In the fast-paced world of aviation, staying ahead is crucial, and that's where the role of Head of Innovation comes in. This role has evolved over the years from being primarily within R&D departments to a strategic position. With the new century, the need for a broader approach led to the emergence of the Chief Innovation Officer (CINO). This shift reflects the growing need for a broader approach to managing the innovation process and building capabilities, making the CINO a vital facilitator and leader of innovation initiatives.
In 2022, the collective expenditure on research and development (R&D) in the aeronautics and defence sectors, funded by both industry and governments, reached an estimated €23.2 billion, marking an 18.5% increase compared to 2021. As companies continue to prioritize innovation, the role of Head of Innovation becomes increasingly crucial.
Meet Martin Mitev, whose passion for exploring new ideas and nurturing creativity is sure to inspire anyone interested in the future of travel.
Martin Mitev always dreamed of being a pilot, inspired by his father's career in aviation. Although financial hurdles initially kept him from flying, he pursued a successful path in computer science, even starting his own company. Yet, Martin never let go of his aviation dreams.
About 15 years ago, he finally had the opportunity to train as a pilot in Denmark. In 2010, during the financial crisis, he joined airBaltic, encouraged by a journalist who saw a bright future for pilots. Despite the tough economic climate, Martin adapted and thrived.
At airBaltic, Martin proved to be much more than a pilot. He took on various roles, from IT manager to assistant to the Head of the flight department, and the Head of Innovation. Since 2021, he's been making significant impacts in his current position, such as coming up with ideaHub - an internal platform for submitting and realizing ideas.
Martin is currently juggling the roles of a pilot and Head of Innovation, which requires discipline and love of ideas and progress.
Q: How does your experience in the flight department influence your approach to innovation in your current role?
Mitev: During my time in the flight department, I often spotted opportunities for improvement. It was all about having the desire to innovate and, sometimes, finding the necessary funding. Now, as the Head of Innovation, I really appreciate working in a structured environment where everyone knows their responsibilities and focuses on doing their job well.
Q: What are some key challenges as Head of Innovation at airBaltic?
Mitev: One challenge is that new ideas often come from external companies, but sometimes colleagues internally are already working on similar things without communicating it.
This is both an opportunity and a challenge because finding something truly new is rare.
Q: Your ideaHub has 278 ideas processed through it already. How was ideaHub born, and how does it work?
Mitev: The idea of ideaHub was born when colleagues not directly involved in flight operations started approaching me with their ideas. Eager to explore these suggestions, I discussed them with the administration manager, but we lacked a formal mechanism to implement them. I convinced HR to create a system for this, as such a system was non-existent in aviation at the time. Later, I found out that other companies like KLM and Lufthansa have adopted similar systems.
We established three key rules for the ideaHub:
- Everyone should be well aware of the evaluation process of the ideas.
- There's no limit on the number or quality of ideas—what matters is having ideas floating as long as they are related to airBaltic’s values.
- Everyone receives feedback for their ideas because being heard encourages repeated use of the system, even if the idea isn't viable.
We also have an innovation committee where we brainstorm the pros and cons of each idea, and then we decide to continue with it or postpone it.
During the summer, when I'm often on assignments as a pilot, we usually meet online. However, during quieter times, like early October, we meet in person, which is definitely more pleasant and productive.
Also, we often collaborate with other departments to realize ideas from the ideaHub. For example, we suggested having a rental car available for staff to use between flights or offices, as we have several locations around the airport. This would save time and increase efficiency.
Another idea was allowing passengers to board and disembark from both the front and rear doors of the aircraft, which could reduce ground time by five to seven minutes. Although initially deemed complex, we proposed a trial period and see what happens.
Q: Has ideaHub changed the internal company vibe?
Mitev: Yes, it has. The implementation of the ideaHub has significantly changed the atmosphere within the company, as it fosters innovation and collaboration. People are more willing to share ideas, even if they initially hesitate. I discovered that people are naturally very hesitant and shy to discuss their ideas openly. They usually need to think the idea through and in great detail before they dare to share it. Over time, however, I've noticed more and more colleagues started approaching me with their thoughts, eager to discuss and develop them further. I assure them that every idea will be considered. We even have route ideas developed internally by our innovation team. That means the range of ideas is really wide, from complete market innovations to operational observations.
Q: Innovation goes hand in hand with being bold, doesn’t it?
Mitev: Yes, but it’s not just about being bold; there needs to be some structure to this boldness.
For example, setting a timeframe for evaluating an idea's success can prevent over-commitment. In brainstorming sessions, having a structured approach can lead to better and faster results. For instance, dedicating specific time slots to discuss why an idea might succeed or fail can provide clarity and direction.
