Airport Technology – Next Generation Planning & Optimization Solutions – Quintiq

SPECIAL REPORT

Next Generation Planning and Optimization Solutions

The Next Generation of Aviation Optimization Technology is Here Case Study – Defying the Snow at Frankfurt Case Study – Keeping Cockpits Manned Embracing New Technology Planning and Optimization for the 21st Century Sponsored by

Published by Global Business Media

Aviation industry leaders reach greater heights with Quintiq

Around the world, Quintiq has helped airports, airlines and air service providers to reduce costs, maintain safety standards and improve the quality of their services. Our world-record-breaking optimization software has helped our customers to: • Cut overtime costs by 40% • Reduced planning buffers by 20% • Achieved 99% on-time delivery performance • Cut labor costs by 20% • Reduced logistics costs by 35%

Want to know the secret to their success? Turn the page now.

E: quintiq.aviation@3ds.com | I: www.quintiq.com

SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

SPECIAL REPORT

Next Generation Planning and Optimization Solutions

Contents Foreword

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Tom Cropper, Editor

The Next Generation of Aviation Optimization Technology is Here Case Study – Defying the Snow at Frankfurt Case Study – Keeping Cockpits Manned

The Next Generation of Aviation Optimization Technology is Here

3

Marcel Dreef, Director Aviation Planning Solutions, Quintiq

Embracing New Technology Planning and Optimization for the 21st Century Sponsored by

Published by Global Business Media

Published by Global Business Media

Air Traffic Passenger Volume on the Rise Providing the Best Passenger Experience Next Generation Planning and Optimization Solutions: The Key to Business Success

Global Business Media Limited 62 The Street Ashtead Surrey KT21 1AT United Kingdom

1. Single Fully Integrated Platform

Switchboard: +44 (0)1737 850 939 Fax: +44 (0)1737 851 952 Email: info@globalbusinessmedia.org Website: www.globalbusinessmedia.org

3. U sing Big Data and Big Calculations to Get to World

Publisher Kevin Bell

2. 100% Fit – Solving the Right Puzzle Class Optimization

Case Study – Defying the Snow at Frankfurt Tom Cropper, Editor

Business Development Director Marie-Anne Brooks

A Logistical Nightmare

Editor Tom Cropper

A Practical Solution

An Administrative Headache

Senior Project Manager Steve Banks

Flexibility is the Key

Advertising Executives Michael McCarthy Abigail Coombes

Case Study – Keeping Cockpits Manned

Production Manager Paul Davies

A Shortage of Pilots

For further information visit: www.globalbusinessmedia.org

What the Future Might Hold

The opinions and views expressed in the editorial content in this publication are those of the authors alone and do not necessarily represent the views of any organisation with which they may be associated.

Material in advertisements and promotional features may be considered to represent the views of the advertisers and promoters. The views and opinions expressed in this publication do not necessarily express the views of the Publishers or the Editor. While every care has been taken in the preparation of this publication, neither the Publishers nor the Editor are responsible for such opinions and views or for any inaccuracies in the articles.

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Jo Roth, Staff Writer

Streamlining Processes

Embracing New Technology

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James Butler, Staff Writer

Growth in Air Traffic The Need for Improvement Technology for the Future

Planning and Optimization for the 21st Century

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Tom Cropper, Editor

Customer Service Airport Management

© 2015. The entire contents of this publication are protected by copyright. Full details are available from the Publishers. All rights reserved.

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Big Data

References 14

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Foreword W

HEN THE Chinese wish to curse people,

KLM, meanwhile, are looking at ways to address their

they say “may you live in interesting times.”

long term planning issues. Rising passenger numbers

Times are certainly interesting in the aviation

may see staff shortages becoming a very real issue

industry as it struggles to cope with increased

in the future. Promotions, retirements or departures

passenger numbers, greater competition and

to other airlines can leave a skills gap which can be

possible staff shortages.

difficult to replace. By bringing in Quintiq’s software,

In the first article in this report, Marcel Dreef of

they have been able to speed up the planning process

Quintiq, outlines the need for more sophisticated

and ensure their long term three year plans have plenty

planning software. Their fully-integrated planning

of contingencies to avoid shortages when they arise.

system allows a wider view of operations rather

The next two articles will take a wider view, looking at

than the siloed departmental view operators currently

the trends affecting aviation over the next two decades

have. It allows more streamlined planning, and for

and the available technology. We’ll look at what’s

operators to trial various scenarios to ensure they

available now and what new technology is coming

make the optimum decisions.

in the future.

