Aeromexico's Digital Transformation: A Journey of Innovation and Growth

Introduction

In case you haven’t noticed, Aeromexico is Mexico’s flagship airline. It has embarked on a comprehensive digital transformation journey that has significantly reshaped its operations and passenger experience. This transformation, which began in earnest with the delivery of the airline’s first Boeing 787-8 Dreamliner in 2013, has been marked by strategic partnerships, technological advancements, a commitment to innovation, and a strong leader in the airline industry digital transformation

The airline’s digital transformation was catalyzed by its partnership with Sabre, a leading provider of digital technologies. This collaboration enabled Aeromexico to implement a strategy of personalized retailing, multi-channel distribution, and rapid revenue recognition, thereby strengthening its brand position in a competitive market. The introduction of the SabreSonic passenger services system in 2011 was pivotal, supporting the airline’s growth from 14 million passengers in 2010 to over 21 million in 2017.

In-flight connectivity has also been a cornerstone of Aeromexico’s digital strategy. In 2016, the airline became the launch customer for Gogo’s 2Ku in-flight connectivity service, enhancing the passenger experience with streaming capabilities in partnership with Netflix. This initiative and the introduction of free messaging services on its 737 and 787 aircraft contributed to a significant increase in the airline’s Net Promoter Score.

Aeromexico’s digital ecosystem extends beyond in-flight services. The airline has introduced Aerobot, a virtual assistant available on Facebook Messenger and WhatsApp, and revamped its website and mobile app to leverage passenger data for personalized offers. These efforts have resulted in a tripling of online sales and a substantial increase in mobile check-ins.

The airline’s partnership with Accelya has further accelerated its digital transformation. By adopting the FLX Passenger Platform, Aeromexico has gained the flexibility to create, differentiate, and bundle offers in alignment with IATA’s New Distribution Capability (NDC) standards. This has enabled dynamic ancillary merchandising and streamlined offer and order management across various sales channels.

As Aeromexico approaches its 90th anniversary, it continues modernizing its fleet and expanding its route network, particularly between Mexico and the United States. The airline’s strategic partnership with Delta Air Lines is set to introduce over 15 new routes, enhancing connectivity and providing a seamless travel experience for passengers.

In summary, Aeromexico’s digital transformation is a testament to its commitment to innovation and excellence. By leveraging advanced technologies and strategic partnerships, the airline has positioned itself for sustained growth and enhanced service delivery, setting a new standard in the aviation industry.

Aeromexico’s Digital Transformation
Cloud Migration and Modernization
DevSecOps Implementation
Workforce Alignment and Cultural Shift
Enhancing Customer Experience
Strategic Partnership with Infosys
Operational Efficiencies and Innovation
Future Prospects
Key Partnerships and Technology Implementations
Joint Cooperation Agreement (JCA) with Delta Air Lines
Expansion of Transborder Operations
Partnership with Touch Inflight Solutions
Technological Integration and Optimization
Fleet Modernization
Enhancing Customer Experience
Future Prospects
Impact on Operations and Passenger Experience
Enhanced Self-Service Tools
Touchless Travel Experience
Digital Kiosks and Aerobot
In-Flight Entertainment Upgrades
Strategic Partnership with Sabre
Operational Performance and Load Factor
Capacity and Demand Metrics
Commitment to Sustainable Growth
Integration of Loyalty Program

Aeromexico’s Digital Transformation

Cloud Migration and Modernization

Aeromexico, Mexico’s leading airline, has embarked on a significant digital transformation journey, primarily focusing on migrating its critical applications to the cloud. The airline chose Amazon Web Services (AWS) as its primary cloud provider, leveraging AWS’s robust infrastructure to enhance agility and operational efficiency. This migration is part of a broader strategy to modernize Aeromexico’s IT ecosystem, which has become highly decentralized over the years.

Historically, Aeromexico’s IT infrastructure was a complex assortment of solutions developed by multiple teams without enterprise alignment. This resulted in significant functional redundancy and complexity, with hundreds of solutions running on different technologies and architectures. Aeromexico, in partnership with Infosys, undertook a rigorous application portfolio rationalization process to address this. This involved gathering detailed information about existing applications to decide which systems to retain, retire, or migrate to the cloud.

