Like any other business, airlines too are facing tighter budgets due to the downturn. But some plan to continue investing in technology enhancements that help them improve their services.
Singapore Airlines (SIA), for example, said it will continue investing in technology improvements that help it better the travel experience of it passengers.
Nicholas Ionides, its vice president of public affairs said: "Despite the business challenges that accompany [the economic downturn], we continue to enhance our products and services, and technology is no exception."
However, the economic climate has caused some other airlines to reconsider their budgets.
A spokesperson for Lufthansa said, to "safeguard" against any crisis, the airline does not intend to focus on technological tools and enhancements.
As for SIA, Ionides said it saw several major technological projects this year.
During the second quarter, it introduced SIA Mobile. This service lets passengers check-in for their flights anywhere in the world using their mobile phones. In addition, passengers are given the option to select their seats. Those on connecting flights on other airlines can also do the mobile check-in if the airlines concerned have check-in agreements with SIA.
Future enhancements to this mobile service include booking of tickets and accessing selected services of the airline's KrisFlyer frequent flyer program, Ionides said.
Meanwhile, Apple fans can also enjoy their music while flying on the carrier's new A330-300 aircraft, which feature iPod and iPhone connectivity in every seat, including economy class. The airline first introduced this feature on its all-business class Airbus A340-500 aircraft, Ionides said.
This facility is incorporated into the multi-port panel placed next to each passenger's individual in-flight entertainment screen. The multi-port panel contains a USB port that also lets other music devices and cameras to connect. Portable media players can also plug into the entertainment screen via an audio-video input for passengers to watch their own favorite videos.
In-flight entertainment as a differentiator
SIA also recently launched a cabin retrofit program which includes enhancing its in-flight entertainment, Ionides said.
"Based on the feedback we receive, [in-flight entertainment] is an extremely popular feature with our customers," he said.
KrisWorld, SIA's in-flight entertainment system has been progressively introduced on several aircraft since 2006. The latest enhancements to the system offer an extensive variety of programs, including more than 100 movies, 180 television shows, a library of 700 audio CDs, 22 audio broadcast programs, interactive games and enrichment learning applications.
While in-flight Internet connectivity is not available yet, SIA is monitoring developments and consumer demand for such a service, said Ionides. However, he added, a comprehensive feasibility study including financial and technical aspects of the service will have to be done before decisions can be made.
The airline also continues to fine-tune its Web site to provide customers greater flexibility and convenience.
Meanwhile, onboard retail services provider, GuestLogix, said its OnTouch onboard merchandising service provides an opportunity for airlines to tap onto an additional revenue source.
John Devins, GuestLogix Asia-Pacific director, said while airlines see a declining sale of their seats, they must look for alternative means to "soften the blow to their bottom lines".
"With onboard retail technology and its ability to support new merchandising models, carriers can turn into retail store operators," Devins said in an e-mail interview.
The retail technology GuesLogix offers comprises point-of-sale handhelds, Web services, transaction processing and wireless communication. These let the airlines undertake destination-based merchandising to help travelers save time. For example, it allows travelers to pre-arrange ground transportation before touching down, he said.
Catalog shopping, tickets to attractions, entertainment and events, phone rentals and long-distance calls, as well as concierge-like services can also be delivered to passengers' mobile devices via the retail platform.
"The airline in turn, earns new commission revenue on selling such tickets," Devins said.
In a recent poll conducted by GuestLogix on 150 Asia-Pacific travelers, four out of five respondents said it would be helpful to be able to purchase train tickets onboard their flights, he said.
More than 63 percent of those polled were comfortable with making purchases onboard flights. This shows opportunities for airlines to grow their ancillary revenues by leveraging onboard retail facilities, Devins added.
Based in Singapore, Konrad Foo is an intern with ZDNet Asia.
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