Q: How do you see the role of AI in aviation?
Mitev: The more I dive into this topic, the more I realize that it is and would be different for every company. For example, a company came to us last month to offer the world’s first voice chatbot based on AI. The way it works is you have a problem, you say it to the chatbot and a voice answers your question. We considered it to see if we could implement it, but our customers call us only when they have a very specific problem that a voice chatbot cannot resolve.
On another hand, our innovation team developed a chatbot that learnt all our mandatory aviation handbooks as there are so many of them. This way we could easily and very quickly access the right information from the right handbook at any moment.
AI could greatly improve many facets of aviation, but we need to be cautious with its implementation due to strict regulations and the immense responsibility for flight safety and passenger well-being. From what I've observed, it often takes up to a decade for new technologies to be adopted in highly regulated sectors like airlines.
This means new AI solutions must undergo long approval and certification processes. Also introducing new technologies may encounter resistance from staff, especially if they do not understand how AI can improve their work. Therefore, AI is likely to make a quicker impact in areas like HR, marketing, and PR in aviation, rather than in core operational activities such as flying, maintenance, or transporting passengers and cargo.
Companies like airBaltic, which is a relatively new entity in aviation, might find it easier to introduce innovative technologies. For example, we were the first to accept Bitcoin as payment in 2014. We also have 10,000 non-fungible tokens (NFTs) as part of a modern loyalty program. After us, others followed. We do not only pick the “low-hanging fruit” of commercial activities though: we are trialling an AI tool to automatically detect hazards in safety reports and classify them based on their severity and urgency. I tried filing one via the voice front-end, too - a very cool experience.
Q: What's the future of customer experience in aviation?
Mitev: Customer experience in aviation is probably not personalized enough, yet. Even though we're advancing, we expect changes next year, like greeting customers by name and offering them personalized services. In the next three to five years, we foresee more personalization with AI, and more voice actions instead of using a mouse or finger. With our non-fungible tokens (NFTs), we aim to simplify processes like ticket transfers. We are excited about the trials and the different conclusions we can learn from.
Q: What excites you about the future of aviation?
Mitev: Looking ahead to three, five, 10, or 20 years, I expect planes to adapt seats for individual comfort, for example.
Travel usually has a purpose, like flying for a business meeting in Riga, and our goal at airBaltic is to facilitate the travel purpose by offering the right fare and ticket type. If someone travels on Friday and returns on Monday, we could offer services like picking up their luggage from home because they need to go to the office first before they head to the airport, to make their journey easier. We could also offer a fast-track option for those in a hurry to be at the office on Monday morning, for example. Our goal is not just to transport the customer from point A to point B, but to make their entire experience easy and pleasant.
Additionally, soon, we expect permission to start using Starlink during flights. This will be interesting to observe as it will change how people use their time on the plane. There will be new possibilities, but also challenges, like too much noise from phone conversations.
Q: What is your perspective on sustainability in aviation?
Mitev: Aviation is fuel consuming and thus CO2 emitting industry. And it is a visible industry, too. However, due to the high cost of aviation fuel, the industry has long been focused on developing systems to reduce fuel usage and costs, thereby reducing CO2 emissions as well.
airBaltic’s recent switch to a single type fleet of Airbus 220-300 did a very good job, as the young fleet (we have currently the second youngest fleet in EU) naturally, is also more efficient. However, in the aviation industry’s decarbonisation strategies we see that the major decarbonisation job would be done by sustainable aviation fuel, SAF. Starting from 2025, EU flights would require SAF blend of 2%, gradually reaching 70% blend in 2050.
Additionally, we offer passengers the chance to contribute to the voluntary increase of SAF, above the amounts required by law. With their ticket purchase, they can add funds for the acquisition of sustainable aviation fuel (SAF). This initiative has been running already the second year, and we see that 1-2 thousand passengers every month choose to add SAF to their flights.
This year, we also signed a memorandum with Fokker Next Gen to support their goal of developing an aircraft powered by hydrogen-based fuel. This new design will feature a longer tail to accommodate a larger hydrogen tank.
Furthermore, every third proposal we received last year through our ideaHub focused on reducing our ecological footprint.
In conclusion…
Mitev: I urge everyone to dream without boundaries, pursue bold ideas, and seek out partners to bring those visions to life, making life more exciting and fulfilling.
This interview is featured in our 'State of Aviation' column, designed to showcase expert insights and opinions on the latest trends, challenges, and future directions in the aviation industry. By engaging with professionals from various companies and roles, we aim to present a wide view of the industry, capturing diverse perspectives and stories.
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