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Airline Revenue – Case Study 
Route density determines the size of the aircraft an airline can use 
and the frequency with...
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Executive Summary 
Airlines around the world are facing increased pressures to generate 
revenue as communication techn...
5 
Executive Summary 
Airline Revenue Optimization 
 The classic and most efficient business model holds true for this co...
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Executive Summary 
Airline Revenue Optimization 
 The Opportunity 
 Customer Segmentation through Big Data Analytics ...
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Executive Summary 
Airline Revenue Optimization 
 This industry analysis paper attempts to cover both COST CUTTING and...
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Executive Summary 
Airline Revenue Optimization 
 This industry analysis paper attempts to cover both COST CUTTING and...
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Executive Summary 
Includes: 
 Airline major cost drivers 
 Introduction to Rotable Components 
 Understanding the R...
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Terminology 
tdmc
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Terminology
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Basic Measurements in the Airline Business 
Click for Web Source 
Available Seat Mile (ASM): The Basic Measure of Capa...
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Basic Measurements in the Airline Business 
Load Factor: Production Compared to Capacity 
 To calculate system-wide l...
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Basic Measurements in the Airline Business 
A prime example of Airline Revenue Optimization 
 It’s not necessarily th...
Basic Measurements in the Airline Business 
Click for Web Source 
Yield: Revenue per Passenger Mile 
 To calculate system...
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Basic Measurements in the Airline Business 
Click for Web Source 
Cost per Available Seat Mile (C/ASM): The Basic Meas...
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Airline I.O.C. Indirect Operating Costs 
Aircraft Ground Handling 
Landing Fees 
Aircraft Service 
Cabin Attendants 
F...
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Airline Productivity Measures 
Click for Full Report
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Aircraft Design – Cabin Configuration 
Decision making in design is crucial to arriving at viable and 
worthwhile cabi...
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Aircraft Seating Configuration Density 
The Opportunity 
 Big Data has given rise to dynamic customer segmentation, r...
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Aircraft Seating Configuration Density 
Click for Full Report
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Aircraft Seating Configuration Density 
Click for Full Report 
Without much fanfare, WestJet Airlines Ltd. has 
been q...
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Aircraft Seating Configuration Density 
Report Highlights 
 Slimline seats are replacing old bulky seats 
 Results i...
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Aircraft Seating Configuration Density 
Click for Full Report
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Aircraft Design – Seating Technology 
The BL3530 follows another vital trend; at 10 kilograms per seat, it's lighter 
...
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Aircraft Seating Configuration Density / Technology 
The Opportunity 
 Aircraft seating technology has seen huge stri...
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Aircraft Seating Technology 
Click for Website 
Seat configuration 
squeezes 
passengers into 23 
inches of pitch
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology
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Aircraft Seating Technology 
Click for Web Article 
Step Up, Lie Down, Sit Sideways As Airlines Explore Creative Seati...
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology 
Click for Web Article
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Aircraft Seating Technology 
Click for Web Article
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Emerging Markets 
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Emerging Markets 
The Opportunity 
 As the Industrial Revolution pushed forward enormous growth in certain 
world mar...
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Emerging Markets
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Emerging Markets
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Click for Web Source 
Emerging Markets
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Emerging Markets 
Click for Web Source 
Hong Kong is located five hours’ flying time from 
half the world’s population...
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Click for Web Source 
Emerging Markets
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Click for Web Source 
Emerging Markets
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Emerging Markets 
The five largest Middle East carriers generate almost 
60% of the region’s ASKs. The region has grow...
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Emerging Markets 
Click for Web Article
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Emerging Markets 
Click for Web Article
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Emerging Markets 
Click for Web Article
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Emerging Markets 
Click for Web Article
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Aircraft Wing Design 
Wingtip vortices are associated with induced drag, an unavoidable 
consequence of three-dimensio...
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Aircraft Wing Design 
The Opportunity 
 Another method of reducing induced drag is the use of winglets, as seen on 
m...
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Aircraft Wing Design
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Aircraft Wing Design
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Aircraft Wing Design
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Aircraft Wing Design
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Aircraft Wing Design 
Click for Web Article
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Click for Web Article 
Aircraft Wing Design
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Aircraft Wing Design 
Spiroid Wing Tips 
Click for Web Article
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Aircraft Wing Design 
Actively Controlled Wingtips Click for Patent Page
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Click for Web Article 
Aircraft Wing Design
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Click for Web Article 
Aircraft Wing Design
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Click for Web Article 
Aircraft Wing Design
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Flight Dynamics and Operations 
Flight and simulation data are expected to show that Tailored 
Arrivals could save bet...
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Flight Dynamics and Operations 
The Opportunity 
 The efficiency at which an airlines prime assets (aircraft) move wi...
Click for Online Access 
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Flight Dynamics and Operations
Click for Online Access 
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Flight Dynamics and Operations
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Flight Dynamics 
RNP – Required Navigation Performance
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Flight Dynamics 
RNP – Required Navigation Performance
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Flight Dynamics 
RNP – Required Navigation Performance
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Flight Dynamics 
RNP – Required Navigation Performance 
PBN – Performance Based Navigation 
Click for Web Article
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Flight Dynamics 
RNP – Required Navigation Performance 
PBN – Performance Based Navigation 
Click for Web Article
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Flight Dynamics 
CDO – Continuous Descent Operations
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Flight Dynamics 
CDO – Continuous Descent Operations
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Flight Dynamics 
CDO – Continuous Descent Operations
Boarding time matters to airlines' bottom lines. Each extra minute a 
plane spends at the terminal costs $30, according to...
Airplane Boarding 
The Opportunity 
 Aircraft are an airlines prime assets. Like consumer goods in a retail store, 
the s...
The Study Boarding Methodology 
Click for Web Article 
Airplane Boarding
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Airplane Boarding 
Scientific Paper on Aircraft Boarding Click for Whitepaper
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Airplane Boarding 
Click for Web Article 
Excerpt 
“BOARDING a plane takes too long and is often the 
most stressful p...
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Alternative Fuels 
With high fuel costs buffeting airlines around the world, the best 
hope for alternative energy for...
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Alternative Fuel 
The Opportunity 
 Technological advances in the processing of different raw materials with 
gasific...
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Alternative Fuel 
Click for Web Article
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Click for Web Article 
Alternative Fuel
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Click for Web Article 
Alternative Fuel 
"Our industry still faces two issues: there isn't enough aviation biofuel to ...
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New Business Model for Aircraft Assets 
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New Business Model 
The Opportunity 
 After only about 100 years of technological evolution air travel is becoming, 
...
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New Business Model 
Click for Web Article
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Revenue Management 
Today’s airline business is evolving into a two-tier industry: global 
alliances are reaching worl...
Revenue Management 
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The Opportunity 
 The deregulation of air travel has given rise to ever increasing competition f...
Revenue Management 
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A prime example of Airline Revenue Optimization 
 It’s not necessarily the maximizing of Load Ca...
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Click for Full Report 
Revenue Management
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Revenue Management 
Click for Web Article
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Click for Web Article 
Revenue Management 
Excerpt 
“Over the last thirty years, a large number of airlines have inve...
