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A MAGAZINE FOR AIRLINE EXECUTIVES

Ta k i n g

y o u r

a i r l i n e

OCTOBER 2002

t o

n e w

h e i g h t s

SIMPLIFYING FOR THE FUTURE

A Conversation with . . . British Airways

INSIDE Airlines Seek to Simplify Operations

Aligning with IndustryBest Practices

TAM Extends Leadership

w w w. s a b r e . c o m


perspective perspective with Tom Klein

One size fits

all.

One of the most invigorating aspects of my job as group president of Sabre Airline Solutions is the opportunity to

ing and operations, seeking ways

interact with leading members of the airline industry.

to reduce costs and better utilize

In May, I had the opportunity to attend the International

t o

n e w

h e i g h t s

China. As is usually the case at such events, some of the most

solutions that help airlines make

enlightening moments occurred during casual conversations

good decisions in these areas, our

before and after each of the various meeting sessions.

business is squarely focused on helping your airline

OCTOBER 2002

A constant topic during these conversations centered on how airlines are trying to simplify their operations

Publisher:

Editors:

Stephani Hawkins Scott Hunt

in order to more effectively compete in an economic VELOCITY

to achieve profits. The network carriers are also facing

fourth quarters, Ascend will bring you information on industry

heightened competition from the low-cost segment,

and technology trends as well as news from around the globe.

something your airline doesn’t?

characterized by simple pricing, fleets and organization.

We will also share with you our direction as a company and,

With Sabre ® eMergo, the answer can

Many of the low-cost carriers have managed to thrive

we hope, you will see ways where we can work together

even during the most challenging economic climate

to help you become the best airline possible.

The decline in high-revenue business traffic has had a

As the name implies, this magazine is designed to help

dramatic effect on the ability of the major network carriers

your business gain altitude. Twice a year, in the second and

TM

SIMPLICITY

be no. Because the same industry-leading Broad Portfolio

Contributors:

solutions the largest carriers count on are now available to you through the Web or a and at a level of investment that’s right-sized for growing airlines. From planning to opera-

FLEXIBILITY

As always, we welcome any feedback regarding Ascend.

in the industry’s history. In this extraordinarily difficult time for a normally tough

dedicated connection. In a service package Accessible Delivery

business, airlines must conduct a thorough self-examination.

Please feel free to contact us at wearelistening@sabre.com. We look forward to hearing from you!

Among other steps, airlines have begun to look at ways to

tions, we offer a broad portfolio of integrated applications. And Sabre solutions are backed

Reduced Capital Costs

by our forty years of experience, innovation

Scalable Solutions

and leadership. Sabre eMergo. Industry-

Get What You Need

leading tools for smaller airlines that

contents contents

don’t plan to stay that way.

w w w . s a b r e . c o m

Reader Inquiries:

If you have questions about this publication or suggested topics for future articles, please send an e-mail to wearelistening@sabre.com.

2 10

Address Corrections:

Please send address corrections via e-mail to wearelistening@sabre.com. Copyright 2002 Sabre Inc. All rights reserved. Service marks and trademarks noted in italics in this publication are owned by an affiliate of Sabre. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

executives and decision makers.

Do the world’s largest carriers know

Predictable Pricing

Raida Abumaizar, Jim Barlow, David Bornemann, Mona Boulaich, Alessandro Ciancimino, Steve Clampett, Don Combs, Lori Courtney, Holly Cox, Cameron Curtis, Dan Davenport, Alan Dicker, Tom Eager, David Endicott, George Ghanem, Kathryn Hayden, Walter Jacobs, Renee Janssen, Gianni Marostica, Kyle Moore, Robert Nightingall, Christin Palmer, Gary Potter, Dave Roberts, Chris Serafin, Emre Serpen, Thomas Sondey, Kathy Turney and Lynn Wendeborn.

premier issue of Ascend, our new magazine for airline

and with unprecedented speed.

Focus On Business Growth

Print Manager:

Shari Stiborek

and business climate that has changed so radically

Quicker ROI

Faster Time-To-Market

Designers:

Mirtala A. Frias Shari Manning

Since simplification is in the forefront of the minds of the industry’s leaders, we felt it would be an ideal topic for our

Sabre eMergo. Tools for growth you don’t have to grow into.

industry

Sabre 3150 Sabre Dr. Southlake, Texas 76092 www.sabre.com

successfully navigate these challenges.

Sabre, Sabre eMergo and the Sabre logo are trademarks and/or service marks of an affiliate of Sabre Inc. ©2002 Sabre Inc. All rights reserved.

Airlines Seek to Simplify Operations Simplifying . . . A Conversation with British Airways

6 14

products

a i r l i n e

premier provider of technology

regional

y o u r

equipment and personnel. As the

Air Transport Association Annual General Meeting in Shanghai,

Sabre

T a k i n g

revamp their flight schedules, pric-

Aligning with IndustryBest Practices The Backbone of Technology’s Continuing Evolution

AACO Helps Member Carriers

20

Low-Cost Option for High-End Technology

12

Asia/Pacific Airlines Select New Reservations Solutions

24

The “Qik,” Uncomplicated Solution

17

Asia/Pacific Airlines Take Proactive Approach

18

Enhanced Security for North American Airlines

22

TAM Extends Leadership

23

Move to O&D Benefits Alitalia

8

october 2002

1


industry

industry the model of simplification,”

The Answer is Simple Airlines Seek to Simplify Operations to Return to Profitability means “Simplification going back to your

“You don’t have to

difficult to distribute. It’s less

network carriers, indeed,

standardize to one fleet

only one fleet type (B737)

can borrow some elements

type,” said Jim Barlow,

with one cabin configuration.

of the low-cost model with-

vice president of pricing,

maintain some degree

There are no meals, no

out completely abandoning

scheduling and revenue

of segmentation in their

assigned seating. It’s a

their traditional operation.

management for Sabre.

fare structure to maximize

more straightforward operation.” Southwest also uses

By B. Scott Hunt | Ascend Co-editor

Many experts say

Clampett said. “They fly

difficult to communicate.” Although airlines can

“You might have a

revenue, the overall num-

15 fleet types to three.

jumbo widebody, a

ber of buckets can be

“They can go from They can go from three

widebody, a narrow

reduced as well as the

a high frequency point-to-

classes of service to two.

body and a regional jet.

differential between buckets, Barlow said.

to restore a positive

article on page 10) have

tion is the first step to

point network to maximize

They can eliminate special

So, you maintain flexibility

balance sheet.

begun detailed examinations

simplification, according to

utilization of aircraft and

meals. They can restructure

without operating a flight museum.

“In some markets, there

of their operations seeking

Walter Jacobs, who was vice

personnel, further control-

banks so they are opera-

costs and maximize revenue

opportunities to eliminate

president of crew and cargo

ling costs.

tionally more efficient,”

core business. Airlines

so crucial, never before has

complexity and thereby

products for Sabre before

have to focus very

it seemed more important

cut costs. And industry

becoming vice president

Southwest has inspired

for airlines to — as Hofman

reports seem filled with

of North America sales

a growing number of like-

suggests — simplify by

news of new streamlined

for Sabre.

eliminating the unnecessary,

check-in processes, fleet

Model can

should examine not only

freeing them to focus on

retirements, and restructured

are not long-haul interna-

apply a pro-

the number of fare classes,

the necessary components

fares and networks.

tional carriers that fly 10,

posed fleet

but also the restrictions

12 hours,” he said. “When

to an airline’s

associated with them.

strongly on what they do best . . .

“The ability to simplify means to eliminate the unnecessary so that the necessary may speak.” German artist Hans Hofman wasn’t speaking

With the need to slice

of their operation.

Each of these measures

Since its founding,

Clampett said. The benefits of standardizing on a basic fleet,

are differentials of 10 to 1

“It’s something that

between advanced purchase

needs to be analyzed, but

and full fare,” he said.

can be,” he continued. “For

“Some amount of rationality

example, the Sabre Fleet

is 2 or 3 to 1, at the most.”

®

Assignment

“Most low-cost carriers

Barlow also said airlines

certainly can help an airline

you have intercontinental

route struc-

simplification can seem

cut costs and improve

flights, you have to have

ture and

have some relationship to

dauntingly complex.

efficiency. Unfortunately,

a certain level of service.

passenger

the cost of providing the

there is no single “magic

You can’t say, ‘I’ll be a

demand and

service,” he said. “If you

Unfortunately, achieving

“Simplification can

“The restrictions should

about airlines, but his words

mean a lot of things,” said

bullet” component that

no-frills airline’ and fly

estimate the

were to charge $5,000 more

certainly resonate for an

Steve Clampett, president of

solves the problems

transcontinental and not

potential

for a blue car than a red

industry grappling with

Airline Products and Services

of every airline. Rather,

give anybody anything

revenue and

car, people would have

unprecedented economic

for Sabre. “It can refer to

each carrier seeking

to drink.

costs those

trouble with that. Applied to

challenges.

route structures, fares and

simplification must first

aircraft would

airlines, if you leave on a

the number of fares offered,

determine its true nature.

achieve. And

7:30 a.m. flight on a Monday,

you can try

the fare may be drastically

In light of the drop off

“Simplification is more than just saying, ‘I want

With its single fleet type and point-to-point route network, Southwest Airlines is considered the model low-cost carrier.

in air travel — a decline that

fleet types, classes of

aggravated a pre-existing

service, catering, the

going back to your core

Southwest Airlines,” he

minded carriers (see sidebar,

even selecting equipment

downturn in high-revenue

check-in process. There

business,” Clampett said.

explained. “That would

page 5) in North America,

from a single manufacturer,

business travel — many

are a lot of different pieces

“Airlines have to focus

mean you cut out a lot

Europe, South America and

have become well recog-

cost carriers, fare structures

airlines around the world

to simplification.”

“Simplification means

to be like (low-cost carrier)

different scenarios.” In borrowing from low-

different than later in the day. Why have that? “Restrictions should

very strongly on what they

of things that you’re doing.

Australia. These carriers,

nized throughout the indus-

are another area ripe for

make sense to people,” he

Where, then, does an

do best and where they

That may or may not be

which mimic the Southwest

try. Crew and maintenance

possible simplification.

said. “What makes sense?

their operations in an effort

airline seeking to simplify

create value and not get

the right answer.”

model to varying degrees,

personnel become more

to return to profitability

its operations begin?

into marginal areas that

have performed better eco-

interchangeable — more of

oped a price for every single

can recognize that if you

have begun to re-examine

as soon as possible.

“The airlines have devel-

Advanced purchase. People

The Model of Simplicity

nomically over the past sev-

them are able to work on a

potential passenger depart-

state your intentions to travel

Although recently gaining

eral months than the larger,

greater number of aircraft.

ing at every single potential

early, then an airline is able

low-cost carriers, some

The Route to Simplification

The key is to focus on where your competitive advantage

momentum in the industry,

full-service airlines.

It reduces the inventory

time,” said Gianni Marostica,

to give you a better fare

of which have maintained

In recent months, a

is and do everything to

simplification is not

of spare parts. It reduces

president of Airline Reser-

because they don’t have to

profitability through the

number of airlines have

maximize that advantage.

a new concept. In fact,

with their multiple fleet

training requirements.

industry’s economic mid-

taken significant measures

You have to determine what

Southwest has been practic-

types, complex hub-

night, airlines have begun

to simplify operations.

your customers are really

ing it for more than 30 years.

looking to simplify their

Leading airlines such as

willing to pay for.”

operations in an effort

British Airways (see related

Taking a page from the

2 ascend

unnecessarily drive up costs.

