We’re entering a new era of travel, driven by AI and rife with new business models. However, many airlines remain limited by legacy systems, leaving them unable to fully embrace this technology or seize new opportunities.
Here, our expert Claudiu Stancu, Client Partner Lead for Aviation, Travel and Hospitality Europe, highlights how the industry is shifting to prepare for this new era, and the integral role of core modernisation.
Let's begin by looking to the future. Airlines have long been evolving to embrace various new digital opportunities. What digital changes can we expect to see next?
The industry itself is complex and highly regulated, but we all agree that AI will be part of all the fundamental pillars of this industry, from operations and safety to customer service and maintenance.
The impact AI will have across the aviation industry (and equally all others) is exponentially higher than any other technological wave we have had until now. Nevertheless, we are still in the early days of this new epoch and the aviation leaders are still trying to understand and pilot different components.
Historically, legacy systems have been a barrier to change for many airlines. Why do legacy systems present such a problem when embracing emerging technologies like AI?
Most of these legacy systems still sit at the core of airlines, and the bigger the airline is, the higher the risk it faces when it comes to changing these systems. The impact of any failures has proved many times to be very damaging to an airline.
As an alternative, leaders addressed modernisation needs by adding separate systems that would not change the core, but rather enhance or complement it. These legacy systems still serve the core purpose, but the problem remains – these systems have limits, which can easily be seen when things get out of hand, or you want to innovate.
However, this approach only partially addresses the issue, as the core limitations of legacy systems remain, hindering the ability to fully leverage AI and other advanced technologies. Without modernising these foundational systems, airlines will continue to struggle with inefficiencies, limited innovation and the inability to meet the evolving demands of today's customers.
There can be apprehension in updating legacy systems. How can airlines mitigate this risk?
Firstly, we need to be empathic with the airline leaders and understand that this industry is exposed to multiple risks and is operating on a relatively low margin.
To mitigate this risk, airline leaders need to work together with partners that are able to help them accelerate this journey. It’s not about classic consultancy anymore, it’s about partnering with the ones that have done this before and have the right tools and processes to succeed. All these investments need to be seen as a survival and business transformation exercise, not as technical modernisation that has a high cost.
What are the first steps executives should take when considering modernising their systems to prepare for AI?
There are multiple technical steps executives need to take to prepare for the AI epoch like assessing current capabilities and infrastructure, defining a vision and data strategy, data governance, investing in upskilling their teams and more.
One of the key elements is that the AI modernisation strategy has to be aligned with the business transformation, as AI creates new ways of solving old problems. The implications of modernisation go beyond only the technology – people and processes must also adapt to the future organisational reality.
What role does software assessment play in modernising legacy systems?
In many cases the systems are so old and complex that only a handful of people can support them. In other cases, the situation is even worse and there is no code, no documentation and it’s almost impossible to know where to start from.
Software assessment is indispensable in the modernisation of legacy systems, providing a detailed understanding of the existing IT landscape, identifying risks and aligning modernisation efforts with business objectives.
More recently we can use an agentic approach to further enhance the software assessment process by enabling systems to autonomously gather, analyse and interpret data from the legacy environment. Leveraging agent-based frameworks allows for the continuous monitoring and dynamic adaptation of the modernisation plan based on real-time insights. This not only streamlines the assessment phase but also ensures that the modernisation efforts are more resilient, scalable and aligned with the evolving needs of the business.
In summary, with proper tooling and experience, organisations can create a clear, strategic roadmap for modernisation that minimises risk, optimises costs and ensures a smooth transition to modern, AI-ready systems. This way, organisations can address their business challenges and match their ambitions.
Some airlines have decided on a low impact approach to embracing AI. What advice would you offer to those implementing AI in this way, rather than modernising their systems to implement AI for strategic value?
AI solutions have been around for a long time now and companies have been using them to leverage the benefits of data engineering and analytical insights. This brought several business efficiencies and a change in customer behaviour.
However, the playing field is rapidly changing and simply having an AI ‘gadget’ no longer cuts it. For an industry that is highly exposed to risks, it will become especially critical to stay ahead of the competitive market, increased customer expectations and major technology breakthroughs.
Airlines can adopt a ‘crawl, walk, run’ approach. Start small with low-risk updates, gradually increase the complexity and scale as confidence builds, and finally, fully integrate the new systems once they’re proven reliable. This method reduces disruption and allows for smoother, more controlled modernisation.
Being AI and data ready and scalable for any new major trend is what will separate the winners and losers. Our recommendation is to start taking these long-term modernisation steps now, accompanied by the right partners.
To learn more about software assessments and core modernisation for the aviation industry, download our whitepaper: Building a Strong Foundation: Modernising Core Systems in Aviation