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Click for Full Article 
Revenue Management 
Excerpt 
“Airline ticket prices often seem like a brain-teaser with littl...
How Airlines set prices, parameters 
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Revenue Management
How Airlines set prices, parameters 
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Revenue Management
How Airlines set prices, parameters 
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Revenue Management
Airline Profitability hovers at an average of 0.1% 
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Click for Full Article 
The Middle Seat asked US Airways and cons...
Click for Online Article 
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Revenue Management 
Excerpt 
“This article identifies major milestones in the science of Pr...
Click for Online Article 
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Revenue Management 
Excerpt 
“Preparing bespoke solutions for larger airlines can take time...
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Click for Online Article 
Revenue Management 
Excerpt 
“Using publically-available seat map and pricing data from a m...
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http://garrowlab.ce.gatech.edu/research 
http://Regvareronwulaeb .Mce.aganteachg.eedmu/epunbts 
Click for Online Acce...
With the international commercial airline industry experiencing growth 2-3 times 
faster than the global economy over the ...
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Flight Operations Technology 
Flight Sequencing Technology 
The Opportunity 
 Advances in technology and the prevale...
Click for Online Case Study 
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Flight Operations Technology 
Excerpt 
“The aviation sector is a perfect setting for the...
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Flight Operations Technology 
Flight Sequencing Technology 
Advantages and Benefits 
 Navigation Services - Coordina...
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Flight Operations Technology 
Using Wind to Save Fuel 
The Opportunity 
Click for Web Article 
 A subscription based...
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Flight Operations Technology 
Using Wind to Save Fuel 
Advantages and Benefits 
 Reduces fuel consumption by up to h...
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Big Data – The Industrial Internet 
Click for Web Article
Big Data – The Industrial Internet 
Analytics and Crowdsourcing 
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Click for Web Article 
Advanced Analytics for Flight...
Big Data – The Industrial Internet 
Analytics and Crowdsourcing 
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Click for Web Page
Big Data – The Industrial Internet 
Analytics and Crowdsourcing 
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The realized cost savings 
Click for Web Page
Big Data – The Industrial Internet 
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Big Data Opportunities in Airline and Aviation 
Click for Full Report
Big Data – The Industrial Internet 
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Big Data Opportunities in Airline and Aviation Click for Full Report
Big Data – The Industrial Internet 
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Big Data Opportunities in Airline and Aviation 
Click for Full Report
Big Data – Predictive Analytics 
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Click for Web Report 
Predictive Analytics for Airline Operations Optimization
Big Data – Predictive Analytics 
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Click for Web Report 
Predictive Analytics for Airline Operations Optimization
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Aircraft Route / Flight Planning 
Flight planning is the process of producing a flight plan to describe 
a proposed a...
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Route / Flight Planning / Airspace Efficiency 
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The Opportunity 
 “Every commercial airline flight begins with a flig...
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
Route / Flight Planning / Airspace Efficiency 
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Click for Web Article
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Route Planning / Airspace Efficiency 
Shorten Aircraft Routes to save fuel and cut CO2 emissions 
European Airspace E...
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Route Planning / Airspace Efficiency 
Shorten Aircraft Routes to save fuel and cut CO2 emissions 
European Airspace E...
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Fuel Efficiency 
A plane like a Boeing 747 uses approximately 1 gallon of fuel (about 4 liters) every 
second. Over t...
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Fuel Efficiency – Online Flights and Fuel Quiz 
C 
Click to Take the Online Fuel Quiz
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C 
Click for Web Article 
Fuel Efficiency 
“MyBoeingFleet.com is a Web portal to a large repository of Boeing aviatio...
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C 
Click for Web Article 
Fuel Efficiency
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Fuel Efficiency – Nanoparticle Technology 
C 
Click for Web Article 
Excerpt 
“A recent innovation developed at Unive...
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Fuel Efficiency – 3D Printing and Composite 
Click for Web Article 
C
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C 
Click for Web Article 
Fuel Efficiency
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Fuel Efficiency – Five Technologies 
C 
Click for Web Article 
Technologies being Explored 
 Geared Turbofan Engine ...
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Fuel Efficiency 
C
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Fuel Efficiency 
C
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Fuel Efficiency – Weight Savings 
Incorporation of composite materials in Aircraft Design 
C
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Fuel Efficiency – Engine Technology 
Engine Technology Advancements 
C
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Fuel Efficiency – Engine Technology 
Engine Technology Advancements 
C
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Fuel Efficiency – Engine Technology 
Engine Technology Advancements – Big Data / Sensors in Jet Engines 
C
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Fuel Efficiency – Weight Reduction 
Reduce Weight of onboard equipment and supplies 
C
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Fuel Efficiency – Flight Operations 
C
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Fuel Efficiency – Weight Reduction 
Reduce Weight of onboard equipment and supplies 
C
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Fuel Efficiency – Strategies 
1. Add weight where it counts 
2. Add zonal dryers to remove trapped moisture 
3. Engin...
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Fuel Efficiency – Strategies 
C
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Fuel Efficiency – Strategies 
C
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Fuel Efficiency – Strategies 
C
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Fleet Optimization 
Fleet management is the management of a company's transportation fleet. 
Fleet management include...
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Fleet Optimization 
The Opportunity 
 Airlines that have large fleets of varied aircraft types are at a disadvantage...
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Fleet Optimization 
C 
Click for Web Article
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Fleet Optimization 
C 
Click for Web Article
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Fleet Optimization 
C 
Click for Web Article
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Ancillary Revenue 
With airlines and airports increasingly modelling themselves on retailers, shopping 
has become an...
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C 
Ancillary Revenue 
The Opportunity 
 The origin and destination of a flight is just like a retail store. It's lik...
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C 
Ancillary Revenue
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Ancillary Revenue - Technology 
C 
Click for Website
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C 
Click for Web Article 
Ancillary Revenue 
Hamburg – Airline passengers of the future can expect their movements to...
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Ancillary Revenue - Technology 
C 
Click for Full Report 
Excerpt 
Purpose of the research 
In spite of the recent ec...
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Ancillary Revenue - Technology 
C 
Click for Website 
Excerpt 
Data Analysis 
When you are in the market for aviation...
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Ancillary Revenue - Technology 
C 
Click for Web Article 
Excerpt 
For an industry which practically invented the con...
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Ancillary Revenue 
C 
Excerpt 
Click for Web Article 
As each airline makes these choices it is critical that they ar...
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Ancillary Revenue - Technology 
C 
Click for Web Article 
Excerpt 
“The blueprint for an airline business has changed...
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
Click for Web Article 
Excerpt 
The project examined the disclosed financial performance of 108...
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
Retailing trends in the airline travel industry Click for Web Article 
C
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
Click for Website
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Excerpt 
“Know your customer” is one of the most important tenets of the tra...
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Ancillary Revenue 
C 
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Excerpt 
DMOs now have the ability to provide customized content to trav...
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Ancillary Revenue 
C 
Click for Web Article 
Excerpt 
The great advances in airplane Internet connections are being d...
