Enhanced IT Adoption Central to Global Airline Industry’s Growth: Technopreneur

Information technology adoption across the global airline industry has been steadily rising, with IT investments reaching nearly $50bn last year, according to V K Mathews, founder and executive chairman of IBS Software — a technology partner to the global aviation sector. 

“Today, airlines typically allocate about 5% of their revenue to technology. A decade ago, that figure stood at just 2%. In essence, the industry’s IT spend has more than doubled over the past 10 years,” Mathews stated in an interview with Gulf Times.

He emphasised that in today’s aviation landscape, underinvestment in IT is often a sign of organisational weakness. 

Drawing on his extensive experience—including a 15-year tenure with the Emirates Group in Dubai where he spearheaded the airline's global IT strategies—Mathews has been a key contributor to some of the industry's notable growth stories.

Highlighting the transformative trends shaping the aviation sector, Mathews pointed to personalisation, disintermediation, and aggregation or virtualisation as three defining shifts.

“In the past, the industry was largely supply-driven. Now, it is increasingly demand-focused,” he noted.

“Airlines are prioritising personalisation—offering passengers what they want, rather than simply what is available. To do this effectively, they must understand customer profiles and preferences at a granular level.”

Disintermediation — removing intermediaries to create direct relationships with customers — is another significant shift. This allows airlines to streamline the delivery of products and services.

Meanwhile, aggregation or virtualisation enables carriers to offer services they may not directly produce or operate.

“With digital connectivity, airlines can now act as travel platforms, aggregating services from partners and elevating their role to that of total travel management providers,” Mathews explained.

An alumnus of the Indian Institute of Technology (IIT) Kanpur and Harvard Business School, Mathews is optimistic about the future of global aviation.

He sees immense potential, particularly in fast-growing markets like India, and envisions a sector increasingly defined by next-generation technologies.

“The future of aviation will be shaped by advanced tools such as biometrics, artificial intelligence (AI), blockchain, and the Internet of Things (IoT),” he said.

“These innovations will not only enhance safety and efficiency but also enable a more seamless and personalised passenger experience.”

Founded in 1997 by Mathews with just 55 engineers and one client, IBS Software has grown into a global enterprise with a presence in over 35 countries and a customer base exceeding 150 airlines and travel companies. Today, it employs more than 5,000 professionals representing 42 nationalities.

Looking ahead, Mathews underscored the centrality of technology to the continued growth of airlines, especially in emerging markets. “Technology is the backbone — from operational efficiency in areas like crew scheduling and flight operations to transforming into modern retail platforms. Ultimately, AI will enable deeper, more personalised engagement with travellers,” he noted.