Fleet repositioning

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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.

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Fleet repositioning

  1. 1. Wings Of Wisdom Fleet RepositioningBy :Mohammed Salem AwadConsultant
  2. 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. 3. Introduction Yemenia is an international Airline with more 35 international destinations Fleet Planning topic related to the airline Strategy
  4. 4. Existing Fleet Existing Fleet AIR BUS 330-200 2 AIR BUS 310-300 4 BOEING 737-800 3
  5. 5. Existing FleetExisting Fleet AIR BUS 330-200 2
  6. 6. Existing Fleet Existing Fleet AIR BUS 310-300 4
  7. 7. Existing Fleet Existing Fleet BOEING 737-800 3
  8. 8. Current NetworkYEMENIA Current Network
  9. 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. 10. Competition AnalysisFive Years Data BaseGrowth RateVsMarket Share
  11. 11. Competition AnalysisFive Years Data BaseGrowth RateVsMarket Share
  12. 12. Market Segmentations Market Segmentations Domestic Market Saudi Arabia Market Gulf and Fareast Market Europe Market Africa Market Middle East Market
  13. 13. ObjectivesBased on Objectives andOperating Model Point To Point Model  Minimizing Cost Multi Stop Operating Model  Maximizing Profit
  14. 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. 15. Optimization Techniques Minimizing Cost  U Curve Techniques + Solver Program Maximizing Profit  Solver Program
  16. 16. Optimization TechniquesPoint To Point ModelMinimizing Cost  U Curve Techniques  Integer Program  Optimum Solution Curve Model
  17. 17. Optimization Techniques Point To Point Model - Minimizing CostU 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. 18. Optimization Techniques Point To Point Model -Minimizing Cost  Integer Program – Solver
  19. 19. Optimization Techniques Point To Point Model - Minimizing Cost  Optimum Solution Curve
  20. 20. Optimization Techniques Point To Point Model - Minimizing Cost Demand Capacity Vs Market Fare
  21. 21. Optimization TechniquesMulti Stops Operating Model  Maximizing Profit
  22. 22. Optimization Techniques Minimizing Cost  U Curve Techniques + Solver Program Maximizing Profit  Solver Program
  23. 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, KmSource : Company Reports, IATA, AAPA estimates
  24. 24. Cost of ASM for Aircrafts
  25. 25. Cost of ATKfor Yemenia Fleet
  26. 26. Case Study Point to Point Model Input Data DistanceTraffic Fare Cost
  27. 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. 28. ProgramFirst Run At  Input DataAt 100 % L/FLoad Factor Integer Program U Curve TechResult 100 % LFRight Capacity Right Capacity
  29. 29. ProgramSecond Run  Input DataAt 65 % L/FLoad Factor Integer Program U Curve TechResult S/L = 65 %Optimum Frequency Optimum Frequency
  30. 30. ProgramRun the Program  Input Data ATK1, ATK2, ATK3 …ATKnAt step functionDeveloping Integer Program U Curve TechOptimum SolutionCurveResult (A/C) ?Position the Fleet Optimum Solution Curve
  31. 31. Case StudyPoint to Point ModelSaudi Arabia Market
  32. 32. Case StudyPoint to Point ModelGulf and Fareast Market
  33. 33. Case StudyPoint to Point ModelEurope Market
  34. 34. Case StudyPoint to Point ModelMiddle East Market
  35. 35. Case StudyPoint to Point ModelAfrica Market
  36. 36. Case StudyMulti stops operating ModelSAH-DXB-KUL-CGK
  37. 37. Case StudyMulti stops operating ModelSAH-DXB-KUL-CGK
  38. 38. Case StudyMulti stops operating ModelSAH-DXB-KUL-CGK
  39. 39. Case StudyMulti stops operating ModelSAH-DXB-KUL-CGK
  40. 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. 41. Results Multi Stops operating Model Market Aircraft For Route ( Based On Maximum Profit) SAH-DXB-KUL-CGK A310-200 ( 254 )
  42. 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. 43. Contact Contact smartdecision2002@yahoo.com Tel : 00967 736255814

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