EXPERIENCE ACROSS MORE THAN 125 COUNTRIES.
An essential means of measuring the teams in SITA’s Command Centers. the Service Model at airports will extent to which SITA delivers on its This incorporates pre-emptive and be further extended and the central promises to customers, particularly preventative intervention to avoid component further evolved, spanning in the service area, is the mix of key service interruption, as demonstrated all core services and markets. This will performance indicators. The Customer by the reduction in incidents per asset include a review of how and where SGS Satisfaction Index score is based in recent years. works with partners and suppliers. on individual and in-depth Voice of the Customer surveys. In 2016, 482 In 2016, as part of the plan, SGS Second, as part of its Cloud 2.0 surveys were completed – yielding initiated a company-wide review of initiative, SITA’s ATI Cloud will be a score of 4.17 and 97.7% customers its IT Service Management System, migrated to the latest standard satisfied with SITA service. This completed the first phases of a proof- architecture. And third, SGS will compares favorably with the score of of-concept for a potential replacement conclude the selection process for a 4.15 in 2015 and 4.10 in 2014. system with selected customers, and new Information Technology Service implemented a new configuration Management System and then embark The Net Promoter Score, which management solution in the Data on migration to the chosen system. matches SITA against best-in-class Centers. averages for a business-to-business These initiatives will facilitate organization, was 67.2% against a As SITA’s markets begin to embrace a modular approach offering target of 64% and 63.3% recorded in new consumption models and SITA’s standardized service where it makes 2015. This metric is being recalibrated product portfolio evolves towards commercial sense, with the flexibility in 2017 to provide an external infrastructure and location-agnostic to offer customized service where anonymized benchmark against peer platforms, SGS will continue with customers have specific requirements. companies. initiatives through the definition of and migration to a common range of TRANSFORMATION architecture, together with a converged Service Catalog for Data Center, In recent years, SGS has been cloud and distributed (on premise) undergoing its own transformation environments. program. This has now firmly established an innovative Service Looking forward, three elements Model, leveraging automation and in particular should be noted. First, the support provided by specialist during 2017 and 2018, the reach of
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2 2,000+ state-of-the-art dedicated aviation IT specialists Command Centers and engineers available on-site (Montreal and Singapore) and remotely.
Global Customer 4 Service Team servicing next generation >40% Data Centers 2,800 of SITA's staff work in 35,000 customers worldwide. customer service and support workstations and (SITA Global Services). 2,000 kiosks supported at 413 CUTE airports. SITA GLOBAL SERVICES TEAM 89% CUSTOMER of Major Incidents 450,000 resolved in 2 hours. Customer calls SERVICE
SERVICE 96% of calls answered 4 EXCELLENCE in <20 secs. Service Desks 110,000 Proactive incidents 67% detected drop in Major Incidents in the last 3 years.
Reduced downtime hours by 80% 97.7% in the last 3 years. of customers absolutely satisfied, very satisfied or satisfied with SITA's service.
4.17 / 5 Customer Satisfaction score Leader in Service Excellence: 99.98% availability achieved across core applications.
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BUILDING SKILLS FOR by internal candidates and employee also delivered to more than 80% of TRANSFORMATION referrals making up the next largest managers with the aim of enhancing group. This trend reflects SITA’s capabilities to set meaningful As a global organization, SITA employs commitment to career progression and objectives and to drive ongoing more than 4,700 people in over development. performance throughout the year. 125 countries and almost 360 sites Internal capabilities to attract and worldwide. Together its staff represent CUSTOMER CENTRICITY 140 nationalities and speak over 60 identify high quality candidates languages. continue to be strengthened. In 2016 A new Service Charter launched in this included investment in new third the year will broaden and strengthen As an organization with mission critical party assessment methodology to the skills and behaviors of employees responsibilities for most of the world’s support executive and sales hiring focused on customer success. The airlines and airports, over half of SITA’s efforts. These assessment tools ITIL-based SITA Global Services people are in customer-facing roles. A have helped build a map of skills and training focused on best business further third are directly involved in the competencies within certain groups, practice when in consultation with design, development and deployment enabling more constructive employee customers. In addition, 127 Sales of solutions and services for customers conversations on the topic of career professionals completed Sales and the air transport community at development and support for internal Excellence programs certification in large. mobility. 2016, enabling improvement of sales performance across the Geographies. They represent a massive reservoir of A new careers website and increased talent, skills and experience of both the investment in social networking air transport sector and the constantly platforms, such as Glassdoor and TECHNOLOGY MANAGEMENT shifting landscape of information and LinkedIn, has resulted in an increase PROFESSIONALS communications technologies. Their in the number of followers engaging Technology Management professionals expertise and commitment offers an across these platforms as well as undertook a competency assessment incomparable and invaluable asset for improved employer ratings. the global air transport community. and validation program with 87% completing the assessment. They LEADERS & SKILLS also took part in ‘The Open Group ATTRACTING TALENT As part of SITA’s transformation, HR is Architecture Framework’ training SITA is a leader in a specialist sector helping to develop leaders and skills and certification for Architects as and the company’s human resource for the future. In 2016 the Management well as a ‘Design Thinking’ proof-of- mission remains to attract, develop & Leadership Excellence (MLX) concept initiative. SITA’s Technology and engage the best talent who can program was delivered to those senior Management professionals also saw bring value and innovation to the air leaders who form part of the Executive the launch of an Active Learning transport industry. Team succession pool. The program Portal, which provides access to is designed to build an enterprise- targeted learning developed against Over 450 positions were filled in 2016 wide leadership mindset and skillset. the profession’s competency-based job with more than a quarter of these filled Two impactful MLX programs were role requirements.