In the next two articles we’ll look more closely at

These are challenging times, but where some

two examples of how these challenges are being

people see difficulties, it is also possible to detect

addressed. At Frankfurt Airport, the annual task

opportunities. This new technology enables airlines

of clearing snow from the airfield represents an

and airports to embrace every chance for growth that

enormous logistical undertaking. Coordinating

comes their way.

temporary clearance staff, ensuring vehicles are operational and getting them up and running more quickly are crucial to keeping the airport running. Time is money and every delayed or cancelled flight impacts the bottom line.

Tom Cropper Editor

Tom Cropper has produced articles and reports on various aspects of global business over the past 15 years. He has also worked as a copywriter for some of the largest corporations in the world, including ING, KPMG and the World Wildlife Fund.

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

The Next Generation of Aviation Optimization Technology is Here

Secret #1 of optimal aviation planning

A single platform supporting all planning decisions

Marcel Dreef, Director Aviation Planning Solutions, Quintiq Around the world, Quintiq has helped airports, airlines and air service providers to reduce costs, maintain safety standards and improve the quality of their services.

Air Traffic Passenger Volume on the Rise The aviation industry seems to know no bounds.

Today, an average of 50,000 flights take off every day, carrying more than 6.5 million passengers. These passengers generate over 1.3 billion dollars in revenue and show no signs of slowing down. The 2014 Boeing Pilot & Technician Outlook, a respected industry forecast of personnel demand, projects that over half a million new commercial airline pilots will be needed between now and 2032 to support the increase in passenger numbers.

Globally, airports are also on the rise. The debate over the flight runway at Heathrow and expansions at Gatwick are ongoing. Frankfurt Airport is building a third terminal to deal with the rise in passenger volume. In the UAE, Dubai has unveiled plans to invest $32bn to create one of the world’s largest aviation mega-hubs.

Providing the Best Passenger Experience Amidst all this tremendous growth, there is fierce ongoing competition to win the loyalty of passengers. Decreasing costs of operations and decreasing ticket prices, might sway passengers in your favor, but is cost the defining factor in the passenger experience?

Ultimately, the passenger experience depends on smooth-running operations in which the airline, airport and other stakeholders such as air navigation service providers and ground handlers work well together. It’s all about carefully planning a highly interconnected set of resources, and being able to adjust quickly in the event of unexpected circumstances and disruptions. The weakest link in the travel chain determines what your passengers will remember from their trip.

Next Generation Planning and Optimization Solutions: The Key to Business Success Providing a great passenger experience and operating in an efficient manner is the key to excelling in an increasingly competitive environment. Getting passengers from A to B requires billions of decisions about making the most of available resources today and even bigger decisions to be ready for the future.

The right technology can provide you with the guarantee that all decisions you make are tried and tested before implementation so that you can see the effect of various scenarios on all your operations across the board and gain visibility into the overall effect on your business goals, produce optimal plans overnight and efficiently manage potential disruptions to plans on the day of operations.

Quintiq provides a platform to ensure that your air operations are optimized, following these key principles:

1. Single Fully Integrated Platform The only way to ensure that the scheduling of all resources is truly aligned is to plan them all using the same platform. With planners currently only considering the options of their single department, there is a risk of thinking in silos and losing sight of the big picture. Are you sure that those decisions do not just create a feasible plan, but also a plan that is in line with your business goals? Moreover, are you sure that decisions that a single planner makes don’t affect other aspects of your operation? If the operations are highly connected, the planning should be as well.

Achieve your business goals through the short-, midand long-term planning of all your people and resources in one system.

Find out more at Quintiq.com.

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

The weakest link in the travel chain determines what your passengers will remember from their trip

SINGLE FULLY INTEGRATED PLATFORM

A great example of streamlining operations across a wide set of interconnected departments is the work Quintiq has done at the awardwinning Copenhagen Airport. In the last ten years, it has been named ‘most efficient airport in Europe’ eight times. To maintain its reputation as one of the world’s best airports, the operational team started to examine how data could be actively used to enhance operational forecasting and planning.

CPH has begun using Quintiq’s Workforce Planning application to manage staff rostering and task assignments. In addition to managing union and Danish labor

KPI-BASED PLANNING

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rules, the new system enables greater transparency and visibility in workforce planning across CPH’s 11 departments. The solution also helps the airport to optimize staffing while adhering to the numerous strict, complex regulations and union laws affecting Copenhagen Airport.

