Post on 04-Jun-2018
The Catch 22
05.09.20162
Decisions
consider
safety &
regulations
The Aviation Reality
Cost based
decision
making
requires
integrated IT &
real-time data
Outdated IT Systems
Airlines
burn
money
every day
Costs are not the issue
Manage your airline operations by exception
Airline Challenges
Manage your airline operations by exeption3 9/5/2016
Fragile schedules and ripple effect of
delays
Increased passenger expectations and choices
Economic instability
and uncertainty
Need to optimize asset utilization and efficiency
Difficulty creating accurate forecasts
Volatile fuel costs
How Airlines burn money every day
Manage your airline operations by exception4 9/5/2016
Many OCC work spaces are equipped with data silos
Many applications, not integrated and isolated data
Reservations
Airport
Slots
$€
Crew
Dispatch
FPL
NOTAM
• Very poor decision support with available data
• Time required to get the necessary information
• Time required to take decisions
• Mediocre on-time-performance
Airline spend a lot of money on airport lounges, new aircraft, flat
bed C-Cl seats, but also on disruptions
3rd
All necessary information at a glance
• Critical weather at airports
• FTL of affected crew members on flights
• A/C restrictions and maintenance requirements
• Airport slots and ATC slots
• Operational costs for ACH/EQT, ETD, CNL
• Inbound & outbound PAX connections
N America
$12.1 bn31 airlines
12,608,000 flights
77,9%
$390 m / airlineWorld Total
$ 24.93 bn
$228 m / airline
ME
$567 m4 airlines
637,220 flights
77,8%
$141 m / airline
Asia
$8.1 bn33 airlines
5,296,120 flights
70,9%$245 m / airline
Europe
$3.3 bn34 airlines
5,238,457 flights
83,6%
$100 m /
airline
Source: IATA 2015
S America$0.86 bn
7 airlines
1,598,451 flights
84,2%
$122 m / airline
SM
What are the costs of an airline operations disruption?
05.09.20165
Re-active problem solution
Tools for early detection
Daily Usage / pro-active
Tools for curing
Prevention
Curing
Manage your airline operations by exception
How airlines burn money every day
05.09.20166
Many airline operations control center work
spaces are equipped today with data silos
Ops Controller using a cross-functional
integrated OCC IT systems save costs
Reservations
Airport
Slots
$€
Many outdated airline IT applications, not
integrated and with isolated data streams
Crew
Dispatch
FPL
NOTAM
Very poor decision support with available data
Time required to get the necessary information
Time required to take decisions
Enhanced & fast operations decision support with all necessary information about
Critical weather at airports
FTL of affected crew members on flights
A/C restrictions and maintenance requirements
Airport slots and ATC slots
Operational costs for ACH/EQT, ETD, CNL
Inbound & outbound PAX connections
3rd
Manage your airline operations by exception
Let’s consider an aircraft has to be swappedACH or EQT – what are the costs of each of the following items?
With the given factors, the Ops Controller needs to look at some points:
• Aircraft restrictions (MEL)
• Aircraft version on this route?
• Pax capacity (off-loads), seating configuration (old or new C-Cl)
• Maintenance check for one of the aircraft considered?
• Aircraft lessor allows to fly to the specific destination?
• Runway long enough for B77W with possible high weight?
• Does the airport provide a GPU in case of an APU inop ?
• Crew type rating? Licenses of Crew ? Crew change?
• If crew is not changing, APIS?
• Operating costs (A321 vs A320)
9/5/20167 Manage your airline operations by exception
3rd
All necessary information at a glance
• Critical weather at airports
• FTL of affected crew members on flights
• A/C restrictions and maintenance requirements
• Airport slots and ATC slots
• Operational costs for ACH/EQT, ETD, CNL
• Inbound & outbound PAX connections
Let’s consider an aircraft has to be divertedDIV - what are the costs of each of the following items?
With the given factors, the Ops Controller needs to look at some points:
• The weather/visibility is not below minimum condition?