DevSecOps Implementation

A critical component of Aeromexico’s digital transformation is the implementation of a DevSecOps pipeline. DevSecOps integrates security practices into the software development and delivery process, ensuring that new software and services are delivered quickly without compromising security. Infosys is building an end-to-end DevSecOps pipeline using AWS-native services, which provide the flexibility to integrate both AWS cloud-native and third-party tools.

The DevSecOps approach addresses the traditional tension between development and security teams by embedding security measures throughout the development lifecycle. This ensures that security vulnerabilities are identified and addressed at various stages, enhancing the overall resilience of Aeromexico’s IT infrastructure. Infosys is also developing a governance model for DevSecOps, including key performance indicators (KPIs) and metrics aligned with Aeromexico’s business and IT strategies.

Workforce Alignment and Cultural Shift

One of the most significant challenges in Aeromexico’s digital transformation has been aligning the workforce towards a new mindset. According to Fernando Rocha, Vice President of IT and CIO at Aeromexico, the primary goal of this transformation is not just cost savings but building new capabilities quickly to enhance agility and competitiveness. This requires a cultural shift within the organization, moving from traditional IT practices to more agile and innovative approaches.

Rocha emphasized that the success of the digital transformation depends on the ability to standardize and automate processes while making the IT environment modular and microservices-oriented. This approach reduces complexity and enhances the ability to respond quickly to changing business needs. Early returns from the project have been positive, indicating that the workforce is adapting well to the new methodologies and tools.

Enhancing Customer Experience

A key driver of Aeromexico’s digital transformation is the need to differentiate its service through a world-class online experience. In the face of fierce competition, particularly from budget airlines, Aeromexico aims to provide a superior customer experience by investing in digital channels. This includes upgrading its website and airport kiosks to offer more self-service capabilities, which are increasingly demanded by modern travelers.

Additionally, Aeromexico has recently upgraded its entire baggage handling system, which is expected to improve the customer experience significantly. By leveraging cloud technologies and modern IT practices, Aeromexico aims to deliver a seamless and efficient travel experience, enhancing customer satisfaction and loyalty.

Strategic Partnership with Infosys

Aeromexico’s strategic partnership with Infosys has significantly bolstered its digital transformation journey. Lacking the internal knowledge and skills to drive modernization independently, Aeromexico sought a partner that could provide the necessary expertise and alignment in vision. Infosys was chosen for its ability to deliver comprehensive digital transformation services, including cloud migration, DevSecOps implementation, and process standardization.

Infosys’s role extends beyond technical implementation to defining revised processes aligned with agile working methods. This partnership has enabled Aeromexico to adopt best practices in IT modernization, ensuring that the airline remains competitive in a rapidly evolving industry.

Operational Efficiencies and Innovation

Moving to the cloud and adopting modern IT practices have resulted in significant operational efficiencies for Aeromexico. By standardizing and automating processes, the airline has reduced the complexity of its IT environment, making it more manageable and scalable. This has also freed up resources to focus on innovation, allowing Aeromexico to develop new capabilities and services that enhance its competitive edge.

For instance, implementing a modular and microservices-oriented IT environment has enabled Aeromexico to quickly adapt to changing business needs and market conditions. This agility is crucial in the highly competitive aviation industry, where customer expectations and technological advancements constantly evolve.

Future Prospects

Aeromexico’s digital transformation will continue delivering value through enhanced agility, operational efficiency, and customer experience. The airline’s investment in digital channels and modern IT practices positions it well to navigate the challenges and opportunities of the future. As Aeromexico continues to expand its transborder network to the United States, digital transformation will play a critical role in supporting this growth and ensuring a seamless travel experience for passengers.

In summary, Aeromexico’s digital transformation, driven by cloud migration, DevSecOps implementation, workforce alignment, and strategic partnership with Infosys, is a comprehensive effort to modernize its IT infrastructure and enhance its competitive position. The early successes of this transformation indicate a promising future for Aeromexico as it continues to innovate and deliver superior customer experiences.