Thomas Hoff Andersson, Director Airport Optimization at Copenhagen Airport stated: “Our airport was already a very efficient machine. But we thought that if we could work with Quintiq to optimize our workforce planning and squeeze out even more efficiency, it would spell major cost savings.”

SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

AIR TRAFFIC CONTROLLER AT WORK

2. 100% Fit – Solving the Right Puzzle Details matter when it comes to running complex air operations, where safety and speed form a challenging combination of objectives. The decision support tool used to plan the operations should take these details into account. Only in this way is it guaranteed that the plans will work as well in practice as the tool has predicted. Missing a key rule or constraint in the model can easily make a proposed plan useless.

Switzerland’s Air Navigation Service Provider (ANSP) skyguide optimizes the planning of the rosters and tasks of nearly 800 air traffic control officers (ATCOs) and other staff using the Quintiq planning platform. skyguide has autonomy over Switzerland’s airspace, controlling commercial and military traffic. One complex challenge facing ANSPs is assigning ATCOs with the right qualifications to the correct combination of sectors. Quintiq’s platform assesses the resources skyguide has at its disposal and rosters staff accordingly. The platform also helps skyguide build the necessary plans for staff recruitment and training, and allocates ATCOs the right number of hours as agreed in their collective labor agreements while taking into account fatigue management safety restrictions.

Quintiq proved that it could provide a flexible system that can adapt to the variety of requirements at skyguide’s different locations, and integrate with skyguide’s existing planning systems.

operations, or whether they are for the long term strategic scenarios, aviation operators and decision makers want to make the shift from creating a merely feasible plan to creating the most optimal plan possible. Big calculations that effectively use all available data to optimize operations is key. The Quintiq platform offers world-record breaking optimization technology based on state-of-the-art algorithm-based decision support.

At KLM, for example, pilots are each trained for a specific function, so career transitions such as a promotion would affect schedules that may have been planned up to three years in advance.

Given the scale of coordinating thousands of pilots across multiple functions, KLM’s planners faced massive challenges in creating schedules one to three years ahead. Furthermore, these advanced schedules had to anticipate flight demand, accommodate pilots’ vacation requests, adjust for career transitions and adhere to evolving labor laws.

Prior to the implementation of Quintiq’s software platform, KLM’s planners could take up to a month to complete the development of a three-year plan. With the Quintiq solution, KLM planners can develop a three-year plan overnight. The elimination of repetitive planning and increased efficiency enable planners to also simulate the results of different strategic decisions in order to make the optimal choice.

“KLM needed a flexible solution that could efficiently manage the important aspects of pilot staffing and keep workforce-related costs minimal,” said Pieter Wensveen, VP Finance and Crew Planning at KLM Royal Dutch Airlines.

KLM now benefits from having a solution that optimizes a fully transparent strategic and tactical plan, enabling it to maintain operational strength at optimal cost.

The technology for aviation optimization is available and business success is within reach.

With the right tools to support visibility and efficient planning, you are guaranteed to save costs today and be ready for the future. To find out more about how integrated planning and optimization is transforming aviation operations, contact us at: quintiq.aviation@3ds.com

3. Using Big Data and Big Calculations to Get to World Class Optimization

Contact

Large volumes of data are processed on a daily basis. But it is useless to process data if they cannot be used as input for decision making.

Air operations, along with planners and dispatchers, need to make thousands of decisions per day, often within minutes.

Whether these decisions are made with regard to disruption management on the day of

Quintiq Utopialaan 25 5232 CD ‘s-Hertogenbosch Tel : +31 (0) 73 691 0739 Fax : +31 (0) 73 691 0754 quintiq.aviation@3ds.com www.quintiq.com

Secret #2 of optimal aviation planning

Real-time decision support

Get immediate feedback on your planning decisions, get alerts when something needs attention, and reallocate resources automatically Find out more at Quintiq.com.

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Case Study – Defying the Snow at Frankfurt Tom Cropper, Editor How Germany’s largest international airport is tackling the ongoing hazard of winter weather.

4km to be cleared, 30 minutes to do it – speedier deployment of winter services at Fraport

A

IRPORT OPERATORS do their best to anticipate any problems before they arise. Sometimes, though, Mother Nature takes matters out of their hands. When it snows, any airports which are unprepared can descend into chaos. Back in 2012, the first reasonably serious snowfall of the winter caused havoc at Heathrow, where 42% of flights were cancelled – 30% of them before a single snowflake had fallen! The cost of these closures can be severe. A couple of years earlier in 2010, snow hit Britain for a week causing 4,000 flight cancellations, costing the operators, BAA, £20 million and hitting the UK economy to the tune of £1.2bn1. It’s a salient lesson for all airports on the importance of adequate planning before any snowfall.

