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 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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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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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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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

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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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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

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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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