Making that determina-

“Southwest Airlines is held up on a pedestal as

The network airlines,

vations for Sabre. “Low-cost

hold a seat in the hopes that

Still, an international

carriers use very simple

someone will buy it. I would

and-spoke networks and

airline doesn’t have to go

pricing like zone pricing.

say non-refundability. If you

multiple classes of service,

to the extreme level of the

Anywhere within an hour,

insist upon being able to

have taken notice.

low-cost airlines.

$60. Two hours, $80. It’s less

(continued on next page)

october 2002

3


industry

industry

refund the fare and the

already implemented a

site. Or you can check in

airline has to take the risk

“rolling hub” concept that

curbside. You can go to a

greatly assist in simplifica-

of you showing up or not,

spreads the banks more

self-service kiosk, or to an

tion in other ways. Decision

they are going to want

evenly through the day.

agent who is equipped with

support tools, for example,

more money for that. And

Although it marginally

a wireless device. That is

can help manage the

generally speaking, the

increases the connection

simplifying the passenger

unavoidable complexity

more restrictive, the lower

time for passengers, it gen-

check-in process so that they

of the modern airline.

the fare.”

erates savings for airlines.

don’t have to stand in line at

Barlow also said a

“Unpeaking the sched-

Technology can also

“Some aspects of the

the ticket counter. And that

airline business just won’t

Saturday night stay-over

ule is something airlines are

reduces some of the work-

get simpler,” said Alan

requirement is rational —

going to have to look at if

load. By diverting those

Dicker, vice president of

within reason. “It does not

they want to simplify their

passengers, I don’t need

flight operations products

cost an airline $500 more to

operations,” Marostica said.

as many ticket agents

for Sabre. “You’ve still got

transport somebody when

“It drives reductions in labor.

or gate agents.”

to fly airplanes. They’re still

they don’t stay over Saturday

You’ve got these huge con-

night than when they do,”

centrations of labor during

on average, about 30 percent

problems. They’re still going

he said. “But, the typical

the banks. And during the

of an airline’s total costs,

to have crew problems.

business passenger does

troughs, they aren’t doing

it is one of the main areas

There’s still going to be bad

not want to stay over on

anything. It also improves

to target for reduction

weather. None of that disap-

utilization of aircraft.”

through simplification,

pears. But technology gives

Marostica said.

you the ability to react to

is “Simplification more than just saying,

Since labor represents,

going to have maintenance

Beyond the Low-Cost Model

costs is by restructuring

and get back on track in

‘I want to be like

Simplification is certainly not

wages more in line with a

a timely manner.”

(low-cost carrier)

limited to borrowing ideas

deregulated environment,

from low-cost carriers. A

linking compensation to the

number of ways to simplify

performance of the airline,

Southwest Airlines . . .

One way to reduce labor

it and solve the problem

More and more, airlines are using technology, including deploying self-serve check-in kiosks, to simplify their operations. By using technology to push more functions to the traveler, airlines reduce their workload and are able to better utilize personnel and other resources. (Photo courtesy of IER)

have a navigations depart-

can use more than one

A proposed new flight

woke up one morning and

nology, airlines can still

ment, an aircraft perform-

application. Such products

schedule can be analyzed

said, ‘We want to be com-

seek to remain simple by

ance department, a flight

can also be more easily

by crew and staffing

plex,’” Clampett said.

When selecting tech-

operations are universally

he said. But rather than

selecting “off the shelf”

planning department, a

integrated with a common

systems to look for added

“Airlines didn’t put in com-

a Saturday night, so they

applicable regardless

go through the potentially

systems rather than highly

meteorology department,

database, making the neces-

savings or to point out

plexity without justification.

will pay the extra $500.

of the type of airline.

acrimonious process of

customized ones. They can

an operations control depart-

sary information easily

possible pitfalls.

Every incremental decision

renegotiating union con-

also limit the number of ven-

ment, a crew department,

available to all who need it

But not $1,000.”

Simplifying the passen-

Technology is also avail-

may have justified itself at

ger check-in process not only

tracts, an easier way to

dors, ideally finding one who

a crew planning department

and eliminating the need

able, such as the Sabre

also distinguished by their

benefits airlines, but their

reduce labor costs involves

can provide a range of prod-

and somebody worrying

to enter the same data in

Qik TM business processing

you’ve created a lot of

point-to-point routes. The

customers as well, said Chris

using technology to reduce

ucts that can be easily inte-

about slot management.

multiple systems.

solutions, to provide a stan-

complexity, and the eco-

hub-and-spoke system has

Serafin, vice president of

the personnel needed.

grated across the operation.

And they all may have

dard graphic user interface

nomics of the airline space

many benefits that network

airport products for Sabre.

no longer support it.”

The low-cost carriers are

carriers are justifiably reluc-

Using tools such as

“One of the strengths

®

their own systems. But if

of a product like the

that eases the use of, for

improvements allow for a

key aspect of simplification.

you put them all in a room

Sabre ® AirPath-360 TM

example, complex reserva-

“All these technological

Integration provides a

the time. But pretty soon

The economic landscape

tant to give up. But even a

the Sabre Aerodynamic

more self-service approach

Integrating the multiple

called an SOC with products

flight planning and dispatch

tions systems, resulting

has changed, but airlines

hub-and-spoke network can

Traveler TM suite of passenger

— basically less interface

flight operations compo-

from one vendor, it’s a lot

system is that it puts all the

in reduced training and

have proven they can

borrow from some of the

processing solutions helps

with employees — and that

nents, for example, into

simpler to manage,” said

relevant data in front of the

increased efficiency.

adapt even to the most

point-to-point principles,

“control costs and still

reduces the amount of

a unified system operation

David Bornemann, vice

dispatcher who has to work

Indeed, simplification

which maintain a steady

provide customer service,”

labor,” Marostica said.

control center simplifies

president of Sabre Airline

that flight,” Dicker said. “If

involves a myriad of possibil-

By thoroughly examining

flow of aircraft throughout

he said.

“Customers are much more

operations and reduces

Solutions.

you’re not well integrated,

ities. But to thrive in today’s

the operation, employing

you can spend a lot of cycles

marketplace, airlines must

standard technology and

just chasing information.”

find ways to reduce the

streamlining operations,

layers that have built up

airlines can build a new

over time.

business model to ensure

the day rather than concen-

®

“Simplified passenger

Using products from a

savvy today. They under-

costs. China Southern

trations of flights in banks

travel involves having

stand their options. And

Airlines recently attributed

single vendor with a com-

to facilitate connections

check-in options,” he

because of that, we should

more than $7 million in

mon look and feel increases

from various spokes.

said. “You can check in

push a lot more of the deci-

benefits to its new SOC.

the potential for cross-

means data can be shared

through the airline’s Web

sion making out to them.”

utilization because analysts

across the organization.

Some airlines have

4 ascend

“A typical airline would

And integration also

“It’s not like somebody

challenging circumstances.

lasting profitability.

october 2002

5


Sabre

Sabre revenue management

training teaches the airline’s

Profit is the Bottom Line

staff become familiar with

staff how to use profit-

The best-laid plans are only

guidance through innovative

industry-standard tools and

based O&D information

as good as the processes

ideas, new perspectives

processes.

and strategies to make

required to implement them.

on problems and accurate

schedule planning and

Draw the Line . . . Aligning with Industry-Best Practices Benefits Airlines

Scheduling and route-

By Billie Jones | Ascend Contributor

drastic business changes

O&D Business Model

to increase revenue.

Airline profit optimization

In reviewing their tradi-

is enhanced by the align-

tional revenue planning,

ment of analytical structures

airlines are finding their

to actual operations. Sabre

leg- or segment-based

Consulting’s O&D business

route planning and

model embodies these

revenue management

O&D planning practices

processes are out of

by coordinating the

synch with their product.

airlines personnel, business

In the marketplace today,

practices and technology.

passengers book tickets

This model’s ultimate

from their origin to their

objective is to optimize

still a theoretical vision at

ously work with the airline

destination, and airlines

profit by converging

most airlines, a number of

to realign organizational

publish fares by O&Ds.

all planning functions,

major international airlines

structures, develop new

Yet most airlines are

processes and data

are working with Sabre

business processes

still managing and

into an integrated O&D

Consulting to implement

and provide business-case

measuring their assets

environment. When the

core changes in their sched-

training to help airline ana-

by legs or segments

O&D structure is fully

uling and network planning

lysts transition to the new

instead of O&Ds.

integrated, processes

and revenue management

process.

can be standardized

departments. Once these

They help the airline

thirds of the passengers’

across all commercial

core changes are in place,

find ways to disseminate

trips at the world’s major

planning departments.

the groundwork is set for

the new O&D-based

hubs require them to

This integration ensures

transmitting them through-

processes throughout

connect to a second flight,

all of the functional areas

out the commercial planning

the airline.

the number of passengers

have the same access

processes, allowing the

taking multi-segment trips

to core profit-based infor-

commercial vision to

business units use industry-

is significant. To bridge

mation and the underlying

become a reality.

best practices, Sabre

this gap, many airlines

O&D data. Profit optimi-

are turning to O&D-based

zation then evolves from

closely with airline managers

processes. If a unit’s

systems and business

analyses that more directly

to assist them in maximizing

processes fall short of

consulting services designed

reflect the airline’s actual

the airlines’ return on their

today’s standards, it is

to help them simplify the

operations. Through this

investment in three ways:

then realigned around

task of managing the com-

integrated view of the com-

Sabre consultants use

new processes that better

plex combinations and

mercial business process,

their subject matter expert-

fit the airline’s organizational

permutations of O&Ds

airlines simplify the com-

ise and experience to

needs. Business-case train-

that even the simplest

plexities of managing in

begin using industry best

ing programs are customized

of schedules generate.

a true O&D environment.

practices immediately.

so that the airline’s network,

Airlines are making

network strategy

fleet

scheduling

pricing

network and scheduling planning

revenue mgmt.

distribution

Sabre Consulting works

Sabre Consulting provides

quick sound inventory

It is human nature to take

measurement of the airline’s

and pricing decisions.

a new tool or idea and apply

improvement. This approach

airline’s staff how to analyze

Successfully completed

it to the same old processes.

facilitates the airline’s transi-

O&D-based scenarios de-

business-case consulting

Changing processes is

tion to O&D revenue man-

signed to identify opportuni-

produces a more productive

much more difficult. Sabre

agement, and the results

ties to leverage the airline’s

airline staff transitioned to

Consulting works hand-in-

are directly reflected in

capacity and resources

new O&D measurement,

hand with the people who

the bottom line.

within its current competitive

planning and scheduling

are most affected by process

Billie Jones is a partner

environment.

practices.

changes. By working closely

in Sabre Consulting.

sales

revenue management

While this end state is

with the airline personnel,

planning training teaches the

}

6 ascend

Commercial

}

Considering that two-

Commercial Business Process

Revenue management

The consultants simultane-

To ensure an airline’s

Consulting reviews their

T H E

News Briefs from Around the Globe News from the Caribbean Air Jamaica Ltd. has selected Sabre to modernize

vıew

H I G H

L E V E L

technology for Air Jamaica that will enable optimized flight schedules, improved weight and balance monitor-

technology systems driving reservations, airport check-in

ing, wireless hand-held passenger check-in and more.

and departure control operations. Under the new agree-

These capabilities, coupled with services offered by

ment, Sabre will implement technologically advanced

Sabre’s industry-experienced airline consultants,

airline systems designed to enhance productivity and

will enable Air Jamaica to successfully overhaul

reduce costs for Air Jamaica worldwide.

and upgrade its technology systems.

