MIDTERM SEMINAR Flashcards
The first consideration in fleet assignment.
Aircraft Capability
The initial flight schedule may be developed without fully assigning specific aircraft types to each flight.
Fleet Assignments
Flight schedule development involves innumerable trade-offs because of the objectives of maximizing revenue, minimizing costs, and enhancing reliability conflict.
Trade-Offs
Estimates the total market demand in terms of passengers traveling in each city-pair.
Market Size
From Market Size forecasts, the airline’s market share is estimated.
Market Share
Specific aircraft fleet types are assigned to the schedule of services so that capacity meets estimated demand
Fleet Assignment
Estimates the number of passengers who will not find an available seat given the proposed schedule.
Passenger Spill
Even if a stop is required to reach destination, passengers prefer not to change aircraft.
Through Assignment
Provide some marketing advantage over a competitor requiring a change of aircraft.
Direct Flights
Estimates the reliability of the proposed schedule in actual operation due to weather, mechanical failures and a host of other problems.
Dependability Prediction
Estimates the reliability of the proposed schedule in actual operation due to weather, mechanical failures and a host of other problems.
Dependability Prediction
Encompasses strategic forecasts developed by a small staff to short-range tactical planning involving several departments and many managers.
Airline Planning Process
Extending out 5 to as much as 20 years begins with a corporate vision and mission statement.
Long Range Plan/Fleet Selection
Targets annual growth of 15%
Long Range Plan/Fleet Selection
Framework for long-range planning.
SWOT Analysis
For large airlines, new aircraft orders of several hundred aircraft are common with deliveries spread over 5 to 10 years.
Long Range Plan/Fleet Selection
Airline’s core product designed to solve the customer’s time-space problem.
Flight Schedule
Known as the schedule of services.
Flight Schedule
Lists the destinations or routes operated, the flight frequency and times, and type of aircraft assigned to each flight.
Flight Schedule
Objectives of the Development
- Revenue
- Unit Cost and Utilization
- Reliability
- Constraints
Seeks to maximize network revenues by matching flights and capacity with passenger demand.
Revenue
The schedule planner lowers the cost per available seat mile (CASM or unit cost)
Unit Cost and Utilization
Subject to disruptions, particularly for weather and aircraft mechanical problems. The schedule must incorporate sufficient slack resources to absorb delays
Reliability
Must be feasible given numerous constraints. For example, a schedule that requires more aircraft than the airline operates violates a constraint and is not feasible
Constraints
provides commercial air transport of passenger, cargo, or both.
Airline
operate flights on demand
charter operations
organization charges fares and is for-profit.
Commercial
times and dates of flights are determined in advance.
Scheduled
people and goods are moved by aircraft.
Air Transport
Each year, world’s airlines move over:
3 billion people on
33 million flights over
52,000 routes
TYPES OF AIRLINES:
Commercial Airlines
Cargo Airlines
Example of Major Air Carrier
PAL, ANA, JAL, EY, EK
Russia’s Major Air Carrier
Aeroflot
Taiwan’s Major Air Carrier
China Airlines
Most common flight schedule disruptor.
Weather
vulnerable to weather at a hub airport
Hub-and-spoke systems
Other flight disruptors
aircraft mechanical problems and air traffic control restrictions
common cause of flight disruptions.
Computer failure
IRREGULAR OPERATIONS EXAMPLES
JetBlue’s operational meltdown that began with the Valentine’s Day storm of 2007 is perhaps the most horrific.
MANAGING IRREGULAR OPERATIONS (Recovery Options )
- Reserve Crews
- Aircraft Swap
- Spare Aircraft
- Delay
- Cancel
- Rerouting
Standby or reserve crews to replace crewmembers
Reserve Crews
Aircraft may be swapped to a different flight or route.
Aircraft Swap
also have a limited number of unassigned spare aircraft which can be substituted for late or broken aircraft
Spare Aircraft
Flights may be delayed but operate on the originally scheduled routing.
Delay
Flights can be canceled
Cancel
aircraft can be rerouted with additional stops en-route or two or more flights can be combined
Rerouting
Example of LCC:
5J, AirAsia, Jetstar, Southwest
Example of Regional Airlines:
Airswift, Skyjet, Sunlight, Platinum Skies, Alpha Land, Lion Air
Example of Hybrid Airlines
VIPs, Executive Flights, Gen.Av.
Types of Cargo Airlines:
- Combination Carrier
- Integrated Carrier
- All-Cargo Carrier
Freights greatly vary in:
size, weight, and handling requirements
Example of Combination Carrier:
Pax & Cargo
Example of Integrated Carrier:
FedEx, UPS, DHL
Example of All-Cargo Carrier:
Emirates - Sky Cargo, Etihad - Etihad Cargo, Cargolux, Polar Air, Qatar Airways Cargo
Cargo typically accounts for __ to __ of the flight revenue but varies greatly by airline.
5% to 10%
do not have the extensive international route networks of comprehensive network carriers but have marketing arrangements with other airlines including code sharing
Hybrid Airlines
do not have the extensive international route networks of comprehensive network carriers but have marketing arrangements with other airlines including code sharing
Hybrid Airlines
have regional route structures and operate a fleet of smaller aircraft (usually with less than 120 seats).
Regional Airlines
Operate networks over shorter distances than major airlines.
Regional Airlines
Typically use a point-to-point (P2P) route structure
LCC
Make decisions that allow lower fares to passengers (using only one type of aircraft to reduce costs)
LCC