A Logistical Nightmare An example can be seen in the form of Frankfurt Airport, where sustained snow can place the entire operation of the airport at risk. In 2013, it was forced to cancel more than 200 flights due to snow and freezing rain2. When snow falls for several hours continuously it quickly piles up and has to be continually kept in check by two high performance snow groomers. However, the logistical undertaking of managing this is immense. Crew must be able to clear a fourkilometer long, and 60 meter wide, runway within 30 minutes, while also preserving access to the apron areas. In all, this covers a total area of 7.5 million square meters or the size of 1,000 football pitches.

It’s a big job and requires a large scale response. Each shift uses around 200 vehicles, including high performance snow blowers, 20-metre long sweeper blowers, 40 meter wide gritters and wheel loaders. All of this requires highly trained staff with expertise in using the equipment. Approximately 200 employees are used per shift and these are normally provided by an employment agency.

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They have to be taken on board in the right numbers before the weather hits. To do this, Vice President of Airport Infrastructure, Roland Schwarz, and his team receive regular weather updates three times a day from the German weather service. If snow looks like it’s on the way, they assign staff numbers and summon them from the employment agency between 14 and 16 hours before the snow is scheduled to begin.

An Administrative Headache Until now, the process had been coordinated manually, using Excel lists and small databases.

Workers would often spend time before their shift waiting for paperwork, such as registration documents, to be allocated. Although the airport allowed sufficient time for this work, it soon became an administrative and financial headache. With the extra time required to process the paperwork of 200 employees, the costs quickly mounted. Given that the airport required winter services between 60 - 70 times a year, the money quickly reached the five figure level.

With the drag on finances and administrative inefficiency, Schwarz and his team decided to look for a more efficient way of doing things. What they needed was simple: a solution which ensured fast allocation of employees to their vehicles, complying with working times and providing the necessary data for subsequent reports.

A Practical Solution Only some of the required improvements could be made with procedural change. What they needed was a new IT system, and they found it in the shape of the Workforce Planner from Quintiq. This is a flexible and powerful planning system that provides managers with a huge amount of real time data tailored to their own specific requirements.

SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Secret #3 of optimal aviation planning

Demanddriven planning AIRCRAFT BAGGAGE LOADING IN SNOW

The strengths of the system are that it brings greater levels of automation into the process, giving users access to all the information they need in one place. As soon as the weather turns bad, Quintiq’s system snaps into action.

It provides the operations manager with a planning status in real time which can be seen on a monitor at a glance. Here he can see the area which needs attention and the vehicles at his disposal. It also has an interface at the working terminal which can record the arrival of employees in real time. He can do almost everything, from monitoring vehicle allocation to observing working time regulations, scheduling breaks and managing the flight.

When required, he can also make manual changes to the plan.

This represents an entirely new system and that brings with it a host of associated challenges.

For buyers, there is the initial cost of installation and the challenge of ensuring the system is compatible with the task in hand. However, the entire program took only 12 weeks, with testing being able to be run in November – in plenty of time for the winter snows.

This ambitious timetable was possible thanks to the flexibility of the system and the close working relationship between Quintiq’s staff and the airport’s own management team.

“The cooperation between my employees, our colleagues from the Information and

Telecommunication Department (IUK) and the specialists from Quintiq went completely smoothly. The Quintiq software has proved to be extremely versatile and could be very quickly modelled by the IUK team. Within a few weeks the system has been installed here with which we can organize the winter service much more efficiently.” said Roland Schwarz (Vice President Airport Infrastructure – Airport Facilities & Area Services), Fraport.

The Quintiq system is purposefully designed to meet the differing requirements of the business, allowing operators to more effectively allocate tasks to different workers. It is this level of flexibility which allows it to meet the individual demands of the airport and to minimize the disruption caused by its installation.

Flexibility is the Key Other airports will have their own unique challenges. As such, this level of flexibility will be critical for airports around the world. By simply organizing information in one space, it is effectively capable of streamlining the entire process. It reduces the amount of man-hours required, and ensures that teams can react more quickly and efficiently to the challenge of the snow. The team will be hoping it enables them to avoid a repeat of that difficult winter back in 2013.

