Introduction to Airline Information System

Introducing Airline Information System By Siddhartha Tripathi Wednesday, May 27, 2009

Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Evolution of Airline Industry ,[object Object],Contd..

And Some Stats to think !! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Contd..

US majors – internet sales And Some More Stats to think !! 20% American Airlines 22% United Airlines 22% Northwest Airlines 22% Continental Airlines 24% Delta Air Lines 24% US Airways 33% America West Airlines 36% Alaska Airlines % Flown Booked Online Carrier

Types of Airlines( US Classification) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Contd..

Prominent Organizations In Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],*IATA only controls International flights

Introducing SITA, OAG and ATPCO. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Introducing GDS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline Industry Value Chain INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING AND SALES SERVICE PROCUREMENT TECHNOLOGY DEVELOPMENT HUMAN RESOURCE MANAGEMENT FIRM INFRASTRUCTURE from C ompetitive Advantage: Creating and Sustaining Superior Performance , copyright 1985 by Michael E. Porter. -Financial Policy - Accounting - Regulatory Compliance - Legal - Community Affairs Pilot Training Safety Training Agent Training In-flight Training Baggage Tracking System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Information Technology Communications Product Development Market Research ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],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

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 Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity

Airline system Components Central Reservation System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components CRM System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Pricing And Revenue Management System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Finance System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Sales and Marketing System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Business Processing System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Maintenance And Engineering System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object]

Airline system Components HR Management System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Flight Operation System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Air Cargo System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Crew Management System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline system Components Airport Management System Compliance and Network Security Inventory and Content Distribution Agile Business Process and Demand Mgmt. Emergency Response & Business Continuity ,[object Object],[object Object],[object Object],[object Object]

Challenges facing Airline Industry Key Challenges & Trends Growing Demand Limited Capacity Compliance Safety Innovation Market Liberalization Multi-modal Distribution` Rising Costs Maximize assets' utilization Key Goals Achieve demand-driven supply chain efficiencies and real-time visibility Attain ‘sense & respond' capabilities to improve customer experience

Challenges facing Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Challenges facing Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

IT trends in Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

IT trends in Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

IT trends in Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Business Transformation to Support Innovation Source: IDC European Vertical Market LOB Survey, October 2006 – N. of respondents: 18 Top Business Initiatives in the CEO Agenda Airlines, Railways, Public Transport (Ranked in order of Importance) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Continuous Demand-Driven Innovation

IT trends in Airline Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Airlines are Looking to Outsource and adopt/ develop customer centric best of breed solution

Developing IT Roadmap for Airline Airline Website Launch Study Of Airline IT System Evaluating IT readiness Understanding Long Term Plan Building Framework For Internal Portal Deciding IT Infrastructure Launching Basic Intranet Portal Launching Basic FFP/CLP Pain Point Prioritization & Application Launch Schedule Time Frame 0- 1 Year

Developing IT Roadmap for Airline Time Frame 1- 3 Year 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

Developing IT Roadmap for Airline Planning IT system for Empowered Airline Time Frame 3+ Year Data Warehouse &BI Central Database Demand Forecasting System Alert Systems Integrated Back End System CRM System Wireless Network (Wi-Fi) Internet Network Mobile Network Front Office/Cal Center Robust Delivery Network

ROI-IT Empowered Enterprise Do you Know? Delta Airlines uses special RFID technologies to monitor the performance of aircraft engines to compare latest data with historical data to anticipate potential problems. Maintenance costs have been reduced by half . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1-3 year ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],0-1 Year Benefit Time Period

ROI-IT Empowered Enterprise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3+ Year Benefit Time Period

Most Urgent IT Improvements IDC Recommendations Remove Legacy Silos-based platforms Improve Networks Improve Mobile Workers Efficiencies Improve Security & Safety SOA IP, Optical Wireless Networks IT Security, Sensor Networks, Surveillance Advanced Demand Mgmt. Advanced Planning, Scheduling

Airline Networks Need to Rely on Advanced Communication Networks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Optimized Mobile Workforce efficiencies are instrumental to enhance mobile assets utilization & improve the customer service Internet Back-end Wireless Devices Wireless Network backbone ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],Using IT to Improve Operations Weather forecast Ground-Delay Air-Delay Other Factor Flight schedule Fleet assignment Crew planning Proactively System Can Re-schedule Activities Based on Expected situtaion Flight Delay reduced/ Avoided Happy Customer

[object Object],[object Object],[object Object],Using IT to Improve Operations Server (check in- Counter) Fast Medium Slow Server (check in- counter) queue Queue Slow Queue Before Using Intelligent System to Bifurcate Passenger After Using Intelligent System

JetBlue: A Success Story ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],JetBlue: A Success Story (Cont.)

See What E-Distribution can do Continental Airlines' Web Site Generates Record Sales ; Hitting $2 Billion Annual Rate HOUSTON, Aug. 11 -- Continental Airlines today announced that its continental.com web site is generating record sales volume for the airline, recently setting a single-day sales record and achieving record sales volume of $2 billion for the most recent 12-month period, ending July 31. “ We’ve made a significant investment in our web site’s features and functionality to make it a full-service travel site,” said Jim Compton, executive vice president-marketing. “Seeing this dramatic growth in the site’s usage is rewarding because this is such an efficient method for ticket sales.” On one day in July, continental.com racked up $8.5 million in sales , setting an all-time single-day record . This record volume is equal to 34% of the worldwide passenger sales volume that Continental achieves from all sources in an average day. Continental Airlines Press Release, Aug 11 2005

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Few Thoughts before Inviting Question

Thank You! Questions? Please email me at: [email_address] Siddhartha Tripathi Manager Marketing BSIL www.bsil.com

Introduction to Airline Information System

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Introduction to Airline Information System