Skift Take

The pandemic prompted airlines to modernize their operations with technology, and they're not stopping. Third-party companies can help by offering new solutions to supplement airlines' existing old and limited infrastructure.

The pandemic has pushed airlines toward innovation — typically supplementing their old, limited technology with newly created pieces of software. 

Now that airlines are returning to a place of solid financial footing, they can take what they have learned and make it better. 

Much of that innovation is happening by contracting third-party software companies. Below are details about how three airlines — Latam Airlines, Volaris, and Air Europa — each have made or expanded partnerships recently to modernize operations and lower costs.

Latam Airlines Streamlines Post-Booking Activity

Latam Airlines, which serves Latin America, was inundated with flight change and cancelation requests in the early days of the pandemic. Many of the customers had to complete the transactions over the phone through expensive contracted call center agents. 

With a new CEO, Latam decided to move toward a system that would prioritize customer service — and save money for the airline. 

“What I'm going to tell you probably could be said by many airlines: We have spent our whole life saying that we were customer oriented, but reality is that our backbone systems are everything except customer oriented,” said Ricard Vilà, chief digital officer of Latam. 

For over a year, Latam has been using a software platform by startup Deal Engine, which automates airline ticket refunds and changes on behalf of airlines, online travel agencies, and other clients. 

If a customer needs an exchange or refund, Latam starts with automation software provided by Sabre, but that’s only effective between 50 and 80 percent of the time, Vilà said. For the ones not solved through the Sabre system, Latam now sends them to Deal Engine, which he said pushes that percentage to the high 90s.&