Page 1

A MAGAZINE FOR AIRLINE EXECUTIVES

Ta k i n g

y o u r

a i r l i n e

APRIL 2003

t o

n e w

h e i g h t s

MAKING EVERY DOLLAR COUNT

A Conversation with . . . Brett Godfrey, CEO, Virgin Blue INSIDE New Approach to Cost Reduction Provides Benefits

Aeroflot Reshapes Itself

American Airlines De-Peaks Its Hub and Spoke Structure

Š 2009 Sabre Inc. All rights reserved.

wearelistening@sabre.com


industry

industry and the planes. Here passengers come

Drinking from the Grail

in and passengers go out, and airplanes

Leveling the Peaks

come in and go out, and they’re separate. That’s how we create the efficiency

de-peaked schedules, the logic quickly became apparent.

of always turning an airplane in a fixed

American Airlines De-Peaks its Hub and Spoke Structure By Stephani Hawkins and Scott Hunt | Ascend Editors A few years ago, as airlines

As American continued looking at

amount of time.” Even though American has intro-

“What happens is that although we traditionally scheduled peaks, we rarely

per aircraft per day, was only about 3 percent less than Southwest’s. The impressive results at O’Hare led American to de-peak its Dallas/Fort Worth International Airport hub in November. “At D/FW we saw basically the same

operated them,” Casey said. “Because

results — about a 5 percent improvement

duced low-cost concepts into its model,

the airports are incapable of handling

in our staffing based on de-peaking,”

it has still maintained its directional

the flights, the actual operation is flat-

Casey said. “In addition, because we

complexes.

tened. So we said, ‘If we operate that

could operate the schedule on four less

into peaks of arrivals and departures to

concept used by low-cost carriers —

way, maybe we should

gates at D/FW, it allowed us to consolidate

throughout the United States struggled

maximize connection opportunities while

standard fixed ground times.

schedule that way.’”

our operations down to two terminals

with on-time performance and other

minimizing passengers’ total travel time.

operational issues, American Airlines

By spreading flights more evenly

Rather than idling on the ground

way, American has realized a wealth of cost-savings and

gathered its top planning and scheduling

throughout the day, American combined

spoke waiting to fit into the return

experts and began a quest to devise

the efficiencies of a low-cost carrier like

complex, the airplanes are immediately

“the perfect schedule” to increase the

Southwest Airlines with the increased

returned to the air where they produce

airline’s reliability.

number of destinations available through

revenue.

What they found might just be the Holy Grail of flight scheduling —

a traditional hub and spoke model. Before implementing this new

And by operating that

for up to two and a half hours at the

reliability improvements. “Looking at the data in early 2001 was the impetus

“The airplanes arrive in O’Hare,

for us to start looking at

from three. That added about another US$4.5 million of benefits a year. “De-peaking our D/FW hub has enabled us to remove 11 airplanes from the schedule while operating exactly the same number of departures,” he said. American also realized it could

these de-peaked schedules,”

apply the same concepts to its spoke

a schedule that decreases ground

structure a year ago at its Chicago

there, and they go out to the spoke,”

Casey said. “It started as a

operations.

times, but improves dependability;

O’Hare International Airport hub,

Casey said. “They spend a fixed amount

dependability issue.

that increases the number of departures,

American, at some points, had more

of time at the spoke, and they come

Eventually, as we got into it,

but decreases the number of gates; that

than 10 aircraft movements scheduled

back to the hub.

developed it and designed it,

implements standard fixed ground times

in a five-minute period during peak

they spend a fixed amount of time

“The airplanes go out in 51 minutes.

it became a cost initiative.”

like those

times — alone, more than the airport’s

It doesn’t matter when the passenger

A graphical representation of American Airlines’ schedule

used by low-

capacity.

arrives at the airport, the airplane

shows a reduction in the “peaks” of a traditional hub

ule, American needs fewer

structure.

gates and fewer airplanes to

cost carriers,

The key to

but maintains

de-peaking was

directional

capping the number

connecting

of aircraft arrivals

complexes

and departures per

By de-peaking the sched-

operate the schedule.