“Our goal at Air Jamaica is to achieve profitability in the short term,” said Keith Smith, vice president of IT services for Air Jamaica. “We intend to do that by

News from Asia China Airlines recently signed a five-year agreement

offering our customers unmatched ease in shopping,

to integrate four Sabre products into the airline’s opera-

ticketing, checking in and boarding our flights. Sabre

tions, including its systems operations center.

offers us powerful, integrated and proven systems

Through the deal, China Airlines will integrate the

and expertise to enhance our customer service

Sabre ® PC AirFlite TM flight scheduling system, the

and to operate our airline in an efficient and

Sabre ® SlotManager TM slot managing and tracking

profitable manner.”

system, the Sabre ® AirOps TM operations control system

Over the next six months, Sabre will implement for Air Jamaica several advanced products, including

and the Sabre ® AirCrews TM crew management system. According to David Wu, vice president of informa-

the Sabre ® Passenger Reservation System, which

tion management division for China Airlines, integrating

will streamline operations and improve productivity.

these systems has been vital for the airline. “We are on

The system will also allow the airline to increase sales

the way to having a state-of-the-art systems operation

through every sales channel, particularly online bookings

center,” said Wu. “The long-term aim of both China

with the support of GetThere DirectAirline, Sabre’s fully

Airlines and Sabre is to install solutions that will enable

hosted Internet sales system.

our airline to continue operating more smoothly and

In addition to the reservations system, Sabre will implement airport check-in and departure control

cost effectively. We believe this integration achieves that goal.”

october 2002

7


regional

regional Europe, Middle East and Africa

Arabian Flights Arab Air Carriers Organization Helps Members Move into the Future

The relationship with the

By Nejib Ben-Khedher | Ascend Contributor These are exciting times for the Arab Air Carriers

The AACO’s efforts come at a pivotal time for

Organization and its member

the region’s carriers. Due to

airlines.

the changing economic cli-

Since its founding in 1965, the AACO has been

of challenges that are affecting their profitability. Under the leadership of Secretary General Abdul

Through the agreement, the AACO members will

Oman Air recently selected

a range of Sabre products

AACO further builds upon

Sabre’s reservations and

supporting the airline in vir-

Sabre’s long-term commit-

departure control systems.

tually every functional area,

to affect the Arab airlines,

ment to the Middle East

Gulf Air, Kuwait Airways,

from planning to operations.

Sabre will continue to partner

region.

Middle East Airlines and

With customer support

be able to utilize the

The use of new technol-

tion continues to grow. As these trends continue

with them to ensure they have

Royal Air Maroc are among

ogy provided through the

the tools, systems and training necessary to succeed.

Sabre ® ProVision SM MIDT

personnel based in Beirut

the Arab carriers currently

partnership represents only

utilizing the Sabre ® AirMax TM

one aspect of the dramatic

Nejib Ben-Khedher is the

mate, many Arab carriers are

Wahab Teffaha, the AACO

processing service, the

and Bahrain, Sabre has local

considering significant

is coordinating a number of

Sabre ® WiseVision TM

subject matter experts with

automated revenue manage-

changes affecting the airlines

managing partner for Sabre

ment system to maximize the

of the Middle East. Through-

Consulting. Prior to heading

a catalyst for strengthening

changes to their operations,

revenue-enhancing initiatives

sales expansion system,

experience in the unique

the airlines of the Middle

including ideas once consid-

in the areas of e-commerce,

and at a later stage, the

aspect of the Arab air

revenue from each passenger

out the region, fleets are

East. And in the past two

ered controversial, such as

customer relationship man-

Sabre TransVision

transportation business.

by optimizing the allocation

getting younger, manage-

was vice president of the

years, the organization

staff reduction, work rule

agement and MIDT analysis.

flow analysis system.

Europe, Middle East and

®

TM

traffic

These tools will enable

has focused even more intently on helping Arab

the contracting carriers to

carriers gain better access

extract and analyze valuable

to advanced technology

decision-support information

while saving costs through

from the wealth of data

joint purchasing.

available from computerized

Through the use of

has transformed itself from a

these tools, Arab carriers will

meeting forum for Arab

be able to use the GDS and

carriers to a forward-think-

CRS data to increase their

assisting its members with increasing the efficiency of their operations and con-

ment is focusing more

addition to the AirMax

intently on profitability and

Africa region for Sabre

to operate its businesses.

system, Gulf Air also uses

service levels, and competi-

Airline Solutions.

A growing client base

hightech News on New and Improved Products and Services from Sabre Airline Solutions

global distribution systems.

mote pan-Arab cooperation,

ing, proactive partner,

of seat inventory. And, in

also relies on Sabre solutions

reservations systems and

In the past few years, the AACO, founded to pro-

Oman Air officials Hamad Al-Harthy, manager marketing programs and systems (standing left), and Abdulrahman Albusaidy, chief executive officer (sitting), along with Nejib Ben-Khedher, senior vice president, Sabre Consulting (right), sign a contract for airline reservations services from Sabre.

market share, maximize market potential, identify travel patterns, analyze alliances and increase revenues. The AACO-Sabre part-

trolling costs. Through its

nership also has potential to

the consulting group, Nejib

product

The Sabre ® Qik TM business processing solutions Java edition

use, increased productivity,

tool that allows developers

customer requests for access

reduced costs and increased

to create graphically rich

to more diverse content and

revenues. Users of the Qik

applications more quickly

information that travelers

solutions will also be able

than ever before.

can use to make informed

to integrate them with the

travel decisions.

underlying technologies

The latest release of the

that are used across an ever-

Qik solutions includes a

widening span of customer

completely re-written devel-

Support for two

features

efforts, the AACO estimates

changes, and even eliminat-

As part of its new

it has saved its 22 members

ing “prestige” destinations

focus, the AACO members

expand into other areas

touch-points, including the

oper tool that enables travel

scripting languages,

about US$140 million last

as part of network rationali-

named Sabre as an official

such as revenue manage-

The Qik solutions provide

Internet, wireless devices

and transportation compa-

A fully graphical

ment and pricing.

industry-leading graphical

and reservations.

nies to more cost-effectively

screen painter,

integrate data and systems,

Support for more

The Qik business processing

while providing information

advanced graphical

solutions’ powerful toolkit

to travelers, all via an open

elements,

year alone. The organization also

zation. Some of the Arab

industry partner in June.

carriers are also considering

As an AACO partner,

In June, AACO and

teams with the International

alliances, regional consoli-

Sabre will provide a full

Sabre hosted a one-day

Air Transport Association to

dation and privatization.

line of sales expansion

pricing and revenue manage-

description

user interfaces and developer tools.

products that deliver a

ment workshop in Beirut.

benefits

allows airlines to tailor their

technical platform and an

Support for a variety

for its members’ personnel,

face different degrees

comprehensive group

The workshop, attended by

The Java edition of the

Qik solutions to their unique

advanced tool set.

of graphics formats,

providing expertise in both

of complexity in their

of MIDT processing, data

34 airline representatives,

Qik solutions retains all

business environment. The

operational and commercial

operations, the majority

analysis and office automa-

focused on techniques and

the benefits of its previous

newest version is a much

The Java edition of the

and non-modal

areas.

of them have a number

tion software solutions.

industry best practices.

editions, including ease-of-

more flexible and powerful

Qik solutions addresses

windows.

provide additional training

8 ascend

While the Arab airlines

Creation of modal

october 2002

9


industry C O V E R

industry

S T O R Y

C O V E R This is typical of the approach we are taking to all cross-

Simplifying for the Future A Conversation with . . . Mike Croucher, British Airways Mike Croucher is the head of information technology for airline operations at British Airways, responsible for works closely with the directors at British Airways to align

with the primary objective to achieve a 10 percent

and excellent customer service and service recovery.

simplicity, we are looking to take out costs, which also

Q: How can you compete with these low-cost carriers?

will add value to the customer proposition.

A: In similar ways to no-frills carriers, we offer the customer

Q: How will simplification help you achieve your

the choice of competitive fares on off-peak services. Our new

long-term goals?

selling engine allows transparency of pricing to be able to

A: A good example of simplification that is prevalent in

select comparable fares with no-frills carriers. Many no-frills

our business is in the IT department. The IT department

carriers will often fly to inconvenient airports without the

is an example of IT leading the business. As part of the Future

frequency or operational backup of a full-service airline.

Size and Shape review, the IT department is embarking on a

However, our major market will remain the passenger

simplification program by taking £50 million (US$76.4 million)

who requires a full-service networked airline.

lion) while still investing in technology. We are simplifying our IT infrastructure, decommissioning

the IT strategy and portfolio with the business direction,

operating margin.

promoting the use of technology throughout the airline.

Q: What changes has British Airways put in place

obsolete and low-value systems, and driving out complexity

to address these issues?

by having clear central control. Within the IT organization,

10 years at Galileo International, where he became director

A: As a result of Sept. 11, we initially took a number

investment has been made to deliver a process-based

of subscriber products, and eight years at Scandinavian Airline

of tactical steps. These were mainly aimed at conserving our

organization reducing the overhead costs.

Systems working on operational systems, in particular depar-

cash, which included management voluntary pay reduction,

Q: The European market, particularly the United Kingdom,

ture control, check-in and crew systems.

reduction in overtime, voluntary reduction in working hours

has seen the emergence of low-cost carriers. How has this

and some routes rationalization. Additionally, we looked

impacted you?

He has 20 years experience in the travel industry including

Here, he shares some of his insights on how British Airways is simplifying its operations to maintain its status

at reshaping our business through a review known

A: We are constantly aware of our competition and, in

as one of the world’s leading airlines.

as “Future Size and Shape.”

particular, the no-frills carriers. While the no-frills carriers

Below shows a screen shot of how our new Fare Explorer product works by providing the customer the opportunity to pick and mix from one-way fares based on the required date and time of travel.

British Airways’ new Fare Explorer product.

Q: What were the major outcomes as a result

mainly serve a different market segment than us, we need

of the Future Size and Shape review?

to be alert to their threat. We recently announced a restructure

A: The outcome of the Future Size and Shape review

of our short-haul business to meet the challenges posed by the

Q: What role does technology play in helping you

announced on Feb. 13 set in place a strategy for

no-frills carriers. We have learned from them the things they

simplify/streamline your operations?

addressing a number of areas including:

do well, which includes distribution, high aircraft utilization

A: As part of the Future Size and Shape review, our leader-

and simpler fare structure.

ship team recognized the need for investment in technology

Measures that will deliver annual costs savings of £650 million (US$993.2 million) by 2004,

Mike Croucher, British Airways

and bar service, choice of seat, Executive Club benefits,

functional processes in the airline. By driving through

out of the IT operations budget of £200 million (US$305.6 mil-

all aspects of IT delivery. As part of a small CIO team, he

S T O R Y

The no-frills carriers have begun a revolution in the

to help transform the business. Already, substantial investment

Restructuring our short-haul business to compete

behavior of customers and this means we need to change

in our Web-selling platform has created a significant shift

intelligently with the no-frills carriers,

in order to compete. We have simplified our pricing structure

in our distribution channel.

