Archive for the ‘information’ Category:
The Weakest Link Is A State Of Mind
Technology is encroaching on every aspect of our lives and aviation is no exception. But, technology is only as strong as the weakest link in the value chain. In aviation, however, the weakest link also happens to be the smartest and most numerous link.
Technological advances in commercial aviation increase airline margins, but technological advances in public information technology decrease airline margins.
The airlines use data technologies to pack routes tighter in order to maximize their profitability. On the other hand, the Online Travel Agent (OTA) use data technologies to drive prices downward. Lower prices minimize airline profitability – this forces more packing of airplanes.
This leaves the traveler holding the red tape with the elimination of routes, erosion of service, crowded flights, and the emergence of added fees, etc. What happens when the traveler “link” snaps?
When the weakest link breaks, new ones form. From Seth Godin
The magic of our new form of communication is that it’s no longer one-way. If you consume an app, you can write one. If you can read a blog, you can publish one. If you can grab an ebook, you can produce one.
The center has nothing to do with geography any longer. The center is a state of mind.
Aikido Air Service
Aikido is a martial art which uses the principle of non-resistance, moving with the direction of the opponent’s force and redirecting the attack until it is no longer a threat. Likewise, markets flow in the direction of information. Wherever there is an “information conflict”, the opening of new information channels can redirect the market to new innovation instead of continued conflict.
The same NextGen technology also makes it easier for smaller airports to have efficient air traffic control, this will reduce the cost of point-to-point travel. The same OTA technology can effectively list smaller aircraft flying point to point as well as ground transportation and hospitality.
The weakest link also happens to a “state of mind”
The next generation online travel agent may publish all aircraft data and ground transportation in a comparable pricing structure so that information can flow in new directions. The technology of the weakest link simply turns them into strengths by using the opposing forces against themselves.
Social media technology is becoming the dominant marketing tool for on ground events and services and Social Flights is leading that charge. These technologies will change the calculus that the airlines and operators use to optimize aircraft. That is how the circle will be reversed.
The Cooperative Advantage in Private Aviation
Any number of b-school power plays will cite the competitive advantage necessary in hard economic times. But how many people talk about the cooperative advantage?
Information is power
When the buyer has the same information as the seller, markets are more efficient. The Internet has made information free and easy to transport. So, understandably, any business that hopes to survive by restricting information will ultimately find competition from a start-up that does not.
The “equal information” playing field
This scenario plays out over and over as industries as diverse as newspapers to higher education to government to commercial aviation are forced into profound transformation by the availability of equal information. True to conventional wisdom, good information creates more good information and bad information creates more bad information. For Social Flights, our best customer is the educated customer because they’ll educate each other.
Coming to an Airfield near you…
The true cost of flying private jets is one of the best-kept secrets in aviation. Corporate Jets are a source of mystery, controversy, and symbolism. There are many reasons for suppressing true costs such as avoiding public disclosure of VIP expenditures, or to protect profit margins enjoyed by charter brokers.
On the other hand, there are many important and legitimate reasons why some people should fly private instead of commercial. Social Flights believes that there are many situations where the true value of private flight greatly exceeds the cost of private flight for a large population of travelers. The problem is to find possibly millions of passengers who do not know that Social Flights applies to them.
Information Transparency
For this reason, it is essential that a baseline cost be established in a market so that everyone can use the same data to make educated decisions about how to travel efficiently. It is essential that the market can eliminate price distortions, suppress arbitrage opportunities, and equalize asymmetric information. The focus of the industry should be on expanding the market through transparency, not short term gain by hoarding the limited existing market.
Cooperation is the new market advantage
Social Flights has developed an instant flight quote feature that calculates a nominal estimate to fly a private aircraft from any airport in the US to any other airport in the US. This establishes a baseline on the actual cost to fly. From this baseline, jet operators can bid and win missions that are naturally most profitable to them. Or, operators can cooperate with each other by sharing legs in an abundant market rather than compete with each other for a constrained market.
Event planners, corporate executives, travel agents, economic development agencies, and travelers of every type now have the information that allows them to access private aviation inventory for businesses and the magnificent value that it brings to communities. That is the new market advantage.