Airline Business Process Optimization
Goran.Stojkovic@jeppesen.com
Copyright (c) 2009 Jeppesen
Jeppesen.com
Presentation Plan
Introduction
Research
Application
Case Study 1
Case Study 2
Summary
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Introduction
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How All These Happened
Visited/met several airlines worldwide
Performed an extensive research of airline business
processes
Developed template business process model
Developed methodology to analyze and streamline
business processes by providing business, system and
data views
Applied acquired knowledge at several airlines
Copyright (c) 2009 Jeppesen
Research
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Methodology
Developed methodology to captures airlines business
processes allowing to understand:
How an airline works,
Who is involved,
How activities flow from beginning to end.
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Metrics
Developed structured set of metrics allows:
Comparison of alternatives and identification of best practices
Focusing on global value rather than on value by silo is crucial in
showing the added value
Delay propagation
Schedule Deviation Metrics
300
250
Recovery
Time
200
Delayed
Flights
150
Delay
Time
Overlap
Time
100
Delay &
Overlap
50
1
0.9
(0.50, 0.40, 0.70)
0.8
(1.00, 1.00, 1.00)
*
(1.00, 0.80, 0.88)
5
R
0.7
(0.60, 0.60, 0.60)
0.6
0
0.5
10
20
30
40
50
60
70
80
Initial Delay Time
90
0.4
0.2
0.3
0.4
0.2
0.1
0
0.6
0.8
0.2
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0.4
0.6
0.8
Combined
Combination enables:
Better transparency
Bottleneck identification
Processes streamline
Identification and validation of optimization opportunities
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Application
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Current Work
Focus on implementation of developed methodology by
customizing templates to the actual airline processes
Providing system, data and decision flow views within
existing business process model
Identifying process optimization opportunities and
providing best practices
Two case studies showing results obtained at two midsize airlines with large international networks, one with
scheduled and other with ad-hoc operations
Deliverable includes:
As-Is process models
To-Be process models
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10
Case Study 1
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11
Airline Business Processes
Flight
Scheduling
Fleet
Scheduling
Crew
Scheduling
Planning &
Maintenance
Transition &
Coordination
Operations
Revenue
Management
Maintenance
Scheduling
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12
AS-IS Planning Process Model
Flight
Scheduling
Initial
plan
Fleet
Scheduling
Plan
maintenance
Initial
plan
Crew
Scheduling
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Plan
maintenance
Plan
Plan
Plan
maintenance reoptimization maintenance
Manual
adjustments
Pairing
Revenue
Management
Maintenance
Scheduling
Final
plan
Plan
maintenance
Roster
maintenance
Rostering
Reservations
Initial
plan
Plan
maintenance
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TO-BE Planning Process Model
Flight
Scheduling
Initial
plan
Fleet
Scheduling
Plan
maintenance
Initial
plan
Crew
Scheduling
Maintenance
Scheduling
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Plan
maintenance
Plan maintenance &
reoptimization
Pairing
Revenue
Management
Final
plan
Roster
maintenance
Rostering
Reservations
Initial
plan
Plan
maintenance
14
AS-IS Transition Process
System View
Planning
Tail
Assignment
Data transfer
Tail assignments
Validation
Aircraft/ crew
connections
data exchange
Crew
Pairing
Tail assignments
Operations
Reservations
Aircraft
Recovery
Movement
Control
Crew
Tracking
Tail assignments
Transition
Passenger
Recovery
Bookings
Reroutes
Reservation
System
Crew
pairings
EDS
Flight Dispatch
Crew
Rostering
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15
TO-BE Transition Process
System View
Planning
Data transfer
Operations
Planning Data
Operational Data
Tail
Assignment
Aircraft
Recovery
Reservations
Tail Assignments
Movement
Control
Crew
Tracking
Crew
Pairing
Crew Rosters
Passenger
Recovery
Bookings
Reroutes
Reservation
System
EDS
Flight Dispatch
Crew
Rostering
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16
AS-IS Operations Process Model
Flight
planning &
monitoring
Flight
Dispatch
Flight
Scheduling
Flight
history
Flight updates
Aircraft
recovery
Aircraft
Tracking
Fleet
history
Pax
Rerouting
Booking
history
Crew
Tracking
Crew
history
Crew
recovery
Crew updates
Maintenance
history
Maintenance
recovery
Maintenance updates
Maintenance
Management
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Tail updates
Pax
recovery
Reservation updates
17
TO-BE Operations Process Model
Flight
planning &
monitoring
Flight
Dispatch
Flight
Scheduling
Aircraft
Tracking
Operations
history
Aircraft &
passenger
recovery
Future operation updates
Pax
Rerouting
Crew
Tracking
Maintenance
Management
Crew
recovery
Maintenance
history
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Maintenance
recovery
Maintenance updates
18
Case Study 2
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19
Airline Business Processes
Sales
Flight
Scheduling
Fleet
Scheduling
Customer
Services
Planning &
Maintenance
Operations
Crew
Scheduling
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20
AS-IS Planning Process Model
Sales
Flight
request
Flight
Scheduling
Fleet
Scheduling
Crew
Scheduling
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Flight
acceptance
Account
management
Feasibility
Check
Fleet
assignment
Plan
maintenance
Crew
assignment
Roster
maintenance
21
TO-BE Planning Process Model
Sales
Flight
request
Flight
acceptance
Account
management
Fleet &
Crew
assignment
Plan maintenance
& reoptimization
Flight
Scheduling
Fleet
Scheduling
Crew
Scheduling
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22
AS-IS Operations Process Model
Flight
planning &
monitoring
Flight
Dispatch
Flight
Scheduling
Flight
history
Aircraft
Tracking
Fleet
history
Crew
Tracking
Crew
history
Sales
Booking
history
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Feasibility
Check
Fleet
assignment
Crew
assignment
Flight
request
Flight
acceptance
Schedule
tracking
Flight updates
Aircraft
tracking
Tail updates
Crew
tracking
Pax
tracking
Crew updates
Passenger updates
23
TO-BE Operations Process Model
Flight
planning &
monitoring
Flight
Dispatch
Flight
Scheduling
Flight
history
Aircraft
recovery
Aircraft
Tracking
Fleet
history
Crew
Tracking
Crew
history
Sales
Booking
history
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Future operations updates
Crew
recovery
Flight
request
Passenger
tracking & recovery
Passenger updates
24
Summary
Existing processes and IT infrastructure significantly
streamlined
Permits growth without increase in business and IT staff
Existing processes are supported, additional benefits
possible if ready to change them
Cost/benefit analysis of process changes is enabled
Shortened planning processes and flexibility for future
business model changes
Facilitates demand driven operations
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25
Summary (cont.)
Allows profit centric operations - at each moment it is
possible to see cost/revenue effects of using certain
tail/crew, rerouting passengers and diverting flights
Set of KPIs available to evaluate consequences for each
affected area as well as to find pareto efficient solution
Initial findings show response time and solution quality
improvement
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