Reduce our manpower by more than one-third,

on our European network via our Web site, BA.com. Our

Increase aircraft utilization.

customers have more pricing options depending on flexibility

departmental productivity projects such as in crewing and

of travel times.

ground resources, customer proposition with our new Web-

Q: How is British Airways approaching these

Technology is being used to drive out costs through

selling engine, and self-service check-in.

initiatives?

As well as moving our customers online, we also have an

QUESTION: Recent events have caused significant changes

A: We have recognized that our business has become

in the airline industry. How has this changed British Airways’

too complex, and a major goal of Future Size and Shape

extensive e-Working program that is driving staff to more self

strategy?

is simplification across all areas of the business.

service and demanding a simpler approach to our processes.

ANSWER: We, like the majority of full-service airlines, were

is driven by headcount reduction of 13,000 by March 2004.

to this, the foot and mouth crisis in the United Kingdom that

However, this will only be achievable through simplification

impacted on tourism and had a significant effect on our key

of our business.

North Atlantic routes. We recognized that without building a sufficient operating

A good example of this is our ground resources manage-

A significant part of the £650 million annual savings

suffering from the effects of a global recession and, in addition

Another major initiative is our network and fleet restruc-

ment project, using the Sabre ® StaffAdmin TM employee tracking and assignment system as the base to drive out costs. British Airways, the world’s largest international airline, which carried 48 million passengers on 529,807 flights last year, recently completed a thorough examination of its operations.

This project combines productivity tools with the concepts of the e-Working program delivering online accessibility to staff. It is through sustained investment in technology while

turing. This eliminates our unprofitable routes and restructures However, we will continue to be a full-service airline

continuing to drive out costs through simplification of the

margin we would be unable to ride out the cyclical nature

our fleet by movement of aircraft type between our regional

of the airline business. The events of Sept. 11, 2001,

bases and our main operation. This simplification will help

providing our customers with services such as a full range

business processes that is fundamental to reshaping

simply accelerated the need to restructure our business

drive out long-term cost of operation.

of booking and check-in options, complimentary catering

British Airways as it moves into the future.

10 ascend

october 2002

11


regional

regional Asia/Pacific

T H E

Reservations for Seven

News Briefs from Around the Globe

Asia/Pacific Airlines Select New Reservations Solutions By Hans Belle | Ascend Contributor For seven carriers in the Asia/Pacific region, new reservations functionality will help them shape their future.

our requirements; our timeframe for migration was short. They were able to deliver the services required and, most

News from Asia

importantly, could demonstrate that delivery was possible.”

Vision Air, Royal Brunei Airlines, Batavia, Regional Express Airlines (Kendall and Hazelton Airlines), Skywest and Flight

David Fletcher, general manager of Skywest Airlines, said, “The Passenger Reservation System has given us the power

West have selected the Sabre ® Passenger Reservation System

to move forward and grow as an independent regional carrier.

to manage their critical reservations needs.

Placing our passenger services with Sabre allows us to truly

By being hosted in the Passenger Reservation System,

focus on our core business.”

the airlines gain access to the industry’s only fully integrated

Joining the Australian trio, Indonesian, Vision Air of

solutions capable of delivering a seamless experience to cus-

Malaysia, Royal Brunei and Batavia of Indonesia, will also

tomers while reducing costs. The system provides each airline

be able to effectively manage their reservations through

with the capability to increase sales through every distribution

the functionality of the Passenger Reservation System. Pg Ali Pg Hj Ahmaad, executive director of Royal Brunei

channel, streamline processes and automate manual tasks, as well as increase travel self-service capabilities. Selecting a reservations system was particularly crucial

said, “Our relationship with Sabre will enable Royal Brunei Airlines to enhance our competitive position, profitability

for a group of Australian regional airlines who, literally,

and customer service agreement. The agreement facilitates

came to Sabre without reservations.

the implementation of frequent flyer and automated revenue

When their parent company, Ansett Australian Airlines, filed for bankruptcy, the three — Regional Express, Flight West and Skywest — lost their reservations system.

management programs for the airline and will improve our integration with the ABACUS and Sabre global The increase in the number of Asia/Pacific carriers hosted

After considering, and rejecting, stopgap measures,

in the Passenger Reservation System, reflects Sabre’s

the three turned to Sabre. Although it usually takes 120 to 180 days to migrate an airline from one reservations system to another, the task for

continued commitment to providing the region with pivotal reservations solutions. The seven carriers join several other airlines in the

each of the airlines was accomplished in 30 to 60 days. “We chose Sabre’s airline reservations for several reasons, including the company Sabre keeps in other airlines — both in Australia and overseas,” said Scott McMillan, managing director of Flight West Airlines. “Further, Sabre understood

region, such as Jet Airways, Pakistan International Airlines and Lion Air, who rely on the system for crucial reservations functionality. Hans Belle is Sabre’s vice president of marketing, Asia/Pacific.

the patented Sabre ® O&D FAM fleet assignment model,

allowing the Hong Kong-based carrier to expedite the

one of the industry’s most sophisticated decision-support

check-in process while also electronically delivering

tools, which uses global optimization techniques to

passenger information relevant to the traveler’s journey.

design a schedule that assigns the most appropriate

As part of the airline’s e-Journey initiative, Cathay Pacific

aircraft to each flight leg. The model’s mathematical

has adopted technology from the Sabre Aerodynamic

optimization techniques automatically produce profitable

Traveler TM Self-Service Kiosk module for use in its

and operationally feasible solutions that are virtually

CXpress multi-purpose kiosk.

impossible to generate manually.

The Sabre technology incorporated in the CXpress

Using the model for medium- and long-term

kiosk provides Cathay Pacific with secure and innovative

scheduling can generate incremental annual revenue

e-commerce capabilities focused on reducing terminal

of 2 to 3 percent and increase annual profitability

congestion and costly overhead while improving

between US$5 million and US$15 million when used

customer service.

for short-term re-fleeting.

Cathay Pacific Director of Service Delivery, Robert

“One of our airline’s major goals will be the

Cutler, the first passenger to use the CXpress kiosk,

improve-ment in stability of our short-term flight sched-

said, “When you are in a hurry but know exactly what

ule and the resulting positive impact for subsequent

you want, the CXpress kiosks are definitely the quickest

processes within our crew planning and flight opera-

way to go. Cathay Pacific is pushing ahead with new

tions,” said Peter Froehlich, manager, decision support

e-business products, despite this difficult period for

systems, network planning for Lufthansa. “Using the

the airline industry, because they offer clear advantages

O&D FAM model, combined with our revised processes,

both for our passengers and our company.”

we expect a positive impact on load factors, particularly

The kiosk offers travelers the advantage of bypassing queues during busy periods and allowing Cathay

distribution systems.”

L E V E L

Through the five-year partnership, Lufthansa will use

Cathay Pacific Airways is deploying new technology

®

Since the beginning of the year, Indonesian Airlines,

vıew

H I G H

within the European continental network of Lufthansa.” Both companies will work closely together to identify

Pacific staff at the check-in counters to concentrate on

areas of automation and decision support that will pro-

providing more personal attention to passengers requir-

vide tangible business benefits to the airline. Lufthansa

ing extra assistance. Among its many capabilities,

joins 12 other major airlines currently using the system,

CXpress issues tickets purchased via the airline’s Web

including Air France, Alitalia, Scandinavian Airlines

site, prints itineraries, assists frequent flyers and supplies

Systems and US Airways.

passengers with the latest “hot offers” and relevant des-

The O&D FAM model can be used for several busi-

tination information. Additionally, CXpress offers passen-

ness applications including fleet planning, schedule

gers convenient ways to perform check-in and boarding

structure analysis, scenario-based seasonal schedule

functions, such as selecting or changing their seats.

planning, operational studies, planning for special events and short-term tactical re-fleeting. A special O&D opti-

News from Europe

+count it up 187

80+ million

70+

Number of airlines

Number of unique

Airlines that remotely subscribe

worldwide that use

travelers touched

to the Sabre ® Passenger

Sabre Airline Solutions

by Sabre in 2001

Reservation System

12 ascend

mization feature allows airlines to model passenger flows

Lufthansa German Airlines has formed a partnership

across the network while increasing the value of the

with Sabre to provide the airline with a sophisticated

global solution. The O&D feature benefits airlines that

origin and destination fleet assignment model that

have more than 10 percent flow traffic or that use O&D

increases revenues and lowers costs.

revenue management systems and techniques.

+count it up

12

Number of airline business areas served by Sabre Airline Solutions

october 2002

13


Sabre

Sabre

Conducting Valuable Research:

ing adjustments and equip-

with Sabre’s existing portfo-

explore new and emerging

of its customers’ customer —

ment group assignments.

lio of operations products.

technologies and identify

the traveler.

In addition, the system

The Schedule Recovery

potential applications that

enables users to improve

model represents the core

will help simplify an airline’s

Robust Scheduling

an existing airline schedule

of the airline integrated

operations. The group has

Over the years, technology

or generate a new schedule

recovery framework and

been actively looking at how

has taken most of

based on origin and destina-

suggests necessary flight

to best utilize publish/sub-

the guesswork out of

tion demand data. It also

cancellations, delays,

scribe technology, in tandem

airline scheduling, but

computes market share

positioning ferry flights and

with rules-based technology,

there’s always room to

using a logit-based model

equipment swaps in order to

to provide the foundation for

tighten the gap between

put their knowledge and

that captures competitive

recover from a schedule dis-

automating and enhancing

an ideal schedule and

energy into what they do

effects of other airline sched-

ruption. The revised sched-

airline customer service. In

realized operations.

best — running an airline —

ules and is functionally con-

ule information is used by

doing so, Sabre will leverage

During the next 12 to 18

Sabre passionately studies

sistent with the Sabre ®

the Aircraft Recovery model

publish/subscribe technology

months, Sabre Research

the long-term technology

Airline Profitability Model.

