Airline Functions and its IT Applications
1. Flight Operations:-
The Flight Operations department manages various facets of the operational side within the Airline. However, its primary responsibility is to ensure safe, legal and efficient operation of aircraft. This includes
- Arrivals/Departures/Cancellations
- Weather
- Landing slots, runaways
- Flight path, routings, over flight rights
- Maintenance
- Equipment problems
- Maintenance routing
- Ferrying
- Crew problems
IT Applications for Flight Operations:-
- Flight Planning System
- Routing
- Weight & Balance
- Manufacturing Details
- Slot Manager
- Flight Dispatch
- Weather
- Routing
- Crew
- Flight History Data
2. Airports:-
Integrated Airport operations management system that balances the resource efficiency with real-world business results. Operating an airport in today’s environment is like running a small city. For example, moving assets in a timely manner and knowing the impact of decisions on service levels and the bottom line are critical.
The Airport operations include,
Passenger and baggage handling
Manpower Planning
- Check-In Agents
- Gate Agents
- Ramp Workers, Baggage handlers
- Machines
Gate Assignment
IT Applications for Airport Operations:-
Airport Manpower Planning
Gate Assignment and Planning System
Baggage System
Information Display System
3. Pricing & Yield Management:-
• Pricing
§ Published Fares
§ Unpublished Fares
§ Commissions and Corporate discounts
§ Competition Monitoring
§ Internet pricing
• Yield Management
§ Inventory Allocations/Controls to manage
- Fare Mix
- O&D Mix
- POS Mix
- Overbooking
§ Blocks and Groups Acceptance
IT Applications for Pricing & Yield Management:-
- Yield Management system
- Demand Forecast
- Yield/Fare Estimates
- No-show forecasting
- Inventory/Booking/Capacity Information
- Optimization – Flight or Network
- Pricing/Fares Management System
- ATPCO send/receive up to 3 times a day
- Fares database
- Composite fare matching across competitors
- Rules-based fare actions
4. Planning / Scheduling:-
• Network Planning
§ Fleet Planning
§ Route Planning
§ Fleet Assignment
• Aircraft Scheduling
§ Aircraft Routing
§ Schedule Publishing to OAG, GDSs
§ Seasonal Schedule Changes
§ Minor schedule changes and weekend cancellations
IT Applications for Planning / Scheduling:-
- Fleet Planning system
- Route Planning system
- Profitability Forecasting module with market demand forecast
- Fleet assignment system
- Through assignments
- Scheduled Dep/Arr/Ground times
- “Gross day” schedule
- Flight Scheduling system
- “Dated” schedule with nose number routing
-Rotation optimizer, slot management
- Weekend cancellation model
- Schedule reliability mode
5. Cargo:-
• Types of Cargo
§ Passenger Bags
§ Mail
§ Commercial Freight
• Cargo/Freight Configurations
§ Passenger
§ Freight
§ Combi aircrafts
• Cargo carriage
§ Narrow body – Bulk Freight e.g. B737, A320
§ Wide body – Containerized/ULD Freight with some bulk capacity e.g. B747, A330
- Different container types such as LD2, LD3, LD4, LD7, LD11
IT Applications for Planning for Cargo:-
§ Cargo Reservation System
- Space Planning and booking
- Freight pricing
§ Cargo Ground Handling System
- Import/Export
- ULD Management
- Terminal Management
- Shippers document/track & trace
§ Cargo Yield Management system
- Demand Forecast
- Capacity Forecast
- Allocation Module
- Utilization Module
- Optimization – Flight or Network
§ Cargo Revenue Accounting System
6. Maintenance and Engineering:-
• Aircraft Maintenance
§ Line Maintenance
- Minor Checks, last less than 24 hours
§ Heavy Maintenance
- Major Checks
– C-check, D-check etc.
– Last a few days
§ Maintenance sites
- Dedicated Maintenance bases
- Outsourced service
- Airport Hangars
IT Applications for Maintenance and Engineering:-
- Shop Production Planning and Execution
- Resource Planning and Scheduling(Labor, Parts, Tools)
- Materials Management
- Parts Inventory Management
- Engines Inventory
- Document Management
- Maintenance Routing system
7. Crew Management:-
• Crew Planning
§ Flight Crew i.e. pilots – Fleet/Seat/Domicile e.g. 747/First Officer/Denver
§ In-flight Crew i.e. flight attendants – Role/Domicile
§ Reserve Planning
• Crew Assignments
§ Rotations
- Labor rules
- Contractual restrictions
- Seniority rules
§ Dead-heading
IT Applications for Crew Management
- Crew Planning
- Crew Bidding system
- Crew Pairings and Assignment
- Reserves Planning
- Vacation Bidding system
8. Revenue Accounting
• Ticket Sales Data
§ SIR data or TCN data
§ Available in timely manner for electronically generated tickets
§ Up to 3-4 months lag in case of manual tickets and in some parts of the world
• Lift Data (Coupons collected at airport)
§ Manually entered or scanned
§ Available within 2-3 days after departure
• Sale-match-Lift
§ Reconciliation
• Agency accounting
§ Done through Airline Reporting Commission(ARC) or Banks Settlement Process (BSP)
• Country-specific manual or electronic BSPs
• Agency commissions calculation
• Front-end and Backend hurdles
• Net fares associated with Tour codes or Ticket designators which are stored in paper contracts with agencies
• Interline accounting
§ Different Proration schemes
• Straight-rate
• Mileage-based
• Special Proration schemes (SPAs)
§ Majority done on a sampling basis
IT Applications for Revenue Accounting
- Passenger Revenue Accounting
- Interline Proration
- Revenue Integrity
9. Reservations
- Reservations Offices
- City Ticket Offices (CTOs)
- Airport Ticket Offices (ATOs)
- Reservations Planning
IT Applications for Reservations
§ Passenger Reservation system
- Sell
- Inventory
- Departure Control (DCS)
- Frequent Flyer/Customer Loyalty System
- Customer database
- Mileage accrual and redemption
- Internet Booking Portals/Travel website
- Booking & Ticketing
- Check-in
- FF account mgt.
- Flight schedules and status
- Contract Management System
- Promotions Management
10. Airline Sales and Marketing.
• Sales
§ Geographic Sales/Country Focus
- Travel Agency Relationships
– Wholesalers and Consolidators
– Commissions structure, net fares, seat blocks
- Sales Offices
- GSAs
§ Corporate Accounts
- Corporate Volume Agreements (CVA)
Global Sales Planning
• Marketing
§ Product
- Brand, Advertising, Promotions
- Frequent Flyer Program
- Amenities
§ Distribution Planning
- GDS Relationships
- Online Distribution
- Agency Distribution
§ Alliances and Codeshares
IT Applications for Airline Sales and Marketing
- Passenger Reservation system
- Sell
- Inventory
- Departure Control (DCS)
- Frequent Flyer/Customer Loyalty System
- Customer database
- Mileage accrual and redemption
- Internet Booking Portals/Travel website
- Booking & Ticketing
- Check-in
- Frequent Flyer account management.
- Flight schedules and status
- Contract Management System
- Promotions Management
- Sales Planning System
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