Ever improving modern technology with constant technical improvements like portable devices (iPad, touchpad, etc.), in-flight connectivity through satellites, automated processes and further digitalization, forces flight operations departments to constantly adjust for keeping up with the competition.
Airlines that can afford new, very fuel-efficient aircraft like the Boeing B787, or the Airbus A350, A330neo and A320/321neo put commercial pressure on airlines that cannot upgrade the latest aircraft. Factor in increasing fuel prices, taxes and carbon emission trading schemes on airlines which are not yet fuel-efficient and it makes it even harder for these airlines to continue to be competitive.
In order to be efficient, lean and cost-conscious, flight operations departments must find new ways for integration and harmonization of business processes in their areas, better collaboration between operational departments and enhanced integration with and of their technical systems.
We will be happy to give you a concrete example:
Reduce ATC delays in the OCC for our European Low Cost Carrier customer
- The quality of the key performance data and the raw data were insufficient for evaluation. To gain an overview, assumptions were made on available customer data in combination with figures from adequate industry standards and best practice. The assumptions and the results were discussed and agreed on with the customer.
- The Network Controller in the customer OCC is conducting operations control, air traffic management (ATM) and flight planning tasks simultaneously. The inadequate human resource competency level in this wide area of tasks leads to a higher number of uncontrolled delays.
As it is unrealistic to qualify the given human resources for all tasks alternative solutions were evaluated.
Based on data collected and assumptions made, six full-time equivalents are necessary to transfer the ATM-tasks to a more focused OCC-position.
- Cover long term strategic advantages for the concepts of collaborative decision making (CDM).
- Possible shift of tasks over the different OCC’s in the airline group and/or to a service provider.
- Increase the quality and the speed of problem solving and decision making.
- Improvement of passenger experience by faster decisions and an active communication to the customer.
Impact on client’s business
The following basic observations were made:
- 120 A320s - producing 240,000 flights per year
- 99,000,000 € Passenger Compensation costs per year
- 1,000 ATC delays with more than 180 minutes relevant for evaluation (0.4% of all flights)
- Industry standard assumptions for ACMI and ground handling costs
Based on a very conservative approach the following costs and savings to be taken into account: Investment in project costs over eighteen months of 0.3 million increased costs per year after going live 0.4 million.
Savings of variable costs for ground handling, per year 0.1 million €
Savings of passenger compensations (EC261), per year 0.5 million €
Total cash savings 0.6 million €