Background – the state of the airline business

The global airline industry continues to grow rapidly, but consistent profitability remains elusive. Airline industry revenues have doubled in the last 10 years, reaching a value of USD 746 billion in 2014, according to the International Air Transport Association (IATA). In the commercial aviation sector, just about every player in the value chain—airports, airplane manufacturers, jet engine makers, travel agents, and service companies—have experienced profits. However, the airline industry struggles to break even, with some airlines going out of business. Individual commercial airline responses to global trends will determine carrier performance in the coming years.

Airport operators also face additional challenges. Not only do they make sure that planes run on time, they also ensure the smooth, daily movement of passengers in large numbers across multiple terminals. Travelers today are very tech-savvy; they want to have...