“We realized there was a secondary opportunity to de-peak spokes because

. . American has realized a “.wealth of cost-savings and reliability improvements. ”

“At O’Hare we can operate the “We’ve created hourly complexes

same schedule and same number of

the connecting complexes in the

at O’Hare. The flights arriving during a

departures with four less gates and five

de-peaked structure tend to be wider,”

minute, Casey said.

60-minute period connect to flights in

less airplanes,” Casey said. “Using less

Casey said. “Because the windows are

“In every three-

the following 60-minute period. It just

gates and filling in the valleys when

bigger, we could sequence the trips one

minute interval

alternates like that hour after hour all

there was no activity meant you could

after the other and still be directionally

there’s a maximum of

day long,” Casey said. “We have created

operate the schedule with less people —

correct in the complex. And that worked

idea to do this, I said it’s impossible,”

two big jet move-

a directional structure within this de-

there’s not as many gates needing to be

out better than we anticipated. We were

said Don Casey, managing director of

ments and a regional

peaked schedule. And we’ve found a

manned and not as much down time

able to decrease our gate requirement

capacity planning at American Airlines.

aircraft movement,”

way to maintain this structure and still

during the day. At hub and spoke com-

at spokes by 12 percent, a substantial

“But, in fact, it is possible.”

Casey said. “We

have the planes operate at fixed turn

plexes, people work like mad during the

savings in real-estate expense and the

times at both the hub and spoke. We

peak, and then they go over for coffee

people associated to do the work.

sequence these flights so we can always

and wait for the next one. With a

operate directionally correct so the flight

de-peaked schedule, it’s basically

achieved its original goal of improving

that leaves with the westbound bank

continuous activity throughout the day.

reliability by reducing congestion at

found in a traditional hub and spoke structure; that increases unit revenues, but decreases unit costs. “When someone first had the

never exceed five

Finding the Grail The magic formula involves

movements in any five minutes. That’s

Before de-peaking its hub structure at Chicago O’Hare International Airport, American Airlines exceeded the airport’s operational constraints during peak periods. After de-peaking, the airline was able to operate its schedule with four less gates and five fewer aircraft.

Smoothing out the schedule also

de-peaking the traditional hub and

a hard constraint.

spoke structure by flattening the arrival

And that’s what cre-

heading to the west coast turns around

As a result, we were able to operate the

the hub and improving on-time

and departure banks and reducing the

ates the flattening

at minimum turn time on the west coast

same schedule with less gates, airplanes

performance.

dead time between peaks.

of the schedule.”

always goes out in 51 minutes,”

and will always come back correctly in

and people.”

Casey said. “What we’ve done is

an eastbound complex. And likewise in

basically uncoupled the passengers

the other direction.”

Typically, network carriers try to squeeze as many flights as possible

40 ascend

Along with more evenly distributing flights, American applied another

According to Casey, after de-peaking, aircraft productivity, measured by miles

“With the operation running more reliably, we ended up with fewer (continued on next page)

april 2003

41


industry

industry and the planes. Here passengers come

Drinking from the Grail

in and passengers go out, and airplanes

Leveling the Peaks

come in and go out, and they’re separate. That’s how we create the efficiency

de-peaked schedules, the logic quickly became apparent.

of always turning an airplane in a fixed

American Airlines De-Peaks its Hub and Spoke Structure By Stephani Hawkins and Scott Hunt | Ascend Editors A few years ago, as airlines

