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From network planning to codesharing: Innovative airline management with new generation optimizers from Lufthansa Systems
Airline management is a complex business. More often than not, airlines have difficulties in making the right decisions due to the quality of information available. Regulations, intense competition and technical constraints that differ by the region challenge profitable operations. Lufthansa Systems offers a whole range of innovative airline management IT solutions that help airlines stay on course.
Sudden economic changes are a threat to the profitability of any airline. Being prepared to identify and analyze market changes and develop solutions from a network planning perspective is a key success factor in this volatile business. Schedule management, on the other hand, has become increasingly important, if more complex: aircraft capacities have to meet fluctuating demand at very short notice, while being subject to various operational constraints. Efficient management of resources such as aircraft and airport slots is vital. Last but not least, codesharing and strategic alliances benefit passengers and airlines alike. But behind these are extremely complex processes which demand a high degree of synchronization and the rapid processing of schedule data to avoid discrepancies among the partners.
NetLine/Plan, the network planning tool from Lufthansa Systems, includes the full network profitability evaluation that supports an in-depth understanding of the market. The solution generates an insight into the strengths and weaknesses of the airline’s and its competitors’ networks. It also reveals the influence of those networks on the own airline’s profitability. NetLine/Sched, another innovative tool, has become the optimal solution for airline schedule management. It supports all aspects of schedule development and management by providing a powerful yet easy way to visualize and modify schedules. It also evaluates the feasibility and profitability of alternative network and scheduling scenarios. SchedConnect, one of Lufthansa Systems’ latest products, is the most advanced codeshare management solution available today. Designed as a multi-customer system, it guarantees the seamless, continuous exchange of data between all of the partners involved in flight scheduling. It optimizes codeshare agreements in real-time and immediately synchronizes codeshare flight information in the reservation system. Users can also simulate the results of new codeshare agreements.
There are a number of optimizers in Lufthansa Systems’ portfolio that provide airlines with customized solutions for their individual business model, fleet and network size. NetLine/Plan, for instance, contains powerful optimizers such as the Network Analyzer, Hub Optimizer and Route Optimizer which offer a multi-level optimization on network, hub and route level. Another interesting aspect: low yields reduce the profitability while high prices weaken the attractiveness of a route. Integrating the new price dimension in NetLine/Plan enables airlines to quickly determine the most advantageous balance of yield and load factor and to effectively react to new market developments. These optimizers work with a speed and accuracy that are exceptional in the market. Moreover, Lufthansa Systems just introduced the Local Fleet Assigner, an innovative NetLine/Sched optimizer module. The Fleet Assigner suggests aircraft or equipment changes that can be made immediately, and it estimates the savings potential of each change. It allows existing plans to be optimized at short notice, legally, and with minimum effort while maintaining compliance with deadlines. To keep control on all aspects of a network, NetLine/Sched offers highly sophisticated reporting and monitoring tools. The combination of scope and flexibility in reporting supports optimal decisions. It ensures the ongoing monitoring of aircraft and slot utilization as well as profitability, giving managers more time to take care of the other numerous duties that make the airline business one of the most exciting but also most complex industries of all.
Sirax AirFinance Platform - The future of airline financials
Airline business in the global market is extremely competitive. Key factors for airlines to succeed are information and knowledge about their own operations, profitability as well as financial situation. Innovative and future-oriented IT solutions help airlines to gain a competitive edge.
Considering the market situation and the current IATA call for an overall intelligent airline finance solution, Lufthansa Systems has developed the integrated Sirax AirFinance Platform. This is the first integrated platform to support and optimize the entire financial process of an airline from Revenue Accounting to Cost Controlling. This leads to economic benefits, thanks to leaner processes as well as sophisticated methods for analysis and evaluation. Sirax AirFinance Platform allows to see the overall picture and to quickly adapt to changing circumstances. It also helps the customer to secure their success in the market.
The Sirax AirFinance Platform consists of three core elements: Sirax Revenue Accounting, Sirax Cockpit, and Sirax Cost Accounting.
Sirax Revenue Accounting optimizes the whole process of back office accounting. It consists of several modules, which together cover all revenue accounting processes of an airline. Sirax provides extensive functionality for all areas of an airline’s revenue accounting from sales data processing and matching to interline billing to financial accounting and management report. Additional modules offer for example a complete sales audit solution that includes a fare, tax, and commission audit (SiraxProfit), and allow accurate, fast and highly automated accounting and invoicing of credit card ticket sales and Electronic Direct Debit (SiraxCredit). SiraxLink provides member airlines with a direct line between their Sirax system and the IATA Clearing House, and SiraxCargo optimizes all cargo revenue accounting processes. SiraxView is a MIS reporting tool which allows making a deeper analysis of the entire revenue and costing situation.
Sirax Cockpit shows right after take-off the financial forecast of each flight worldwide. It provides near-real-time reporting on the profitability of an operation taking into account flight revenues and costs at route level. It allows to quickly monitor and report on the profitability of an airline using intelligent interfaces between the Revenue Accounting and Cost Accounting systems.
Sirax Cost Accounting covers all cost controlling processes from airport charges and fees to ATC charges and fuel costs. The SiraxCharge module for charges monitoring and planning offers complete control of all charges made in connection with flight movement. The integrated fuel management tool SiraxFuel assists during the entire fuel purchasing process. By using SiraxInvoice, an airline can audit invoice data correctly.
The modules can be used together or independently as stand-alone applications. The entire suite enables an airline to reap the full benefits of an all-in-one integrated solution. The specific modules help to optimize the individual needs of an airline’s business.
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