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
C 
Click for Web Article
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Ancillary Revenue 
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Mobile Technology in the Travel Industry 
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Mobile Technology
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Executive Summary 
Includes: 
 Airline major cost drivers 
 Introduction to Rotable Components 
 Understanding the...
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The Future of Flight – Picture Showcase 
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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The Future of Fight
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Airline END 
Revenue – Case Study 
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Airline Revenue - Case Study and Industry Analysis

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Airlines are facing increased pressure to cut costs and optimize revenue. Technology and other innovative ideas will be presented to harness all the resources necessary to be as efficient and cost effective as possible. The advent of Big Data for the Airline industry is coming at exactly the right time. Just over 100 years in the making, the industry is poised to flourish. New entrants and globalization of the world economy through communication mediums are giving rise to demanding business models that strive to get and keep market share. It will be imperative for all industry players to use data and integrate into all cost saving and profit based business initiatives. This paper illustrates and investigates many spheres of the airline industry including all the facets where airlines may increase revenue, streamline processes, cut costs, and become as cost efficient as possible.

Published in: Engineering, Business, Technology

Transcript of "Airline Revenue - Case Study and Industry Analysis"

  1. 1. Airline Revenue – Case Study Route density determines the size of the aircraft an airline can use and the frequency with which it can fly a given route. An airline must fly an airplane of a size that allows competitive unit costs in the market it serves. The airline must also find enough passengers who will sit together in it at fares that will pay the total cost of running it.” - Airline Leader Revenue – Case Study and Industry Analysis tdmc
  2. 2. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  3. 3. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  4. 4. 4 Executive Summary Airlines around the world are facing increased pressures to generate revenue as communication technology and globalization of business advances. Competitive advantage will be gained by those who use data driven solutions for sustainable cost savings and revenue generation. From big data for yield management to advanced algorithmic predictive and preventive aircraft maintenance processes, the acquisition and processing of digital information will be of utmost importance for those who wish to remain competitive. – F.A. tdmc
  5. 5. 5 Executive Summary Airline Revenue Optimization  The classic and most efficient business model holds true for this complex industry  CUT COSTS and MAXIMIZE REVENUES  Profitability in the airline business is calculated by “Seat Miles”  COSTS as CASM (Cost per available Seat Mile)  REVENUE as RASM (Revenue per Available Seat Mile)  1 seat flown 1 mile = ASM (Available Seat Mile)  Technological advances in Data Management for all business streams has given rise to the global market. Cost cutting and Revenue Optimization opportunities abound for those industry leaders that are willing to embrace “data driven” technology and apply it to all aspects of their business.
  6. 6. 6 Executive Summary Airline Revenue Optimization  The Opportunity  Customer Segmentation through Big Data Analytics will be significant for the Airline Industry because:  Different Customers will be willing to pay different prices for using the same amount of resources (an Available Seat Mile)  Controlling the availability of resources will be key to maximizing revenue from passenger travel seat acquisition  While they are a captive audience, maximizing the ancillary revenue based on “who” is your customer will be imperative
  7. 7. 7 Executive Summary Airline Revenue Optimization  This industry analysis paper attempts to cover both COST CUTTING and REVENUE OPTIMIZATION opportunities including:  Fuel Saving strategy for in flight management and on ground operations  Fuel Efficiency - Streamline Flight Takeoff and Landing Techniques  Cabin Configuration  Ancillary Revenues / Big Data Opportunities  Passenger loading optimizations  Aircraft Design for fuel efficiency  Flight Route optimization
  8. 8. 8 Executive Summary Airline Revenue Optimization  This industry analysis paper attempts to cover both COST CUTTING and REVENUE OPTIMIZATION opportunities including:  Fleet Management  Travel Demand Modeling / Predictive Analytics / Passenger Experience  Biofuels Case Study  MRO Management / Cost Savings / SAP Predictive and Preventive Analytics  Emerging Market Penetration  New Business Model for Aircraft assets
  9. 9. 9 Executive Summary Includes:  Airline major cost drivers  Introduction to Rotable Components  Understanding the Repair Loop  Supply Chain Value Creation  Pricing Models and their Application  Smarter MRO – Deloitte  RFID Technology – MRO Management December 2013  Big Data and MRO – SAP Predictive and Preventive Analytics  Aircraft MRO Market Study to 2035 – STRAIR  Aviation growth patterns and the MRO strategy forward  Commercial Aviation MRO 2020 – IBM  MRO Survey 2014 – Oliver Wyman  AHMS – Aircraft Health Management Systems Aircraft Rotable Components MRO  For cost savings opportunities in MRO and Rotables management please visit our presentation research on our website www.thedataminingcompany.com by clicking image below:
  10. 10. 10 Terminology tdmc
  11. 11. 11 Terminology
  12. 12. 12 Basic Measurements in the Airline Business Click for Web Source Available Seat Mile (ASM): The Basic Measure of Capacity  One seat (empty or filled) flying one mile is an ASM  A 140-seat MD-80 flying a 500-mile segment creates 70,000 ASMs.  System ASMs are simply the sum of each of these individual segment calculations  In a typical day in 2007; American made available about 465 million ASMs Revenue Passenger Mile (RPM): The Basic Measure of Production  A paying passenger flying one mile creates an RPM  100 passengers flying 500 miles generates 50,000 RPMs  System RPMs are the sum of this calculation for each of the revenue segments we fly.  In a typical day in 2007, American produced 380 million RPMs.
  13. 13. 13 Basic Measurements in the Airline Business Load Factor: Production Compared to Capacity  To calculate system-wide load factor, divide RPMs by ASMs; in 2007 it's 138.5 billion RPMs divided by 169.9 billion ASMs, or 81.5 percent.  For an individual flight, divide the revenue passengers on board by the aircraft capacity; in the MD-80 example above, it is 100 divided by 140, or 71.4 percent.  High load factors are not necessarily desirable - How much each passenger pays is also important, as we see in the next measure. Click for Web Source
  14. 14. 14 Basic Measurements in the Airline Business A prime example of Airline Revenue Optimization  It’s not necessarily the maximizing of Load Capacity, but the optimization of how much value (yield) you can obtain per seat mile flown as illustrated in this example:
  15. 15. Basic Measurements in the Airline Business Click for Web Source Yield: Revenue per Passenger Mile  To calculate system yield, divide passenger revenue by total RPMs; For American in 15 2007, this is $18.2 billion divided by 138.5 billion RPMs, or 13.1 cents per mile.  To calculate a customer's individual yield, divide ticket price by mileage; if a customer pays $98.00 for the 500-mile segment above, the yield would be 19.6 cents per mile. Revenue per Available Seat Mile (R/ASM): The Best Basic Measure  Multiply load factor times yield to get the measure of how much revenue we generate per increment of capacity; using the 2007 example above, it's 81.5 percent times 13.1 cents or 10.7 cents.
  16. 16. 16 Basic Measurements in the Airline Business Click for Web Source Cost per Available Seat Mile (C/ASM): The Basic Measure Of Cost  Unit costs represent how much it costs to fly one seat (empty or filled) one-mile.  To calculate unit costs, divide total operating expenses by Total ASM capacity; For American in 2007, this is $19.24 billion divided by 169.9 billion, or 11.3 cents per mile.
