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