Aviation Industry Trends

Buckle up. Boom Supersonic (776 co) just pulled off a surprise that could change aviation forever: a "Boomless Cruise". Yes, that's a supersonic flight without the BOOM.💥 Here’s what happened, and why it could change aviation forever ↓ Last month, Boom’s XB-1 became the first-ever fully private supersonic jet to break the sound barrier. That was huge. But on Feb 10, they did it again—only this time, the sonic boom never reached the audience on the ground. How? ↓ When a jet breaks the sound barrier at a high enough altitude, that big sonic "boom" bends *upward* instead of down. Translation? Supersonic speeds *without* the noise complaints. This is a game-changer. Right now, U.S. rules ban supersonic commercial flights over land. But if Boom can prove Boomless Cruise works, their team *could* persuade the gov to update their rules... unlocking coast-to-coast supersonic travel. The craziest part? Boom’s team only started seriously exploring this 10 DAYS before their second test flight. Operating on a hunch, Founder + CEO Blake Scholl called an emergency meeting, crunched the numbers, and realized they had a break-through on their hands. So they pivoted—fast. Love it. If Boomless Cruise gets approved, NYC to LA in ~2 hours could be a reality. The future of flight just got a whole lot faster ✈️ 💨 

A Boeing 787 has 2.6 million parts procured from 5,400 factories globally. Tariffs can raise 787 prices by $40mn! Boeing is the largest exporter in the US. Any tit-for-tat tariffs will hit Boeing hard. "In an absolute worst case scenario, say, a 25% increase across the board on tariffs, a tit-for-tat from both sides — a #Boeing 787, the price will go up by $40 million," AerCap CEO Aengus Kelly recently shared on CNBC. The challenge is if the price of a 787 goes up by that much, #Airbus and other potential competitors will surely garner a lot of global market share from the US manufacturer. That's not ideal for Boeing, which is just starting to find its footing back after a few tough years. Airbus to will be hit by the tax on imported parts that it assembles in Mobile, Alabama, and on the European-built jets it sells to U.S. carriers. But the impact will be much bigger on Boeing. If, according to Kelly, Airbus grabs 80% market share of the global market, while Boeing services primarily on US airlines, that's not ideal for the industry. I truly believe that #Aviation needs *at least* two strong manufacturers, if not more. We need a strong Boeing for a thriving industry. I'm at loss how tariffs can help Boeing become stronger. Any ideas? Further reading - a brilliant article from Dominic Gates from 2017: https://lnkd.in/eg-Sy8TS

After a busy few weeks of travel that took me to Zurich and then to LAX, I sat in the LAX airport waiting for my flight and I found myself thinking about how the flight I was about to board, minutes later, was so different from the ones I was boarding a few decades earlier. And then I got to wondering about the flights I will be boarding in the future, only a few decades from now. What will be different? The innovations, and expectations, for the airline industry are going to result in easier and more sustainable air travel, and will transform the customer experience at the airport. Some of the innovations I am most excited about: ✈️ Electric air taxis that offer the opportunity to fly above the gridlock to and from the airport, saving time while being more sustainable. ✈️ Electric regional powered aircraft that provide sustainable, zero emission solutions for regional travel. A possible game changer for the multitude of short range flights that dominate domestic travel. ✈️ Blended wing body airliners, a technology that has been around for a few decades but is now coming forward as a revolutionary solution for air travel and airport operations. It offers the potential for fuel savings of over 50%, and will revolutionize gate operations by providing much faster time to board the aircraft. ✈️ And is there a future for hydrogen powered aircraft? I think so, but still has many hurdles in aircraft design, airport infrastructure for hydrogen. But it offers clean emissions, and can be a key to bringing fuel cells to aircraft with electric propulsion. One thing is certain, the face of air travel will be much different in the near, and not so near, future! Many of these innovations require a new way of doing business to bring the ideas to life - in engineering, manufacturing, and operations. Digital transformation is being embraced by the companies that are working on these revolutionary aircraft, and the Comprehensive Digital Twin is at the center of the digital, and air travel, transformation. We certainly live in exciting times of transformation in an industry that touches so many of our lives!

