IT Impact on Airlines Business - Information Technology for Airlines Business

This report analyzes the impact of information technology (IT) on modern global business, with a focus on the Airlines Industry. It utilizes a recent case of info security breaches to identify the major impact of IT on airlines industry’s business. The report also explores the advantages and risks of IT for airlines business, and the importance of IT for CPA business survival.

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IT Impact on Business
Information Technology for Airlines Business
(Student details :)
5/26/2019

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Contents
Information Technology for Airlines Business..........................................................................2
Introduction................................................................................................................................2
IT Impact on Airlines Business..................................................................................................2
Introduction to case................................................................................................................3
Need of IT for CPA................................................................................................................4
IT importance for CPA business survival..............................................................................4
IT application into various business operations of CPA........................................................4
IT utilisation by airlines business...........................................................................................5
Advantages of IT for airlines business of CPA......................................................................6
IT Risks for airlines business.................................................................................................6
IT usage for the maintenance or monitoring of the CPA business........................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................7

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Information Technology for Airlines Business
Introduction
This report is based on assessing the impacts of information technology (IT) on modern
global business. To do so, this discussion is going to focus the Airlines Industry. In this
context, for assessing the IT impacts on airlines business, a recent case of info security
breaches will be utilized for the analysis in this report. Recent news and data will be utilized
for analyzing the case of an information security breach in airlines business. Here, a recent
data breach of Cathay Pacific Airways (referred to as CPA) is going to be analyzed in order
to identify the major impact of IT on airlines industry’s business (Hung, 2019).
In this way, through finding the reasons behind the importance of IT for airlines industry
survival, this paper will find the benefits and risks which IT cause to airlines business of this
digital era (Agwu et al., 2014). Thus, detailed research on a real-life business example of
CPA will demonstrate the impact of IT on airlines business.
IT Impact on Airlines Business
Source: (Picanso, 2008)

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Introduction to case
In this context, during October 2018, a data breach of Hong Kong-based airline CPA affected
around 9.4 million passengers all over the world. Besides, in between 25th October and
November, CPA notified all of the affected passengers through personal email and letters,
into which they told each person about the particular details of their breached personal data
(Australian Government, 2018).
The information security breach has been announced during October 2018 however it took
place during March 2018 while hackers acquired access to 245,000 Hong Kong identity card
numbers, 860, 00 passport numbers, 403 expired credit card numbers as well as 27 card
numbers having no CVV card verification code (Hung, 2019). In addition to that, whole data
that has been exposed in the IS breach counted passenger names, date of birth, nationality,
address, telephone number, passport number, email address, identity card number, frequent
flyer membership number, customer service comments noted on accounts along with the
historical travel info of the passengers (The AME group, 2018).
Subsequently, the CPA apologized for any concern which the information security event may
have caused, as well as reassured their customers as the system which was affected was
totally separate from their flight operations systems. The CPA revealed that there was no bad
impact over flight safety of the passengers. In this way, the CPA suffered the globe’s greatest
aviation security breach as the data of up to 9.4 million passengers were exposed due to IT
security vulnerability (Hung, 2019).

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Source: (Bogle, 2018)
Need for IT for CPA
Being world’s best airline CPA needs IT on a large level as a sustainable business model can
only be created when CPA will utilize IT for various business functions like offering quality
services, information security, overcoming information security challenges and many more.
In this way, the CPA needs IT in their airlines business for the following reasons:
 While providing impeccable services on board as well as on the ground, CPA needs
IT to assist millennial generation in new technological way.
 As we know that CX studio inflight entertainment is one of the best KSP of the CPA,
hence to keep up with the technological pace within Hong Kong CPA needs more ICT
implementation into the business.
 In order to avoid delays in their flights, technology-enabled systems require to be
installed everywhere which is only possible with the help of IT.
 After facing data breach at a massive level, IT securities, as well as privacy policies,
require to be updated with more advanced IT technologies.
 In order to ensure cyber security, info security, and data confidentiality, as well as
reliability CPA, need IT (Farhadi et al., 2012).
IT importance for CPA business survival
There is a huge importance of IT for the business survival within the global business
environment in the future. The reason behind is that all big airlines of Hong Kong such as Air
Hong Kong, HK Airlines, and Cathay Dragon are adopting technological revolution at a good
pace which is ultimately creating a competitive advantage for all of them (Schultz, 2009). In
addition, when we talk about global airlines competition then we found that each and every
best airline in the world are introducing technological innovations frequently for their
technology lover customers. In this way, adapting this technological change is the only way
of surviving into the modern global business environment (Obrien & Marakas, 2009).
Therefore, IT in operations is very much important for CPA’s business survival as well as for
averting any data breach as well.
IT application into various business operations of CPA
While talking about the requirements of application procedure of IT within the airlines
industry as well as CPA, there are following points which are majorly important as follows:

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 The cost required for applying more advanced IT security and privacy software is
huge but it’s the main requirement for any new IT app, framework or security policy
implementation.
 Planning of advanced IT implementation in terms of information security and other
operations is also a major requirement for airlines industry or any industry (The AME
group, 2018).
 Training arrangements for the CPA workforces from the perspective of IT usage and
managing change resistance will also be required by the management of the CPA.
 Designing, equipment, and installation all are the key requirements when breach safe
IT system for CPA is to be designed. In addition, some advance hardware systems
will also be needed by the management of CPA (Watson et al., 2010).
Source: (The AME group, 2018)
IT utilization by airlines business
In general, all airlines are utilizing many kinds of information technologies for business
operations worldwide. In this context, airlines industry is utilizing IT for the business
functions like online tickets booking and cancellation, information distribution, passenger
processing, and for providing dynamic display solutions at huge level (Yeh & Chang, 2010).
On the other hand, CPA is utilizing IT for many organizational functions including internal
and external. Internal business functions like employees are wholly inter-connected for any