(by equipment type) to

with a rules-based “listener”

will focus on its robust

needs of airlines of all sizes

The FliteWise model auto-

assign the new (repaired)

that will intelligently “listen

scheduling initiative in

and regions and develops

matically generates a set of

aircraft routing and by the

for” or filter events — flight

order to help airlines

software solutions capable

proposed schedules based

Crew Recovery model (by

disruptions, baggage disrup-

close that gap.

of sending revenues sky-

on user-defined criteria and

equipment type) that assigns

tions, passenger no-shows,

rocketing and operating

restrictions. Hence, the

the new (repaired) crew

frequent flyer account events

costs plummeting.

process becomes more

strategic and tactical plan-

efficient and, more impor-

ning decisions are based

edge of research, Sabre

tantly, it employs a system-

on assumed ideal operating

has honed in on several

atic search for opportunities

conditions that hardly occur

key areas where advanced

to improve the schedule.

in practice. As a result, air-

The Backbone of Technology’s Continuing Evolution By Stephani Hawkins | Ascend Co-Editor AND Michael C. Clarke | Ascend Contributor While airline executives

Balanced on the cutting

technology can simplify an

With 40 people dedicated solely to research and development, Sabre is actively creating the airline technologies of the future.

airline’s operations and bear

lines are constantly faced

Schedule Recovery

with the need to recover

Schedule Generation

Sabre has developed

from unexpected schedule

module, available as part

The Sabre FliteWise

an integrated solution that

disruptions that can have

shift scheduling and roster

of the Sabre ® StaffPlan TM

frequency generation model

addresses schedule recovery

a substantial impact on

generation.

staff forecasting and plan-

assists airline schedulers

both in the context of an

its operations. The tightly

ning system, assists with

during the schedule design

individual carrier and a

a profound affect on its

the airport resource manage-

bottom line. These include

men process including

decision-support tools for airport resource management, schedule generation,

In today’s environment, the majority of airlines’

The Shift Scheduler

The Roster Maker

®

TM

coupled resource schedules Usability testing plays a key role in developing new technology for the airline industry.

schedule recovery, event-

model — a state-of-the-art

the roster generation

process and can boost

global alliance. The airline

driven customer relationship

mathematical tool capable

process by producing a

profitability for airlines by

integrated recovery frame-

management and robust

of reducing airport staffing

work schedule for each

3 percent to 5 percent based

scheduling.

costs by 15 percent to

employee in the organiza-

on the results of a recent

25 percent — determines

tion. The work schedule

Airport Resource Management

the optimal solution for

is based on an input shift

staffing any airport environ-

schedule and consists of

Handling airport resources

ment. In production since

daily shifts and days off

manually represents a far

May, the model works to

for each staff member.

from ideal method that costs

either minimize cost or head-

Each individual work sched-

airlines an astronomical

count, based on an individ-

ule is generated to conform

schedules when given only

amount of money and time.

ual airline’s needs, and then

to various operational con-

a basic hub structure. It has

Sabre Research has been

considers this parameter as

straints and well-defined

the ability to recommend

Crew Recovery model and

and development of deci-

actively involved in develop-

the primary objective to solv-

union rules. The Roster

beneficial schedule changes

the Passenger Flow model.

sion-support tools being

lish/subscribe technology

ing automated solutions to

ing the complex scheduling

Maker module was put

such as additions of routes,

These models have been

driven by Sabre Research,

will span Sabre’s portfolio in

Research, in conjunction

streamline several phases of

problems facing that airline.

into production last year.

frequency modifications, tim-

developed to be compatible

Sabre Labs continues to

order to satisfy the demands

(continued on next page)

14 ascend

for aircraft movement, crew pairing and airport

work incorporates aircraft

pairings. The Passenger Flow

and traveler profile events —

re-sources, along with

maintenance routing, crew

model evaluates the impact

and pro-actively trigger sub-

passenger flow are very

benchmark study conducted

rescheduling and the impact

of the proposed schedule

sequent processes via e-mail

susceptible to irregularities.

by Sabre Consulting.

of schedule changes on pas-

change on passenger flow

messages, cell phone notifi-

Based on Sabre’s past

senger flow. The solution,

through the airline network.

cations or other personal

experiences in flight

which can result in a 5 per-

digital assistants that com-

scheduling, crew scheduling

changes to evaluate code-

cent reduction in disruption

and airline operations, it

share agreements and create

costs, consists of the Sched-

customer service treatment

is anticipated that airlines

ule Recovery model, the

Event-Driven Customer Relationship Management

municate an appropriate based on an airline’s

could gain substantially

Aircraft Recovery model, the

Parallel with the research

business policies.

from more coordinated

The FliteWise model can identify profitable schedule

In the near future, pub-

decision-making processes. Since 2000, Sabre

october 2002

15


regional

Sabre Asia/Pacific

with its academic research

pairings, an enhanced fleet

evaluation tool that would

and industry experts,

partners (Georgia Institute of

assignment procedure that

enable airline schedulers

will continue investing in

Technology, Massachusetts

isolates crew-compatible

to better capture ideas

research and development

Institute of Technology and

equipment types by stations

during the schedule

efforts to ensure its airline

the University of Illinois —

and the development of

development process.

customers have access

Urbana Champaign), has

degradable flight schedules

Research will always

to solutions that lead to

been participating in re-

that are easy to downgrade

remain pivotal in shaping

simplification, efficiency

search projects on better

during irregularities. An

tomorrow’s business

and above all, long-term

ways to create airline

important component of the

models and the overall

success.

schedules. These include

robust scheduling research

direction of technology.

improved crew swapping

effort is the development

And Sabre, along with

opportunities within crew

of an effective schedule

its academic partners

T H E

News from the Middle East Oman Air has signed up for three of Sabre’s indus-

Passenger Reservation System for an additional 10 years. The three new departure control and IT tools, which

By Stephani Hawkins AND B. Scott Hunt | Ascend Co-Editors Air China recently

Many of the Asia/Pacific

Michael Clarke is a research

continues to evolve, many

began working with Sabre

carriers are also focusing

and development lead in

carriers in the Asia/Pacific

Consulting on an IT strategy

intently on performing

region have begun to

to help it become more

effective customer relation-

explore new frontiers in

modernized and able

ship management.

the areas of information

to take advantage of

technology and customer

new technologies in order

CRM program lies in identify-

relationship management.

improve the efficiency

ing the type of campaigns

of the operation.

and service improvements

vıew

H I G H

L E V E L

“This not only makes our life easier but it also reduces both costs and the likelihood of human error.”

try-leading departure control IT products in addition to re-newing its existing contract to use the Sabre ®

Asia/Pacific Airlines Take Proactive Approach to Long-Term Success As the airline industry

Sabre Research.

News Briefs from Around the Globe

Picking Up Speed

“look for ways to improve

. . . an airline must always its ability to compete in the marketplace.

News from the Americas Midwest Express and Aeropostal airlines have renewed their contract to continue utilizing the Sabre ®

Many of the region’s

“An effective IT plan

“The key to a successful

Emre Serpen, Sabre Consulting

that are needed, and then

depends on the airline’s

developing solutions that

of its customers, providing

business strategy, as well

achieve defined objectives,”

tailored products and serv-

as the IT applications that

Serpen said.

ices that help retain their

support it. In addition, an

Sabre Consulting

airline’s organization will

assisted Thai and Asiana in

effective CRM program

business. A key to an

impact its IT strategy. The

developing a comprehensive

is defining the expected

IT strategy must support the

CRM plan to assist with

benefits for an airline.

have been chosen specifically to help the airline increase

Passenger Reservation System and related services.

leading airlines — including

productivity and reduce costs, include:

Under the new agreements, Sabre will continue to mod-

Thai International, Asiana

overall direction of the airline

improvement of revenues

The Sabre ACSI TM international airport check-in

ernize technology systems driving the airlines’ reserva-

Airlines, Air China, Royal

in order to prove effective,”

and customer service capa-

Pacific region welcome

system, which will fully automate Oman Air’s

tions, airport check-in and departure control operations.

Brunei Airlines and Cathay

Serpen said. “Working

bilities. The programs devel-

a practical approach

passenger check-in process, improving customer

The systems specified in the agreements support every

Pacific Airways — have

together, we’ve been able

oped cost-effective CRM

to CRM,” Serpen said.

service and staff utilization.

passenger interaction from shopping for preferred itiner-

utilized the expertise of

to develop an IT plan that

strategies based on develop-

“Our approach is to

The Sabre ® Steady State TM weight and balance

aries to post-travel activities, increasing sales, enhancing

Sabre Consulting in their

meets the unique needs

ment steps delivering spe-

define exactly what type

system, designed to automatically generate load

productivity and reducing costs for the airlines.

ongoing efforts to maxi-

of Air China.”

cific business benefits. The

of campaigns and service

approach is focused on

improvements are needed,

control information to produce optimal flight plans

“The five-year contract renewal will help ensure

mize their capabilities

Air China, through this

“Airlines in the Asia/

for loading Oman Air aircraft and saving fuel.

that Midwest Express stays at the forefront of industry

to compete in an ever-

initiative, will transform its

enhancing current capabili-

then develop solutions that

The Sabre ® Qik-Airport TM airport operations system,

leadership and customer relationship management,”

changing marketplace.

efforts in commercial and

ties based on the systems

deliver defined results.”

which will enable Oman Air staff to use a single screen

said Tom Vick, Midwest Express chief marketing officer.

to access all passenger services including reservations,

The five-year renewal agreement between Sabre and

Like their counterparts

operational areas — such

and tools available and

worldwide, the region’s

as through the development

developing comprehensive

economic times, an airline

In these challenging

baggage check-in, passenger handling and ticketing,

Aeropostal includes Sabre’s full suite of reservations

airlines seek to improve

of new business processes,

campaign solutions with

must always look for ways

flight control and aircraft departure.

management services and the Sabre Flight Operating

revenues and control costs.

performance measures

improved campaign capabili-

to improve its ability to

Systems, which will enable Aeropostal to better manage

One way the carriers in

and training.

ties. When in place these

compete in the market-

flight scheduling and on-time services.

the Asia/Pacific region

solutions will help carriers

place. Using comprehensive

®

Oman Air added these state-of-art technologies after renewing its contract for the Passenger Reservation

Through this transfor-

are seeking to accomplish

mation, an airline can

identify high-yield customers

data and sophisticated deci-

of our business issues were significant factors in our

these goals is through

undertake specific revenue

with increased accuracy and

sion-support tools, Sabre

decision to renew,” said Licio Piccoli, chief information

implementing new tech-

improvement or cost reduc-

conduct campaigns as well

Consulting is actively work-

control into the reservations process,” said Abdul

officer of Aeropostal. “We believe this is a solid invest-

nology and systems to

tion projects, such as

as improvements in cus-

ing with numerous airlines

Rahman Al Busaidy, chief executive officer for Oman Air.

ment for our future.”

automate processes,

improved scheduling,

tomer touch points.

in Asia/Pacific to ensure they

said Sabre Consulting

revenue management and

Partner Emre Serpen.

operations control practices.

System. “We were attracted to the Passenger Reservation System because of its ability to fully integrate departure

16 ascend

“Sabre’s regional presence and understanding

Through CRM, an airline better addresses the needs

remain on the leading edge of the industry.

october 2002

17


regional

regional Americas

The Secure Partner North American Airlines Seek Assistance with Enhanced Security By Steve Hodges AND Deborah Crabtree | Ascend Contributors Through the enhance-

information message is

is cooperatively working

check in until baggage

continue to evolve as

placed on an alert queue.

with its customers and

data has been provided.

airlines work to eliminate

the International Air

It also provides lists of

some of the inconvenience

Advance Passenger Information System

Transport Association

passengers with checked

associated with clearing

to define and implement

bags who do not board

security. As the process

The system, implemented

a common standard for

their flight. These bag-

of refining security

by Sabre in the mid-

a new Advance Passenger

match lists are used by

continues, Sabre will

1990s, enables airlines

Information System

carriers to prevent final

work with the airline

to meet U.S. government

message that will meet

flight processing until

community to identify

security requirements en-

passengers are flagged

requirements regarding

the security needs of

the bags have been

potential areas where

ments made to the departure

abled us to maintain effi-

by the system enabling

notification to the immi-

numerous countries

accounted for.

it can provide assistance.

control system, airlines were

cient, reliable service to our

airlines to take appropriate

gration department.

in addition to the

able to meet the new chal-

customers,” said Glen Baker,

action as required by the

When a flight departs

United States.

to help define the

lenges, enabling them to

vice president of information

FAA. Several modifications

foreign soil, it is required

new security mandates

resume operations as quickly

services for American

were made to the system

to transmit a passenger

as possible.

