2015 Analyst and Advisor Summit
Solutions for Air Travel and TransportationOlivier Houri, Global Head, Transportation
© 2015 Unisys Corporation. All rights reserved. 2
Agenda
Key Facts
Sub-Industry Point of Views
Case Studies
Summary
© 2015 Unisys Corporation. All rights reserved. 3
Unisys airport solutions are used by over 100 airports worldwide
Unisys cargo solutions are used by carriers that move over 25% of the world’s air freight
20% of world passenger boardings are processed though Unisys Passenger solutions
Fast Facts
© 2015 Unisys Corporation. All rights reserved. 4
Overview
Unisys is a consistent service provider to the aviation industry with powerful credentials
Airport
Operations
Mgmt
Passenger
Services
SystemsLogistics Management
Airport
Passenger
Facilitation
Master Systems Integration
Consulting
Application Modernization
We partner collaboratively with clients
Domain Knowledge Industry Experience Client Collaboration Deep understanding of airline and airport business and systems
Many employees come from airlines, airports and travel related businesses
Staff at client sites working with the airline and airport day in and day out
Solutions
Unique Market
Approach
Security
Mobility
Cloud
Networks and Infrastructure
Advanced Data Analytics
End User Services
© 2015 Unisys Corporation. All rights reserved. 5
Unisys Transportation POVs
Airline: The Future of Passenger Travel
Cargo: Cloud Collaboration and Digital
Commercialization of Air Cargo
Airport: The Airport of the Future
© 2015 Unisys Corporation. All rights reserved. 6
Unisys Transportation POVs
Airline: The Future of Passenger Travel
Cargo: Cloud Collaboration and Digital
Commercialization of Air Cargo
Airport: The Airport of the Future
© 2015 Unisys Corporation. All rights reserved. 7
Future of Air Travel: Continued Innovation
• Modern consumer expectations continue to evolve and drive the business.
• Web, mobility, social networking have reached critical mass. Capturing traveler mindshare is on every player’s agenda.
© 2015 Unisys Corporation. All rights reserved. 8
Today: Selling Tickets vs. Merchandizing Products
Product Consistency
+
Product Differentiation
=• Targeted offers
• Higher yield
• Ancillary sales
Business objectives
Changes by All Channels
Legacy PSS: higher unit costs; poor time to market;
compromised capabilities
Solution requirements Value Creation Platforms
Business Value
+ =
© 2015 Unisys Corporation. All rights reserved. 9
Unisys “AirCore”NextGen Passenger Systems Solution
Customer-centric
Business flexibility
Technical flexibility
• Rules and parameters versus programming
• No limits (dates, names, record storage, etc.)
• Controls by market, by channel, etc.
• Entirely Java EE
• Service Oriented layered architecture
• Separate interface layer
• All functionality available through services
• Use of consistent customer information
• Decisions and processes revolve around customer value and their preferences versus bookings
TICKETING
Ticketing and
Payment
AUXILIARY
3rd
Party
Solutions
LOYALTY
Customer
Loyalty
SEATS
Seating
DEPART
Check-in and
Boarding
ROUTINGS
Schedules
FLIGHTS
Flight Data
SPACE
Inventory
REACT
Schedule
Change and
Irregular Ops
INFORMATION
General
Information
CUSTOMERS BOOKING
Reservations
CUSTOMERS BOOKING
Reservations
SPACE
Inventory
DEPART
Check-in and
Boarding
FLIGHTS
Flight Data
TICKETING
Ticketing and
Payment
ROUTINGS
Schedules
SEATS
Seating
REACT
Schedule
Change and
Irregular Ops
INFORMATION
General
Information
LOAD
CONTROL
Weight and
Balance
LOAD
CONTROL
Weight and
Balance
© 2015 Unisys Corporation. All rights reserved. 10
Client Collaboration TravelSky
Replace legacy with modern AirCore applications in phases tied to airline business drivers and expansion into Asia market
AirCore applications tailored to architecture and China market. AirCore source code/knowledge transfer
Provide autonomy to largest airline clients while maintaining economies of scale/performance of overall hosting operations
© 2015 Unisys Corporation. All rights reserved. 11
Client Collaboration Iberia
AirCore applications replicated across multiple revenue-generating surround solutions and AirCore inventory suite repurposed as proxy to provide multi-million savings in distribution costs