  17. 17. 17 Airline I.O.C. Indirect Operating Costs Aircraft Ground Handling Landing Fees Aircraft Service Cabin Attendants Food and Beverage Passenger Handling Reservations and Sales Baggage Cargo Handling Passenger Commissions Passenger Advertising Cargo Commission General and Administration
  18. 18. 18 Airline Productivity Measures Click for Full Report
  19. 19. 19 Aircraft Design – Cabin Configuration Decision making in design is crucial to arriving at viable and worthwhile cabin formats. Too little innovation will result in an aircraft manufacturer and airlines using its products falling behind its competitors. Too much may result in an over-extension with, for example, use of immature technologies that do not have the necessary reliability for a safety critical industry or sufficient value to justify the development effort. – Science Direct tdmc
  20. 20. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  21. 21. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  22. 22. 22 Aircraft Seating Configuration Density The Opportunity  Big Data has given rise to dynamic customer segmentation, real time airline bookings through omni channel elements, origin to destination software development, and fare structures that can be optimized in real time based on daily, if not minute by minute real time tracking of consumer trends  Airlines are now able to optimize seating configurations for different cabin classes, and release the different options in real time as required. They are also able to withhold premium seating for higher paying customers, and release open seats as necessary to optimize Revenue per Available Seat Mile
  23. 23. 23 Aircraft Seating Configuration Density Click for Full Report
  24. 24. 24 Aircraft Seating Configuration Density Click for Full Report Without much fanfare, WestJet Airlines Ltd. has been quietly rolling out some strategic changes to its fleet of Boeing 737s in recent weeks, altering the cabin configuration fairly dramatically to add a new class of seating, all the while packing in more travelers in the rest of its planes.
  25. 25. 25 Aircraft Seating Configuration Density Report Highlights  Slimline seats are replacing old bulky seats  Results in more paying passengers  Smaller fuel bill with lighter seats  Additional legroom may allow higher fee per seat Click for Full Report
  26. 26. 26 Aircraft Seating Configuration Density Click for Full Report
  27. 27. 27 Aircraft Design – Seating Technology The BL3530 follows another vital trend; at 10 kilograms per seat, it's lighter than its predecessors. "Fuel costs are extremely high these days -- this is just an accepted fact in the industry. As a result, every kilogram counts," says James Lee, director of Paperclip Design Limited, an award-winning industrial design studio. The lightest chair on the market is made by relative newcomer Expliseat, a French company that has crafted a model made from titanium and composite materials. It weighs just 4 kilograms. The company estimates the weight savings could translate into $500,000 of fuel savings per aircraft per year. – Daisy Carrington for CNN tdmc
  28. 28. 28 Aircraft Seating Configuration Density / Technology The Opportunity  Aircraft seating technology has seen huge strides in newer lightweight materials that will not only save fuel (weight advantage) but also have the same robustness while taking up less space.  Airlines may now optimize for weight, class configurations, and passenger comfort while maintaining best in class gains for fuel savings opportunities which accounts for a major portion of an airlines budget.
  29. 29. 29 Aircraft Seating Technology Click for Website Seat configuration squeezes passengers into 23 inches of pitch
  30. 30. 30 Aircraft Seating Technology Click for Web Article
  31. 31. 31 Aircraft Seating Technology
  32. 32. 32 Aircraft Seating Technology Click for Web Article Step Up, Lie Down, Sit Sideways As Airlines Explore Creative Seating
  33. 33. 33 Aircraft Seating Technology Click for Web Article
  34. 34. 34 Aircraft Seating Technology Click for Web Article
  35. 35. 35 Aircraft Seating Technology Click for Web Article
  36. 36. 36 Aircraft Seating Technology Click for Web Article
  37. 37. 37 Aircraft Seating Technology Click for Web Article
  38. 38. 38 Aircraft Seating Technology Click for Web Article
  39. 39. 39 Emerging Markets tdmc
  40. 40. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  41. 41. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  42. 42. 42 Emerging Markets The Opportunity  As the Industrial Revolution pushed forward enormous growth in certain world markets, so will the digital revolution fundamentally change the dynamics of where people work, live, travel, and spend their income.  It will be imperative for leading airlines in the worlds current developed markets to subscribe to and provide travel services to and from the emerging markets if they want to stay in the travel game.
  43. 43. 43 Emerging Markets
  44. 44. 44 Emerging Markets
  45. 45. 45 Click for Web Source Emerging Markets
  46. 46. 46 Emerging Markets Click for Web Source Hong Kong is located five hours’ flying time from half the world’s population. Together with New York and London it is ranked as a global financial and business services centre, a lofty perch decided by its rule of law, independent legal system, well-educated talent pool, modern infrastructure, low taxes and light regulation topped off with an “open for business” culture.
  47. 47. 47
  48. 48. 48
  49. 49. 49
  50. 50. 50 Click for Web Source Emerging Markets
  51. 51. 51 Click for Web Source Emerging Markets
  52. 52. 52 Emerging Markets The five largest Middle East carriers generate almost 60% of the region’s ASKs. The region has grown at a CAGR of 10.9% and expects to produce more than 586.7 billion ASKs in the year ended October 2014. Click for Web Source
  53. 53. 53 Emerging Markets Click for Web Article
  54. 54. 54 Emerging Markets Click for Web Article
  55. 55. 55 Emerging Markets Click for Web Article
  56. 56. 56 Emerging Markets Click for Web Article
  57. 57. 57 Aircraft Wing Design Wingtip vortices are associated with induced drag, an unavoidable consequence of three-dimensional lift generation. The rotary motion of the air within the shed wingtip vortices (sometimes described as a "leakage") reduces the effective angle of attack of the air on the wing. The lifting-line theory describes the shedding of trailing vortices as span-wise changes in lift distribution. For a given wing span and surface, minimal induced drag is obtained with an elliptical lift distribution. For a given lift distribution and surface, induced drag is reduced with increasing aspect ratio. - Wikipedia tdmc
  58. 58. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  59. 59. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  60. 60. 60 Aircraft Wing Design The Opportunity  Another method of reducing induced drag is the use of winglets, as seen on most modern airliners. Winglets increase the effective aspect ratio of the wing, changing the pattern and magnitude of the vorticity in the vortex pattern. A reduction is achieved in the kinetic energy in the circular air flow, which reduces the amount of fuel expended to perform work upon the spinning air. Any drag reduced is a reduction in friction which will reduce the amount of fuel used during flight.