As American continued looking at

amount of time.” Even though American has intro-

“What happens is that although we traditionally scheduled peaks, we rarely

per aircraft per day, was only about 3 percent less than Southwest’s. The impressive results at O’Hare led American to de-peak its Dallas/Fort Worth International Airport hub in November. “At D/FW we saw basically the same

operated them,” Casey said. “Because

results — about a 5 percent improvement

duced low-cost concepts into its model,

the airports are incapable of handling

in our staffing based on de-peaking,”

it has still maintained its directional

the flights, the actual operation is flat-

Casey said. “In addition, because we

complexes.

tened. So we said, ‘If we operate that

could operate the schedule on four less

into peaks of arrivals and departures to

concept used by low-cost carriers —

way, maybe we should

gates at D/FW, it allowed us to consolidate

throughout the United States struggled

maximize connection opportunities while

standard fixed ground times.

schedule that way.’”

our operations down to two terminals

with on-time performance and other

minimizing passengers’ total travel time.

operational issues, American Airlines

By spreading flights more evenly

Rather than idling on the ground

way, American has realized a wealth of cost-savings and

gathered its top planning and scheduling

throughout the day, American combined

spoke waiting to fit into the return

experts and began a quest to devise

the efficiencies of a low-cost carrier like

complex, the airplanes are immediately

“the perfect schedule” to increase the

Southwest Airlines with the increased

returned to the air where they produce

airline’s reliability.

number of destinations available through

revenue.

What they found might just be the Holy Grail of flight scheduling —

a traditional hub and spoke model. Before implementing this new

And by operating that

for up to two and a half hours at the

reliability improvements. “Looking at the data in early 2001 was the impetus

“The airplanes arrive in O’Hare,

for us to start looking at

from three. That added about another US$4.5 million of benefits a year. “De-peaking our D/FW hub has enabled us to remove 11 airplanes from the schedule while operating exactly the same number of departures,” he said. American also realized it could

these de-peaked schedules,”

apply the same concepts to its spoke

a schedule that decreases ground

structure a year ago at its Chicago

there, and they go out to the spoke,”

Casey said. “It started as a

operations.

times, but improves dependability;

O’Hare International Airport hub,

Casey said. “They spend a fixed amount

dependability issue.

that increases the number of departures,

American, at some points, had more

of time at the spoke, and they come

Eventually, as we got into it,

but decreases the number of gates; that

than 10 aircraft movements scheduled

back to the hub.

developed it and designed it,

implements standard fixed ground times

in a five-minute period during peak

they spend a fixed amount of time

“The airplanes go out in 51 minutes.

it became a cost initiative.”

like those

times — alone, more than the airport’s

It doesn’t matter when the passenger

A graphical representation of American Airlines’ schedule

used by low-

capacity.

arrives at the airport, the airplane

shows a reduction in the “peaks” of a traditional hub

ule, American needs fewer

structure.

gates and fewer airplanes to

cost carriers,

The key to

but maintains

de-peaking was

directional

capping the number

connecting

of aircraft arrivals

complexes

and departures per

By de-peaking the sched-

operate the schedule.

“We realized there was a secondary opportunity to de-peak spokes because

. . American has realized a “.wealth of cost-savings and reliability improvements. ”

“At O’Hare we can operate the “We’ve created hourly complexes

same schedule and same number of

the connecting complexes in the

at O’Hare. The flights arriving during a

departures with four less gates and five

de-peaked structure tend to be wider,”

minute, Casey said.

60-minute period connect to flights in

less airplanes,” Casey said. “Using less

Casey said. “Because the windows are

“In every three-

the following 60-minute period. It just

gates and filling in the valleys when

bigger, we could sequence the trips one

minute interval

alternates like that hour after hour all

there was no activity meant you could

after the other and still be directionally

there’s a maximum of

day long,” Casey said. “We have created

operate the schedule with less people —

correct in the complex. And that worked

idea to do this, I said it’s impossible,”

two big jet move-

a directional structure within this de-

there’s not as many gates needing to be

out better than we anticipated. We were

said Don Casey, managing director of

ments and a regional

peaked schedule. And we’ve found a

manned and not as much down time

able to decrease our gate requirement

capacity planning at American Airlines.

aircraft movement,”

way to maintain this structure and still

during the day. At hub and spoke com-

at spokes by 12 percent, a substantial

“But, in fact, it is possible.”

