Airlines Mis

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Airlines Mis

  1. 1. Symbiosis Institute of Management Studies <ul><li> Airline Management Systems </li></ul><ul><li>Submitted to: </li></ul><ul><li>Mr Govind Sovale By: </li></ul><ul><li>Faculty MIS Apoorva yadav( B-06) </li></ul><ul><li>Eesha Gokhale( B-10) </li></ul><ul><li>Jayashree Chakrabarti(B-13) </li></ul><ul><li>Ankush Gulati( B-44) </li></ul><ul><li>Shashank Karpal ( B-55) </li></ul>
  2. 2. <ul><li>Through this presentation we take you through the general processes which all of us witness everytime we travel by air, starting from the reservation systems to the baggage handling at the airports to the arrival and departure real time updates. We have focussed on how technology is a booster in processes like these which require absolute precision.We have intentionally focussed on these applications since the other processes are specific to airlines business and are thus proprietary and not for public consumption </li></ul>
  3. 3. Airline system Components Pricing And Revenue Management System Maintenance And Engineering System Flight Operation System Finance System Crew Management System Central Reservation System Airport Management System Air Cargo System Business Processing System Sales and Marketing System HR Management System CRM System
  4. 5. Airline Industry Value Chain INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING AND SALES SERVICE PROCUREMENT TECHNOLOGY DEVELOPMENT HUMAN RESOURCE MANAGEMENT FIRM INFRASTRUCTURE -Financial Policy - Accounting - Regulatory Compliance - Legal - Community Affairs Pilot Training Safety Training Agent Training In-flight Training Baggage Tracking System <ul><li>Promotion </li></ul><ul><li>Advertising </li></ul><ul><li>Advantage </li></ul><ul><li>Program </li></ul><ul><li>Travel Agent </li></ul><ul><li>Programs </li></ul><ul><li>Group Sales </li></ul><ul><li>Ticket Counter </li></ul><ul><li>Operations </li></ul><ul><li>Gate Operations </li></ul><ul><li>Aircraft </li></ul><ul><li>Operations </li></ul><ul><li>On-board Service </li></ul><ul><li>Baggage Handling </li></ul><ul><li>Ticket Offices </li></ul><ul><li>Route Selection </li></ul><ul><li>Passenger Service </li></ul><ul><li>System </li></ul><ul><li>Yield Management </li></ul><ul><li>System (Pricing) </li></ul><ul><li>Fuel </li></ul><ul><li>Flight Scheduling </li></ul><ul><li>Crew Scheduling </li></ul><ul><li>Facilities Planning </li></ul><ul><li>Aircraft Acquisition </li></ul>Information Technology Communications Product Development Market Research <ul><li>Lost Baggage Service </li></ul><ul><li>Complaint Follow-up </li></ul><ul><li>Baggage System </li></ul><ul><li>Flight </li></ul><ul><li>Connections </li></ul><ul><li>Rental Car and </li></ul><ul><li>Hotel Reservation </li></ul><ul><li>System </li></ul>Computer Reservation System, In-flight System Flight Scheduling System, Yield Management System Baggage Handling Training Flight, route and yield analyst training We Need Process and Efficient System, To derive value from Value Chain
  5. 6. Airline Reservation Systems <ul><li>We have transgressed from </li></ul><ul><li>Telegraph offices booking air tickets </li></ul>
  6. 7. To this: Power at our fingertips
  7. 8. Inventory Application Revenue Management Application Crew/ Aircraft Scheduling Application Other Back end Application Integrated Back End System Cargo Management System Airline maintenance System Central Database Dynamic Packaging Introducing Online FFP/CLP Transitioning Website Into Shopping Portal Web Check in, SMS check in Application Integrated Backend System` Introducing E-ticketing/ Web Booking Customer Focused Application Introducing Wireless Network System
  8. 9. GDS <ul><ul><li>Galileo </li></ul></ul><ul><ul><ul><li>Created by </li></ul></ul></ul><ul><ul><ul><ul><li>Aer Lingus </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Air Canada </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Alitalia </li></ul></ul></ul></ul><ul><ul><ul><ul><li>British Airways </li></ul></ul></ul></ul><ul><ul><ul><ul><li>KLM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Swissair </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TAP </li></ul></ul></ul></ul><ul><ul><ul><ul><li>US Airways </li></ul></ul></ul></ul><ul><ul><li>WORLDSPAN </li></ul></ul><ul><ul><ul><li>Created by </li></ul></ul></ul><ul><ul><ul><ul><li>Delta </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Northwest </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Trans World Airlines </li></ul></ul></ul></ul><ul><li>GDS:- Global Distribution System, 4 Major GDS </li></ul><ul><li>System architectures are largely based on a mainframe TPF (Transaction Processing Facility) </li></ul><ul><ul><li>Sabre </li></ul></ul><ul><ul><ul><li>Created by </li></ul></ul></ul><ul><ul><ul><ul><li>American Airlines </li></ul></ul></ul></ul><ul><ul><li>Amadeus </li></ul></ul><ul><ul><ul><li>Created by </li></ul></ul></ul><ul><ul><ul><ul><li>Air France </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Iberia </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lufthansa </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SAS </li></ul></ul></ul></ul>
  9. 10. <ul><li>GDS : Global Distribution System - a computer reservation and information system that is often operated by multiple airlines, used by travel agents & other travel professionals and contains information on all types of travel products </li></ul>
  10. 11. The competition will be determined in the following value added services where GDSs seems to build a strong position. Res System Yield management <ul><li>Collect, store and analyze data on customers, changes in the markets for seats. (as co-hoster or res system provider) </li></ul><ul><li>gather competitive data on seat allocations, most attractive routes, and direct marketing campaigns according to the data. (as res system provider) </li></ul>Co-hosting <ul><li>Offer co-hosting services to other airlines which can display their seats on the res system. This allows res system providers to participate in other airlines’ growth. </li></ul>Integrated services <ul><li>Offer a product portfolio of integrated booking services for airline tickets, hotel and car reservations. </li></ul><ul><li>Building a partner network will create a competitive advantage. </li></ul>
  11. 12. GDS Accessibility GDS INTERNET Travel Agency Consumer Booking Engine Interface GDS data network
  12. 13. GDS Hardware software <ul><li>Sabre Oracle sun java </li></ul><ul><li>Galileo/Apollo Oracle sun </li></ul><ul><li>Amadeus Oracle sun </li></ul><ul><li>Worldspan Oracle database usesCompaq Web servers </li></ul>
  13. 14. Market Shares of the GDS Air Segments Booked <ul><li>Sabre 32.8% </li></ul><ul><li>Galileo 30.7% </li></ul><ul><li>Amadeus 24.4% </li></ul><ul><li>Worldspan 12.1% </li></ul>
  14. 17. Interface & GDS/CRS
  15. 25. Revenue Management Systems <ul><li>  </li></ul><ul><li>The revenue management system is summarized in the figure above. Once a customer or an agent using a GDS logs into the server and puts in a search criteria for flights, the system connects to the airline central inventory database which contains information on routes and the number of tickets on that particular date. The central database in turn connects to a business rules engine which determines the price of tickets on a particular route based on certain factors which may include : </li></ul><ul><li>Time of travel – early morning and late evening flights are generally more expensive </li></ul><ul><li>Day of travel – Friday and Monday’s tickets are more expensive than the other days of the week </li></ul><ul><li>Class of travel – Generally very less variation is seen in business class tickets than economy class. </li></ul><ul><li>Time of booking – The earlier you book tickets before the scheduled date of departure the cheaper it is. </li></ul><ul><li>  </li></ul>
  16. 26. Customer/agent logs in to interface Searches for flight as per need System connects to the central inventory DB The search engine provides information to user Central Inventory DB 2 Way data flow Business rules Engine (price points) The customer selects his seat Updated DB
  17. 27. <ul><li>There are three essential conditions for revenue management to be applicable: </li></ul><ul><li>That there is a fixed amount of resources available for sale. </li></ul><ul><li>That the resources sold are perishable. This means that there is a time limit to selling the resources, after which they cease to be of value. </li></ul><ul><li>That different customers are willing to pay a different price for using the same amount of resources </li></ul><ul><li>When the aircraft departs, the unsold seats cannot generate any revenue and thus can be said to have perished. </li></ul>
  18. 28. Baggage Handling systems