  61. 61. 61 Aircraft Wing Design
  62. 62. 62 Aircraft Wing Design
  63. 63. 63 Aircraft Wing Design
  64. 64. 64 Aircraft Wing Design
  65. 65. 65 Aircraft Wing Design Click for Web Article
  66. 66. 66 Click for Web Article Aircraft Wing Design
  67. 67. 67 Aircraft Wing Design Spiroid Wing Tips Click for Web Article
  68. 68. 68 Aircraft Wing Design Actively Controlled Wingtips Click for Patent Page
  69. 69. 69 Click for Web Article Aircraft Wing Design
  70. 70. 70 Click for Web Article Aircraft Wing Design
  71. 71. 71 Click for Web Article Aircraft Wing Design
  72. 72. 72 Flight Dynamics and Operations Flight and simulation data are expected to show that Tailored Arrivals could save between 400 and 800 pounds of fuel per flight, which adds up to more than $100,000 per year per aircraft. Using less thrust during descent also yields quieter operations and reduced aircraft emissions, which results in less impact to the environment on final approach. “The flights using Tailored Arrival procedures with existing equipment on our Boeing and Airbus aircraft demonstrated that a significant gain in operational efficiency is possible,” said Capt. Murray Warfield, Qantas Airways general manager for Regulatory and Industry Affairs. “We look forward to widespread implementation of this capability.” – itravel magazine tdmc
  73. 73. 73 Flight Dynamics and Operations The Opportunity  The efficiency at which an airlines prime assets (aircraft) move will have a direct impact on revenue. From aircraft TAT (turn around time), refueling processes, passenger loading sequences, and flight dynamics and operations, every aspect of the movement of aircraft is important.  In the instance of flight dynamics and operations, the stages of flight including takeoff, departure/climb, cruise, descent, final approach, and landing must be monitored and efficient to save the airline money and enhance the customer experience.
  74. 74. Click for Online Access 74 Flight Dynamics and Operations
  75. 75. Click for Online Access 75 Flight Dynamics and Operations
  76. 76. 76 Flight Dynamics RNP – Required Navigation Performance
  77. 77. 77 Flight Dynamics RNP – Required Navigation Performance
  78. 78. 78 Flight Dynamics RNP – Required Navigation Performance
  79. 79. 79 Flight Dynamics RNP – Required Navigation Performance PBN – Performance Based Navigation Click for Web Article
  80. 80. 80 Flight Dynamics RNP – Required Navigation Performance PBN – Performance Based Navigation Click for Web Article
  81. 81. 81 Flight Dynamics CDO – Continuous Descent Operations
  82. 82. 82 Flight Dynamics CDO – Continuous Descent Operations
  83. 83. 83 Flight Dynamics CDO – Continuous Descent Operations
  84. 84. Boarding time matters to airlines' bottom lines. Each extra minute a plane spends at the terminal costs $30, according to an estimate published in The Economist in 2011. Saving a minute on each flight could save Delta Air Lines, which operates over 5,000 flights per day, more than $50m a year. – The Economist 84 Airplane Boarding Procedures – Plane Turn Around Time tdmc
  85. 85. Airplane Boarding The Opportunity  Aircraft are an airlines prime assets. Like consumer goods in a retail store, the seats in an aircraft need to be moving with passengers in them to generate revenue. This revenue is referred to as RASM (Revenue per Available Seat Mile). Hence, aircraft that is idle sitting at the gate during a turn around while loading passengers is not in prime revenue producing mode. The faster they load passengers and get the aircraft to fly, the better they are using their (prime assets) aircraft to generate revenue.
  86. 86. The Study Boarding Methodology Click for Web Article Airplane Boarding
  87. 87. 87 Airplane Boarding Scientific Paper on Aircraft Boarding Click for Whitepaper
  88. 88. 88 Airplane Boarding Click for Web Article Excerpt “BOARDING a plane takes too long and is often the most stressful part of a flight. Whenever a new group is called, there's a mad rush for the gate, sometimes complete with pushing and shoving. This has only got worse with the advent of checked-bag fees.”
  89. 89. 89 Alternative Fuels With high fuel costs buffeting airlines around the world, the best hope for alternative energy for commercial aviation may be on the horizon. The standards-setting body ASTM International is set to vote this summer on certification of hydro treated renewable jet (HRJ) fuel. Tests both in the laboratory and in the air (led by a most prodigious jet fuel consumer, the U.S. Department of Defense) have shown that HRJ can be processed from many types of feedstock— from weedy plants to animal fat—to make a fuel chemically identical to the crude-oil based kerosene that powers flight today. National Geographic tdmc
  90. 90. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  91. 91. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  92. 92. 92 Alternative Fuel The Opportunity  Technological advances in the processing of different raw materials with gasification is giving rise to the production of biofuels derived from other sources than crude oil.  One of the airlines major costs is jet fuel. By examining the chemical composition of new derivative fuels and their performance with exisiting and new jet engines, airlines may be able to cut significant costs from their expenses. They may also reduce carbon footprints as some of these fuels will burn with cleaner emissions.
  93. 93. 93 Alternative Fuel Click for Web Article
  94. 94. 94 Click for Web Article Alternative Fuel
  95. 95. 95 Click for Web Article Alternative Fuel "Our industry still faces two issues: there isn't enough aviation biofuel to meet airline demand, and we need to bring the cost down to parity with petroleum jet fuel," says Jessica Kowal of Boeing's environment communications team``
  96. 96. 96 New Business Model for Aircraft Assets tdmc
  97. 97. 97 New Business Model The Opportunity  After only about 100 years of technological evolution air travel is becoming, or will become as available as ground travel modes. Costs are coming down and more people now have access to air travel than ever before.  The emergence of new business models for aircraft assets will become more and more prevalent as the evolution progresses. Luxury air travel is a new market entrant that is now competing with marine cruise lines for world travels.
  98. 98. 98 New Business Model Click for Web Article
  99. 99. 99 Revenue Management Today’s airline business is evolving into a two-tier industry: global alliances are reaching worldwide coverage and no-frills carriers are gaining market share with a low-cost, point-to-point product. Yet both sides recognize revenue management and pricing as cornerstones of their commercial strategy. Sophisticated systems have been designed that optimally support these processes. The future will bring a closer integration of revenue management and pricing systems. Imagine the benefit of forecasts that trigger automatic fare changes, or using price-elasticity models to maximize revenue automatically on specific segments. - Lufthansa Systems tdmc
  100. 100. Revenue Management 100 The Opportunity  The deregulation of air travel has given rise to ever increasing competition for the acquisition of a customers dollar. Advances in communications and the advent of internet technology make it seamless for a customer to shop for and book airline travel from the comfort of home.  Airline revenue management processes need to take advantage of technology to make certain their perishable aircraft seat miles inventory are producing as much revenue as possible. Once the main passenger door is closed and the aircraft lifts off, all empty seats become lost revenue.
  101. 101. Revenue Management 101 A prime example of Airline Revenue Optimization  It’s not necessarily the maximizing of Load Capacity, but the optimization of how much value (yield) you can obtain per seat mile flown as illustrated in this example:
  102. 102. 102 Click for Full Report Revenue Management
  103. 103. 103 Revenue Management Click for Web Article
  104. 104. 104 Click for Web Article Revenue Management Excerpt “Over the last thirty years, a large number of airlines have invested heavily in traditional revenue management solutions while ignoring the possibly greater return on investment offered by revenue integrity solutions. Revenue leakage – the gap between the revenue that airlines book and the amount that they eventually receive - is a significant problem. Preventing it is especially important during periods of traffic downturn. It does not make sense to ignore the problem as so many airlines have done for so long.”