Casey said. “We

have the planes operate at fixed turn

plexes, people work like mad during the

savings in real-estate expense and the

times at both the hub and spoke. We

peak, and then they go over for coffee

people associated to do the work.

sequence these flights so we can always

and wait for the next one. With a

operate directionally correct so the flight

de-peaked schedule, it’s basically

achieved its original goal of improving

that leaves with the westbound bank

continuous activity throughout the day.

reliability by reducing congestion at

found in a traditional hub and spoke structure; that increases unit revenues, but decreases unit costs. “When someone first had the

never exceed five

Finding the Grail The magic formula involves

movements in any five minutes. That’s

Before de-peaking its hub structure at Chicago O’Hare International Airport, American Airlines exceeded the airport’s operational constraints during peak periods. After de-peaking, the airline was able to operate its schedule with four less gates and five fewer aircraft.

Smoothing out the schedule also

de-peaking the traditional hub and

a hard constraint.

spoke structure by flattening the arrival

And that’s what cre-

heading to the west coast turns around

As a result, we were able to operate the

the hub and improving on-time

and departure banks and reducing the

ates the flattening

at minimum turn time on the west coast

same schedule with less gates, airplanes

performance.

dead time between peaks.

of the schedule.”

always goes out in 51 minutes,”

and will always come back correctly in

and people.”

Casey said. “What we’ve done is

an eastbound complex. And likewise in

basically uncoupled the passengers

the other direction.”

Typically, network carriers try to squeeze as many flights as possible

40 ascend

Along with more evenly distributing flights, American applied another

According to Casey, after de-peaking, aircraft productivity, measured by miles

“With the operation running more reliably, we ended up with fewer (continued on next page)

april 2003

41


industry

industry

misconnects,” Casey said. “Our depend-

a factor than it was four or five years ago.

Sabre Airline Solutions, who describes

ability improved at O’Hare more than in

Other factors influence the decision on

himself as “a big fan of de-peaking.”

the rest of the system.”

which airline to choose — price, corporate

“The good news is that technology

Vaccari also suggested flight scheduling tools that provide “what-if” analysis. “You can make minor changes and

deals, frequent flyer programs, travel

provides you with the tools to evaluate

then run some incremental flights, or

agency incentives, etc. Those aren’t

this and assess for yourself if this is the

you can make macro, global or holistic

elapsed-time driven. You have to have

right thing to do or not,” Vaccari said.

changes and then analyze them to

increase in passenger connect times,

competitive elapsed times; you don’t

“This speaks to a sophisticated, automated

compare a new structure with an old

American found it was still competitive.

necessarily have to have the fastest

decision-support infrastructure suite.”

structure,” he said.

Trusting the Grail Although de-peaking leads to an

Casey said American has not

elapsed times. So for 11 minutes, those

Vaccari said three key tools can

Vaccari said he believes more carriers

received any negative feedback from

other criteria are going to drive the

help an airline successfully revamp its

will begin to look at de-peaking their

customers because of the increased

customers’ decision.”

schedule structure:

hubs based on American’s success.

elapsed time.

