In this episode of Grit Daily Startup Show, host John Biggs sat down with FLYR CEO Alex Mans, who has emerged as a pivotal player in transforming an industry deeply entrenched in outdated systems. Which industry is that? The airline industry!
The conversation delved into FLYR’s journey under Mans’ leadership, exploring its mission to revolutionize airline infrastructure, the significant challenges faced by both the company and CEO, and the personal insights from Mans that illustrate the resilience and strategic acumen behind the company’s rapid growth.
Redefining Airline Infrastructure
The urgency to overhaul airline technology infrastructure cannot be overstated. As Alex Mans pointed out, the airline industry, a major component of global GDP (around 10%), has been operating with technology from the 1980s.
The antiquation of airline technology manifests as cumbersome printed boarding passes, inefficient baggage handling, and a lack of integration in booking systems, among other things. All of this is symptomatic of deeper systemic issues rooted in legacy mainframe systems.
FLYR is tackling these challenges head-on by developing a modern, cloud-based, relational database-driven system to replace the outdated infrastructure. The goal is ambitious: to facilitate smoother operations for airlines and enhance the passenger experience.
By focusing on deep learning to improve revenue forecasting and load factors and automating pricing strategies, FLYR is not merely updating systems but reimagining them for the digital age.
Overcoming Industry Obstacles
One of the most formidable obstacles in modernizing airline technology is the oligopoly controlled by a few major players like Amadeus and Sabre. These companies, with deep roots in the airline industry and long-standing contracts, create a significant barrier to entry for new innovators.
Mans highlighted the difficulty in disrupting these entrenched interests, given that airlines depend heavily on these systems for a wide range of operations, from departure control to payment processing.
Despite these challenges, FLYR has made significant inroads by offering modular, adaptable technologies that allow airlines the flexibility to move away from the closed ecosystems dominated by the few. This strategy not only provides an immediate improvement over existing systems but also positions FLYR as a crucial partner to airlines looking to future-proof their operations.
Strategic Partnerships and Modular Technology
Key to FLYR’s strategy has been forming partnerships with major airlines to co-develop technologies tailored to their needs. Starting with innovative carriers like Air New Zealand, FLYR has demonstrated the value of its modular technology, which allows for incremental adoption and integration with existing systems. This approach has proven to be a game-changer, making the daunting task of overhauling core systems more manageable and less risky for airlines.
The Entrepreneurial Journey
Mans shared valuable insights from his journey with FLYR, which is marked by perseverance and strategic pivots. Initially focused on consumer-facing technology, FLYR shifted to a B2B model when it recognized the opportunity to use its forecasting prowess to aid airlines directly. This pivot was not just a shift in customer base but a complete transformation in product focus and business strategy.
Emphasizing the importance of resilience and adaptability in entrepreneurship, Mans discussed the difficulty FLYR faced during COVID. The pandemic, while initially a seemingly insurmountable challenge that almost shut down the company, provided a unique opportunity to advance FLYR’s technology with less operational disruption. The crisis highlighted the necessity of modern, flexible systems in a stark new light, accelerating industry readiness for change.
Lessons for Innovators
FLYR’s journey offers several lessons for startups and innovators. First, the importance of targeting the right partnerships and aligning with industry leaders who can champion innovation. Second, the value of flexibility and the willingness to pivot when market conditions or insights dictate a new direction. Lastly, the significance of perseverance — a quality that Mans credits for much of FLYR’s success.
Grit Daily Startup Show is the award-winning podcast produced by Grit Daily.