Fleet Repositioning is about Assigned the Right Aircraft to the Right Route, it is implemented for two airlines case models, First point to point operation model – minimizing cost – Yemenia as a hub and the second is multi-stops operating model – maximizing profit – route SAH-DXB-KUL-JKT , it also address competitive analysis for Yemenia position in the market by using BCG matrix with respect with its competitors.

1. Wings Of Wisdom
Fleet
Repositioning
By :Mohammed Salem Awad
Consultant

2. Out Line
 Introduction  Case Study
 Existing Fleet  Results
 Current Network  Summary
 Point to point vs Hub  Contacts
and Spoke
 Competition Analysis
 Market Segmentations
 Objectives
 Evaluation Techniques

3. Introduction
 Yemenia is an
international
Airline with
more 35
international
destinations
 Fleet Planning
topic related
to the airline
Strategy

4. Existing Fleet
 Existing Fleet
 AIR BUS 330-200 2
 AIR BUS 310-300 4
 BOEING 737-800 3

5. Existing Fleet
Existing Fleet
 AIR BUS 330-200 2

6. Existing Fleet
 Existing Fleet
 AIR BUS 310-300 4

7. Existing Fleet
 Existing Fleet
 BOEING 737-800 3

8. Current
Network
YEMENIA Current Network

9. Point to point vs
Hub And Spoke
 Point To Point  Hub and Spoke
 High Frequency  Normal Frequency
 One Type Aircraft  Multi Types Aircraft
 Cost Evaluation  Complex Cost
 Mixed Revenue
 Revenue Earned Earned
 Visible Load Factor  Load Factor
 Low Cost Model  Legacy Model

10. Competition
Analysis
Five Years Data Base
Growth Rate
Vs
Market Share

11. Competition
Analysis
Five Years Data Base
Growth Rate
Vs
Market Share

12. Market
Segmentations
 Market Segmentations
 Domestic Market
 Saudi Arabia Market
 Gulf and Fareast Market
 Europe Market
 Africa Market
 Middle East Market

13. Objectives
Based on Objectives and
Operating Model
 Point To Point Model
 Minimizing Cost
 Multi Stop Operating Model
 Maximizing Profit

14. Evaluation
Techniques
 To Day – Airlines Need To Reduce Cost
or Maximize the profit, and that by
 By Select The Right Capacity
 By Operate At Optimum Frequency
 By Repositioning Their Fleet
And that can be achieved by
Optimization Techniques

15. Optimization
Techniques
 Minimizing Cost
 U Curve Techniques + Solver Program
 Maximizing Profit
 Solver Program

16. Optimization
Techniques
Point To Point Model
Minimizing Cost
 U Curve Techniques
 Integer Program
 Optimum Solution Curve Model

17. Optimization
Techniques
 Point To Point Model - Minimizing Cost
U Curve Techniques
 Cost of Service - Cost of
seat
 Cost Of loss Oppurantity –
Cost Of losing Revenue
Due to unavailability of
seat
 The Final Curve take
Shape ( U )
 The Best Decision
represents by the lowest
cost in the curve

18. Optimization
Techniques
 Point To Point Model -Minimizing Cost
 Integer Program – Solver

19. Optimization
Techniques
 Point To Point Model - Minimizing Cost
 Optimum Solution Curve

20. Optimization
Techniques
 Point To Point Model - Minimizing Cost
 Demand
Capacity Vs
Market Fare

21. Optimization
Techniques
Multi Stops Operating Model
 Maximizing Profit

22. Optimization
Techniques
 Minimizing Cost
 U Curve Techniques + Solver Program
 Maximizing Profit
 Solver Program

23. Cost of ATK for
Airlines
IB
AF
NH
LH DL CO JL
BA QF
NW AA
VN CZ
GA MU UA MH SQ
OZ
KE BI EK BR
CA CX
Average Stage Length, Km
Source : Company Reports, IATA, AAPA estimates

24. Cost of ASM for
Aircrafts

25. Cost of ATK
for Yemenia Fleet

26. Case Study
Point to Point Model
Input Data
Distance
Traffic
Fare
Cost

27. Case Study
Point to Point Model
 Market Segmentations
 Domestic Market
 Saudi Arabia Market
 Gulf and Fareast Market
 Europe Market
 Middle East Market
 Africa Market

28. Program
First Run At  Input Data
At 100 % L/F
Load Factor Integer Program U Curve Tech
Result
100 % LF
Right Capacity
Right Capacity

29. Program
Second Run
 Input Data
At 65 % L/F
Load Factor Integer Program U Curve Tech
Result
S/L = 65 %
Optimum Frequency
Optimum Frequency

30. Program
Run the Program  Input Data
ATK1, ATK2, ATK3 …ATKn
At step function
Developing
Integer Program U Curve Tech
Optimum Solution
Curve
Result (A/C) ?
Position the Fleet
Optimum Solution
Curve

31. Case Study
Point to Point Model
Saudi Arabia Market

32. Case Study
Point to Point Model
Gulf and Fareast Market

33. Case Study
Point to Point Model
Europe Market

34. Case Study
Point to Point Model
Middle East Market

35. Case Study
Point to Point Model
Africa Market

36. Case Study
Multi stops operating Model
SAH-DXB-KUL-CGK

37. Case Study
Multi stops operating Model
SAH-DXB-KUL-CGK

38. Case Study
Multi stops operating Model
SAH-DXB-KUL-CGK

39. Case Study
Multi stops operating Model
SAH-DXB-KUL-CGK

40. Results
 Point to Point Operating Model
 Market Aircraft
 Saudi Arabia Market A310-300 ( 198 )
 Gulf and Fareast Market A330-200 ( 277 )
 Europe Market A330-200 ( 277 )
 Africa Market A330-200 ( 277 )
 Middle East Market A330-200 ( 277 )

41. Results
 Multi Stops operating Model
 Market Aircraft
 For Route ( Based On Maximum Profit)
 SAH-DXB-KUL-CGK A310-200 ( 254 )

42. Summary
 Two Airline Operating Models i,e
Point To Point and Multi Stops
Operating are examined, and based on
objective to be achieved ( Minimum
Cost or Maximize Profit )
 Results shows that Aircraft A330-200 is
the best one for most Yemenia Market
in Point to Point Model
 While in Multi Stops operating, Aircraft
A310-200 ( 254 ) is the best one, then
A330-200 is next.

43. Contact
 Contact
 smartdecision2002@yahoo.com
 Tel : 00967 736255814