After three years of commencing partnership, the airline giant KLM and the Boston Consulting Group (BCG) have extended their digital air operations partnership. They have developed, implemented, and launched an artificial intelligence-based solution shown to improve the operations in the airline industry worldwide.
The key to gain competitive benefits is the optimization and digitization in the airline industry for air operations. To meet today’s evolving airline industry demands and fulfill travelers’ expectations, the parties involved have launched these tools for the first time in the market for integrated planning and management of airline operations. They tested the proven offering internally within KLM airline in the previous years.
Using these machine learning, artificial intelligence, and advanced optimization techniques, the state-of-the-art digital solutions help users optimize complicated decisions relating to fleet, crew, ground services, and network and deliver the most excellent customer experience to passengers. In addition, these solutions don’t need replacing any core systems to achieve results in fewer minutes and avoid the necessity of committing to any platform solution that locks the airlines. Ultimately, from the start of the journey, the airline’s IT teams are included in this process flow, and all systems are handed over to these teams.
These top four solutions obtained from KLM’s tech-driven project have improved the operational metrics across the board, and it includes:
- Reduced the number of flights delayed by more than 30 minutes.
- It reduced the missed passenger connections by upto 40%.
- Improving the efficiency of maintenance repair & overhaul planning.
- KLM’s Net Promoter Score (NPS) increased from 38 during 2015 to 41 during 2019.
During the COVID-19 pandemic, these tools and capabilities have empowered KLM and other global airlines to stay more agile at the most unusual airline business and operations volatility.
Followed by the external launch, the KLM and BCG partnership has expanded its tailor-made solutions at several leading airlines globally in the past three years. The airlines include Delta Air Lines (the inaugural customer), Virgin Atlantic, and several airlines across Latin America, Asia, and Europe within the SkyTeam Alliance and GOL.
René de Groot, Chief Operating Officer of KLM, said, Thanks to the existing suite of tools and the in-house capabilities that we have built up in recent years, KLM was able to determine a lot of value from its Operations Decision Support set of tools in 2020, just like in the previous years. I am incredibly excited about having extended this unique cooperation. KLM’s business with Boston Consulting Group (BCG) is one of the building blocks to achieve our ambition to become the world-leading data and technology-driven airline.
Erik Snell, Delta Air Lines SVP Operations and Customer Center, said, As we build industry-leading digital capabilities to support our operations, partnering with KLM-BCG has been a key to accelerating this build across technology, process, and implementation. Delta Air Lines Team are delighted to continue this partnership journey and collaborate with the KLM-BCG partnership to ensure we proceed to deliver world-class performance in air operations for our passengers in the blue sky and disrupted days.
Jason Guggenheim, BCG’s Global Head of Travel and Tourism, said, We are thrilled to extend this one-of-a-kind partnership with KLM airline. Over the last few years, our joint course record of innovation and complementary expertise has seen our partnership go from strength to strength and has proven successful results in the market. Mutually, we look forward to continuing to provide innovative tools for worldwide airlines that will help them emerge stronger out of the COVID-19 crisis.
About KLM – BCG
Royal Dutch Airlines and the global strategy consulting firm established their partnership in the year 2018. They described it as a “pioneering artificial intelligence partnership” that would transform airline operations in the airline industry. The joint forces in digitizing airline operations offer a suite of tools by combining today’s advanced analytics and future travel technologies like AI and machine learning expertise to solve critical air operational issues for global clients.