Airline Network Performance Management

9 September, 2021by Brian Walshnews

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Airline Network Performance Management

9 September, 2021 by Brian Walshnews

This EPAS series campaign examines ‘Network Performance Management’ and the challenges faced in most airlines today. Through our extensive experience in Airline Performance Analysis, we have identified these challenges, along with some favorable outcomes for organizations applying a disciplined approach and robust technology to performance analysis.

The results are made available to executives and decision makers for reporting on customizable dashboards.  Some examples of these dashboards are included below. It then concludes with a sample case study with one of our North American customers, where we highlight some of their key results using APAS.

Challenges:
  1. Timely performance results are required by stakeholders
    • Performance analysis is useful and required, yet performed almost a month in arrears and not capable of supporting real time and mid to long term planning
    • A significant amount of time spent waiting to procure the inputs and yet more to manually assemble it into the accepted format, to generate the required analytics
    • Correction and reprocessing of input data to regenerate performance results can take multiple days to a week
    • Model changes and reprocessing of historical periods to generate a consistent basis for evaluating performance can take multiple months provision
  • Accurate granular data is required for deep dive analytics is spread throughout the organization
    • Missing or erroneous operational input data puts into question the validity of the output
    • In the age of virtual cabins, limited or unaligned data across systems makes it difficult to evaluate the airline’s investments in new products and services
    • While the financials are accurately captured in the general ledger, they are not at the granularity needed to truly assess the operation
    • Revenue accounting data is exceptionally large, yet provides vital information on passenger seating and itinerary flows enabling deeper insights into cabin, product and beyond contribution
  • Analytics are performed as a “snapshot” view and difficult to repeat
    • On a periodic basis (monthly/quarterly/yearly/ ad-hoc) analysts are required to gather outputs of data from the various sources
    • The methodology used to model the results is often of a singular focus designed to answer a specific question
    • Expansion of the model or drill down requirements are either difficult to perform or impossible
    • Once the analysis is done, the work required to gather and assemble is not leveraged for future analytics
  • Warehousing of the data is not sufficient to model the operation
    • Modeling the true activity cost using the disparate sources requires greater sophistication than a data warehouse
    • Data warehouses are rigid environments which naturally limit change and a solution’s ability to evolve with the business and adapt new data sources
Observations in performance analysis and evolutions resulting:
  1. More frequent and timely reporting
    • Instead of waiting until GL close to measure results for prior month, airlines are moving towards weekly and even daily reporting
    • Processing of performance month end results should be a matter of hours or minutes, not days
    • Eliminate costly reruns with system data correction and enhancement
  • Multi-dimensional analysis
    • Instead limiting the focus to market or even flight performance, extend performance analysis to the cabin, product or even seat
    • Evaluate the contribution of a market to the Network analyzing passenger flows, beyond revenue and contribution
    • Extend airline’s analysis to include a passenger itinerary or journey view of performance and evaluate online O&D performance
  • Forward view
    • Produce a continuum of result views including month to date thru projected month end results, month end results, projected next month thru future year schedule
    • Include booking data to measure forward looking trends vs. forecast revenue
    • Iterate on schedules to measure future performance with the same scorecard as prior month performance
Executive Dashboard Reporting
Capabilities:
  • APAS reports and analysis increase visibility to performance.
  • Helps drive need for more sophisticated fleet analysis
  • Used to confirm benefit from re-fleeting decisions

  EPAS results are presented to each executive on customizable dashboards:

Case Study – Network Performance Measurement

One of our North American carriers installed and used outputs from APAS to stimulate fleet assignment reviews which ultimately found at least US$25M in improvement to pre-tax profits.


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