Trans Air.

to help airlines provide

manifest, including pass-

Passenger Positive Bag Match

of airlines around the

increased security.

port data. Currently, Sabre

The ACS system can delay

in the United States

and Sabre “Airlines came together . . .

and incorporate them . . .

“Sabre was nothing

Working closely with

short of what you would

airlines, Sabre incorporated

want from an IT partner,”

new functionality in several

Watch List

said an official for Southwest

systems to enhance security

Sabre implemented a pro-

throughout North America

Airlines. “Their team rallied

measures.

gram that gives carriers the

has been dramatically

and worked tirelessly with

changed. Coping with the

our team each step of the

new security requirements

way.”

Security at airports

has presented airlines with

The quick response and

ability to create their own

Automated Passenger Profiling System

passenger watch list data-

The Automated Passenger

occurs at the time the reser-

sense of urgency that was

Profiling System was imple-

vation is made, a message

to look for ways to make

demonstrated between

mented by Sabre in 1997

referencing the reservation

for the passenger as possible

product

while still complying with

features Alerting services — offer customized travel information via a short

federal mandates. Trying to minimize the impact of security on cus-

account director for the

remains a prime goal

North American region.

world. Security measures

Deborah Crabtree is a systems analyst for Sabre.

News on New and Improved Products and Services from Sabre Airline Solutions The Sabre ® Inform SM mobile services

the process as unobtrusive

Steve Hodges is a Sabre

hightech

base. When a name match

a challenge, causing them

Keeping passengers and employees safe

description

messaging service, or

A suite of powerful customer

SMS, enabled mobile

The product also offers

and flight number; traveler

a customization tool that

itineraries, including confir-

enables the company

mation numbers and

to deliver personalized

seat assignments; and

messages to their most

weather updates.

valued customers.

Mobile services —

service tools that can reduce

phone, personal

Voice services —

provide travelers with real-

tomers presented a unique

airlines’ costs associated with

digital assistant, e-mail,

enable users to provide

time information via any

opportunity for airlines to

call center management and

instant message or fax.

travelers with 24-hour

wireless device quickly,

customer service.

Travelers will receive

access to their travel plans

either to plan a trip or to retrieve information.

work with Sabre in order to operate as efficiently as possible in the new environment. Airlines and Sabre came

Sabre Airline Reservations provides increased security features to airlines such as ATA that use its reservations systems.

together to work with the

reminder notices and

via a branded,

benefits

notifications on flight

automated voice re-

The Inform voice services

delays, terminal and/or

sponse system that also

Alerting and mobile

provide an automated

gate changes, flight

allows them to transfer

services are available

voice response system

cancellations, and airline,

to a live agent. Travelers

in English, Spanish,

U.S. government to help

Sabre and partner airlines

and is used by the majority

is placed on an alert queue

that improves cost efficiency

airport, city, country and

will receive up-to-the

French, Italian, Portuguese

define the new security

allowed carriers to continue

of its U.S.-based customers.

for follow-up action. If a

for an airline’s call center.

security alerts prior to

minute flight information,

and German. Initially, the

mandates and incorporate

providing the best possible

The profiling system identi-

name from the list is detect-

Through this service,

departure up until flight

including departure date,

product will be available

them in the departure control

customer service.

fies high-risk passengers

ed during the check-in pro-

travelers have the ability to

time. Users of the service

time and destination;

in North America only.

based on criteria defined

cess, the Sabre ACS TM air-

retrieve schedules and real-

can brand each message

current departure and

The product will be avail-

system functionality within

“Sabre’s ability to quick-

the Sabre ® Passenger

ly enhance its systems to

by the Federal Aviation

port check-in system alerts

time flight status 24-hours

with their company name

arrival information for

able in other markets in

Reservation System.

meet the rapidly changing

Administration. High-risk

the check-in agent and an

a day, seven days a week.

and contact information.

a specific flight by airline

the coming months.

18 ascend

october 2002

19


product

product as Sun Country Airlines,

The Sabre eMergo Solutions

is using version 5.0 of the Sabre ® AirMax TM automated revenue management

Your Low-Cost Option for High-End Technology

system as an eMergo

The Simple Solutions

solution. The AirMax system is a proactive revenue management tool

By Stephanie Bundick | Ascend Contributor

The following airline solutions are available via the Sabre ® eMergoTM Web-enabled and dedicated network solutions:

that uses historical and An airline’s primary goals have always included improving revenues, cutting costs

affordability and quicker

ucts. Because the applications

time to market.

have all been tested in the

just completed is the

to forecast booking activity

environment, only an airline’s

Quasar

and automatically set the

data and business rules must

accounting system for Great

optimal number of seats in each fare class.

The eMergo solutions, an

One such installation TM

passenger revenue

current reservations data

Quasar TM passenger revenue accounting system, Sabre ® Aerodynamic Traveler TM Gate Reader Check-in System, Sabre ® Aerodynamic Traveler TM Roving Agent Check-in System,

and simplifying business

applications service provider

functions, but this has never

model, offer access to appli-

be loaded into the eMergo

Plains Airlines. The system

been more true than today.

cations over the Internet or a

solutions, resulting in much

processes airline ticket

The airline industry

direct connection, eliminating

faster implementations com-

is searching for ways to

an airline’s need for compli-

pared to on-site installations.

improve revenues and

cated “in-house” data center

Sabre manages the hard-

decrease costs without

infrastructure and support.

ware, system administration

a large capital outlay.

These solutions provide a

and database requirements

Employing technology

significantly lower total cost

in the eMergo solutions,

in the form of airline appli-

of ownership through the

which includes 24-hour data

cations has been one of

elimination of infrastructure

center support. The data

the industry’s key tools

needs, easier use and training

center is managed by EDS,

transactions for accurate

and do not have a large

to help achieve improved

needs, and predictable costs.

a company globally recog-

and timely recognition of

IT department. The experi-

nized as an expert in data

earned revenue. The system

ence has allowed us to

Sabre ® Fleet Assignment Model (FAM),

center operations.

allows airlines to reduce

focus on using the system

Sabre ® LiteVision TM personalized MIDT system,

financial results. Historically, on-site

Unlike some ASP offerings in the marketplace, the

“for ways to improve revenues

The airline industry is searching and decrease costs without a large capital outlay.

Sabre ® AirCrews TM crew management system,

According to Linda

Nellis, senior marketing con-

Sabre ® AirFlite TM flight scheduling system,

sultant for MN Airlines, “One

Sabre ® Airline Profitability Model,

of the major advantages to our airline has been not

Sabre ® AirMax TM automated revenue management system,

having to invest in hard-

Sabre ® AirOps TM operations control system,

ware or support resources to run the AirMax system. We are a small carrier

Sabre ® AirPath-360 TM flight planning and dispatch system, Sabre ® AirPrice TM fares management system, Sabre ® AirServ TM aircraft provisioning system,

implementation of software

eMergo solutions build on

costs, increase revenues

to run our business

applications required signifi-

a long tradition of serving

eMergo solutions, airlines

and analyze detailed market-

versus expending time

Sabre ® PassTouch ® architecture,

cant up-front investment

the industry. The delivery

have access to 23 of Sabre’s

ing data to enhance their

and resources to run it.”

Sabre ® SlotManager TM slot managing and tracking system,

for software licenses and

of applications hosted off

advanced technology

competitive positions.

infrastructure as well as

site first began more than

applications that support

continued maintenance

40 years ago with the

the crucial areas of the travel

delivery method of the

hosted solutions and local

and support costs to main-

forerunners of the Sabre ®

business — scheduling, pric-

Quasar system will be a key

on-site implementations.

tain the applications. Today,

Passenger Reservation

ing, revenue management,

tool allowing us to grow our

Every carrier will have

there is another option that

System. This extensive

operations, to name a few.

business while keeping our

unique requirements —

Sabre ® SteadyState TM weight and balance system,

can make sophisticated air-

experience with ASP-type

For decades, Sabre has devel-

costs under control,” said

some fitting the eMergo

Sabre ® TransVision TM traffic flow analyzer,

line tools available to all

delivery results in a stable,

oped and implemented a

Mary Ellen Thiets, manager

solutions offering and

segments of the airline

secure, reliable method of

unique breadth of state-of-

of passenger revenue

others requiring local

Sabre ® Travelcard Pro TM billing and marketing information access system,

industry even in these

providing mission-critical

the-art airline solutions

accounting at Great Plains

installation. For carriers

Sabre ® Traverse TM loyalty management system,

financially difficult times.

support tools now and

designed to help its cus-

Airlines. “For instance, we

seeking airline applications

By providing online access

in the future.

tomers achieve maximum

expect the Quasar system’s

with a lower total cost

revenue and growth poten-

automatic loading of elec-

of ownership, the eMergo

a suite of simplified and stan-

tial. With the eMergo solu-

tronic ticket lifts will reduce

solutions might be the

dedicated network solutions

dard applications, improves

tions, Sabre has been able

our data entry expense

perfect fit.

present an attractive alterna-

time to market and provides

to expand the number of

by 90 percent.”

tive for carriers seeking high

greater integration with

airlines that can take advan-

levels of service, quality,

Sabre’s other software prod-

tage of these capabilities.

to airline products, the Sabre ® eMergo

TM

Web-enabled and

20 ascend

The eMergo solutions,

Today, through the

“We believe the ASP

The newly formed MN Airlines LLC, doing business

Going forward, Sabre will support both centrally

Stephanie Bundick is

Sabre ® StaffAdmin TM employee tracking and assignment system, Sabre ® StaffManager TM automated staff allocation system, Sabre ® StaffPlan TM staff forecasting and planning system,

Sabre ® WiseVision TM sales expansion system. For more information about the eMergo solutions, contact Jim Quilty at 817 264 2906, or send an e-mail message to jim.quilty@sabre.com.

product manager for the eMergo solutions.

october 2002

21


regional

regional Americas

Making Change

TAM Extends Leadership

Move to Origin and Destination Reaps Benefits for Alitalia

South American Airline Restructures for Continued Growth

By Vijay Bathija | Ascend Contributor

By Shane Batt | Ascend Contributor

Revenues were down.

This implies protecting

organization. Results show

ogy of the system, however,

as a result of its multi-year growth plan, South American

inventory control. The results have produced significantly

Traffic was sluggish.

the availability for O&D

that Alitalia has experienced

required Alitalia to change

airliner TAM was seeking to further improve its position

higher revenues, load factors and revenue per available

Coordinated schedules

traffic with the highest

a significant increase in rev-

business processes, organize

in the market place.

seat kilometer. TAM today is the largest and strongest

with new alliance partners

revenue on each leg.

enue per available seat kilo-

work streams and identify

domestic airline in Brazil.

were non-existent.

