Situation

An assessment of network and capacity planning at a global air carrier indicated that significant contribution was not being captured due to complex process interactions between multiple groups, inadequate system infrastructure and lack of a comprehensive decision support framework.

Actions

• Based on the opportunities identified in the assessment, a strategy was developed in partnership with the Network Planning leadership, overhauling decision-support technology, implementing process improvements, and organizational redesign and capability realignment.
• A comprehensive assessment of the function (internal capabilities, process and technology) was completed.  A  multi-year phased approach to implement the schedule planning infrastructure.
• Optimization models were developed in profitability forecasting, fleet assignment, reliability simulation, unit cost, and aircraft maintenance routing. Conducted benchmarks with existing and commercially available systems.
• Implemented an optimized approach, combining externally and internally developed models and systems. 

Business Impact

• 1%  incremental contribution captured through significantly improved schedule and capacity planning
• Improved operational reliability through better aircraft routings for maintenance
• Reduced overall cycle time of schedule construction by 25%

Situation

High fuel prices, new and more complex air space rules combined with advances in flight planning technology solutions led a global carrier to benchmark its own current systems and processes. This carrier had invested significantly in developing in-house flight planning technology integrated with a host of operationally critical systems over a decade.

Actions

• An early diagnostic indicated specific areas of opportunity in the long haul international market.
• A comprehensive benchmark of process and solutions was conducted covering internal capabilities and third party led solutions.
• A limited time live field-test was implemented with multiple solutions evaluated against a set of pre-defined criteria (total operating cost, investment, productivity, integration capabilities, ease of training, third party/internal ability to support, etc.).
• After an extensive build vs. buy process, a third party solution was selected and implemented in a phased manner to mitigate risk.
• The process was redesigned to implement new capabilities and solutions.

Business Impact

• Long haul Atlantic routes generated significant fuel and navigation charge savings.
• Support capability of these mission critical systems was enhanced through retirement of older generation systems, leading to better reliability and long term support. 

Situation

An airline with a global network, multiple hubs and fleet types, initiated an effort to completely overhaul its lagging operational performance. All key operating metrics (on time performance, completion rate, passenger misconnects, customer satisfaction, baggage mishandling) were lagging industry averages. Large, highly reliable, transaction based legacy systems were in place, but lacked ready access, ease of use, real-time decision support and event correlation to keep pace with changing business needs.

Actions

• Developed systems and business process strategies with direct involvement of key stakeholders.
• Created focus on improving visibility and transparency of operational data, providing current and optimized decision support capability and integrating all data sources in a unified framework. The key performance metrics were on-time performance, workforce efficiency and customer satisfaction.
• Drove key behavior modification and capability building by developing operations managers into “proactive” problem solvers and eliminating the prevalent “reactive” fire fighting mindset.
• Implemented a phased multi-year  plan to develop an integrated suite of products that would enable  a step-change in the effectiveness of the Operations Control Center in running the airline. 
• The overall program was adopted as a key corporate initiative with direct oversight of the Chief Operating Officer of the airline. 

Business Impact

• The overall program delivered significant cost improvement while driving up operational performance. 
• The roles and responsibilities of the Operations Control Center and the airport staff were enhanced and optimized. 
• On-time performance improved significantly and the airline achieved top-tier ranking in operational reliability amongst carriers in the United States

Situation

A global carrier faced with an increasingly connections-driven airline network due to its complex hub-and-spoke structure and expanding alliances conducted a review of its revenue management practices. Existing flight-level inventory control system was inadequate in maximizing revenue opportunities. Recent yield management research claimed a 1-2% incremental revenue enablement through successful implementation of O&D control. Any airline that implemented this capability first would gain significant competitive edge and enjoy first mover advantages.

Actions

• Developed a multi-phase plan to implement path-based demand and fare forecasting, a network optimization system and integration with the airline’s inventory host platform and other systems.
• Implemented the necessary organization transformation to define the roles and responsibilities of various planners in the division. Defined a new macro demand planning role, with optimization at flight level.  
• Designed and implemented a comprehensive simulation capability to test various inventory control mechanisms.
• Implemented a massively parallel computing platform to enable the highly complex set of forecasting and inventory models.

Business Impact

• Achieved 1.5% incremental revenue with improved passenger mix across the network.
• Revenue Management planners enabled with improved analytical tools and precise inventory controls.
• Airline became one of the first carriers to implement full O&D control across its network greatly enhancing its revenue capabilities against competitors and enabled synergistic benefits with its alliance partners.

Situation

During the holiday season, a major US airline was forced to cancel in excess of 1000 flights due to a pilot shortage resulting in a massive revenue loss and customer goodwill. Senior Management initiated a study to understand root causes and to implement a permanent fix. 

Actions

Conducted a thorough assessment to identify the root causes of the pilot shortage and determine weaknesses in the following critical parts of the manpower planning system:

• Process
• Software tools
• Data
• Management Strategy
• Crew planning team capabilities, training and performance
• While all the parts of the system had weaknesses that contributed to the problem, the lack of adequate application software needed to support the planning process was identified as the major culprit

Built an analytics based software system to help crew resources manage the process and make critical decisions such as:

• When to provide training
• How many reserves are required by seat and aircraft type
• When and how many vacations should be permitted
• When should the company hire new pilots
• Redesigned processes and trained the people to effectively utilize the new software application

Business Impact

The airline has not had a major outage due to poor crew manpower planning since the new system was implemented

Situation

A mid-sized carrier was having trouble generating enough revenue to meet their business plan and suspected that their revenue management function was a major part of the problem.

Actions

Conducted a RM health check to perform a thorough assessment of each major process that comprises an airline’s RM function.  These functions included:

• Overbooking
• Forecasting
• Discount allocation
• Performance measurement and reporting
• Revenue integrity

Assessed and documented the current state of each process

Defined the future state for each process using best practices

Developed a detailed roadmap necessary to move each process and consequently the entire RM function to best practices

Executed the roadmap

Business Impact

3-4% in incremental annual revenue is expected as a result of these improvements.

Situation

The senior management of a large hub and spoke carrier was asked by the airport authority of 1 of their large hubs to build new terminal to support the growth of the airport.  Estimates were that the terminal would cost in excess of $1 billion.  Senior management needed to make a decision.

Actions

• A multidisciplinary project was initiated in which advanced analytics played a critical role.  There were 2 major questions that drove the decision about the new terminal.  First, could the airline grow the hub enough for the investment to have a sufficient ROI.  Second, could the airspace and groundside of the airport handle the increased traffic of an additional terminal.
• The commercial viability of the new terminal was analyzed using a set of standard advanced analytics tools to forecast traffic flows, and estimate revenues, costs, and profitability of a variety of future schedules.  It was determined that the new terminal was commercially viable and that the estimated ROI was sufficient to justify the investment.
• Using detailed simulation models of the airspace and landside of the airport, it was determined that the airport and airspace as it existed could not support the traffic that would be generated by the new terminal.  There would be gridlock in the air and gridlock on the ground.

Business Impact

The airline decided not to build the terminal at that time and told the airport authority and the FAA that unless the airspace was redesigned