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A TIME OF TRANSFORMATION
OVER 4,700 >40% PEOPLE EMPLOYED BY OF SITA'S STAFF WORK SITA IN MORE THAN 125 IN CUSTOMER SERVICE COUNTRIES AND 360 AND SUPPORT SITA 140 SITES WORLDWIDE GLOBAL SERVICES NATIONALITIES JOB FUNCTIONS: OVER REPRESENTED, 42% WITH SITA STAFF OF STAFF IN SERVICE 80% MANAGEMENT OF SITA MANAGERS SPEAKING OVER RECEIVED MANAGEMENT 60 LANGUAGES AND LEADERSHIP 18% EXCELLENCE TRAINING TECHNOLOGY 127 MANAGEMENT SALES EXCELLENCE STAFF LOCATIONS: PARTICIPANTS WERE 87% CERTIFIED 8% PROJECT 14% OF SITA'S TECHNOLOGY ASIA PACIFIC MANAGEMENT MANAGEMENT PROFESSIONALS UNDERTOOK A COMPETENCY 37% ASSESSMENT AND VALIDATION 8% EUROPE CUSTOMER PROGRAM IN 2016 SOLUTIONS 31% THE AMERICAS 18% MIDDLE EAST, INDIA AND AFRICA
Across the whole of SITA curriculums participation, with a response rate of facilitate these conversations, giving were created for the SITA Learning 84%. The key measure of engagement, effective feedback and coaching for Portal, a self-service online and mobile Sustainable Engagement, remained at performance. Future focus will be -enabled learning management system the same level as 2015 and above the on aligning objectives to SITA’s four for all SITA employees. Collectively benchmark for the sector – indicating transformation areas of customer, these online catalogs provide easily a strong level of personal engagement. growth, people and efficiency. accessible and tailored learning Although many scores did decrease, solutions covering competencies, as expected in a year of significant In 2017 a new short-term incentives technologies and certifications. The change, overall the company remains plan is being launched to drive a system was also used to supplement ahead of its sector benchmark. stronger emphasis on company targeted learning programs for performance and the behaviors that professions and business divisions. Meanwhile, performance management will drive collective success, increased was simplified by changing from accountability for both divisional a bi-annual process to an ongoing results and reward decisions, and PERFORMANCE AND REWARD conversation about performance and simpler individual objectives that The 2016 employee engagement development. Managers received are more strongly aligned to the survey registered a record level of training to enhance their ability to transformation agenda.
