Page 1

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

Š 2009 Sabre Inc. All rights reserved.

wearelistening@sabre.com


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


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

ConductingValuableResearch_OCT_2002  

O C T O B E R 2 0 0 2AMAGAZINEFORAIRLINEEXECUTIVES INSIDE Airlines Seek to Simplify Operations Aligning with Industry- Best Practices TAM Ex...

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