With a dual hub (Rome

meters through the imple-

ways to realize revenue

Fiumicino and Milan

mentation of network,

opportunities. By implement-

Although having experienced many successful years

TAM, a leading Brazilian airline, recently completed a

new business processes in scheduling, pricing and seat

multi-faceted initiative that involved restructuring areas as

The strategic revenue initiatives concentrated on establish-

Alitalia Airlines, the

diverse as network planning, flight scheduling, revenue man-

ing a strong competitive position for TAM over the next five

Italian flag carrier, realized

Malpensa), Alitalia’s com-

schedule and fleet

agement, sales, marketing, branding, loyalty, distribution man-

years. The results to date show that TAM has effectively

it had plenty of room to

petitive strategy has been

adjustments. Alitalia

agement and airport service provision.

managed its commercial growth through a difficult transition

improve its operations in

to develop simultaneously

aligned its network to

to deregulation in the Brazilian air travel environment and

order to weather the chal-

third-, fourth- and sixth-

better coordinate with

Sabre Consulting, involved creating an integrated work process

post-Sept. 11 declines in passenger demand. TAM is now a

lenging economic conditions

freedom traffic.

the schedules of its

that fused together different commercial areas to drive revenue

stronger competitor against new entrants in the marketplace

in the airline industry. But

improvements. It covered strategic revenue enhancement (net-

as well as current low-cost and incumbent Brazilian rivals.

the airline also realized

odology, Sabre Consulting

partners and restruc-

in the area of revenue

it needed external help

helped Alitalia use its O&D-

tured its domestic,

management.

to reach its goals.

based planning tools to

North American and

examine ways to restructure

European services as

The restructuring project, conducted in conjunction with

“Sabre Consulting has provided invaluable help as we work to reduce costs and reposition our company for the new realities we face,” TAM officials said.

Over the course of more than four decades, TAM has grown into one of South America’s leading airlines. In 2000, TAM Regional and TAM Meridional carried a combined 10,902,270 passengers a total of 126,513,357 kilometers with its fleet of more than 80 Airbus and Fokker aircraft.

About a year and a half

Based on this new meth-

airline immediately “ The began to realize benefits from its restructuring

SkyTeam alliance

Sabre helped TAM manage its commercial and

ago, Alitalia brought in Sabre

its network and to deploy its

well as retired inefficient

ing new goals and measure-

financial performance. Moreover, operational initiatives

Consulting to help transform

fleet more effectively.

widebody fleets.

ments, realigning depart-

were designed to control costs, improve cash flow

its business processes in an

and increase field efficiencies. An integrated team

effort to improve revenue

required the airline to alter

have been very happy with

revamping work pro-

of TAM and Sabre personnel visited every station

and to get the maximum

its business processes

the results, as the airline

cesses, the airline

served by the airline. The team’s diagnostic review

benefits of the advanced

across the organization to

was able to turn its planning

recently realized its

made specific recommendations on ways each station

technology that the airline

ensure that all operational

process from route oriented

first profit since 1998.

should address sales and service provisioning. Stations

had implemented.

areas were aligned, and

to network oriented.

The first step was

The move to O&D also

the airline, in conjunction

Alitalia officials said they

mental resources and

Alitalia said it selected

The airline immediately

Sabre Consulting after

work planning, fleet planning, marketing, branding and loyalty)

as wide ranging as Paris, France, and Palmas, Brazil —

along with tactical revenue improvement (tactical scheduling,

a newly developed city in the middle of a recently cleared

for the carrier to identify

pricing, revenue management, distribution management) and

section of the Amazon jungle — were examined and

revenue-increasing

from its

research, realizing that

merged these with operational areas (sales, airport service

measured with an objective set of criteria. The work defined

commercial plan-

restructuring

it was the only company

provision, performance reporting).

consistent service across the diverse marketplace served

ning strategies.

in the area

that could provide a

by the international carrier.

As a result, the

of revenue

highly integrated solution

management.

leading to the ultimate

“The airline growth had been faster than we had been able to manage. We needed guidance on new commercial

Sabre Consulting played a key role in the success of the

with Sabre Consulting,

airline moved

conducting in-depth

begin to realize benefits

goal of maximizing reve-

initiative, said Wagner Ferreira, commercial and marketing

from a leg-based

developed new processes

we needed assistance, we called Sabre Consulting because

vice president of TAM. During the Sabre Consulting engage-

structure to a “state of

and procedures to fully

ality of the Sabre AirMax

we knew they would be the best choice for us in order to

ment, TAM’s revenues increased by more than US$85 million.

the industry” origin and

implement an O&D

automated revenue manage-

the inter-mediate steps

destination model.

perspective.

ment system helped the air-

of the commercial and

line increase the amount of

planning processes.

practices and techniques. At the moment we realized

provide an excellent level of improvement in our com-

“The results of both Sabre Consulting and TAM’s efforts

Using the O&D function®

TM

nue by coordinating all

mercial practices,”said Ubiratan da Motta, TAM’s director

now are appearing, and the airline is becoming stronger

Alitalia decided to

of commercial logistics.

even during the challenging conditions the entire airline

move to an O&D manage-

begun executing its new

revenue it generated across

industry has endured since September (2001),” he said.

ment structure to maximize

strategy, making profit-

its network. To fully benefit

senior consultant with

the revenue on its network.

focused changes to its

from the advanced technol-

Sabre Consulting.

TAM’s tactical initiatives focused on the current quarter in order to improve revenue rapidly. The carrier began

22 ascend

Shane Batt is a partner in Sabre Consulting.

Alitalia has already

Vijay Bathija is a

october 2002

23


product

product

Simplifying Operations The “Qik,” Uncomplicated Solution By Barb Ryan | Ascend Contributor

in flight conversion rates

Clients have improved

7 percent and 23 percent

can be expected as a

solicitation compliance by

reductions in host com-

Increased job

result of implementing

15 percent to 75 percent.

munications are consid-

satisfaction

the Qik solutions, money

Reduced telephone

ered normal.

By eliminating the

that often goes straight

charges

Host programming fees

monotony of long

These benefits include:

to the bottom line.

The Qik solutions’

The Qik solutions place

formats, streamlining job

Increased sales

productivity improvements

a powerful and easy-

functions and reducing

based release includes a

engineers allows solutions

than traditional host sys-

solicitations

also translate into shorter

to-use tool in the hands

dependence on technical

airlines are seeking to

completely re-written devel-

to be designed to meet

tems. In addition, when

The solutions provide easy

calls, reducing the cost of

of airlines allowing them to

knowledge, sales agents

simplify operations in order

oper tool that allows travel

the unique needs of many

data from multiple sys-

access to data and present

incoming calls by

develop rich business logic

are free to serve the

to reduce costs and remain

companies to more cost-

diverse customers. Plus,

tems is required, the Qik

the data at the appropriate

4 percent and 8 percent.

and creatively solve busi-

customer, improving

competitive, yet they are

effectively integrate data

the technical skill of

solutions integrate

time during the agents’

Reduced host

ness problems without the

their job satisfaction.

still pressured to maintain

and systems, while provid-

the architects and Java

the data seamlessly,

workflow. In addition, sales

communication costs

need for expensive and

Improved customer

high-quality customer

ing information to travelers,

developers that support

eliminating the need

prompts are used to assist

An application written

time consuming host sys-

service

service. One of the key

all via an open technical

the Qik solutions and their

for the end-user to

the agent in closing the

using the Qik solutions

tem enhancements.

Given the improved

platform and an

tremendous experience

switch between systems

sale. Finally, the applica-

performs local error check-

advanced tool set.

in that capacity ensures

and remember multiple

tions eliminate the need to

ing, retains host informa-

vide many other less tangible

agents’ ability to more eas-

it meets the needs of the

access methods. New-

memorize or search for sel-

tion and combines host

improvements. Some of

ily complete their jobs,

travel industry.

hire training costs can

dom-used transactions,

transactions, significantly

these benefits are difficult

they can focus on cus-

Today more than ever,

result is a much more “ The flexible and powerful tool

The Qik solutions’ powerful

The solutions also pro-

be reduced by 15 percent

such as those required for

reducing host communi-

to quantify, but this does not

that allows developers to

airlines tailor their

a proven history of improv-

to 30 percent.

car hire and hotel booking.

cation costs. Between

diminish their importance.

create graphically rich

solutions to their

ing productivity and reducing

Reduced facility

unique business

costs. Quantifiable improve-

requirements

environment.

ments have been measured

The Qik solutions

Additionally, the new

in every environment

productivity improvements

edition supports two

studied, including:

and automation opportuni-

applications more quickly than ever before.

Developer Tool helps

scripting languages,

The Qik solutions have

Reduced headcount

ties also translate into

methods of simplifying

more advanced graphical

The Qik solutions simplify

reduced facilities require-

operations is through the

elements, a variety of

complex procedures, elimi-

ments. The same number

use of advanced tools

graphics formats, a fully

nate the need for end-

of personnel can handle an

designed to streamline

graphical screen painter, as

users to consult job aids,

increased volume of calls.

T H E

well as the creation of both

reduce error frequencies

In addition, repetitive tasks

Sabre ® Qik TM business

modal and non-modal win-

and automate multi-step

can be easily automated.

processing solutions aid

dows. The result is a much

processes. As a result, the

This eliminates the cost of

airlines in effectively reduc-

more flexible and powerful

Qik solutions can yield a

extra agents. Carriers

ing costs while increasing

tool that allows developers

4 percent to 12 percent

achieve between 4 percent

productivity and the

to create graphically rich

improvement in end-user

and 8 percent reductions

bottom line.

applications more quickly

productivity, allowing

in facility costs.

The Qik solutions are widely considered the indus-

than ever before. The Developer Tool,

clients to reduce agent

Improved flight sector con-

headcount. Also, the same

version rate

try pacesetter for graphical

combined with the power

agents can handle more

The Qik solutions enhance

user interfaces and devel-

and flexibility of engineering

calls and provide im-

sales personnel effective-

oper tools and are used

services provides a solution

proved customer service.

ness by improving infor-

by more than 300 airlines,

with rapid returns rather

Reduced new-hire

mation accessibility, reduc-

travel agencies, tour

than a simple technology

training costs

ing average call times and

companies and Web

solution. Incorporating

The GUI front-ends created

providing sales prompts.

companies around the

business processing

using the Developer Tool

Between 1 percent and

world. The latest Java-

knowledge of industrial

are much easier to use

3 percent improvements

24 ascend

vıew

L E V E L

understood what our airline was aiming to achieve

Korean Air is upgrading its systems to the latest version of the Sabre Aircrews ®

business processes. The

tomers rather than (Continued on next page)

H I G H

News Briefs from Around the Globe News from Asia

job satisfaction and the

TM

crew management system,

which will provide an integrated solution to support the crew management needs of the airline. The contract upgrades Korean Air to version 6.0 of

and provided this most suitable product.” Some of the major enhancements of version 6.0 of the AirCrews system include: The Crew Resource Management module — Allows the crew planner to plan future crew availability versus

the AirCrews system, a full suite of integrated crew solu-

planned crew requirements.

tion products providing crew management needs for the

The Roster Optimization module — Generates an opti-

airline æ from long-term planning to the actual day of

mized set of crew rosters for a specified date range.

flight.

