Information Technology and Innovation
2018 was a year of consistent digital transformation across Aeroflot Group, covering both customer journeys and experience, and the Group’s entire operations, including management of the Company, aircraft maintenance, and information security.
Digital transformation takes place in line with the IT Strategy adopted by PJSC Aeroflot’s Board of Directors on 29 August 2018 to contribute towards the Group’s strategic goal of increasing passenger traffic.
The Company closely liaises with the industry community. In 2018, preparations were made for PJSC Aeroflot to join the Digital Transportation and Logistics Association focused on driving digital transformation across the transportation industry, as well as on creating and developing a single multimodal digital transportation and logistics environment across Russia.
CNews AWARDS 2018Aeroflot received a prestigious award at the CNews AWARDS 2018 for the Transportation Industry IT Project of the Year consisting in the successful implementation of the new air service distribution standard, NDC, developed by the International Air Transport Association (IATA).
SAP Value AwardAeroflot’s Tax Monitoring Data Mart project won the Company a corporate tax award as the Tax Project of the Year as well as the SAP Value Award in the New Horizons category.
Project Olympus 2018Aeroflot’s team was among the leaders of the annual professional project management contest, Project Olympus 2018, winning the second prize for the Competent Project Office.
Sabre Intelligence Exchange Hackathon 2018Aeroflot’s team confirmed its status of the strongest airline team by winning the first prize for a second consecutive year at Sabre Intelligence Exchange Hackathon 2018, an international IT contest.
Digital solutions for passengers
Aeroflot introduced new payment options for air tickets and value-added services through advanced payment services such as Samsung Pay and Google Pay, as well as a bank-card recognition module.
The new Pass2U e-wallet functionality is a convenient way for passengers to store tickets, boarding passes and Aeroflot Bonus loyalty cards.
A number of new functions were added to the mobile application enabling Aeroflot’s customers to purchase health insurance, buy Aeroexpress tickets, rent cars, order special meals from the À la Carte menu on selected flights, pay for excess baggage as well track their baggage.
Maps of 12 global airports were added, including an interactive plan of Moscow Sheremetyevo airport with the airport building navigation feature.
The functionality of Aeroflot airline’s contact centre was considerably expanded to optimise the work routine for operators and reduce response times, including a new dedicated hotline for passengers with disabilities and a dedicated information service to advise passengers on their baggage status and handle customer calls. Certain improvements were made to flight booking via Aeroflot’s pay-byphone service. 1,300 operators serve passengers during the high season. About 9 million calls were handled during the year, including in six foreign languages.
The first phase of the Two-Factor Authentication project was implemented to improve security of Aeroflot Bonus programme accounts. To log in, users need to enter a confirmation code received via the SMS-Info service.
Aeroflot has been actively developing its programme to sell value-added services to customers. Aeroflot introduced class upgrades and advance seat selection for travellers on low fares. Aeroflot also launched a new service allowing passengers to book airport transfers within the city of arrival and a new À la Carte Menu paid service.
Aeroflot launched a Wi-Fi-based service providing passengers with an access to free entertainment content via personal mobile devices on board twenty-six of its A320 aircraft.
Self baggage check-in desks based on a unique solution of Russian design were installed at Terminals D and B at Sheremetyevo airport as part of its joint project with Aeroflot.
Aeroflot’s online services became even more accessible, including for people with disabilities. The Company added a voice-enabled ticket search feature to its mobile application and introduced the Shoulder Belt service for passengers to order an extra holding device for the flight.
PJSC Aeroflot’s key IT projects in 2018
Aeroflot continues to develop its project for building an integrated airline retailing environment to the NDC standard. The NDC standard allows for high personalisation with a focus on each passenger’s preferences, enabling passengers to make better informed decisions when planning a trip.
Aeroflot places a particular emphasis on the use of Big Data in its IT initiatives. The proprietary solution used by the Company enables processing big data to boost sales and improve passenger loyalty. As part of its Big Data initiatives, Aeroflot has already implemented a predictive system that recommends potential destinations for customers, a tool to forecast revenue expected from a given segment, and AI-enabled review of customer inquiries and complaints.
Aeroflot’s Tax Monitoring Data Mart project introduced Company-wide tax monitoring, a new form of supervision for major taxpayers.
Aeroflot implemented the requirements of the Federal Tax Service to issue receipts for online cash settlements via PJSC Aeroflot’s web services on the Company’s payment page to comply with Federal Law No. 54-FZ.
The Company’s information resources have been aligned with the requirements of the General Data Protection Regulation (GDPR).
Pursuant to Federal Law No. 376-FZ, Aeroflot airline adopted a passenger blacklisting practice to automatically alert the airline’s employees to bookings made by blacklisted passengers to prevent them from paying for air tickets online.
The Company’s specialists took part in setting up the IT infrastructure at the new Terminal B of Sheremetyevo airport.
Before and during the 2018 Football World Cup, Aeroflot ensured highly reliable operation of its check-in, operational, and communications systems.
IT upgrades across subsidiaries
The large-scale digitisation of business processes across all Aeroflot Group companies is essential to the Aeroflot Group Development Strategy. A more robust and transparent operating model can be built across the Group through optimising operations of its subsidiaries and new technology adoption.
In 2018, Rossiya airline successfully deployed and upgraded a number of key IT systems. In particular, the airline adopted an automated IT system to manage IT solutions and customer service systems, as well as Microsoft Dynamics, a cutting-edge talent management solution. The airline also improved its sales of value-added services on charter flights via its new online platform.