  105. 105. 105 Click for Full Article Revenue Management Excerpt “Airline ticket prices often seem like a brain-teaser with little logic. From Chicago, a flight to Miami is more than twice as far as a flight to Memphis, but the shorter Memphis flight costs 25% more on average. Fly to Washington, D.C., from Hartford, Conn., and the average fare is nearly three times as high as if you flew to nearby Baltimore from Hartford, according to government data for the first quarter of this year.”
  106. 106. How Airlines set prices, parameters 106 Revenue Management
  107. 107. How Airlines set prices, parameters 107 Revenue Management
  108. 108. How Airlines set prices, parameters 108 Revenue Management
  109. 109. Airline Profitability hovers at an average of 0.1% 109 Click for Full Article The Middle Seat asked US Airways and consulting firm Oliver Wyman to crunch airline expenses down to the percentages that an individual passenger pays, taking a hard look at costs of running an airline. US Airways created a hypothetical flight of 100 passengers. Each one paid the average $146 fare for a domestic flight ($292 round-trip), plus $18 each in fees and add-ons, based on a year's worth of data ending March 31. The bottom line: There is very little wiggle room on the plane for profit. Revenue Management
  110. 110. Click for Online Article 110 Revenue Management Excerpt “This article identifies major milestones in the science of Pricing and Revenue Management. It starts with the first successes in travel and transportation, and it follows the progression of the discipline in those realms. It explores breakthroughs as the concepts evolved beyond airlines and other industries with perishable products. It examines the impact on traditional Pricing and Revenue Management thinking, as the adaptation of these concepts to diverse industries has necessitated strategic and tactical innovations to optimally manage discount, promotions, bulk and negotiated deals as well as customer retention. Finally, it suggests future milestones as the science continues to grow and evolve.”
  111. 111. Click for Online Article 111 Revenue Management Excerpt “Preparing bespoke solutions for larger airlines can take time. Amadeus’ designers recently signed a large contract to deliver a personalised system for one of its customers within the next 18 months. But it is worth the wait for the bigger airlines. An effective revenue management system can make a huge financial difference. One of Amadeus’ clients is the US$18 billion dollar company Air France-KLM. If the Amadeus system increases revenue by 1 percent, it adds US$180 million dollars onto the company’s bottom line.”
  112. 112. 112 Click for Online Article Revenue Management Excerpt “Using publically-available seat map and pricing data from a major U.S. airline, Garrow shows that customers' purchases of premium coach seats (with extra legroom and early boarding privileges) are strongly influenced by seat map displays. She finds that customers avoid seating in middle seats and seats near the back of the plane by purchasing premium coach seats. In fact, customers are between 2 and 3.3 times more likely to purchase premium coach seats when there are no window or aisle seats that can be reserved for free. She uses these results to show that if this major U.S. airline were to block certain rows of seats for premier customers, the airline could sell more premium coach seats and potentially increase seat revenues by more than 10 percent. “
  113. 113. 113 http://garrowlab.ce.gatech.edu/research http://Regvareronwulaeb .Mce.aganteachg.eedmu/epunbts Click for Online Access
  114. 114. With the international commercial airline industry experiencing growth 2-3 times faster than the global economy over the last decade, the potential scale of the application of the Industrial Internet to the sector is huge and growing. This is something that GE and Alitalia are well aware of as they look to extend their initial three year partnership beyond 2014. – GE and Alitalia Case Study 114 Technology - Flight Operations – Flight Efficiency Services tdmc
  115. 115. 115 Flight Operations Technology Flight Sequencing Technology The Opportunity  Advances in technology and the prevalence of Industrial Internet data are giving way to enhanced diagnostics in real time tracking for aircraft sequencing to optimize approach, arrival, and departure flows.  "GE's Flight Efficiency Services collects real-time data generated by the aircraft and applies proprietary techniques that use historic intelligence to help drive airlines' business strategies," said Alan Caslavka, president of Avionics & Digital Systems for GE Aviation. "Aircraft performance analytics are used to reveal patterns, transforming data into actionable insights that improve operations."
  116. 116. Click for Online Case Study 116 Flight Operations Technology Excerpt “The aviation sector is a perfect setting for the Industrial Internet. The industry estimates that during any given flight, the travel time, fuel use, and flight path are 18 to 22 per-cent inefficient. Potential costs savings are therefore substantial, with the recent GE Minds and Machines report estimating that a 1 per cent reduction in jet fuel use alone could save $30 billion over 15 years.” GE / Alitalia
  117. 117. 117 Flight Operations Technology Flight Sequencing Technology Advantages and Benefits  Navigation Services - Coordinate air travel flow  Fuel Management - Cut costs (Fuel, Aircraft turn around time)  Flight Data Analytics - Eliminate inefficient use of resources  Reduce flight time / Increase departure and arrival accuracy  Make effficent use of open landing slots  Fleet Synchronization - Increase aircraft utilization
  118. 118. 118 Flight Operations Technology Using Wind to Save Fuel The Opportunity Click for Web Article  A subscription based service from Boeing Flight Services uses existing aircraft equipment (minimal upfront costs) to provide flight crews with real time atmospheric conditions related to wind speed, wind direction and air temperature to enhance and optimize the landing approach sequence for efficient use of fuel resources.
  119. 119. 119 Flight Operations Technology Using Wind to Save Fuel Advantages and Benefits  Reduces fuel consumption by up to hundreds of pounds per flight  Increase Operational Efficiency  Stabilizes Approach  Reduce Carbon emissions  Reduces Crew Workload  Optimized approach reduces noise pollution  Subscription based service  Uses existing equipment
  120. 120. 120 Big Data – The Industrial Internet Click for Web Article
  121. 121. Big Data – The Industrial Internet Analytics and Crowdsourcing 121 Click for Web Article Advanced Analytics for Flight Optimization The Opportunity  Big Data and Data Scientists come together on a crowdsourcing platform called Kaggle. Using historical flight information including weather, flight plans, air traffic control, and past flight performance they create algorithms that will optimize the future of flight for accurately predicting when a flight will land and arrive at the gate.