The optimization algorithm supports equitable work

According Jin Soo Kim, general manager for training

assignments based on fairness criteria, crew prefer-

administration at Korean Air, version 6.0 of the AirCrews

ences and “desirable” roster profile attributes.

system will enable the airline to develop and implement

The Crew Internet Access module — Provides crew

a wide range of crew operation needs.

with easy, global access to real-time information

“This upgrade of the AirCrews system gives Korean

via the Internet. It enables crew management

Air the ability to continue utilizing crew in the most

personnel to also receive crew input during the

sensible and resourceful way,” said Kim. “Sabre

roster planning and generation process.

october 2002

25


product

Sabre

on the system and interact

tion, supports integration

retaining customers. After

to integrate the Qik solutions

professionally and pleas-

with: Internet content,

all, it is cheaper and easier

with the underlying technolo-

antly with them.

databases, e-mail, periph-

to retain a customer than

gies that are used across

Greater adaptability to

eral devices, and services

it is to attract a new one.

an ever-widening span

changing business needs

such as CORBA or enter-

“Airlines want to

The simple-to-use

prise Java beans.

equip their agents with

including the Internet,

Developer Tool allows

Integration with fax

invaluable data emerging

wireless devices and

agents to modify and

and telephone servers is

from their CRM initiatives,”

reservations.

develop new functionality

also a simple integration

said Chris Serafin, vice

to rapidly respond to

process. Incorporating

president of Sabre Airline

simplify operations, airlines

changing market condi-

open architecture, the Qik

Solutions. “The Java

can leverage tools and

tions. Special offers,

solutions will continue to

edition of the Qik solutions

technology to make their

promotions and prompts

evolve with the changing

put that capability firmly

processes more efficient

can be created and dis-

technology needs of the

in their hands by placing

and user friendly. The Qik

played based on certain

industry.

customer data at the

solutions provide an ideal

agents’ fingertips via the

method of accomplishing these goals.

qualifying events.

The Qik solutions also provide valuable customer

same interface they use

technological barriers

relationship management

to help the traveler optimize

The latest version of the

capabilities, which helps

their travel plans.”

Qik solutions, the Java edi-

simplify the process of

Given the need to

Barb Ryan is director of the Qik business processing solutions at Sabre.

Airlines will also be able

vıew

H I G H

News Briefs from Around the Globe News from Europe

L E V E L

British Airways has chosen industry-leading

pricing analysis and calcula-

face accessible from any

manual fare classifications

tions process by up to 25

standard PC. The new GUI

according to travel dates,

percent, helping airlines

offers user-friendly views

minimum/ maximum stay

respond more quickly to

for comprehensive analyti-

rules, etc. The new version

their competitors while im-

cal capabilities, giving a

automatically classifies

proving pricing efficiency

single point of access to

fares according to rules

and reducing operating

competitively analyze fares

characteristics and fare

description

costs. The newest version of

and implement fare

matching requirements.

The AirPrice system

the AirPrice system is also

changes accordingly.

Remote access giving flex-

improves an airline’s prof-

easier to use and more

Automatic fare rule-based

ibility to access fare infor-

itability by enabling airline

efficient. Version 6.0 of the

modeling, a module that

mation and implement fare

fare pricing analysts to moni-

system is designed to help

searches for special rules

changes anytime, any-

tor current market fares and,

airlines deliver maximum

— such as Saturday night

where and from anyplace.

based on that analysis, make

value to their customers by

stays and seasonal travel

This enables pricing ana-

strategic changes to their

offering the best fare options

dates — when performing

lysts to monitor market

own fares within seconds.

available within seconds.

a fare analysis, therefore

and competitor fares

saving both time and

24 hours a day, seven

Version 6.0 of the Sabre ® AirPrice TM fares management system

benefits

features

money.

days a week.

The new version increases

A more user-friendly, Java-

Automatic rule-based

Reduced implementation

the speed of the airline fare

based graphical user inter-

modeling that eliminates

costs.

personnel operations.

in today’s environment,” says Andy Garner, general ®

“With this system, British Airways will be able to

to manage the difficult task of employee staffing and

efficiently administer the 8,000 ground staff who work

administrative work processing. The StaffAdmin system

at London’s Heathrow and Gatwick airports while

gives the airline access to a database that contains

providing employees a means to manage their work

and it creates a work environment for monitoring

schedules from kiosks.” Through deployment of the StaffAdmin system,

and updating employee schedules. The release of the

airlines have been able to achieve up to a 20 percent

StaffAdmin system that British Airways will implement

improvement in administrative staff utilization through

adds Web-based access to allow employees to perform

paperwork reduction and increased employee involve-

work-related shift bidding, schedule checks, overtime

ment in data entry. They have also decreased costs by

and vacation requests from home, on the Web

up to 15 percent for mistakes in the reconciliation and

or at a self-service kiosk.

processing of manually compiled time and attendance

British Airways selected the system to ensure that it has the right people scheduled for the right activities and can meet ever more stringent

News Briefs from Around the Globe

data and delivered up to 5 percent staff utilization improvement through improved rostering.

News from Australia Virgin Blue Airlines has successfully completed the first-phase implementation of the Sabre ® AirPath TM flight planning and dispatch system. The installation moves Virgin Blue to a state-of-the-

vıew

H I G H

manager of business development for British Airways.

StaffAdmin TM employee tracking and assignment system

a wide range of information including shift schedules,

T H E

“Providing excellent customer service whilst realizing effective utilization of resources is critical

26 ascend

product

European Work Time limitations.

software to help it more effectively manage its British Airways will implement the Sabre

News on New and Improved Products and Services from Sabre Airline Solutions

of customer touch-points,

Removal of

T H E

hightech

L E V E L

assists our airline to maintain a profitable cost base, as it reduces fuel consumption, which in turn helps keep air fares low for travelers,” he said. Among the many features the AirPath system offers Virgin Blue are:

art flight planning system, which allows the airline to

Accurate calculations of payload capability,

operate more profitable flight segments and to create

en route times and fuel consumption for each

more efficient flight plans.

flight section scheduled,

John Crane, head of navigation services for Virgin

Customized flight plan outputs,

Blue, said the features of the AirPath system meet

Maintenance of takeoff/landing performance limits,

the airline’s needs and positioning for future growth.

Monitoring incoming weather and alerts dispatches of

“Our adoption of the AirPath system is sure to fit comfortably with our internal operations while

significant weather changes. “We are committed to using the best technology

ultimately enhancing our guests’ experience by

available in the world, and the introduction of this new

ensuring the shortest flight time under prevailing

Sabre system puts Virgin Blue at the cutting edge of

conditions is achieved. In-house flight planning

flight planning technology,” Crane said.

october 2002

27


regional T H E

Sabre News

vıew

H I G H

News Briefs from Around the Globe

making contact

L E V E L

To suggest a topic for

Not only does Dube hold a master’s degree in

Three long-time employees will assume new roles within Sabre Airline Solutions.

operation research, but he also possesses extensive experience interacting with customers at various

Nejib Ben-Khedher has been named managing partner of Sabre Consulting. Vinay Dube will succeed

Sure we look out for Number One.

a possible future article,

You, that is.

send an e-mail message

levels of management. Jacobs, in his new role as vice president

Ben-Khedher as regional vice president of the AS sales

of the Americas’ sales and account teams,

and account teams in Europe, the Middle East and

also brings a wealth of experience to his

Africa. And Walter Jacobs will assume the duties

new position.

change your address or add someone’s name to the mailing list, please to the Ascend staff at wearelistening@sabre.com. For more information about products and services

As vice present of product management for

featured in this issue of

crew and cargo solutions, he helped built strong

Ascend, please visit our

client relationships and helped establish the Sabre

Web site at www.sabre.com

industry skills to the position, Ben-Khedher will

crew products as industry leaders. Jacobs, who

or contact one of the following

build on the success of Sabre Consulting, which

came to Sabre in 1987, also has worked extensively

Sabre regional representatives:

has experienced tremendous growth during

with carriers around the world to build a strong

the past few years.

customer base for crew and cargo products.

of vice president of the AS sales and account teams in the Americas. Bringing a diverse set of international and

Network Planning

Ben-Khedher has held a series of international assignments ranging from decision support solution design, development, and delivery to marketing,

Accurate Market Sizing

News from Asia Air China engaged Sabre Consulting to provide

sales and account management. As vice president

the airline with progressive solutions that will

of the EMEA sales and account management,

help the airline develop a long-term information

he interacted with more than 50 airlines in the

technology strategy.

region. He holds a doctorate in operations research from the University of Michigan and a graduate

Before moving to the role as regional vice president of the EMEA sales and account team, Dube served as vice president of flight scheduling products, where he helped establish the product suite as

Level 9, Phillips Building When you bring the Sabre Consulting team into your airline or airport, we

15 Blue Street North Sydney NSW

arrive without baggage. Our consultants

Australia 2060 Phone: 61 2 8923 5230

experience to identify innovative

E-mail: mike.baldwin@sabre.com

Alliance Planning

solutions for your business imperatives.

Turnaround Consulting

And if the answer to your particular

Europe, Middle East

Merger Activity

challenge isn’t a Sabre solution, that’s

and Africa

the answer you’ll hear from us. Every

corporate development and planning, believes partnering

Certification Preparedness

with Sabre will provide the airline with the IT direction

Safety Optimization

line management responsibility with

will conduct an extensive IT audit critical in helping

Zhao Xiao Hang, managing director of Air China

needed to secure its future.

time. Each of our consultants has had a minimum of two carriers. And we

“We believe Sabre possesses vast experience

with Sabre to his new position.

Senior Vice President

use their unmatched knowledge and

and applications needs.

teams, Dube brings more than 12 years of experience

Mike Baldwin

Partnership Strategies

Grandes Ecoles. He is a winner of the prestigious

Assuming the reigns of the EMEA sales and account

Pricing & Revenue Management

Under the terms of the contract, Sabre Consulting the airline determine its future IT infrastructure

and revenue management.

Asia/Pacific

With Sabre Consulting, your needs come first.

Traffic Forecasting

GROWTH & STRATEGY

degree in engineering from the renowned French Edelman award for applied research in scheduling

AIR SERVICE DEVELOPMENT

BUSINESS ALIGNMENT

can provide critical insight into every

Vinay Dube Vice President 23-59 Staines Road Somerville House

and knowledge of the industry that will provide

Industry Benchmarking

discipline impacting airline and airport

Hounslow, Middlesex

us with the strategic advice we require to grow

Cut Costs

success. So put the industry’s leading

TW3 3HE, United Kingdom

Bolster ROI

consulting team to work. And watch

Phone: 44 20 8814 4525

us look out for our number one

E-mail: vinay.dube@sabre.com

in today’s environment,” Zhao said. “We look forward not only to the final report, but also to

a virtual industry standard, used actively at more

implementing the recommended IT solutions

than 60 airlines worldwide.

that will aid the airline in its growth.”

Improve Service Optimize Revenue

priority — you.

The Americas

w w w . s a b r e . c o m

Walter Jacobs Vice President

+count it up 28 ascend

1 E. Kirkwood Blvd.

164,536,422

26

Southlake, Texas 76092

Number of passengers boarded through

Number of Sabre offices

United States

Sabre Airline Reservations in 2001

around the world

Phone: 817 264 7657 Sabre and the Sabre logo are trademarks and/or service marks of an affiliate of Sabre Inc. ©2002 Sabre Inc. All rights reserved.

E-mail: walter.jacobs@sabre.com


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