Key Partnerships and Technology Implementations

Joint Cooperation Agreement (JCA) with Delta Air Lines

Aeromexico’s digital transformation is significantly bolstered by its Joint Cooperation Agreement (JCA) with Delta Air Lines. This partnership aims to create the leading transborder airline alliance between Mexico and the United States, the largest trans-border air market globally. The JCA enhances connectivity and scheduling options, benefiting customers from both airlines. Delta provides service in the United States through its connecting hubs in Atlanta, Detroit, Los Angeles, Minneapolis-St. Paul, New York-JFK, Salt Lake City, and Seattle, while Aeromexico offers greater access to Mexico through its hub in Mexico City (source).

The partnership has led to developing comprehensive and aligned products and services, ensuring a consistent and industry-leading customer experience. Key initiatives include seamless check-in powered by SkyTeam technology, free messaging onboard through Wi-Fi, and consistent checked and carry-on luggage policies (source).

Expansion of Transborder Operations

Starting January 2024, Aeromexico will introduce 17 new routes from seven airports in Mexico to nine destinations in the U.S., supported by Delta codeshare. This expansion will result in nearly 60 daily frequencies to the United States by July 2024, representing a 35% increase in departures compared to 2023. Delta plans to operate 34 daily frequencies to Mexico, serving seven different Mexican destinations. The JCA will deliver over 30% more seats year-over-year, widening options for passengers to travel between the U.S. and Mexico (source).

Partnership with Touch Inflight Solutions

Aeromexico has partnered with Touch Inflight Solutions to pioneer the future of engagement and entertainment. This collaboration aims to deliver best-in-class inflight entertainment experiences that reflect Aeromexico’s modern identity. Over the next few years, Aeromexico and Touch will introduce new inflight entertainment offerings and optimization strategies to elevate the passenger experience (source).

The partnership will provide unique and culturally relevant content experiences on Aeromexico’s inflight entertainment platform, aligning with the airline’s brand and identity. Robust viewership analytics will drive personalized content curation, allowing Aeromexico to offer rich, tailored programming that evolves with changing passenger preferences (source).

Technological Integration and Optimization

As a major Aeromexico shareholder, Delta Air Lines is crucial in optimizing workflows and scaling efficiencies. Close coordination between Touch and Delta on technical services and content management enables seamless collaboration for the benefit of Aeromexico passengers. This integration supports the broader strategic objectives of both airlines, enhancing operational efficiency and customer satisfaction (source).

Fleet Modernization

Aeromexico’s increase in routes and frequencies is made possible by its renewed fleet, which includes more than 50 new aircraft, most of them Boeing 737MAX. This modernization enables the airline to continue elevating travel to an extraordinary experience. The new routes and increased frequencies will enhance Aeromexico’s operational capabilities and customer service standards (source).

Enhancing Customer Experience

Aeromexico and Delta are committed to enhancing the customer experience through increased connectivity, investments in boarding gates, VIP lounges, and frequent flyer benefits through SkyMiles and Aeromexico Rewards accruals. These initiatives are part of the airlines’ broader strategy to offer their customers a seamless and enjoyable travel experience (source).

Future Prospects

By 2024, the Aeromexico-Delta JCA will offer over 90 daily flights between Mexico and the United States on nearly 60 routes. This expansion reinforces the commitment of the cross-border alliance to bring the two countries closer together through a robust network and seamless connectivity, accompanied by consistent industry-leading products and services (source).

Let’s take off with a summary regarding all this…

Aeromexico’s digital transformation is significantly driven by its strategic partnerships and technological implementations. The Joint Cooperation Agreement with Delta Air Lines and the collaboration with Touch Inflight Solutions are pivotal in enhancing operational efficiency, customer experience, and overall business performance. These initiatives position Aeromexico as a leading airline in the transborder air market, offering innovative and customer-centric services.

Impact on Operations and Passenger Experience

Enhanced Self-Service Tools

By implementing self-service tools, Aeromexico’s digital transformation has significantly improved its operational efficiency and passenger experience. During the pandemic, the airline’s customer service lines were overwhelmed with calls from passengers needing to change flights or rebook. This situation accelerated the adoption of digital solutions, allowing passengers to manage their travel plans independently. Aeromexico now offers self-service options via its website and mobile applications, enabling passengers to change flights, rebook, or obtain travel vouchers without contacting customer service (Mexico Business News).