Plan with a deep sensitivity to peaks and troughs and create a schedule that is robust against disruptions during execution of the plan.

Find out more at Quintiq.com.

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Case Study – Keeping Cockpits Manned Jo Roth, Staff Writer A shortage of pilots creates headaches for planners, but more efficient administrative systems can alleviate the problem.

“KLM needed a flexible solution that could efficiently manage the important aspects of pilot staffing and keep workforce-related costs minimal.

Quintiq’s knowledge of our business has impressed us, and we are delighted that the roll-out is complete” Pieter Wensveen, VP Finance and Crew Planning at KLM

R

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EPUBLIC AIRWAYS Expects to park aircraft because of pilot shortages.3” As far as headlines go this would have made dim reading for investors of the regional US airline as they read the company’s 2014 filing to the Securities and Exchange Commission.

However, it points to a wider problem which is affecting airlines both large and small.

A shortage of qualified pilots is giving schedulers a headache as they seek to keep up with demanding schedules and keep cockpits manned at the busiest times of the year. Solving the problem requires more flexible and efficient planning to ensure valuable flying hours are not lost.

A Shortage of Pilots Republic’s report points to the severity of the challenge. Because of its pilot shortage, it would have to remove 27 of its 41 ERJ aircraft. This in turn would impact on revenues creating 750 fewer jobs and reducing income by $18 million to $22 million. The airline’s difficulties are being mirrored by other US airlines where a range of factors have come together at once. New regulations require pilots to have 1,500 hours of training flying time before being cleared to fly commercial airlines (a six fold increase); at the same time significant numbers of pilots are hitting the mandatory retirement age of 65 and low pay makes the profession less and less appealing. Meanwhile, international carriers are looking to address their own shortages of talent and are paying top dollar to recruit the best captains. The result – small airlines such as Republic, risk being left with empty cockpits.

Globally, pilot shortages represent a potential time bomb for the industry. Airlines are investing heavily into new aircraft to cope with an expected doubling of demand over the next 10-15 years.

However, they are failing to develop the talent to back this up. In other words, personnel are

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not increasing to match the number of aircraft.

Speaking to Flight Global, Dr Olumuyiwa Benard Aliu, council president of the ICAO said: “International civil aviation’s greatest priorities over the coming decades virtually all derive from the projected doubling of our network’s capacity. The shortage of pilots, air traffic controllers, engineers and mechanics we are facing around the world… are key areas where ICAO’s leadership and action will be instrumental to the future viability and sustainability of our global network.”4

Streamlining Processes While more will be done to encourage people to enter the industry, the strain on the existing talent pool creates numerous challenges for planners.

As things stand, the pool is so thin that many factors can cause problems.

For KLM, planning for future capacity requirements is a major issue. All its pilots are trained for a specific function. Any career transitions such as promotion or retirement can affect long term schedules. As such, the airline faces an enormous challenge of coordinating thousands of pilots across multiple different functions for several years. These advanced schedules have to accommodate multiple developments including vacation requests, evolving employment laws, and career changes.

Their solution is to bring in a new software platform which accelerates the process of making three year plans. With their existing platforms, each three year plan would take approximately a month to complete. However, by adopting a new platform from Quintiq, they were able to produce plans overnight.

Quintiq’s simple, but powerful, software planning platform is designed to address the specific supply chain puzzles facing businesses. For KLM, it enables them to eliminate repetitive planning and simulate the results

SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Have you got the airport planning skills to save the day?

At Sunnyville Airport, delays are mounting, passengers are growing restless, stakeholders are piling on the pressure. Can you save the day? of different strategic decisions to obtain the best possible results.

It is helping KLM to reduce costs incurred from under-staffing and account for the introduction of new aircraft types, pilot retirements and any other problems which might arise. By using expected flight demand as a guide, the Quintiq software platform shows KLM’s planners the available staffing balance for each function per week. Around peak periods, such as vacation times, for example, there will be less capacity, enabling planners to approve or decline vacation requests depending on their staffing requirements at the time. It’s a system which is easier and quicker to operate, and provides more transparency, enabling planners to lay in long term contingency plans which account for multiple factors.

Speaking about what the system brings, Pieter Wensveen, VP Finance and Crew Planning at KLM, said: “KLM needed a flexible solution that could efficiently manage the important aspects of pilot staffing and keep workforce-related costs minimal. Quintiq’s knowledge of our business has impressed us, and we are delighted that the roll-out is complete.”

