Airlines increasingly integrate and use data from transaction systems, websites and mobile applications, email, flight, and operations, to personalize offers to customers, increase customer loyalty, and improve operations and safety. In short, airlines increasingly use data as a strategic asset for competitive advantage.
Yet, the collection of data also presents significant risks. Cybersecurity experts generally agree that it is not a question of if a company will be the victim of a data breach but, rather, when such a breach will occur. A data breach can result in state and federal regulatory exposure, consumer class action litigation, shareholder derivative and securities litigation, operations disruptions, reputational damage, significant remediation costs, and loss of value. While a company will never eliminate the risk of a data breach, companies should proactively address cybersecurity to mitigate this risk.