AOE, a provider of digital solutions along the travel retail passenger journey, has launched a transformational e-commerce model for airlines with the planned acquisition of onboard sales and supply chain specialist Shifteo Solutions.

The agreement includes Shfiteo’s inflight Epos, supply-chain management and back-office for catering management solutions.

According to AOE, the enhanced capabilities of the new model enables airlines to integrate and manage their revenue-driving operations with existing on-board sales operations for travel retail and food and beverage.

AOE says the result is a powerful, self-managed, supplier-independent ecosystem combining stronger customer engagement with end-to-end delivery capabilities.

The functionality of the vendor-independent platform integrates with simplified vendor management. This gives airlines the freedom to select and manage multiple caterers and duty-free suppliers across location hubs and service stations.

COMPETITIVE ADVANTAGES

Strengthened operational control enables the tailoring of the passenger experience. This can be achieved without the traditional model’s constraints of solution-specific vendors and time contracts.

Michael Raasch, CCO, AOE Aviation commented: “AOE’s new platform provides airlines with powerful operational and competitive advantages that will drive new and stronger ancillary revenue opportunities.

“Additionally, in a new strategic cooperation with on-board technology experts Airfree, we also offer airlines complete connection and digital solutions on inflight and IFE transactions.

“This completes an inflight solution that can not only accelerate airline recovery from the current crisis, but also deliver stronger long-term performance.”

Peter Coelho, Co-Founder, Shifteo added: “By joining forces with AOE we give airlines freedom to move from the current limited choice of suppliers, often with their own proprietary technologies. This has led to a strongly disconnected customer experience based on route, destination and contractual agreements rather than the customer’s needs.

“Airlines now have unlimited freedom to select their preferred catering and duty-free partners across a fully vertically-integrated solution across the entire process.”

‘SUSTAINABILITY THE BIGGEST PRIORITY’

He added: “With sustainability the second-biggest priority on airlines’ minds after recovery, this model also has the potential to create immense savings in food waste, stock management, inefficiencies, last-mile delivery, fuel cost and theft/fraud.

“Transforming just 20% of buy-on-board to e-Commerce and 10% of passengers to pre-order their meals could result in savings of hundreds of millions of dollars per year across the airline ecosystem.”

AOE has also incorporated stronger inflight entertainment accessibility to support the integration of all aspects of its digital solutions. This follows a partnership agreement with Airfree, a provider of on-board e-commerce front-end and caching technology.

The partnership enables AOE to expand the reach of its platform to the passenger in low-connectivity on-board settings. This will provide support for airlines and expand revenue opportunities across every stage of the passenger journey.

Kian Gould, Founder and CEO, AOE (pictured left) outlined the potential influence of the new platform. He said: “Connectivity is the golden key to future incremental revenue. These agreements give us the agility to integrate our proven solutions into the entire value-chain of the world’s most forward-thinking carriers, unlocking the full potential of the seamless passenger journey.

“The current crisis has accelerated the passenger’s demand for holistic digital solutions that enhance the quality of their journey through personalised experiences. These can not only grow airlines’ ancillary revenue performance, but drive passenger loyalty and service quality perceptions.

“Our model even helps overcome the airlines’ current Capex pressures, as we offer the platform fully on a revenue share basis.

“The global crisis has accelerated digital behaviour and the obsolescence of the traditional revenue models. As we all know, digital behaviour never regresses.  The only path to recovery is the one that the passenger is already treading — the digital path.”