What the Future Might Hold Although the aviation industry is subject to occasional shocks, demand is robust. Due to the long-term Market Outlook from Boeing for 2014-2033, a market growth of 5% is expected in airline traffic. In order to improve operational efficiency, maximize airplane utilization, and increase safety, airlines are looking for IT solutions.

Airline planners and ground operations suppliers can benefit from new technologies that enable them to make quick responses to ever-changing situations, as for example crew legality, weather, and airport traffic congestion.

It’s a system which is easier and quicker to operate, and provides more transparency, enabling planners to lay

SUNNYVILLE AIRPORT

in long term contingency plans which account for multiple factors.

Also, connecting mobile solutions to support baggage handlers, gate agents, caterers, and fuel providers, will be focused more closely.i As the old Cub Scout saying goes: it pays to ‘be prepared.’ Airlines have a wealth of data which points to increased demand over the coming years, and while there is no guarantee this will materialize, it would be foolish to ignore it. Meeting this demand requires several changes. On the one hand they will need to increase future staffing levels, but from a planning point of view, they will also need to ensure those levels are adequately managed. New software platforms such as the one offered by Quintiq offer them a way to do exactly that.

Test yourself against players (and planners) from around the world!

Play Airport Blitz Go to games.quintiq.com/ airport-blitz

Note: i. http://www.boeing.com/assets/pdf/commercial/cmo/pdf/ Boeing_Current_Market_Outlook_2014.pdf

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Embracing New Technology James Butler, Staff Writer Airlines and airports are scrambling to bring in new technologies which can help them compete in an ever-more challenging environment.

There appears to be a consensus that the next few decades will see immense growth in passenger numbers

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S AIRPORT and airline operators plan for the future, they have to ask themselves a number of key questions: How fast will passenger numbers grow? Are we equipped to cope with what the future brings? What are our competitors doing and what options are available for improving processes? The trouble is, there are no firm or definitive answers.

Growth in Air Traffic There appears to be a consensus that the next few decades will see immense growth in passenger numbers. IATA expects global passenger numbers to reach 7.3bn by the year 2034, more than twice the 3.3bn who travel currently. Annual growth will be a healthy 4.1% with the majority of the increase coming from countries such as China and India as well as renewed growth in the West as it recovers from the economic crisis.5 While technology exists to provide a more integrated solution to planning, many still use old fashioned systems in which departments work in isolation. The results are delays, overcrowding and inefficiencies all of which translate into a lack of passenger satisfaction.

This can be a major problem, as today’s airline passenger is in a far stronger position than used to be the case. They have more choice, both in airlines and airports. Most have more than one international hub to choose from and have shown a willingness to make their buying decisions based not just on price but also on their experience.

The Need for Improvement The benefits of making improvements can be clearly seen with the recent changes at the small Australian carrier, Tiger Air. A few years ago its reputation was at a low point resulting from safety issues and delays, which provoked images of angry passengers shouting at staff. Today, their on-time performance is up 86% thanks to changes to their systems to improve efficiency.

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This includes an iPad-based technology which allows staff to move out from behind the desk and deal with passengers anywhere in the terminal. It comes with a credit card reader and a scanner and printer, which allows staff to check in passengers, check boarding passes and also to sell additional services such as excess baggage or superior seating.

The results are already being seen in the airline’s bottom line. Customer satisfaction is up to 75%, passenger numbers are up 17.5% and pre-tax profits are up to $500,000 – a stark contrast to the $25 million loss in the corresponding period6.

Technology for the Future The challenges facing airports are creating an exciting marketing opportunity for developers of innovative solutions. New technologies are coming out across the operation which can improve the airline experience. From the passenger side, mobile technologies such as the one incorporated by Tiger Air expedite the check-in process. Automated baggage drops and increased self-service technology for passengers all help to hasten their passage through the terminal.

Behind the scenes there is a quiet revolution.

New planning platforms and technologies provide operators with a dramatically enhanced overview of data, allowing them to make improved real time decisions. Passenger movements can be tracked throughout the airports which can help them make predictions about where blockages may occur. Staff can be quickly deployed to assist with bottlenecks and pre-emptive action can be taken to prevent problems before they arise.

Other planning applications allow airport operators to make more effective decisions for the medium and long term. Multi-year staffing plans can be created within a few hours rather than days, multiple scenarios can be simulated, allowing operators to predict the most optimum strategies. Heavy logistical operations such as de-icing can be planned months in advance,

SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Secret #1 of optimal aviation planning

A single platform supporting all planning decisions

reducing wastage, costs and delays. All this translates into very real savings for airports.