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kind of internal communication with the help of IT techniques. Moreover, external business
functions like communicating with customers, suppliers, vendors, and VIP guests are taking
place with the help of IT. However, the CPA needs to incur firewall software packages along
with information security software at advance level so that any future breach can be avoided
safely (Tiwana & Konsynski, 2010).
Advantages of IT for airlines business of CPA
 Reduced costs of check-in processes through directly sending the boarding pass to the
CPA passengers
 While replacing mag strips with 2D bar codes in CPA, IT reduces equipment cost
largely.
 In the context of airports, IT saves time by reducing passengers’ check-lines at the
airport.
 IT enables better use of space at the CPA airports
 IT causes comparatively less cost of maintenance
 IT allows the utilization of single boarding pass for the whole journey which profit the
passengers
 From the passengers’ viewpoint, IT utilization causes fewer disputes, as well as
troubles on the airports as their boarding passes, are directly delivered on the internet
or mobile phones (Vacca, 2012).
IT Risks for airlines business
 The main risk of using IT in airlines business is that data and information related to
passengers or flights can be breached easily by the hackers worldwide through the
Web.
 In addition, when a passenger carries a bar coded boarding pass over their smart
phone then reliability issue arises. If there is a problem while reading the e-boarding
pass or if the phone battery drains off then check-ins affected largely (Schultz, 2009).
 Another IT risk is that bar codes are often exposed to damage as they can be wrinkled,
or damaged through the tape, strapping and many more.
 When any difficulty arises into IT system functioning of the CPA, then data cannot be
updated or corrected instantly but new entries or labels must be printed (Vacca, 2012).

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 If the airline firm like CPA does not use effective antivirus, anti-malware and security
frameworks as well as software then data breaches at large level may occur which can
escalate any unethical activity (Obrien & Marakas, 2009).
IT usage for the maintenance or monitoring of the CPA business
 Fuel cost comes under the maintenance of the airlines business and with the use of
information technology fuel cost get reduced more than 30% of the whole operating
expenses (Schultz, 2009).
 IT provides environmental awareness through various apps and tracker software
hence airline companies can use the monitoring data for their eco-friendly
maintenance
 Internet synchronization with IT
 s-Travel initiative for enhancing the security of CPA
 IT can provide huge security solutions
 IT can improve Air Transport Information Systems (Vacca, 2012).
Conclusion
In whole, with the help of this report, a real life IS breach event in the context of the Hong
Kong-based airline CPA has been researched and analyzed as well. It has been found that the
company suffered from the world’s severest aviation security breach as the data of up to 9.4
million CPA passengers has been exposed in this information security breach. In addition to
that, research conducted for writing this paper has found that the CPA also faced severe
criticism for their 7-month delay in reporting the IS breach. Apart from this, this paper has
explored many aspects of IT usage by the airline's industry and the CPA. Finally, every
aspect related to IT impacts on airlines business with the help of analyzing the case of CPA
data breach has been covered to present the significance of IT security in front of readers of
this paper.
References
Agwu, E., Okpara, A., Aigbiremolen, M. & Lyoha, F., 2014. The Impact of Information
Communication Technologies in the Strategic Management of Financial Institutions.
International Review of Management and Business Research, 3(3), pp.10-15.

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Australian Government, 2018. Notifiable Data Breaches scheme. [Online] Available at:
https://www.oaic.gov.au/privacy-law/privacy-act/notifiable-data-breaches-scheme [Accessed
16 October 2018].
Bogle, , 2018. Data breaches: If a company has lost your personal info, they now have to tell
you. [Online] Available at: https://www.abc.net.au/news/science/2018-02-22/-companies-
must-inform-consumers-of-data-breaches/9462170 [Accessed 16 October 2018].
Farhadi, M., Ismail, R. & Fooladi, M., 2012. Information and communication technology use
and economic growth. PLoS one, 7(11), p.e48903.
Hung, C.C., 2019. Analysis of Information Security News Content and Abnormal Returns of
Enterprises. Big Data and Cognitive Computing, 3(2), p.24.
Obrien, J. & Marakas, G., 2009. Introduction to information systems. London: McGraw-Hill
Inc.
Picanso, K.E., 2008. Protecting information security under a uniform data breach notification
law. Fordham L., (Rev.), p.355.
Schultz, R.A., 2009. Contemporary issues in ethics and information technology. Ed. ed.
London: IGI Global.
The AME group, 2018. Data Security Breach: 5 Consequences for Your Business. [Online]
Available at: https://www.theamegroup.com/security-breach/ [Accessed 16 October 2018].
Tiwana, A. & Konsynski, B., 2010. Complementarities between organizational IT
architecture and governance structure. Information Systems Research, 21(2), pp.288-304.
Vacca, J., 2012. Computer and information security handbook. London: Newnes.
Watson, R.T., Boudreau, M.C. & Chen, A.J., 2010. Information systems and environmentally
sustainable development: energy informatics and new directions for the IS community. MIS
Quarterly, pp.23-38.
Yeh, Q.J. & Chang, A.J.T., 2007. Threats and countermeasures for information system
security: A cross-industry study. Information & Management, 44(5), pp.480-91.

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