How much are tariffs costing the aerospace industry? More than $1 billion for two of the largest suppliers, engine giant GE Aerospace and engine, avionics-seat-maker RTX. Airplanes, engines and other parts could be Made In the U.S.A. but they rely on a global supply chain, which is still fragile from Covid. Duty-free trade has helped bolster the industry, which is a major U.S. exporter and helps soften the U.S. trade deficit with valuable shipments, but that went away under the new tariff regime. GE Aerospace CEO Larry Culp said he spoke with President Trump about seeking duty-free trade the industry has enjoyed for about 45 years. "We have been ... full throated in our support of the administration's efforts to support American competitiveness and revitalize American manufacturing. We're well aligned in that regard. But it's easy to overlook the $75 billion trade surplus, the sector enjoys largely on the back of this tariff-free regime that we've had since 1979. So all we have suggested as the administration works through a myriad of issues, is that they can consider the position of strength that the country enjoys as a result of this tariff-free regime and to consider reestablishing the same." https://lnkd.in/e4xhS7Kq

Southwest Airlines just initiated $35 checked bag fees, ending their trademarked "bags fly free" promise. Customers never love price increases, but for Southwest the reality is much worse. From a customer psychology perspective, this is more than a modest pricing change. The new fees will trigger multiple cognitive biases that drive customer defection. Customers don't see this as Southwest adding a $35 service. They see it as Southwest TAKING AWAY something they already owned. Loss aversion research shows this psychological pain is 2-3x stronger than equivalent gains. Expect vocal complaints and defection, especially from frequent flyers who built "free bags" into their mental accounting. Southwest built their entire identity on "bags fly free"—they literally TRADEMARKED it. This dramatic reversal triggers massive cognitive dissonance. When a company violates their core brand promise, customers don't just question the bags policy. They wonder what other promises might be broken next. Here's the killer: customers are anchored to Southwest as the "low-cost, customer-friendly" option. That $35 fee doesn't feel like a reasonable airline charge. It feels like highway robbery because it's compared against an anchor of $0, not competitors' similar fees. Southwest's CFO said they were "out of sync with competitors' bare-bones fare options." But he's missing the psychology: Southwest customers didn't choose them to be like everyone else. They chose them to be DIFFERENT. The paradox? By trying to optimize revenue per passenger, they're likely to trigger the exact behaviors that reduce total revenue: customer defection, negative word-of-mouth, and brand switching. This reminds me of Netflix's Qwikster disaster or New Coke's reformulation. Sometimes the financial logic is sound, but the customer psychology is catastrophic. The real question: Will Southwest's revenue optimization overcome the psychological costs of breaking a 50-year brand promise? What's your experience with companies that violated core brand promises - did the psychological damage outweigh the financial benefits? #BehavioralEconomics #CustomerPsychology #BrandStrategy #Neuromarketing

When Algorithms Play Cupid: Delta's AI Romance with Your Wallet Picture this: You're booking a Delta Air Lines flight, refreshing the page obsessively like a day trader watching Tesla stock. Each click reveals a new price, as if the airline's algorithm is playing poker with your wallet. Welcome to the future of aviation finance, where artificial intelligence doesn't just fly planes but also decides how much you'll pay to sit in them. Delta Air Lines's ambitious plan to deploy AI pricing across 20% of domestic flights by 2025 represents a leap in technological advancement. Currently affecting just 3% of flights, Delta Air Lines's partnership with Israeli firm Fetcherr demonstrates how machine learning transforms traditional yield management into surgical profit extraction. Airlines historically relied on static pricing models with limited variables. Modern AI systems process thousands of data points simultaneously: booking patterns, competitor pricing, weather forecasts, even social media sentiment. This granular analysis allows airlines to capture consumer surplus more effectively than any pricing strategy in aviation history. Consider the working capital impact. Traditional revenue management required extensive human oversight and periodic manual adjustments. AI-driven systems optimize prices in real-time, reducing the lag between market conditions and pricing response. This acceleration improves cash flow velocity and reduces revenue leakage from suboptimal pricing decisions. The broader corporate finance lesson? Dynamic pricing powered by AI isn't limited to airlines. SaaS companies, retailers, and service providers are adopting similar models. The key lies in balancing algorithmic sophistication with customer perception management. Delta's strategy reveals three critical success factors: gradual rollout (3% to 20%), strategic partnerships (Fetcherr), and integration with existing systems. For finance leaders, this playbook offers insights into technology adoption that maximizes ROI while minimizing operational disruption. The next time your flight price changes mid-search, remember you're witnessing the future of corporate pricing strategy. Just don't take it personally when the algorithm knows you're desperate to visit your mother-in-law. #CorporateFinance #AI #PricingStrategy #RevenueManagement #AviationFinance #DynamicPricing #FinancialInnovation #YieldManagement #AlgorithmicPricing #FinTech