The problem is that while the technology exists, implementation remains an issue. Many operators around the world remain ignorant of what’s available and even if they have become aware , they remain uncertain about how to introduce it effectively. Collaboration between stakeholders at all ends of the supply chain will be crucial if a system is to deliver on its objectives. Different hubs, for example, face very different requirements and integrating these into any new solution represents a

major challenge. Equally, it also represents a significant operational risk. Overhauling existing systems can be time consuming, difficult and require the retraining of staff members. Also, in the early days they can be subject to errors and glitches which can lead to a detrimental impact on services in the short term.

Constant dialogue between all sides is essential.

Every project – be it a simple gadget like iPad check-ins or a complete overhaul of the IT system will present a unique range of challenges.

Suppliers will need to work extremely closely with end-users to deliver solutions which are tailored to their needs.

Experience is also key. Numerous business IT providers are adapting their products for use in the aviation industry, but not all of them have specialist experience in aviation. This is a fragmented environment with multiple stakeholders. Airport operations can include anything from air traffic control, airport management, security, cleaning, maintenance and customer service. Detailed knowledge of each aspect will be beneficial in providing a solution that more accurately addresses their needs.

The buyer side needs to look at two things when considering new solutions: what can the technology do and what can the supplier offer?

A firm which has dedicated experience across the aviation business will be at a significant advantage in delivering the planning and optimization systems of the future.

Achieve your business goals through the short-, midand long-term planning of all your people and resources in one system.

Find out more at Quintiq.com.

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SPECIAL REPORT: NEXT GENERATION PLANNING AND OPTIMIZATION SOLUTIONS

Planning and Optimization for the 21st Century Tom Cropper, Editor

A new generation of planning and optimization technologies is coming online to improve the operations of airports around the world.

The next generation of software planning systems focus on an integrated approach which is much more reactive and flexible and can cope with the added capacity demands expected in the future

T

IMES ARE changing in the way airports are being operated. A predicted surge in passengers means operations and processes will have to work better than ever before. To help with this, a new generation of technology is coming online which can smooth traffic in the terminal, improve the passenger experience and ensure flights depart in a timely manner.

In this article we’ll examine three crucial areas of development. Customer service – improving the customer experience; airport management and the challenge of integrating operations under different stakeholders; and the role increased data gathering may have. Each of these areas is taking part in delivering the dramatic efficiency improvements airports require.

Customer Service There is a host of innovations coming to market which aim to improve passenger experience in the departure and arrival areas. Most of these focus on automation and self-service devices which reduce the amount of time passengers spend checking-in and passing through security.

By so doing, airports are able to reduce waiting times and, incidentally, ensure the passenger spends more time in the duty free area with nothing to do except shop until their flight departs. An example is Gatwick’s investment in technologies such as self-service bag drops, biometric security and passenger tokens which make the process much smoother. Implementing this has reduced the time taken to process each passenger from 76 seconds to around 45 seconds. In its North terminal, meanwhile, they have combined this bag drop technology with an iris scan. When they drop their bags off, passengers also register their iris scan. As such their iris is associated with their luggage and passport at every step in the journey from hereon in.

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Speaking to the website Future Travel Experience, Michael Ibbitson, Gatwick’s Information Officer, suggested this technology could, in the future, be incorporated with online check-ins in which passengers register their iris with a smartphone at home before they even embark on the journey.7

Airport Management Airport management is always going to be a complicated challenge. Location-specific factors such as weather conditions, peak usage, labor regulations, seasonal variations, capacity and environmental requirements will all influence the way it is run. Current solutions tend to rely on segmented systems in which departments are isolated from one another. This can lead to a lag in reaction time, inefficiencies and a failure to cope with demanding issues. The next generation of software planning systems focus on an integrated approach which is much more reactive and flexible and can cope with the added capacity demands expected in the future.

They recognize the individual constraints, capabilities and challenges of any airport. They can enable the implementation of long and short term planning strategies and provide operators with complete real time at-a-glance data for the entirety of the airport’s operation.

Enhanced analytical tools allow greater feedback and the ability to introduce new learnings to achieve valuable systemic improvements. The ability to simulate different scenarios means airports can be better prepared for dealing with traffic issues or congestion problems, and will be able to test different options against one another, allowing them to make the best possible decision. This flexibility can handle last minute scheduling changes, service disruptions or staff absences which, in turn, contributes to sustained and prolonged improvements throughout the airport operation.