Unisys Spain team design and build surround applications while global team develops core passengers systems
Focus on introducing new revenue sources and cost savings through rapid delivery of surround applications and enhancements to legacy passenger system
© 2015 Unisys Corporation. All rights reserved. 12
Unisys Transportation POVs
Airline: The Future of Passenger Travel
Cargo: Cloud Collaboration and Digital
Commercialization of Air Cargo
Airport: The Airport of the Future
© 2015 Unisys Corporation. All rights reserved. 13
Air Cargo (Freight) is a Global Driver of TradeCloud Collaboration and Digital Commercialization Driving Transformation
Client transformation required to capture market growth
• Air Freight Moves Over Third of Global Trade Value
– $6.8 Trillion worth of goods, 35% of total trade by value, will be transported around the world by air1
• World Air Cargo to Double By 2033
– World air cargo traffic will increase from 207.8 billion RTKs in 2013 to 521.8 billion in 20332
• Client challenges center around Flexibility, On Time Delivery/Reliability and Cost-Effectiveness
Technology is driver for change
• IATA aiming to cut average transit times by up to 48 hours by 20203
– Modernized processes (e.g., e-Freight), diversification of services, and improving quality and reliability
• Cloud Collaboration and Digital Commerce Driving Rapid Transformation
– e-AWB (Airway Bill) penetration to up to 28.8% (45% target by end of 2015) 4
– Cloud-based models speed technology change and enhancements5 and electronic-supply chains enable more dynamic and optimized business6
• Unisys positioned to drive industry change
– Unisys solutions used by clients who move about 25% of the world’s air cargo
1. "Five-year Forecast Shows Improved Outlook for Air Cargo." www.iata.org. International Air Transport Association, 22 Oct. 2014. Web. Aug. 2015. 2. "World Air Cargo Traffic Growth Detail." World Air Cargo Forecast 2014-2015. Boeing, 2015. Web. Aug. 2015. 3. "Five-year Forecast Shows Improved Outlook for Air Cargo." www.iata.org. International Air Transport Association, 22 Oct. 2014. Web. Aug. 2015. 4. "E-AWB Take-up Not Fast Enough Warns IATA." Www.aircargonews.net. Air Cargo News, 28 July 2015. Web. Aug. 2015. 5. "Cloud Collaboration, Sensors and Digital Commerce Are Driving Rapid Transformation of Air Cargo Carriers into Dynamic, Data-Driven Businesses, Reports Unisys." Yahoo Finance. Yahoo, 28 May 2015. Web. Aug. 2015. 6. IBID.
© 2015 Unisys Corporation. All rights reserved. 14
Solutions Used by Clients who Move About 25% of the World’s Air Cargo
Logistics Management System (LMS)
Cargo Revenue Accounting (CRA)
Cargo Portal Services (CPS)
In-transit Service Manager (ISM)
3rd party revenue optimization,
postal mail, devices, etc.
Selected LMS Cloud clients Selected CPS/ISM clientsSelected LMS license clients
Selected LMS Cloud clients Selected CPS/ISM clientsSelected LMS license clients
Selected LMS Cloud clients Selected CPS/ISM clientsSelected LMS license clients
Our air cargo enterprise system
Our newest application
Leading multi-carrier and
own brand e-business portal
Cargo 2000 CDMP
© 2015 Unisys Corporation. All rights reserved. 15
Modern, Modular and Integrated Technology to Achieve Control, Value and Compliance
Flights Routings RatingSales & AWB Management
Booking & Inventory
WarehouseCustoms &
SecurityULD
Control
ClaimsRevenueAccn’tg
ArchiveData
Warehouse
Shared utilities, rules engine, interfaces
Logistics Management System
The latest technologies
Reduces change
costs and
deployment time
by up to 33%
© 2015 Unisys Corporation. All rights reserved. 16
Work Smarter with More IntegrationAccess When, Where and How You Want It — PC, Tablet, Smartphone
© 2015 Unisys Corporation. All rights reserved. 17
Cloud Offerings for Speed and Agility
"I hired some brilliant IT people in companies I have ran. I have spent millions of dollars on IT solutions we developed in-house. Most never came to fruition. In hindsight I would have been farther ahead by buying IT solutions already available. The overall cost is less and the time to have an operational system is much quicker."