  122. 122. Big Data – The Industrial Internet Analytics and Crowdsourcing 122 Click for Web Page
  123. 123. Big Data – The Industrial Internet Analytics and Crowdsourcing 123 The realized cost savings Click for Web Page
  124. 124. Big Data – The Industrial Internet 124 Big Data Opportunities in Airline and Aviation Click for Full Report
  125. 125. Big Data – The Industrial Internet 125 Big Data Opportunities in Airline and Aviation Click for Full Report
  126. 126. Big Data – The Industrial Internet 126 Big Data Opportunities in Airline and Aviation Click for Full Report
  127. 127. Big Data – Predictive Analytics 127 Click for Web Report Predictive Analytics for Airline Operations Optimization
  128. 128. Big Data – Predictive Analytics 128 Click for Web Report Predictive Analytics for Airline Operations Optimization
  129. 129. 129 Aircraft Route / Flight Planning Flight planning is the process of producing a flight plan to describe a proposed aircraft flight. It involves two safety-critical aspects: fuel calculation, to ensure that the aircraft can safely reach the destination, and compliance with air traffic control requirements, to minimise the risk of mid-air collision. In addition, flight planners normally wish to minimise flight cost by appropriate choice of route, height, and speed, and by loading the minimum necessary fuel on board. - Wikipedia tdmc
  130. 130. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  131. 131. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  132. 132. Route / Flight Planning / Airspace Efficiency 132 The Opportunity  “Every commercial airline flight begins with a flight plan. Over time, small adjustments to each flight plan can add up to substantial savings across a fleet. Optimal overall performance is influenced by many factors, including dynamic route optimization, accurate flight plans, optimal use of redispatch, and dynamic airborne replanning. While all airlines use computerized flight planning systems, investing in a higher-end system — and in the effort to use it to its full capability — has significant impact on both profitability and the environment.” – BOEING Aero
  133. 133. Route / Flight Planning / Airspace Efficiency 133 Click for Web Article
  134. 134. Route / Flight Planning / Airspace Efficiency 134 Click for Web Article
  135. 135. Route / Flight Planning / Airspace Efficiency 135 Click for Web Article
  136. 136. Route / Flight Planning / Airspace Efficiency 136 Click for Web Article
  137. 137. Route / Flight Planning / Airspace Efficiency 137 Click for Web Article
  138. 138. Route / Flight Planning / Airspace Efficiency 138 Click for Web Article
  139. 139. Route / Flight Planning / Airspace Efficiency 139 Click for Web Article
  140. 140. 140 Route Planning / Airspace Efficiency Shorten Aircraft Routes to save fuel and cut CO2 emissions European Airspace Example RVAS from 2000ft to 1000ft
  141. 141. 141 Route Planning / Airspace Efficiency Shorten Aircraft Routes to save fuel and cut CO2 emissions European Airspace Example RVAS from 2000ft to 1000ft
  142. 142. 142 Fuel Efficiency A plane like a Boeing 747 uses approximately 1 gallon of fuel (about 4 liters) every second. Over the course of a 10-hour flight, it might burn 36,000 gallons (150,000 liters). According to Boeing's Web site, the 747 burns approximately 5 gallons of fuel per mile (12 liters per kilometer). This sounds like a tremendously poor miles-per-gallon rating! But consider that a 747 can carry as many as 568 people. Let's call it 500 people to take into account the fact that not all seats on most flights are occupied. A 747 is transporting 500 people 1 mile using 5 gallons of fuel. That means the plane is burning 0.01 gallons per person per mile. In other words, the plane is getting 100 miles per gallon per person! The typical car gets about 25 miles per gallon, so the 747 is much better than a car carrying one person, and compares favorably even if there are four people in the car. Not bad when you consider that the 747 is flying at 550 miles per hour (900 km/h)! – HowStuffWorks.com tdmc
  143. 143. 143 Fuel Efficiency – Online Flights and Fuel Quiz C Click to Take the Online Fuel Quiz
  144. 144. 144 C Click for Web Article Fuel Efficiency “MyBoeingFleet.com is a Web portal to a large repository of Boeing aviation information. The business-to-business site offers customers direct access to information on Boeing airplanes and enhances airlines' ability to work collaboratively with Boeing, suppliers, and each other. Boeing has added a section about fuel conservation to the portal. This new section allows customers to browse for general knowledge or query for specific information that can help them reduce fuel consumption and save money.” – BOEING Aero
  145. 145. 145 C Click for Web Article Fuel Efficiency
  146. 146. 146 Fuel Efficiency – Nanoparticle Technology C Click for Web Article Excerpt “A recent innovation developed at University West, Sweden, promises to increase aircraft turbojet fuel efficiency, simply by adding a nanoparticle coating to an existing engine design. Turbojets already operate at very high temperatures, one key to their current efficiency and power ratings. Still, internal temperatures can only be permitted to go to a certain threshold, above which the engine itself would start to melt. The turbojet’s fuel efficiency is almost directly related to its internal temperatures, so the nanoparticle coating would allow for more efficient fuel vaporization and higher air-fuel ratios.”
  147. 147. 147 Fuel Efficiency – 3D Printing and Composite Click for Web Article C
  148. 148. 148 C Click for Web Article Fuel Efficiency
  149. 149. 149 Fuel Efficiency – Five Technologies C Click for Web Article Technologies being Explored  Geared Turbofan Engine  Composite Ceramics  The “Double Bubble” - Aircraft Design  The Flying Wing – Aircraft Design  High Speed Heat Exchanger
  150. 150. 150 Fuel Efficiency C
  151. 151. 151 Fuel Efficiency C
  152. 152. 152 Fuel Efficiency – Weight Savings Incorporation of composite materials in Aircraft Design C
  153. 153. 153 Fuel Efficiency – Engine Technology Engine Technology Advancements C
  154. 154. 154 Fuel Efficiency – Engine Technology Engine Technology Advancements C
  155. 155. 155 Fuel Efficiency – Engine Technology Engine Technology Advancements – Big Data / Sensors in Jet Engines C
  156. 156. 156 Fuel Efficiency – Weight Reduction Reduce Weight of onboard equipment and supplies C
  157. 157. 157 Fuel Efficiency – Flight Operations C
  158. 158. 158 Fuel Efficiency – Weight Reduction Reduce Weight of onboard equipment and supplies C
  159. 159. 159 Fuel Efficiency – Strategies 1. Add weight where it counts 2. Add zonal dryers to remove trapped moisture 3. Engine Wash C
  160. 160. 160 Fuel Efficiency – Strategies C
  161. 161. 161 Fuel Efficiency – Strategies C
  162. 162. 162 Fuel Efficiency – Strategies C
  163. 163. 163 Fleet Optimization Fleet management is the management of a company's transportation fleet. Fleet management includes commercial motor vehicles such as cars, aircraft (planes, helicopters etc.), ships, vans and trucks, as well as rail cars. Fleet (vehicle) management can include a range of functions, such as vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), driver management, speed management, fuel management and health and safety management. Fleet Management is a function which allows companies which rely on transportation in business to remove or minimize the risks associated with vehicle investment, improving efficiency, productivity and reducing their overall transportation and staff costs, providing 100% compliance with government legislation (duty of care) and many more. These functions can be dealt with by either an in-house fleet-management department or an outsourced fleet-management provider. – Wikipedia tdmc
  164. 164. 164 Fleet Optimization The Opportunity  Airlines that have large fleets of varied aircraft types are at a disadvantage for cost optimization when they are compared to airlines with homogeneous type aircraft fleets. From a cost standpoint, varied fleets will incur higher costs when it comes to crew training and management, maintenance (both heavy and MRO), and airport fees and restrictions. Those with a less varied fleet will be able to rotate crews more effectively. They will also have the opportunity of holding less varied rotable inventories for MRO operations.
