Lawrence Fong, Director Digital and IT, Cathay
Hong Kong is one of the world leaders when it comes to air travel in both passengers and cargo volumes. As the city cements its role as the rising innovation hub, it’s become a launchpad for startups eager to test bold ideas and ride the wave of transformation.
Today, the aviation industry is at a turning point, driven by shifting customer expectations, rapid advances in technology and evolving global dynamics. For startups looking to make a mark, three mega trends are emerging.
Trend #1: Hyper-Personalised Travel Experiences Powered by AI and Data
The aviation industry today is being reshaped by what passengers truly want: hyper-personalised travel experiences, seamless digital touchpoints and eco-friendly options. With the abundance of data, AI-driven personalisation has become a game-changer.
The numbers speak volumes. The global aviation analytics market is projected to nearly double, from USD 2.5 billion in 2022 to around USD 4.7 billion by 2027.1 That growth reflects a clear demand: travellers expect tailored experiences, and organisations that understand their customers deeply can unlock powerful tech to deliver just that. That means, startups that excel in data analytics, integration, and visualisation won’t just stand out, they’ll be the ones helping aviation players turn data into strategic advantage.
Trend #2: Next-Gen Tools to Deliver Exceptional Customer Experience
Next-gen tools built for frontline teams are changing the game: boosting agility, sharpening decision-making, and helping businesses stay one step ahead of customer needs. They’re also raising the bar on safety, reliability, and service.
Flight operators are leaning into operational AI like never before. Predictive analytics, generative AI for maintenance, and revenue management tools are gaining traction. One standout example is the trial of generative AI in MRO (maintenance, repair and overhaul), where it’s used to sift through massive, fragmented datasets - driving up productivity and safety outcomes2.
Trend #3: Evolving Regulations and Green Aviation
Airlines are constantly navigating in rapidly evolving international regulations, climate policies, and economic pressures. Staying ahead means more than just keeping up – it requires active engagement with industry stakeholders, close monitoring on compliance,sustainability and emerging trends.
For instance, post-pandemic, nearly half of all global airlines returned positive economic value in 2023–20243. Yet the industry remains fragile, challenged by profitability pressures and cost volatility. Those offering resilient, efficiency-boosting solutions will be in great demand by aviation companies looking to align operations and spark innovation across the value chain.
With global challenges and fast-changing customer expectations, innovation is no longer an option, and the market remains hungry for transformative technologies. Even if a startup or tech venture focuses on enhancing even just one part of the journey, whether for check-in, baggage tracking, inflight connectivity or post-travel engagement, they can unlock significant value. Other technologies such as AI-powered customer service, biometric identity verification, digital twins and real time data platforms are also reshaping how airlines anticipate needs, minimise disruptions and deliver tailored services.
Driven by Market, Powered by Tech
Across the Cathay Group, we’re investing well over HKD 100 billion, which includes fleet renewal and expansion, new cabin products, lounges and digital innovation, further strengthening Hong Kong as the international aviation hub and elevating customer experiences. We know that enhancing customer experience starts with our people and empowering our employees with smart digital solutions will not only help them in the way we support our customers but also enhance safety and the way we work.
Earlier this year, we announced a key milestone in our innovation journey with the launch of Cathay Technologies, a new subsidiary under the Cathay Group dedicated to bringing innovations to the wider aviation industry. Leading the charge is our flagship product, the Electronic Flight Folder (EFF) which revolutionised how pilots access and manage flight information, improving both safety and operational efficiency.
We’re proud to be partnering with the Hong Kong Science and Technology Parks Corporation (HKSTP) through its Co-Acceleration Programme Fund to help grow Hong Kong’s innovation ecosystem. At Cathay, we believe in backing bold ideas – so we’re supporting high-potential startups not just with funding, but with real opportunities to test and prove their concepts.
Co-Creating the Future of Travel
Our startup partnerships show what co-creation looks like in action. Take Pecutus Technologies, for example, they built a smart currency exchange solution for our employees that proved its resilience even through the pandemic. It continues to deliver real value, earning a strong 4.71 out of 5 satisfaction rating from our people.
On the operations side, we teamed up with Dayta AI for a Proof-of-Concept using AI vision tech to optimise lounge occupancy. The system provided real-time updates to enhance the customer experience and inform smarter planning. These are just a few ways we’re unlocking value and shaping the future of travel with startups.
But innovation doesn’t stop at external partnerships. We’re also building from within. The Cathay Hackathon 2025 brought together young talent and Cathay's people to reimagine travel experiences. We’re committed to creating platforms for open innovation and will continue working closely with our ecosystem partners to co-create transformative solutions for Cathay and the industry.
Reimagining Travel at EPIC 2025
Cathay is proud to be Co-Title Sponsor of EPIC 2025 alongside HSBC. This partnership reflects our deep commitment to innovation and to building a thriving tech ecosystem across Hong Kong and the Greater Bay Area. We believe that breakthrough ideas flourish in collaborative environments – so we’re constantly exploring transformative technologies and forging partnerships that challenge the status quo.
What really resonates with me is when a startup pinpoints a genuine pain point and speaks directly to it. That clarity and relevance are what make a pitch stand out. But it’s not just about bold ideas – it’s about how well they align with our priorities and whether they’re mature, scalable, and ready to make a real-world impact. EPIC isn’t just a competition – it’s a launchpad for co-creation and long-term partnership.
This year’s EPIC Grand Finale will be held at the Kai Tak Cruise Terminal – a location rich with aviation history. Once home to the legendary Kai Tak Airport, it’s a place that witnessed Hong Kong’s transformation and holds fond memories for our veteran pilots. It’s the perfect stage for bold ideas and for startups ready to take off.
The solutions that will shine at EPIC are those that bridge vision with practicality – ideas that elevate passenger journeys, strengthen operations, and tackle environmental challenges. These are the innovations that can reshape not just airlines, but the entire travel experience.
1https://www.ltimindtree.com/wp-content/uploads/2025/04/The-Aviation-Tech-Radar-Report-2025-Executive-Summary.pdf
2https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/the-generative-ai-opportunity-in-airline-maintenance
3https://www.mckinsey.com/industries/travel/our-insights/the-state-of-aviation
Article by
Lawrence Fong, Director Digital and IT, Cathay
Leading Cathay’s Digital and IT functions, Lawrence drives the company’s digital leadership strategy and elevates its focus on digital transformation.
