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Azul Airlines recently announced a partnership with artificial intelligence (AI) outfit Fetcherr to pilot a demand prediction and algorithm pricing platform. The Brazilian carrier is looking to increase revenue, optimize workflows and streamline operations with this approach. Amid the move, Simple Flying caught up with André Américo, Director of Network & Strategic Planning, Revenue Management and Alliances at Azul, to find out more.
Improving results
Working with the airline since 2010 and graduating as a commercial pilot, Américo has plenty of experience in understanding the needs of the aviation industry. After years of working alternately among planning and revenue areas, he now has the opportunity to bring everything under the same management.
Thus, his team decided to Fetcherr’s demand prediction and algorithm pricing technology. The carrier has noted that it already witnessed better revenue performance and workflows since implementing the AI system. Fetcher was founded in Israel in 2019, going on to provide an AI-powered, results-driven engine that predicts demand to help the airline industry offer continuous pricing.
The right collaboration
Américo highlights that pricing algorithms and technology are evolving at astonishing speeds. If the airline wants to be able to move from reservation booking designator (RBD)/class-based pricing and inventory controls, towards a dynamic & continuous pricing environment soon, it needs to be testing and piloting something now. Therefore, the company concluded that Fetcherr was the ideal partner as they shared this same vision.
We were keen to find out the advantages to the actual passenger. Américo explains:
“The program offers a much more dynamic and specific pricing response, instead of bundled traditional class and RBD controls. We should be able to price every seat independently, which also enables more different price points – that enables more fares to be sold in-between our current fare buckets, and to the limit, it can also mean we would be able to provide access to air travel for a wider public of clients.”
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Photo: Vincenzo Pace | Simple Flying
Modern solutions
Azul concludes that investing in new technologies naturally increases costs, but as long as the carrier can have better use of its inventory and uniquely by booking clients in a more efficient way, there will be long-term advantages. In practice, the airline can book customers on more direct flights instead of trips with stopovers.
All in all, Azul is looking at every opportunity to improve the current technologies used in all of its processes. Moving towards AI-based technologies is a natural step in its research and development initiatives.
We’ve already showcased how AI can assist in the reduction of operator fuel consumption and lower emissions. It is also a major factor when it comes to security and will continue to play a role in operations across the spectrum. Over the next three years, 82% of airlines will invest in AI. So, Azul is ensuring that it’s keeping ahead in this next chapter.
With the least number of customer complaints in Brazil, the carrier caters to passenger requirements well. So, initiatives such as this will go a long way heading into 2023.
What are your thoughts about the way Azul is utilizing AI? What do you make of the overall prospects? Let us know what you think of the airline and its plans in the comment section.
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Azul
- IATA/ICAO Code:
- AD/AZU
- Airline Type:
- Low-Cost Carrier
- Hub(s):
- Belo Horizonte International Airport, Sao Paulo Viracopos International Airport, Recife/Guararapes International Airport
- Year Founded:
- 2008
- CEO:
- John Rodgerson
- Country:
- Brazil
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