August 21, 2018

Disruptions cost global aviation industry $60 billion a year

Disruptions cost global aviation industry $60 billion a year

Bad weather, natural disasters and strike action cost the travel industry up to an estimated $60 billion annually, equating to some 8 per cent of global industry revenues, a new report on flight disruption finds today.

Airline Disruption Management, written by leading airline IT consultancy T2RL and commissioned by Amadeus, also finds that disruption spreads ‘virally’ throughout the travel ecosystem: the knock-on impact of planes and crews not arriving as intended means highly optimised networks see further cancellations and delays often from a relatively minor initial problem.

The report also finds that industry regulations such as the Tarmac Delay Rule in the US and Mandatory Compensation for Delays across the EU are incentivising airlines to develop standard procedures for handling disruption situations. T2RL’s analysis for the report identified a range of findings based on interviews with leading experts from organizations across the travel industry, including American Express GBT, ANA, Gatwick Airport, Iata, Southwest Airlines, Star Alliance, Swiss International Airlines, and Yas Viceroy Hotel. Read more

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