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
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Research
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Methodology
• Developed methodology to captures airline’s 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
300
Schedule Deviation Metrics
250 Recovery
Time
Delayed
200 Flights
Delay
150 Time
Overlap 1
Time
100
Delay &
0.9 (0.50, 0.40, 0.70) 1 * (1.00, 1.00, 1.00)
Overlap 0.8 5
(1.00, 0.80, 0.88)
50 0.7 R
(0.60, 0.60, 0.60)
0.6
0 0.5
10 20 30 40 50 60 70 80 90 0.4
0.2
Initial Delay Time 0.3
0.2 0.4
0.1 0.6
0
0.8
0.2
0.4 1
0.6
0.8
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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 mid-
size 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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Case Study 1
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Airline Business Processes
Flight
Scheduling
Fleet
Scheduling
Crew Planning & Transition &
Maintenance Operations
Scheduling Coordination
Revenue
Management
Maintenance
Scheduling
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AS-IS Planning Process Model
Flight Initial Plan Final Plan
Scheduling plan maintenance plan maintenance
Fleet Initial Plan Plan Plan Manual Plan
Scheduling plan maintenance reoptimization maintenance adjustments maintenance
Crew Roster
Pairing Rostering
Scheduling maintenance
Revenue Reservations
Management
Maintenance Initial Plan
Scheduling plan maintenance
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TO-BE Planning Process Model
Flight Initial Plan Final Plan
Scheduling plan maintenance plan maintenance
Fleet Initial Plan maintenance &
Scheduling plan reoptimization
Crew Roster
Pairing Rostering
Scheduling maintenance
Revenue Reservations
Management
Maintenance Initial Plan
Scheduling plan maintenance
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AS-IS Transition Process
System View
Planning Data transfer Operations Reservations
Tail Tail assignments Tail assignments Aircraft
Validation
Assignment Recovery
data exchange
Aircraft/ crew
Movement
connections
Control
Crew
Tracking
Crew
Pairing Tail assignments Bookings
Transition Passenger Reservation
Recovery Reroutes System
pairings
Crew
EDS
Flight Dispatch
Crew
Rostering
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TO-BE Transition Process
System View
Planning Data transfer Operations Reservations
Planning Data Operational Data
Tail Aircraft
Assignment Recovery
Tail Assignments
Movement
Control
Crew
Crew Tracking
Pairing
Bookings
Crew Rosters Passenger Reservation
Recovery Reroutes System
EDS
Flight Dispatch
Crew
Rostering
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AS-IS Operations Process Model
Flight Flight
planning &
Dispatch monitoring
Flight Flight
Flight updates
Scheduling history
Aircraft
recovery
Aircraft Fleet
Tail updates
Tracking history
Pax Booking Pax
Reservation updates
Rerouting history recovery
Crew Crew Crew
Crew updates
Tracking history recovery
Maintenance Maintenance Maintenance Maintenance updates
Management history recovery
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TO-BE Operations Process Model
Flight
Flight
planning &
Dispatch monitoring
Flight
Scheduling
Aircraft Aircraft &
passenger
Tracking recovery
Operations
Future operation updates
history
Pax
Rerouting
Crew Crew
Tracking recovery
Maintenance Maintenance Maintenance Maintenance updates
Management history recovery
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Case Study 2
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Airline Business Processes
Sales
Flight
Scheduling
Customer Planning &
Fleet Services Operations
Maintenance
Scheduling
Crew
Scheduling
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AS-IS Planning Process Model
Sales Flight Flight Account
request acceptance management
Flight Feasibility
Scheduling Check
Fleet Fleet Plan
Scheduling assignment maintenance
Crew Crew Roster
Scheduling assignment maintenance
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TO-BE Planning Process Model
Sales Flight Flight Account
request acceptance management
Flight
Scheduling
Fleet &
Fleet Plan maintenance
Crew
& reoptimization
Scheduling assignment
Crew
Scheduling
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AS-IS Operations Process Model
Flight
Flight
planning &
Dispatch monitoring
Flight Flight Feasibility Schedule
Flight updates
Scheduling history Check tracking
Aircraft Fleet Fleet Aircraft
Tail updates
Tracking history assignment tracking
Crew Crew Crew Crew
tracking Crew updates
Tracking history assignment
Sales Booking Flight Flight Pax
tracking Passenger updates
history request acceptance
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TO-BE Operations Process Model
Flight
Flight
planning &
Dispatch monitoring
Flight Flight
Scheduling history
Aircraft
recovery
Aircraft Fleet Future operations updates
Tracking history
Crew Crew Crew
Tracking history recovery
Sales Booking Flight Passenger
Passenger updates
history request tracking & recovery
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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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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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