Airline industry could save $600 million by using mobile phones

Research by SITA, a specialist IT provider to the air transport industry, estimates that airlines could save $600 million by using mobile phones to track passengers and reduce flight delays. An increase in mobile phone usage and other portable electronic devices could be used to hold boarding and baggage information, and hold payment data to help reduce paper usage and save time.

The use of location sensing devices could help move passengers to the gate more easily, improve turn around times and reduce flight delays. An estimated 90% of all airline passengers use mobile phones and mobile devices and by 2011 the number of mobile technology users is expected to reach five billion.

“Some of these services are already available to passengers, for example in Norway, Japan and Germany paperless travel is a reality on some routes. But what our research shows is that these mobile services will be available to all travelers worldwide over the next five years. In fact, by the end of 2010, 67% of airlines plan to offer mobile check-in. By then 82% of airlines also plan to offer notification services on mobiles” says Jim Peters, Chief Technology Officer at SITA.

Another use for the mobile phone technology by airlines could be the marketing of revenue-earning services. Manchester Airport reported 45% more spending among shoppers who used mobile phones to receive vouchers in the airport than ordinary passengers.

Francesco Violante, SITA’s Chief Executive officer, added, “The air transport industry needs to embrace these ‘disruptive technologies.’ The rewards will be at the bottom line with improved turnaround time, increased levels of self-service and new revenue streams.”