Filling the gap

830 views

Published on

Filling the gap, it is concern a new idea in aviation industry, we can define an airline by three main factors, i.e Passengers demand, Market Fare, and Network distances, that is Stage Length, while Cost is consider as step function, the study shows there is a gap in locating the learning curve of the company to the typical operation one by using optimization techniques.

Published in: Business
2 Comments
3 Likes
Statistics
Notes
No Downloads
Views
Total views
830
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
2
Likes
3
Embeds 0
No embeds

No notes for slide

Filling the gap

  1. 1. Filling The Gap Network Analysis Point To Point By : Mohammed Salem Awad www.freewebs.com/wingsofwisdom.com/
  2. 2. OUTLINE <ul><li>Introduction </li></ul><ul><li>Major Aircraft Manufactures </li></ul><ul><li>Aircraft Evaluation Methodology </li></ul><ul><li>Network Analysis – Route Segmentation </li></ul><ul><li>Point To Point Vs Hub And Spoke </li></ul><ul><li>Allocate Right Capacity </li></ul><ul><li>Determine Optimum Frequency </li></ul><ul><li>Fleet Repositioning – Optimum Solution Curve </li></ul><ul><li>Fare Trade Off – Market Fare Vs Demand </li></ul><ul><li>Case Study : Flybe – ( Southamption ) </li></ul><ul><li>Result </li></ul><ul><li>Reference </li></ul><ul><li>Contact </li></ul>
  3. 3. Introduction One of the major concern of airlines is How to select the right assets ( Aircrafts ) while low cost carriers consider this factor as a main factor in evaluation their process
  4. 4. Aircraft Manufactures To be Aircraft Manufacture is very hard, as this needs a huge investment and a support of the govenerments, and if they reached that level, it also hard to keep in the top of the others, they deliver an excellent, and outstanding products, in a very competitive environments. The marketing and the saling teams are the key players to success the company, they deliver a smart ways and techniques to convince the customers
  5. 5. Aircraft Evaluation <ul><li>Value Analysis </li></ul><ul><li>Cost per Trip and Cost per Seat </li></ul><ul><li>Optimum Solution Curve </li></ul>Regardless the technical issues, runway restrictions , Aircraft can be evaluate Economically by
  6. 6. Aircraft Evaluation Value Analysis
  7. 7. Aircraft Evaluation Cost per Trip and Cost per Seat
  8. 8. Aircraft Evaluation Optimum Solution Curve
  9. 9. Network Analysis Route Segmentation <ul><li>Based on the desired stage length which may reflect the aircraft capability range </li></ul><ul><li>So airline may classified the range as </li></ul><ul><li>Stage length 500 </li></ul><ul><li>1000 </li></ul><ul><li>2000 </li></ul><ul><li>3000 Kilometers </li></ul>50 84 16
  10. 10. Point To Point Vs Hub And Spoke <ul><li>Point To Point Vs Hub And Spoke </li></ul><ul><li>The systems used in Airlines are </li></ul><ul><li>Point To Point ( Low Cost Carriers ) </li></ul><ul><li>Hub and Spoke ( Legacy Airlines ) </li></ul><ul><li>Hub to Hub ( Legacy & Mega Carriers ) </li></ul>
  11. 11. Point To Point Vs Hub And Spoke <ul><li>Point To Point ( Low Cost Carriers ) </li></ul><ul><li>We used U Curve Tech to allocate the right Capacity , that is the main objective is how to find the right capacity by a minimum cost </li></ul>
  12. 12. Right Capacity RIGHT CAPACITY ( Right Aircraft ) f =
  13. 13. Right Capacity <ul><li>U Curve Techniques </li></ul><ul><li>Cost of Service - Cost of seat </li></ul><ul><li>Cost Of loss Oppurantity – Cost Of losing Revenue Due to unavailability of seat </li></ul><ul><li>The Final Curve take Shape ( U ) </li></ul><ul><li>The Best Decision represents by the lowest cost in the curve </li></ul>
  14. 14. Optimum Frequency Determine Optimum Operating Frequency
  15. 15. Fleet Repositioning Optimum Solution Curve
  16. 16. Market Fare Vs Demand Fare Trade Off – Market Fare Vs Demand
  17. 17. <ul><li>Program - Initial Solution </li></ul><ul><li>Input Data : </li></ul><ul><li>City Pairs - Sector </li></ul><ul><li>Market Fare </li></ul><ul><li>Actual Passengers </li></ul><ul><li>Cost -ATK </li></ul>CASE STUDY Flybe – Southamption Hub Integer Program Model Optimum Curve Solution U curve Techniques
  18. 18. CASE STUDY Flybe – Southamption Hub
  19. 19. CASE STUDY Flybe – Southamption Hub Input Data Traffic Cost Fare Distance
  20. 20. CASE STUDY Flybe – Southamption Hub Input Data 100 % LF Integer Program U Curve Tech Right Capacity First Run At 100 % L/F Load Factor Result Right Capacity 
  21. 21. CASE STUDY Flybe – Southamption Hub Input Data 67.7 % LF Integer Program U Curve Tech Optimum Frequency Second Run At 67.7 % L/F Load Factor Result Optimum Frequency 
  22. 22. CASE STUDY Flybe – Southamption Hub Input Data ATK 1 , ATK 2 , ATK 3 …ATK n (A/C) ? Integer Program U Curve Tech Optimum Solution Curve  Run the Program with step function Developing Optimum Solution Curve Result Position the Fleet
  23. 23. CASE STUDY Flybe – Southamption Hub
  24. 24. CASE STUDY Flybe – Southamption Hub Based on Iata Cost the best capacity is 240 seat, So What is the cost BAe 146 ( 120 seat ) ?????
  25. 25. CASE STUDY Flybe – Southamption Hub If we change the input fare structure of the network (double value ) The optimum solution curve will move down closer the aircrafts
  26. 26. The World’s Top 10 Low-Cost Carriers 2004 Flybe – Southamption Hub
  27. 27. CASE STUDY Flybe – Southamption Hub
  28. 28. CASE STUDY Flybe – Southamption Hub
  29. 29. Result <ul><li>The analysis shows clearly the effects of fares and their impacts on the capacity </li></ul><ul><li>Since Low cost carriers implementing point to point system and characterize by low fare so this definitely will effect on the demand, that is will increase the demand ( Elasticity – fare and demand ) </li></ul><ul><li>The graph shows that, even Low cost carriers don’t met/ get the right assets, ( aircraft ) which indicated by 120 seat gap to operated economically. This will help Flybe to reposition their fleet especially BAe 146 in their Hub by mapping the capacity and its cost . </li></ul>
  30. 30. References <ul><li>www.flybe.com </li></ul><ul><li>Online flybe Fare </li></ul><ul><li>Iata Air distance Manual. </li></ul>
  31. 31. Contact Further Information: Mohammed Salem Awad Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.com/wingsofwisdom/ www.freewebs.com/art-of-knowledge/ www.standout-from-the-crowds.webs.com

×