Touchless Travel Experience

In response to the growing demand for contactless services, Aeromexico has introduced digital tools that allow passengers to complete various travel processes from their electronic devices. These tools include online check-in, digital boarding passes, and baggage tracking through WhatsApp. The touchless experience enhances convenience and provides peace of mind to passengers concerned about health and safety (Mexico Business News).

Digital Kiosks and Aerobot

Aeromexico has expanded its digital ecosystem to include digital kiosks at airports, which allow passengers to check in, print bag tags, and check their luggage without waiting in line. Additionally, the airline has introduced Aerobot, a chatbot available on WhatsApp and Facebook Messenger, to assist passengers with various inquiries and services. This digital kiosk and chatbot integration has streamlined airport operations and reduced wait times, enhancing the overall passenger experience (Mexico Business News).

In-Flight Entertainment Upgrades

Aeromexico also focuses on enhancing the in-flight experience through significant upgrades to its in-flight entertainment (IFE) systems. The airline has partnered with Touch to develop new IFE offerings that provide unique and culturally relevant content. This partnership aims to deliver personalized content experiences that resonate with the aspirations of Mexican passengers. Viewer content analytics will enable Aeromexico to tailor programming to evolving passenger preferences, enhancing the in-flight experience (Passenger Self Service).

Strategic Partnership with Sabre

Aeromexico’s renewed strategic partnership with Sabre has driven its digital transformation. The collaboration has enabled the airline to implement intelligent retailing and a multi-channel distribution approach, generating new revenue streams and strengthening its brand position in a competitive market. Sabre’s technology has supported Aeromexico in transforming the airport experience, enhancing in-flight services, and ensuring seamless connectivity across partner and alliance networks (Sabre).

Operational Performance and Load Factor

The digital transformation has also positively impacted Aeromexico’s operational performance. In May 2024, the airline reported a solid load factor of 86.9%, a 3.0 percentage point increase compared to May 2023. This improvement reflects the airline’s effective capacity utilization strategies, which have been supported by digital tools and processes. The airline transported 2.182 million passengers in May 2024, marking a 9.6% year-on-year increase, with international passenger traffic surging by 21.2% and domestic traffic growing by 5.3% (CND English).

Capacity and Demand Metrics

Aeromexico’s total capacity, measured in available seat kilometers (ASKs), increased by 12.2% in May 2024 compared to the previous year. International ASKs rose by 16.6%, while domestic capacity grew by 4.5%. Demand, measured in passenger kilometers (RPKs), increased by 16.1% year-on-year, with international demand up by 21.8% and domestic demand up by 6.2%. These positive growth trends in capacity and demand metrics highlight the effectiveness of Aeromexico’s digital transformation in enhancing operational efficiency and meeting passenger needs (CND English).

Commitment to Sustainable Growth

Aeromexico has emphasized its commitment to sustainable growth and maintaining strong operational performance. The airline plans to invest US$5 billion over the next five years to increase its fleet and improve customer and employee experiences. By the end of 2024, Aeromexico’s fleet is expected to be larger than it was before the pandemic, reflecting the airline’s focus on growth and modernization (Mexico Business News).

Integration of Loyalty Program

As part of its reorganization process, Aeromexico has signed a letter of intention to assume full control over its loyalty program, which was previously a joint venture with Canada’s Aimia. Integrating the loyalty program into Aeromexico’s operations will enable the airline to enhance the customer experience by offering more personalized and cohesive services. This strategic move aligns with the airline’s broader digital transformation goals and its focus on customer-centricity (Mexico Business News).

Future Prospects

Looking ahead, Aeromexico plans to continue investing in digital technologies and innovative solutions to enhance its operations and passenger experience further. The airline’s strategic partnerships, such as those with Sabre and Touch, will be crucial in driving these initiatives. By leveraging advanced technologies and data analytics, Aeromexico aims to stay ahead of industry trends and meet the evolving needs of its passengers (Future Travel Experience).

In summary, Aeromexico’s digital transformation has profoundly impacted its operations and passenger experience. Adopting self-service tools, touchless travel options, and enhanced in-flight entertainment, coupled with strategic partnerships and a focus on sustainable growth, has positioned the airline for continued success in a competitive market.

Aeromexico’s Digital Transformation: A Journey of Innovation and Growth

Introduction

Table of Contents