Aurora airline implemented a number of major IT projects to upgrade its management system and deliver seamless and user-friendly customer experience across the airline. Passengers can now connect their own devices to the new Aurora Entertainment system to access content available on their flight. The airline also rolled out a new revenue management solution and an automated IT system for sales offices. The airline’s website structure and functionality were upgraded to offer passengers value-added services, with Mir cards now also accepted for payment.
Pobeda airline rolled out Jeppesen’s Crew Pairing digital solution to optimise airline crew scheduling, productivity, safety and operational stability.
Aeroflot Group makes consistent efforts to develop and implement innovative solutions across all areas of its activities. To further sharpen its competitive edge, the Group is building an innovation ecosystem, incorporating innovative solutions into both operations, and organisational and administrative processes.
In 2018, we continued implementing Aeroflot Group’s Innovative Development Programme 2025 which covers the main innovation focus areas and activities at Aeroflot Group, including Aeroflot airline and its Rossiya and Aurora subsidiaries.
The Innovative Development Programme was fully aligned with the action plans (roadmaps) for developing industries and the regulatory guidelines of federal executive authorities, and adopted by PJSC Aeroflot’s Board of Directors on 25 August 2016 (Minutes No. 1).
ITS KEY FOCUS AREAS INCLUDE:
- improving flight safety and building an integrated security and anti-terrorist system
- enhancing Aeroflot’s competitive position, including such key metrics as the share of the air transportation market and customer satisfaction with the services we provide
- automating operating and administrative processes of Aeroflot airline
- replacing outdated and inefficient technology with advanced solutions, including Russia-developed technology
- improving environmental performance, energy efficiency, and resource conservation
- increasing labour productivity and creating highly productive jobs.
KPIs under the Innovative Development Programme reflect the long-term vision for the Russian and international air transportation market and the goals of the Long-Term Development Programme, Strategy, and investment programme. The Innovative Development Programme’s KPIs include reduced product costs, higher quality of services, energy savings, lower environmental footprint, and increased labour productivity.
In 1969, the first in-flight TV services using video systems based on Yunost TV sets were offered to passengers on board Tu-134 aircraft.
Key innovative projects in 2018
The construction of Hangar 4 at Sheremetyevo airport to provide aircraft maintenance and repair services was continued in 2018 to drive operational efficiencies through reduced aircraft maintenance downtime. The hangar will provide maintenance services for Boeing 777-300ER aircraft that can’t fit into PJSC Aeroflot’s existing hangars. The project will create new jobs and help reduce aircraft maintenance and engine change downtime, as well as reduce outsourcing by expanding the range of in-house maintenance services for Aeroflot’s aircraft. Hangar 4 is a unique facility which was granted a useful model patent for an Aircraft Maintenance Hangar.
The methodology for evaluating different components of Aeroflot’s website design will help examine the functionality of website design elements and modify them including based on feedback from potential customers. The new solution will help improve customer satisfaction from the online ticketing journey and valueadded service purchasing journeys.
Aeroflot has been developing a software solution for transmitting RRJ 95B take-off and landing data and flight assignments to Electronic Flight Bags (EFB). Plans are to switch its flight and engineering personnel to take-off and landing modules for RRJ-95B aircraft and EFB-based updatable flight assignment modules. The project is scheduled for completion in 2019.
The project provides for developing a set of criteria to identify degradation in manual aircraft control skills of pilots based on flight information, as well as identifying and analysing flight deviations in the database. A plan for the development of special software to track degradation in manual aircraft control skills of pilots for subsequent provision of individually tailored flight simulator training was prepared as part of the project.
The Company reviewed national and international climate change regulations, their focus areas, and associated risks to predict potential impact on its operations. The proposed adjustments to the Company’s strategy resulting from the review will help Aeroflot comply with national and international climate change regulations, including through improving its Carbon Disclosure Project (CDP) score. To that end, PJSC Aeroflot is building a corporate greenhouse gas (GHG) emissions management system with a focus on monitoring direct and indirect GHG emissions and GHG reporting under ISO 14064. The project will also result in a set of targets for the reduction of the Company’s climate footprint.
Aeroflot studies risk factors in passenger air transport in order to enhance its corporate risk management and strategic planning. The identified risk factors are used to update Aeroflot Group’s Risk Register, the list of risks related to the Long-Term Development Programme, and key risks related to the refreshed strategy.
Aeroflot has analysed international best practice for innovation in civil aviation. Analysing innovative development of global innovation leaders and benchmarking Aeroflot Group against leading international peers on technological, product, and organisational innovations to identify promising solutions and adapt existing technology and organisational innovations to Aeroflot’s needs.
In 2003, Aeroflot switched to an automated booking system by Sabre.
In 2007, Aeroflot introduced e-tickets for domestic flights and for its international agent network using global distribution systems.
As part of activities to build an innovative ecosystem, Aeroflot continued enhancing its one-stop-shop system implemented in 2017 to manage innovations proposed by small and medium-sized enterprises (SMEs). The system automates submission, processing, and decision-making processes for innovative proposals.
It has already helped process 46 proposals from SMEs and other innovation partners, including 30 proposals in 2018. The Committee for Innovative Development of PJSC Aeroflot’s Management Board comprises one-stop-shop experts, including from Rossiya and Aurora subsidiary airlines.