Personalization But At What Cost? The Data Privacy Challenges In The Airline Industry

The General Data Protection Regulation (GDPR) has significant implications for the airline industry since airlines handle large volumes of their customers’ personal data, including data classified as “sensitive data” under the GDPR. Hence, they must have strict data protection measures in place and appropriately inform their customers about how their data is collected, stored, used, and secured while ensuring that such data is not transferred outside EU jurisdictions without adequate safeguards. Other implications include the need to inform customers during a data breach. Failure to comply with these requirements will lead to sizable fines and reputational damage.

There’s no hard and fast rule about how often privacy policies should be reviewed. However, a reliable practice would be to review them at least once a year or more if possible. These reviews should ideally assess airline data processing changes, adopting new technologies involving customers’ data, or other legal circumstances. Regular reviews ensure effective compliance while providing customers transparency related to the airlines’ data privacy practices.

Non-compliance to data privacy laws will almost always result in significant monetary fines, loss of customer trust, and other operational issues arising from regulatory investigations. These fines are often significant. In the case of the GDPR, it can reach up to 4% of annual global turnover or €20 million, whichever is higher. However, these can often pale in comparison to the reputational damage, as the loss of customer trust is often permanent. Additionally, non-compliant organizations may face compensation claims from affected individuals while other legal repercussions, such as regulatory bodies placing restrictions on data processing activities, may also follow.