Jim Crane, founder of Eagle Global LogisticsKeynote at Air Cargo 2015 conference
4 months
6 months
10 months
© 2015 Unisys Corporation. All rights reserved. 18
Enhanced Customer Experience with Online Self Service Booking Portal: Scandinavian Airlines Cargo
Reduced delays in invoicing and payments and prevented incorrect accounting
Increased operational flexibility at lower costs resulting in more satisfied clients and higher margins
“Our new Booking Portal developed in close cooperation with Unisys has helped us increase collaboration within the air freight value chain by helping us provide pricing transparency. It is clear that we have planted an important seed that will innovate our industry.”Leif Resmussen, President and CEO, SAS Cargo Group
Increased self service with measurable reductions in call center cost
© 2015 Unisys Corporation. All rights reserved. 19
Unisys Transportation POVs
Airline: The Future of Passenger Travel
Cargo: Cloud Collaboration and Digital
Commercialization of Air Cargo
Airport: The Airport of the Future
© 2015 Unisys Corporation. All rights reserved. 20
Changing Role of the Airport Operator
Collaboration
Complexity”67% of airports are
planning to share data
with other key
stakeholders” *4
Disruptive
Technologies
Impact
LCCTs Stagnation
“Low Cost Airport
Terminals (LCCT) still popular in APAC but
declining in significance in
Europe” *3
Growing
Privatization“…450 airports worldwide
with…private-sector participation either in
management or ownership. Airports
remain attractive assets. ” *"Brazil Raises $9.1 Billion in Privatizing 2
Airports” 1,2
Airports can play an
active role that goes far
beyond being a
landlord for the
premises. To help
achieve airport of the
future vision, the airport
operator to take on a
more active role by
providing key
functionality and
technologies on top of
the basic infrastructure.
1. Aviation Economics; 2. NY Times ; 3. CAPA;
4. SITA 2012 Airport IT Trends
© 2015 Unisys Corporation. All rights reserved. 21
Airport of the Future Transformation Challenge
Challenge: Improve the passenger experience and gain operational efficiencies while enabling revenue
opportunities and squeezing more movement AND passengers through stretched facilities.
Airport of the FutureWidespread, Present Future Phase 1 Future Phase 2
Passenger
Facilitation
Print at home boarding pass Mobile Boarding Pass/Social Check-In NFC Boarding Swipe
Airport Kiosk Print at home bag tag Permanent Board Pass/Bag Tag
Agent assisted Bag Drop Self Service Bag Drop NFC Promotions
Airport
Operations
Airline Specific Counters Common Use Counters NFC Automatic Check-In
Stationary Agents Mobile Enable Roaming Agent
AODBBig Data: Airport Resources, Ops, PAX Flow
Management
Big Data: Baggage Ops, Airport Security
and safety
Automated Alerts Indoor Location Tracking Location Aware Baggage
IT INFSTR
WiFi Implementation Geo-Location NFC
Common Use SystemsIT Infrastructure Refresh / Airport Systems
IntegrationAirport Authority Cloud Services
On Premise Apps Managed Services, Cloud SaaS Apps Hosted Cloud
Security Logical and Perimeter Data in motion and Communication Endpoints Identity/Device Based, Secure Partitioning
Approach: Transform the door to door experience by empowering passengers and staff through phased
introduction of updated operations and disruptive technologies.
© 2015 Unisys Corporation. All rights reserved. 22
Operational
Management
Operational Database (AODB)
Flight Information Management
Messages & Alerts
Information Access
Management Information
Pricing & Billing
Emergency Control
Message Broker (middleware)
FIDS
Resource Management
Baggage Reconciliation
Local Check-in
Internet Check-in
Load Planning
Common Check-in
Common Bag Drop
Common Load Planning
Common Boarding Control
Common Use (CUSS)
Loyalty
Check-in Agent Mobility
Home Printed Bag tags
Fast Bag Drop
Passenger and
Staff Access
Passenger Tracking
Passenger Self Service
Fast Lane Management
Lounge Access
Border Control
RFID Bags
Secure Messaging
Perimeter Security
Surveillance Control
Passengers Operations Security
Mobility Cloud Networks & Infrastructure MSI & Consulting Services
Unisys Airport Solutions
© 2015 Unisys Corporation. All rights reserved. 23
Unisys Airport Presence
© 2015 Unisys Corporation. All rights reserved. 24
Summary
• Market is expected to double in volume in the next 20 years but systems are antiquated
• Airlines and airports are in a position to invest
• We expect significant transformation in the next five years
• Unisys is well-positioned to drive the transformation
© 2015 Unisys Corporation. All rights reserved. 26
Expanding Self-Service Bag Drop at Rotterdam The Hague (RTM) Airport with Modern Fast Bag Drop Technology – Aviapartner
For the client, having one system across all airlines allows for a consistent bag check experience
Ground Handling Productivity: Reduced the total working hours for passenger handling by 10%
Passenger Facilitation: Reduced 30 % of queue time at the check-in/bag drop in combination with use of self service kiosks
Customer Service: Improved customer satisfaction by 7%