The additional 11 minutes actually

“If you buy the argument that

schedule development environment,

you will not lose a lot of the revenue,

such as the Sabre ® AirFlite ™

then you are getting potentially a ton of

decrease in misplaced

Schedule Manager — a tool with

cost savings,” he said. “I would even

bags and those kinds

multiple different graphical displays

argue that from the revenue side, you

of measures because

that enables airlines to view and

are not losing much at all because

the operation is more

manipulate schedules and update

what you are trying to capture at a

dependable,” Casey

them very quickly. Specifically, the

hub with a very peaked schedule

said. “The additional

ideal tool provides a hub view that

is marginal passengers. A peaked

11 minutes also

allows airlines to look at all inbound

structure is designed to try to capture

not cost effective. The counterargument

extra capacity to chase after these

allows extra time to

and outbound flights. It should include

the passenger traveling from small

is that you already have this capacity

marginal passengers.”

get the bags from one

reporting capabilities to measure how

station to small station.

anyway — you might as well fly the

flight to the next.”

many flights occur every 10 minutes,

benefits customers. “We’ve seen a

PASSENGER CONNECT TIMES INCREASE ONLY SLIGHTLY

“The revenue that you get from this

By de-peaking its hubs, American Airlines has reduced congestion at its gates. At Dallas/Fort Worth International Airport, the airline was able to consolidate its operations from three terminals to two and removed 11 airplanes from its schedule while operating the same number of departures.

has already exceeded American’s expectations.

30 minutes, hour, etc. It should also

passenger, say a US$400 fare, is just not

the bigger, better idea is to match

enable airlines to look at elapsed time

worth it. To push a US$400 passenger

capacity to demand — solve that

improved after it de-

and passenger connections.

through one, two, three, four stops is just

problem first rather than try to use this

peaked its schedule.

A network profitability tool, such as

“Because in these

the Sabre ® AirFlite ™ Profit Manager —

de-peaked structures

a system that evaluates the impact

we actually have a

making these changes has on prof-

little more flexibility

itability. Ideally the system would

in terms of where we

forecast traffic at the origin and

Casey said the de-peaked schedule

planes to get the extra US$400. I think

local share at O’Hare

In fact, American’s

Although the de-peaked structure “flattens” the schedule, American Airlines found the average passenger connect time increased by only 11 minutes. The airline also found the additional time improved reliability by giving more time to transfer baggage.

A highly automated, highly graphical

T H E

“The more we examined this concept, the better it got,” Casey said.

News Briefs from Around the Globe News from the Middle East

Services offered include: SM

vıew

H I G H

L E V E L

position the flights, we can tailor our

destination level and then analyze a

what de-peaking would do to connect

schedule a little bit better in a local

passenger recapture process to show

services to provide real-time trip information to its

number of flights to destinations worldwide,

times,” Casey said. “The average

market,” Casey said. “So we’ve seen the

how many passengers are expected

passengers 24 hours a day, seven days a week.

Flight inquiries — providing information on individual

connect time increased 11 minutes at

benefits at O’Hare and have held on to our

to fly each of these legs. Then the sys-

The solution will enable passengers to check flight

flights, including arrivals and departures.

O’Hare. The median time increased by

flow share as well; it’s up a little bit. We

tem would give an overall profitability

information via cell phones, e-mail and personal

seven minutes. It doesn’t sound like a

haven’t seen any deterioration in our flow

for the schedule, for a particular

digital assistants.

lot, but it may have significant impact

performance and a little bit of improve-

region, for a particular set of flights.

The Inform services are a powerful customer service

potentially on our revenue. We’re

ment in our local share performance.”

A fleet assignment tool, such as the

tool that proactively provides flight information such as

proactive service capability for our customers, and it

Sabre ® AirFlite ™ Fleet Manager —

schedule changes or delays, terminal and gate changes,

will make our operations more efficient by automating

“We were pretty concerned about

coming from a scheduling environment,

Sharing the Grail

Gulf Air will use the Sabre ® Inform

mobile

Schedule inquiries — providing information on the

“Customers merely have to give their mobile numbers to the booking agent, call center or travel agent in order to obtain the service,” Sultan said. “This is an important

a tool that completes the very compli-

and cancellations as well as airport, airline, city and

manual processes and reducing service impact on our

Although this is a relatively new

cated process of fleeting a de-peaked

country security updates.

valued customers.”

concept for the airline industry, technol-

schedule. This optimization tool will

ogy is already available that can help

try to match capacity to demand.