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Most of all, as Copenhagen Airport has demonstrated, they can achieve real operational gains by bringing the multiple operations of an airport together such as under the Quintiq system. They are able to increase efficiency and truly optimize the system. They can ensure the optimal number of staff to be deployed at any one time and the right amount of infrastructure is in place. It means having not too much and not too little available, which enables the maximization of cost efficiency through the running of the airport.

Big Data Partially as a result of these new processes, the amount of data available to airports in the future is likely to multiply. Helsinki Airport recently became the first in the world to use passenger phones to track their movements. Sensors placed around the airport trace those phones which have Wifi turned on8. It has two uses. The primary aim is to give operators a better view of passenger movements throughout the terminal, which allows them to spot and rectify bottlenecks. Retailers see another use. It can show them what shops passengers visit and what buying decisions they make. By using this information they can sell to passengers more effectively. Already, retailers are using mobile phones to connect with passengers, giving them personalized offers and incentives while they are in the retail area.

However, although the volume of data collected by airports is now immense, operators are struggling to deal with it effectively. It is one

thing to gather information on things such as passenger movement, flight arrivals, car park usage, shopping and so on, but it’s quite another to know how to analyze it and turn this information into real productivity improvements for the airline.

Equally, while operators are spoiled for choice in some areas, there are still some gaping holes, mostly in behind-the-scenes operations such as hospitality, cleaning and maintenance.

Addressing this issue brings us back to the rise of integrated systems. By sharing information across all departments in the airport’s operation, small, but incremental savings can be achieved throughout the entire process. These systems can enhance understanding, allow airports to interpret data more effectively and identify possible areas of improvement.

The potential of this technology, therefore, is considerable. However, there are plenty of lessons to be learned for airports in the effective implementation. They need suppliers who understand the intricacies of the challenges presented at every stage of the passenger journey. Equally, they need oversight over who owns which part of the journey. Multiple stakeholders will often run up against conflicting interests, creating an obstacle to a harmonious formation of over-arching strategy. As airport planners and operators move into the future, they will need to educate themselves on what technology is coming into the marketplace and how it can be applied effectively to the unique challenges of their airport.

Secret #2 of optimal aviation planning

Real-time decision support

Get immediate feedback on your planning decisions, get alerts when something needs attention, and reallocate resources automatically Find out more at Quintiq.com.

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References: 1

Weather havoc: Heathrow Can’t Cope in the Snow:

http://www.telegraph.co.uk/news/weather/9064020/Weather-chaos-Heathrow-cant-cope-in-snow-admits-owner.html 2

Frankfurt Airport Affected by Winter Weather: http://www.dw.de/frankfurt-airport-affected-by-winter-weather/a-16536525

3

Republic Airways Expects to Park Aircraft Because of Pilot Shortage:

http://aviationblog.dallasnews.com/2014/02/republic-airways-expects-to-park-some-airplanes-because-of-pilot-shortage.html/ 4

That Pilot Shortage: Will it Prove to be Another Mirage?

http://www.flightglobal.com/news/articles/analysis-that-pilot-shortage-will-it-prove-to-be-another-409320/ 5

New IATA Passenger Forecast Reveals Fast Growing Future: http://www.iata.org/pressroom/pr/pages/2014-10-16-01.aspx

6

Reformed Tiger Air on the Prowl Again:

http://www.theaustralian.com.au/business/aviation/reformed-tigerair-on-the-prowl-again/story-e6frg95x-1227343570616 7

8

Gatwick Information CIO talks self-service bag drops: http://www.futuretravelexperience.com/2014/01/gatwick-airport-cio-talks-self-service-bag-drop-next-generation-security-biometrics-single-passenger-token/ Big Brother is watching you:

http://www.dailymail.co.uk/travel/travel_news/article-2710491/Helsinki-Airport-track-passengers-using-mobile-phone-WiFi.html

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Aviation industry leaders reach greater heights with Quintiq

Around the world, Quintiq has helped airports, airlines and air service providers to reduce costs, maintain safety standards and improve the quality of their services. Our world-record-breaking optimization software has helped our customers to: • Cut overtime costs by 40% • Reduced planning buffers by 20% • Achieved 99% on-time delivery performance • Cut labor costs by 20% • Reduced logistics costs by 35%

Want to know the secret to their success? Turn the page now.

E: quintiq.aviation@3ds.com | I: www.quintiq.com

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Notes:

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