  165. 165. 165 Fleet Optimization C Click for Web Article
  166. 166. 166 Fleet Optimization C Click for Web Article
  167. 167. 167 Fleet Optimization C Click for Web Article
  168. 168. 168 Ancillary Revenue With airlines and airports increasingly modelling themselves on retailers, shopping has become an even more embedded part of the air travel experience. Creative solutions developer Avanade is making exciting advances in next generation retail with the development of its Grab and Go wall concept which, in the future, could revolutionise retail both on the ground and in the air. The Grab and Go interactive kiosk, responds to gestures and touch-based interfaces to allow a customer to obtain information and coupons, and, though still in the early stages of implementation, it could enrich the shopping experience in the air from the ground, with enticing offers at kiosks in the terminal. - Future Travel Experience tdmc
  169. 169. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  170. 170. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  171. 171. 171 C Ancillary Revenue The Opportunity  The origin and destination of a flight is just like a retail store. It's like the walls and shelves of a store, it sits there empty until the airline adds its branding to it. With in flight connectivity gaining acceptance customers may now interact with their own devices or seatback screen technologies to enhance purchasing and customization experiences. Airlines may now partner with other consumer goods product vendors so they may capitalize on a captive market that is sitting in the aircraft for hours at a time.
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  173. 173. 173 Ancillary Revenue - Technology C Click for Website
  174. 174. 174 C Click for Web Article Ancillary Revenue Hamburg – Airline passengers of the future can expect their movements to be tracked, their needs assessed and solutions to arising problems remedied as they move through every step in their journey, all with the help of technology at their fingertips. The ability of airlines to make full use of a passenger’s personal electronic devices and wired lives for everything from missed sandwich orders to selling automobiles inflight was part of the reoccurring theme in several opening conference sessions that marked the beginning of the Aircraft Interiors Expo and World Travel Catering and Onboard Services Expo whose trade show doors will open Tuesday to thousands who have gather here for four days of networking and business.
  175. 175. 175 Ancillary Revenue - Technology C Click for Full Report Excerpt Purpose of the research In spite of the recent economic downturn, airlines are addressing trends, modernising existing technologies and adopting more relevant solutions to take their IT portfolios to the next level. Ancillary revenues are helping to fund this innovation; however, knowing where and when to invest is no easy task. Travelport conducted this research to: 1. Provide airlines a solidly researched overview of the global PSS and IT landscape 2. Identify current areas of IT spending by airlines, as well associated initiatives, requirements, projections and trends 3. Help airlines analyse, prioritise and plan current and future IT investments
  176. 176. 176 Ancillary Revenue - Technology C Click for Website Excerpt Data Analysis When you are in the market for aviation based data tools, look no further than Innovata. We have developed a variety of software and partnerships to make aviation data meaningful and usable to companies like yours. Simply click on one of our product offerings below to learn more about how we can help you and your business. FlightMaps Analytics: Powered by two powerful and well-respected aviation databases, FlightMaps is a map-based analytics product that can help you view historical data, filter current data, select reporting data ranges and so much more.
  177. 177. 177 Ancillary Revenue - Technology C Click for Web Article Excerpt For an industry which practically invented the concept of customer experience as part of the pre-flight and inflight services (remember United hiring its first stewardess in 1930s, or the on-board food services, the romance and adventure of the job) as well as some of the most successful customer loyalty programs (airline miles being at the forefront), it is quite disheartening to see it struggling for survival due to runaway oil prices and employee unions.
  178. 178. 178 Ancillary Revenue C Excerpt Click for Web Article As each airline makes these choices it is critical that they are not restricted by or held hostage to any particular standard or technology and that they can achieve a multichannel retail experience. Reacting in real-time to consumer trends and cunning competitor initiatives goes over and beyond the algorithms designed to plan for seasonal changes, holiday periods, transitory popular destinations and new routes. The ability to be even smarter and faster will lead to airlines using different technologies for different circumstances across a multitude of channels. Filing fares and modifying ancillary services at speed may require using an API – the technology that allows data to be transferred using XML-based paths.
  179. 179. 179 Ancillary Revenue - Technology C Click for Web Article Excerpt “The blueprint for an airline business has changed dramatically over the past 10 years,” says Mike McGearty, CEO of CarTrawler. “Consumer demand for choice and convenience of complimentary products has forced the travel industry to reinvent itself with airlines leading the way. Consumers are more loyal to carriers that address their needs.
  180. 180. 180 Ancillary Revenue C Click for Web Article
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  187. 187. 187 Ancillary Revenue C Click for Web Article Excerpt The project examined the disclosed financial performance of 108 airlines and the estimate includes revenue from unbundled services, such as baggage fees and food sold onboard aircraft, to new incremental income, such as ommissions from the sale of accommodation and travel insurance, plus partner revenue generated by frequent flier programs. The airline that collected the most ancillary revenue in dollar totals was the country’s largest airline, United Continental, with $5,047,477,000 last year. It was followed by next largest airline Delta, which raked in $2,473,469,000.
  188. 188. 188 Ancillary Revenue C Click for Web Article
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  190. 190. 190 Ancillary Revenue Retailing trends in the airline travel industry Click for Web Article C
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  197. 197. 197 Ancillary Revenue C Click for Website Excerpt “Know your customer” is one of the most important tenets of the travel and hospitality industries, but getting the right combination of data points about me to the right people at the right time to give me what I want has eluded travel companies—until now. Today, new technology is enabling the industry to gain a more holistic view of its customers and consistently and affordably deliver highly individualized customer service.
  198. 198. 198 Ancillary Revenue C Click for Web Article
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  200. 200. 200 Ancillary Revenue C Click for Web Article Excerpt DMOs now have the ability to provide customized content to travelers, targeted by location, to an audience who’s got the time to listen. This means that destinations seeking to convince a business traveler to include leisure experiences to his itinerary or even extend her trip for leisure purposes can motivate and convert interest all from the confines of a seat-back entertainment system. Destinations seeking to augment dispersal can promote travel experiences beyond a city’s iconic attractions, wooing vacationers to venture further afield.
  201. 201. 201 Ancillary Revenue C Click for Web Article Excerpt The great advances in airplane Internet connections are being driven far more by the opportunities that high-speed broadband service presents for airlines themselves to essentially sell more things to the customers, whether the product is in-flight entertainment, food and drink, customized services to elite-status passengers or products at the destination, including hotel packages, sports and concert tickets, restaurant and theater reservations. On an airplane, you have a captive market, and with sophisticated technology, you can sell to passengers in very personal ways.
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  205. 205. 205 Mobile Technology in the Travel Industry tdmc
  206. 206. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  207. 207. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  208. 208. 208 C Mobile Technology
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  218. 218. 218 Executive Summary Includes:  Airline major cost drivers  Introduction to Rotable Components  Understanding the Repair Loop  Supply Chain Value Creation  Pricing Models and their Application  Smarter MRO – Deloitte  RFID Technology – MRO Management December 2013  Big Data and MRO – SAP Predictive and Preventive Analytics  Aircraft MRO Market Study to 2035 – STRAIR  Aviation growth patterns and the MRO strategy forward  Commercial Aviation MRO 2020 – IBM  MRO Survey 2014 – Oliver Wyman  AHMS – Aircraft Health Management Systems Aircraft Rotable Components MRO  For cost savings opportunities in MRO and Rotables management please visit our presentation research on our website www.thedataminingcompany.com by clicking image below:
  219. 219. 219 The Future of Flight – Picture Showcase tdmc
  220. 220. 220 The Future of Fight
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  230. 230. THE DATA MINING COMPANY tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  231. 231. THE DATA MINING COMPANY tdmc Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. www.thedataminingcompany.com
  232. 232. Airline END Revenue – Case Study tdmc
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