that provides real-time flight status from 72 hours up

lengthening average connect times.

airlines de-peak their schedules, said

This tool should provide a solution

to one hour prior to departure time,” explained Tariq

The conclusion we reached is that today,

Renzo Vaccari, product manager for

that includes both the network

Sultan, assistant vice president, information technology

Oman and Qatar, is the first airline in the Middle East

a longer elapsed time is much less of

planning and scheduling products at

structure and the fleet.

for Gulf Air.

to introduce such technology.

which looked at traditional schedules, and the traditional hub and spoke structures focused on elapsed time. “We researched our exposure to

42 ascend

“Travelers can register for a trip reminder service

The Inform services represent the industry’s first lowcost, end-to-end branded notification service for airlines. Gulf Air, the national carrier of Bahrain, UAE,

april 2003

43


industry

industry

misconnects,” Casey said. “Our depend-

a factor than it was four or five years ago.

Sabre Airline Solutions, who describes

ability improved at O’Hare more than in

Other factors influence the decision on

himself as “a big fan of de-peaking.”

the rest of the system.”

which airline to choose — price, corporate

“The good news is that technology

Vaccari also suggested flight scheduling tools that provide “what-if” analysis. “You can make minor changes and

deals, frequent flyer programs, travel

provides you with the tools to evaluate

then run some incremental flights, or

agency incentives, etc. Those aren’t

this and assess for yourself if this is the

you can make macro, global or holistic

elapsed-time driven. You have to have

right thing to do or not,” Vaccari said.

changes and then analyze them to

increase in passenger connect times,

competitive elapsed times; you don’t

“This speaks to a sophisticated, automated

compare a new structure with an old

American found it was still competitive.

necessarily have to have the fastest

decision-support infrastructure suite.”

structure,” he said.

Trusting the Grail Although de-peaking leads to an

Casey said American has not

elapsed times. So for 11 minutes, those

Vaccari said three key tools can

Vaccari said he believes more carriers

received any negative feedback from

other criteria are going to drive the

help an airline successfully revamp its

will begin to look at de-peaking their

customers because of the increased

customers’ decision.”

schedule structure:

hubs based on American’s success.

elapsed time.

The additional 11 minutes actually

“If you buy the argument that

schedule development environment,

you will not lose a lot of the revenue,

such as the Sabre ® AirFlite ™

then you are getting potentially a ton of

decrease in misplaced

Schedule Manager — a tool with

cost savings,” he said. “I would even

bags and those kinds

multiple different graphical displays

argue that from the revenue side, you

of measures because

that enables airlines to view and

are not losing much at all because

the operation is more

manipulate schedules and update

what you are trying to capture at a

dependable,” Casey

them very quickly. Specifically, the

hub with a very peaked schedule

said. “The additional

ideal tool provides a hub view that

is marginal passengers. A peaked

11 minutes also

allows airlines to look at all inbound

structure is designed to try to capture

not cost effective. The counterargument

extra capacity to chase after these

allows extra time to

and outbound flights. It should include

the passenger traveling from small

is that you already have this capacity

marginal passengers.”

get the bags from one

reporting capabilities to measure how

station to small station.

anyway — you might as well fly the

flight to the next.”

many flights occur every 10 minutes,

benefits customers. “We’ve seen a

PASSENGER CONNECT TIMES INCREASE ONLY SLIGHTLY

“The revenue that you get from this

By de-peaking its hubs, American Airlines has reduced congestion at its gates. At Dallas/Fort Worth International Airport, the airline was able to consolidate its operations from three terminals to two and removed 11 airplanes from its schedule while operating the same number of departures.

has already exceeded American’s expectations.

30 minutes, hour, etc. It should also

passenger, say a US$400 fare, is just not

the bigger, better idea is to match

enable airlines to look at elapsed time

worth it. To push a US$400 passenger

capacity to demand — solve that

improved after it de-

and passenger connections.

through one, two, three, four stops is just

problem first rather than try to use this

peaked its schedule.

