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 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


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

DrawTheLine_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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