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A CONTINUED COMMITMENT The BBBEE (Broad-based black IT equipment, including an innovative economic empowerment) program saw Raspberry Pi-based e-learning SITA’s commitment to corporate social a further 10 students graduate from resource that gives students access responsibility continued in 2016, with the ‘Another Level’ initiative. Working to open source learning content. In programs that focused on social and in partnership with Torque IT, a major Uganda a further four ICT labs were educational activities, as well as training provider in South Africa, SITA funded and equipped, with continued environmental management, across provides a context for the young adult ongoing support for students and the globe. learners to practice and develop their teachers. And in Zimbabwe, a new IT-related skills both at the office and project for the year, 100 women BETTER, TOGETHER in the local airport so they may move students were able to undertake the on to employment in the IT world. International Computer Driving Licence Volunteering among employees (ICDL) certificate, increasing their ICT increased through the year, with over A new ICT lab was funded and equipped skills and computing experience. In 223 VIVA (Value in Volunteer Action) by SITA in the Soweto township, addition, the seven women’s halls of days recorded. A broad range of giving secondary school students residence were equipped with 24 hour activities were undertaken for both the opportunity to learn essential dedicated computer labs. The work local and global causes, such as computing skills and gain experience in of the Foundation continues into 2017, International Women’s Day. Among common software applications. This is with projects continuing in Uganda, them were events that supported the fifth project in the last five years. South Africa, Zimbabwe and Ethiopia, health and wellness projects, support and in addition to the current locations, for veterans, aid for children’s and FOUNDATION a new project will begin in Zambia. elders’ causes and sporting activities. The SITA Air Transport Community There remained a strong theme ENVIRONMENT around providing for those in difficult Foundation continued to deliver circumstances, with food drives results, with around 15,000 students During 2016 SITA continued its taking place across all regions, and benefitting from the support of the program of office renovation and collections of essential staples for Foundation since it began operations moves. These changes to workspaces those most in need. in 2015. In 2016, 21 students received helped to generate a reduction in financial support at the University of energy consumption of 10.5% to office- EDUCATION Witwatersrand across aeronautical, based operations. This represents information and business studies, around 70% of our workforce. In SITA’s education programs continued along with engineering faculties. A addition, the energy intensity of these to support young students across the further 16 young people received operations was reduced by 5.3% from world, including in South Africa and memberships to the Tchimologong the previous year, while emissions Ireland. At SITA’s Letterkenny offices Innovation Hub, giving them access to intensity saw a reduction of 4.9%. in Ireland, eight undergraduates resources to help develop technology Water consumption is measured in and 12 graduates participated in the skills. three large sites (Singapore, Atlanta internship scheme, gaining valuable and Prague), and during the year it fell In Ethiopia, the 25 schools supported business experience. by 4.4% against the baseline set in the by the Foundation received additional prior 12 months.
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A TIME OF TRANSFORMATION
SINCE THE SITA 700 AIR TRANSPORT PCs installed 15,000 (Ethiopia, Uganda COMMUNITY and Zimbabwe) Students positively FOUNDATION impacted
(Ethiopia, Uganda, STARTED... Zimbabwe and South Africa) 43 Computer labs equipped
46 (Ethiopia, Uganda University and and Zimbabwe) technology hub students funded (South Africa)
11 New computer labs built at schools 25 (Uganda) Rasberry Pi Connect devices delivered (Ethiopia)
200+ Teachers trained
(Ethiopia, Uganda and Zimbabwe)
Emissions from travel are captured SITA retained ISO 14001 “SITA really helped this year, through the corporate travel providers’ (Environmental Management Systems) otherwise I wouldn’t have been systems, and an increase of 2.1% certification in six key locations: able to complete my studies. was recorded (noting also that SITA Atlanta, Montreal, London, Geneva, With the funding I have been extended the reporting reach). SITA Singapore and Rome. able to complete my research has seen a positive take-up in the use Further information on SITA’s report. Thank you so much to of the online web-conferencing system SITA, it’s really appreciated.” implemented at the start of 2016. environmental and social activity can be found in our annual CSR Reports, Lizalise Myataza, MSc Business which can be accessed at Information Systems www.sita.aero/CSR
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SITA AT A GLANCE Easy air travel every step of the way. Transforming air travel through technology for Airlines, at Airports, on Aircraft and at Borders.
Our aim is to be the chosen technology partner of the industry, a position we will attain through flawless customer service and a unique portfolio of IT and communications solutions that covers the industry’s every need 24/7. We are the innovators of the industry. Our experts and developers keep it fuelled with a constant stream of ground-breaking products and solutions. We are the ones who see the potential in the latest technology and put it to work. Our customers include airlines, airports, GDSs and governments. We work with about 400 air transport industry members and 2,400 customers in over 200 countries and territories. We are open, energetic and committed. We work in collaboration with our partners and customers to ensure we are always delivering the most effective, most efficient solutions. We own and operate the world’s most extensive communications network. It’s the vital asset that keeps the global air transport industry connected. We are 100% owned by the air transport industry – a unique status that enables us to understand and respond to its needs better than anyone. Our annual IT surveys for airlines, airports and passenger self-service are industry-renowned and the only ones of their kind. In 2016, we had consolidated revenues of US$ 1.5 billion.
For further information, please visit www.sita.aero
Follow us on www.sita.aero/socialhub
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74 SITA | GROUP ACTIVITY REPORT 2016 SITA | GROUP ACTIVITY REPORT 2016 75 Registered Office © SITA 2017 SITA SC All trademarks acknowledged. 2 Avenue des Olympiades 2 Specifications subject to change without prior notice. This literature B-1140 Brussels provides outline information only Belgium and (unless specifically agreed to Tel: +32 (0)2 745 0510 the contrary by SITA in writing) is Fax: +32 (0)2 745 0517 not part of any order or contract. Printed by Technique Print Group using their environmental print technology. Geographic Offices Printed on Forestry Stewardship Americas Council® (FSC®) accredited paper stock. 3100 Cumberland Boulevard Suite 900 Atlanta, GA 30339 United States of America Tel: +1 770 850 4500
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