🚀 The Future of Air Travel is Here: AI, VR & Seamless Connectivity ✈️ In-flight connectivity is no longer a luxury—it’s an expectation. I had the privilege of joining Carolyn Wright on RTHK's The Close to discuss the Viasat 2024 Passenger Experience Survey, revealing the tech-driven future of aviation and how airlines must adapt or be left behind. 💡 The Big Takeaways: 📡 Passengers Demand Always-On Connectivity ✔ 90% say Wi-Fi is essential on long-haul flights—it’s now as expected as legroom. ✔ 83% believe it should be free, making connectivity a dealbreaker for airline loyalty. 🎭 AI & Immersive Tech Will Redefine Air Travel ✔ 55% want VR & mixed reality entertainment—airlines must evolve beyond static screens. ✔ AI will personalize everything—from meal choices to smart lighting, creating a seamless, intuitive experience. 📊 The Competitive Edge for Airlines ✔ 71% of passengers prioritize access to personal streaming services (Netflix, Spotify). ✔ Passengers are willing to watch ads for free Wi-Fi—a game-changer for airline revenue models. 🚀 The Next 5 Years: Aviation Meets Space Tech ✔ Adaptive cabin layouts—seats that morph from lounge to workspace to sleeping pod. ✔ Biometric comfort technology—AI-driven environments that auto-adjust for sleep, wellness & relaxation. ✔ Smart in-flight automation—from robotic concierges to AI-powered virtual travel assistants. 🛰️ Space innovation is shaping the future of aviation. Airlines that invest in AI, hyper-personalization, and real-time connectivity will lead the industry. Those that don’t? They’ll struggle to keep up. 📖 Full Report:https://lnkd.in/gGvq8eSY  🎧 Listen to the Interview: 🔹 Apple Podcasts: https://lnkd.in/g6CtaM64 🔹 RTHK Website: https://lnkd.in/gfksBGsN 🔹 Spotify: https://lnkd.in/guxJxtgc Thank you to Carolyn Wright and the RTHK team for this incredible discussion. The next era of air travel innovation is unfolding now—will airlines be ready? #AviationInnovation #PassengerExperience #AI #ViasatSurvey #FutureOfTravel #SmartCabins #VR #Connectivity #RTHK #AviationMeetsSpace Viasat Viasat Aviation #viasat #viasataviation

To tackle climate change, we need big solutions, and we need big solutions fast. Oftentimes, these solutions will come in surprising packages. One of my favorite examples is our work in contrails – you know contrails, those little fluffy white clouds behind planes? Surprisingly, according to the IPCC, they make up roughly 35% of aviation’s global warming impact. The great news is that contrails are relatively easy to avoid because they only form in cold and humid regions of the sky – so pilots can adjust their altitude to avoid them, just like they do for turbulence. Since Google announced our work with American Airlines and Breakthrough Energy, where we used AI to help American Airlines pilots reduce contrails by over half, it’s been amazing to see how the sustainability conversation in the aviation industry has shifted, thanks in large part to the dedication of Jill Blickstein, Dinesh Sanekommu, and Marc Shapiro. Contrail avoidance is now recognized in the aviation industry as another (much nearer term!) solution alongside needed innovations in electric planes, hydrogen planes, and biofuels. Our team recently released a paper with more details on our work with American Airlines. Here are key takeaways: 𝟭. 𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 (seen in satellite imagery!): Flights that adjusted their routes based on our AI-based contrail predictions showed a 54% reduction in contrail kilometers, when compared in satellite imagery with control flights that didn't have access to AI predictions. 𝟮. 𝗣𝗶𝗹𝗼𝘁-𝗹𝗲𝗱 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁𝘀: Pilots made relatively small adjustments to their ascent or descent profiles to avoid contrail-forming regions, demonstrating a practical approach that integrates into existing flight operations. One of my favorite memories is that after flying American's first flight to avoid contrails, Captain John P. Dudley remarked that it was easy to avoid them, our predictions looked right based on all the contrails he saw in the sky, and best of all - he even came up with a new approach to contrail avoidance that we informally named after him  😊 𝟯. 𝗦𝗺𝗮𝗹𝗹 𝗙𝘂𝗲𝗹 𝗧𝗿𝗮𝗱𝗲𝗼𝗳𝗳: The study found a slight increase in fuel consumption per adjusted flight (around 2%). The great news is that only a small fraction of flights create contrails, so this likely scales to 0.3% additional fuel when scaled across an airline's fleet. 𝟰. 𝗖𝗼𝗺𝗯𝗶𝗻𝗶𝗻𝗴 𝗔𝗜 𝗮𝗻𝗱 𝗣𝗵𝘆𝘀𝗶𝗰𝘀: The approach we used to predict contrail formation utilized both AI from Google and physics-based simulation (thank you Breakthrough Energy!). Link to paper: https://lnkd.in/gxKHXCps What excites me most about this research is its ability to scale near-term. We still have important research to do, and we’ll share more about that in coming months - but compared to other climate solutions, contrail avoidance has the ability to scale in a matter of years, not decades. We need more solutions like this to meet the climate challenge.