A network profitability tool, such as

“Because in these

the Sabre ® AirFlite ™ Profit Manager —

de-peaked structures

a system that evaluates the impact

we actually have a

making these changes has on prof-

little more flexibility

itability. Ideally the system would

in terms of where we

forecast traffic at the origin and

Casey said the de-peaked schedule

planes to get the extra US$400. I think

local share at O’Hare

In fact, American’s

Although the de-peaked structure “flattens” the schedule, American Airlines found the average passenger connect time increased by only 11 minutes. The airline also found the additional time improved reliability by giving more time to transfer baggage.

A highly automated, highly graphical

T H E

“The more we examined this concept, the better it got,” Casey said.

News Briefs from Around the Globe News from the Middle East

Services offered include: SM

vıew

H I G H

L E V E L

position the flights, we can tailor our

destination level and then analyze a

what de-peaking would do to connect

schedule a little bit better in a local

passenger recapture process to show

services to provide real-time trip information to its

number of flights to destinations worldwide,

times,” Casey said. “The average

market,” Casey said. “So we’ve seen the

how many passengers are expected

passengers 24 hours a day, seven days a week.

Flight inquiries — providing information on individual

connect time increased 11 minutes at

benefits at O’Hare and have held on to our

to fly each of these legs. Then the sys-

The solution will enable passengers to check flight

flights, including arrivals and departures.

O’Hare. The median time increased by

flow share as well; it’s up a little bit. We

tem would give an overall profitability

information via cell phones, e-mail and personal

seven minutes. It doesn’t sound like a

haven’t seen any deterioration in our flow

for the schedule, for a particular

digital assistants.

lot, but it may have significant impact

performance and a little bit of improve-

region, for a particular set of flights.

The Inform services are a powerful customer service

potentially on our revenue. We’re

ment in our local share performance.”

A fleet assignment tool, such as the

tool that proactively provides flight information such as

proactive service capability for our customers, and it

Sabre ® AirFlite ™ Fleet Manager —

schedule changes or delays, terminal and gate changes,

will make our operations more efficient by automating

“We were pretty concerned about

coming from a scheduling environment,

Sharing the Grail

Gulf Air will use the Sabre ® Inform

mobile

Schedule inquiries — providing information on the

“Customers merely have to give their mobile numbers to the booking agent, call center or travel agent in order to obtain the service,” Sultan said. “This is an important

a tool that completes the very compli-

and cancellations as well as airport, airline, city and

manual processes and reducing service impact on our

Although this is a relatively new

cated process of fleeting a de-peaked

country security updates.

valued customers.”

concept for the airline industry, technol-

schedule. This optimization tool will

ogy is already available that can help

try to match capacity to demand.

that provides real-time flight status from 72 hours up

lengthening average connect times.

airlines de-peak their schedules, said

This tool should provide a solution

to one hour prior to departure time,” explained Tariq

The conclusion we reached is that today,

Renzo Vaccari, product manager for

that includes both the network

Sultan, assistant vice president, information technology

Oman and Qatar, is the first airline in the Middle East

a longer elapsed time is much less of

planning and scheduling products at

structure and the fleet.

for Gulf Air.

to introduce such technology.

which looked at traditional schedules, and the traditional hub and spoke structures focused on elapsed time. “We researched our exposure to

42 ascend

“Travelers can register for a trip reminder service

The Inform services represent the industry’s first lowcost, end-to-end branded notification service for airlines. Gulf Air, the national carrier of Bahrain, UAE,

april 2003

43


LevelingThePeaks_APR_2003  

A P R I L 2 0 0 3AMAGAZINEFORAIRLINEEXECUTIVES INSIDE New Approach to Cost Reduction Provides Benefits American Airlines De-Peaks Its Hub an...

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