• The aerodrome is open?
• Firefighting is available in satisfying category?
• How many runways? (Only one might restrict the company minima)
• Lighting facilities for the runway all working? (If not, minima go down)
• Navigation facilities / instruments working? (If not, minima go down)
• Runway long enough for B77W with possible high weight?
• Does the airport provide a GPU in case of an APU inop ?
• Immigration facilities are available for international flights?
• How do we get the passengers to the hotel, to their connecting flights?
• How do we get the crew to the hotel, to their next flight?
9/5/2016Manage your airline operations by exception 9/5/20168
3rd
All necessary information at a glance
• Critical weather at airports
• FTL of affected crew members on flights
• A/C restrictions and maintenance requirements
• Airport slots and ATC slots
• Operational costs for ACH/EQT, ETD, CNL
• Inbound & outbound PAX connections
Complex OCC Decision Making Requires Sophisticated Decision Support Tools and Data Integration
05.09.2016NetLine/Ops ++9
Revenue – to be retained, lost
Crew – lost time, premium pay, accommodations
Maintenance – missed service, wasted resources
Labor – mechanic, ground service agent overtime
Passenger servicing costs -Interrupted trip expenses - hotels, meals, transportation, denied boarding compensation, frequent flyer awards
Any regulatory penalty or cost of delay (EU261)
Cost of passenger god will
IRROP Cost Considerations
How many passengers could be impacted – are there special accommodations passengers onboard
When is our next flight available for the passengers or on OAL – How long will each passenger be delayed in reaching destination
How disruptive is the reaccommodation for the passengers – overnight, long airport delay, multiple stops, missed connections
Are there adequate passenger & crew accommodations available
What type of market are we dealing with –history in this market – airport slots
IRROP PAX Considerations
Do we have an aircraft
Do we have a crew
What happens to the passengers
What happens to the revenue
How much does it cost
Are there any special circumstances
How and how long will this decision impact airline
What are the associated / future / indirect costs
Do I have an alternative
OCC IRROP Decision Tree
Integration of all kind of data is the key.Actual Data in Airline Operations
05.09.2016NetLine/Ops ++10
Movements
Critical weather
information
Delays
Crew
rotations
Passenger
figures
Transfer
passengersOperations IT
Airport Limitations
Airport Slots
Prevention is better than curingAll Identified Operational Infeasibilities listed
05.09.2016NetLine/Ops ++11
Decision Support – Which other tail for Kilo Bravo?Swap Candidate Filter – operating hourly costs per a/c
05.09.2016NetLine/Ops ++16
Decision Support with EU261 Costs IndicationPotential PAX compensation claims calculated
05.09.2016NetLine/Ops ++17
Filter out flights affected from a strike in a specific country and get the costs for potential operational decisions
05.09.2016NetLine/Ops ++18
Decision Support with Crew data in Airline Ops, however what’s the cos of CNL a flight with a check trainer assigned
05.09.201619 Manage your airline operations by exception
Management reporting with sophisticated toolsGenerating dashboard and KPI reporting
05.09.2016NetLine/Ops ++20
Management reporting with DeltaMasterGetting most out of the operational data analyzing the leg export
05.09.2016NetLine/Ops ++21
Recommendation for Airlines
05.09.201622
Don’t
compromise on
safety &
regulations
The Aviation Reality
Figure out a
cost model
which can
easily be
administrated
Keep it simple
Get rid of non-
integrated IT
systems and
save costs
IT Systems
Manage your airline operations by exception
Lufthansa Systems GmbH & Co. KG
Daniel R.J. Stecher
Senior Product Manager Operations IT Solutions
Salzufer 8
10587 Berlin
Germany
Tel. +49 (0)30 34007- 435
Fax. +49 (0)30 34007-100
E-Mail: daniel.stecher@lhsystems.com
www.LHsystems.com
05.09.2016NetLine/Ops ++23