Southwest Airlines shareholders celebrated yesterday, boosting its stock price by 8%. They should be running for the door instead. Southwest was the most unique airline in the US -- and one of the most unique in the world. It played in a world of its own, focusing on turning the airline game on its head and doing things differently from everyone else. It was a discount airline, but most its policies were friendlier than even the majors. Checked bags were free, tickets were flexible, and its loyalty program easy-to-understand. It didn't nickle and dime customers like other discounters, and instead focused on delivering value for money. You got none of the frills but you also didn't have to deal with the constant "gotchas" -- plus, you flew for cheaper, on avg about 3 cents cheaper per mile than Delta, American, and United. With its latest announcement, all of that is no more as it starts to remove most of its customer friendly policies. Its "basic" fare replaces its previous no-frills "wanna get away" fare and adds a bunch of new restrictions, imitating Basic Economy on the majors and the base fare on other budget airlines. Its "flight credits" now expire, some as quickly as 6 months. And yup, checked bags are no longer free (for most customers). With all these changes, it looks like the company has given up, and decided that it will just copy the loyalty playbook used by the majors, where customers must pay for convenience and flexibility, until you achieve some level of high level of loyalty status, catering more to business travelers with lots of repeat business vs leisure travelers. Now I think it's fair to acknowledge that the airline's formula just didn't work anymore post COVID. Something about the market changed. It used to be the most profitable airline, and suddenly it wasn't anymore. The fact that management acknowledged this is a good thing. But Southwest may find that copying the United/Delta/AA playbook will be harder than it looks. They don't have hubs, which will make them much less attractive for business travelers who live in major cities (which happens to be most of them). They're late to the game -- business travelers are already loyal to one of the big 3. And they need to change up all their planes to not only include Economy Plus, but First Class to attract bigger spenders. Does the airline have the time & money to make those changes and then try to beat the majors at their own game? The final straw for its (previously) loyal customers? Trying to gaslight them into believing this was to "adapt to what they want" (CEO's words). There's turbulance coming for LUV.

NASA's new supersonic X-59 jet hits the afterburner The X-59 "quiet" supersonic jet, developed by Lockheed Martin for NASA, is making significant progress towards achieving its goal of supersonic flight without the disruptive sonic booms. Here are some key points about the recent developments: Engine Testing: The aircraft has recently undergone afterburner engine run tests at Lockheed Martin's Skunk Works facility in Palmdale, California. These tests are crucial for verifying the performance of the X-59's engine, a modified General Electric F414-GE-100, which is also used in the Boeing F/A-18 Super Hornet. Purpose of the Afterburner: The afterburner system injects additional fuel into the engine's exhaust to boost thrust, enabling the X-59 to reach supersonic speeds while maintaining control over noise levels. The tests confirmed that the engine can operate within temperature limits and provide adequate airflow necessary for flight. Aircraft Design: The X-59's design is focused on minimizing the shockwaves that cause sonic booms. Instead of a traditional boom, the aim is to produce only a gentle thump, which could revolutionize air travel by allowing overland supersonic flight. Future Implications: If successful, this technology could lead to the development of new commercial aircraft capable of flying faster than the speed of sound over populated areas, significantly reducing travel times for long-distance flights. Public and Media Interaction: Both NASA and Lockheed Martin have been actively sharing updates via photos and statements, highlighting the engineering prowess and the potential impact of this project. This not only keeps the public informed but also builds anticipation for the future of aviation. The ongoing tests and developments of the X-59 are a promising step towards quieter supersonic travel, potentially transforming both commercial and military aviation sectors. If you're interested in seeing images of these developments, I can generate them for you.