  19. 29. <ul><li>All major airports around the world use RFID based baggage handling systems. Once the passenger checks in his baggage,a tag is stuck onto the bag, a counterfoil of which is stuck on the boarding pass. This tag contains a barcode which is scanned by the system during check in and through this screening, the baggage gets onto a conveyor belt. </li></ul><ul><li>At an airport there are multiple flights to multiple destinations so there are risks of sending a baggage on the wrong flight. So there are RFID readers along the conveyor belt which reads the tag from a distance and guides the baggage to the loading tray of the destination airline. </li></ul>
  20. 30. FLIGHT COMMUNICATION SYSTEMS <ul><li>It is a generalized computer system that can link information provided by airplane systems, flight crews, and cabin crews to the airline when the airplane is remote from the airline home base. Integrated with the Boeing ELB, it provides real time administrative information from the airplanes to the airline so that the airline can make high value operational decisions. Administrative information is that information which helps the airline manage its business and is not associated with the flight currently in progress. </li></ul><ul><li>Traditionally, maintenance teams have had to wait for the airplane to land to gather enough information to begin their “parts and planning” to make </li></ul><ul><li>repairs. Today, by integrating ground-based and airplane-based systems, information can be received and decisions made in real time. For example, if a flight deck effect fault occurs in flight, the pilot enters the fault information into the Boeing ELB, which then automatically enters the fault code into the fault recording form. The system is designed to allow the pilot to easily enter the initial fault; additional information can be added during a low workload phase of flight. As soon as the captain electronically signs the fault, the ELB transmits an accurate fault description to the ELB ground control system in the maintenance center and to any other airline organizations that need the information. (Because the fault is automatically correlated to the fault code, the deferral status is automatically available.) Even though the airplane might still be several hours from landing, the airline can have people, parts, and equipment prepositioned and ready to make any needed repairs when the airplane arrives. This system offers operators a number of additional advantages, including: </li></ul><ul><li>  </li></ul><ul><li>Maintenance efficiency. </li></ul><ul><li>Operational efficiency. </li></ul><ul><li>.Reduction or elimination of paper documents </li></ul>
  21. 32. Customer Relationship Management
  22. 33. <ul><li>A vexing question for a number of airlines is how much value does customer relationship management, or CRM, really deliver to the bottom line and how does an airline go about getting it? </li></ul><ul><li>As stated above, the bottom line impact of CRM is significant, but varies according to the airline implementing the initiatives. The range estimates are: </li></ul><ul><li>For a large airline: $100-$250 million per year; </li></ul><ul><li>For a midsize airline: $25-$60 million per year; </li></ul><ul><li>For a smaller airline: $15-$50 million per year </li></ul>
  23. 34. <ul><li>Airline's success depends heavily on its ability to intelligently manage sales, marketing, and service processes and to draw mutual advantages from understanding of airline's customers. To help airline maximise the strategic value of customer centric initiatives, Airline e-CRM model provides a comprehensive analytical solution, it can contribute toward improving the way that measure and optimize airline's relationships with customers. </li></ul><ul><li>Airline e-CRM model can be conceptualized as a system that is made up of components, linkages amongst the components, and dynamics-that takes advantage of the properties of the Internet to make money. It takes advantage of the properties of the Internet in the way it builds each of the components-value, scope, revenue sources, pricing, connected activities, implementation, capabilities and sustainability-and crafts the linkages among these components. It is what, preferably, enables an airline to have a sustainable competitive advantage. It includes three components (subsystem): Web Basec Airline-Passenger Interaction subsystem; Airline Data Warehouse subsystem; and Airline e-CRM operation subsystem </li></ul>

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