airlines mis

34
Symbiosis Institute of Symbiosis Institute of Management Studies Management Studies Airline Management Systems Airline Management Systems Submitted to: Mr Govind Sovale By: Faculty MIS Apoorva yadav( B-06) Eesha Gokhale( B-10) Jayashree Chakrabarti(B-13) Ankush Gulati( B-44) Shashank Karpal ( B-55)

Upload: ankushmit

Post on 13-May-2015

6.521 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: Airlines Mis

Symbiosis Institute of Symbiosis Institute of Management Studies Management Studies

Airline Management SystemsAirline Management Systems

Submitted to:Mr Govind Sovale By:Faculty MIS Apoorva yadav( B-06)

Eesha Gokhale( B-10)Jayashree Chakrabarti(B-13)Ankush Gulati( B-44)Shashank Karpal ( B-55)

Page 2: Airlines Mis

• Through this presentation we take you through the general processes which all of us witness everytime we travel by air, starting from the reservation systems to the baggage handling at the airports to the arrival and departure real time updates. We have focussed on how technology is a booster in processes like these which require absolute precision.We have intentionally focussed on these applications since the other processes are specific to airlines business and are thus proprietary and not for public consumption

Page 3: Airlines Mis

Airline system Components

Pricing And

Revenue ManagementSystem

MaintenanceAnd

EngineeringSystem

Flight OperationSystem Finance

System Crew ManagementSystem

Central ReservationSystem

Airport ManagementSystem

Air CargoSystem

Business ProcessingSystem

Sales and MarketingSystem

HR ManagementSystem CRM

System

Page 4: Airlines Mis
Page 5: Airlines Mis

Airline Industry Value Chain

INBOUNDLOGISTICS

OPERATIONS OUTBOUNDLOGISTICS

MARKETING AND SALES

SERVICE

PROCUREMENT

TECHNOLOGY DEVELOPMENT

HUMAN RESOURCE

MANAGEMENT

FIRM INFRASTRUCTURE

-Financial Policy - Accounting -Regulatory Compliance - Legal - Community Affairs

Pilot TrainingSafety Training

Agent Training

In-flight Training

Baggage Tracking System

•Promotion•Advertising•Advantage Program•Travel Agent Programs•Group Sales

•Ticket Counter Operations•Gate Operations•Aircraft Operations•On-board Service•Baggage Handling•Ticket Offices

•Route Selection•Passenger Service System•Yield Management System (Pricing)•Fuel •Flight Scheduling•Crew Scheduling•Facilities Planning•Aircraft Acquisition

Information TechnologyCommunications

Product DevelopmentMarket Research

•Lost Baggage Service•Complaint Follow-up

•Baggage System•Flight Connections•Rental Car and Hotel Reservation System

Computer Reservation System, In-flight SystemFlight Scheduling System, Yield Management System

Baggage HandlingTraining

Flight, route andyield analysttraining

We NeedProcess and Efficient

System, To derive value from

Value Chain

Page 6: Airlines Mis

Airline Reservation Systems

• We have transgressed fromTelegraph offices booking air tickets

Page 7: Airlines Mis

To this: Power at our fingertips

Page 8: Airlines Mis

Inventory Application

Revenue ManagementApplication

Crew/ Aircraft SchedulingApplication

Other Back end Application

Integrated Back End System

Cargo M

anagement

System

Airline m

aintenanceSystem

CentralDatabase

Dynamic Packaging

Introducing Online FFP/CLP

Transitioning Website Into Shopping Portal

Web Check in, SMS check inApplication

Integrated Backend System`

Introducing E-ticketing/ Web Booking

Customer Focused Application

Introducing Wireless Network System

Page 9: Airlines Mis

GDS– Galileo

• Created by

– Aer Lingus

– Air Canada

– Alitalia

– British Airways

– KLM

– Swissair

– TAP

– US Airways

– WORLDSPAN

• Created by

– Delta

– Northwest

– Trans World Airlines

• GDS:- Global Distribution System, 4 Major GDS

• System architectures are largely based on a mainframe TPF (Transaction Processing Facility)

– Sabre

• Created by

– American Airlines

– Amadeus

• Created by

– Air France

– Iberia

– Lufthansa

– SAS

Page 10: Airlines Mis

• GDS: Global Distribution System - a computer reservation and information system that is often operated by multiple airlines, used by travel agents & other travel professionals and contains information on all types of travel products

Page 11: Airlines Mis

The competition will be determined in the following value added services where GDSs seems to build a strong position.

Res System

Yield management

- Collect, store and analyze data on customers, changes in the markets for seats. (as co-hoster or res system provider)

- gather competitive data on seat allocations, most attractive routes, and direct marketing campaigns according to the data. (as res system provider)

Co-hosting

- Offer co-hosting services to other airlines which can display their seats on the res system. This allows res system providers to participate in other airlines’ growth.

Integrated services

- Offer a product portfolio of integrated booking services for airline tickets, hotel and car reservations.

- Building a partner network will create a competitive advantage.

Page 12: Airlines Mis

GDS Accessibility

GDS

INTERNET

Travel AgencyConsumer

Booking EngineInterface GDS data network

Page 13: Airlines Mis

GDS Hardware software

• Sabre Oracle sun java • Galileo/Apollo Oracle sun• Amadeus Oracle sun• Worldspan Oracle database usesCompaq Web servers

Page 14: Airlines Mis

Market Shares of the GDS Air Segments Booked

• Sabre 32.8%• Galileo 30.7%• Amadeus 24.4%• Worldspan 12.1%

Page 15: Airlines Mis
Page 16: Airlines Mis
Page 17: Airlines Mis

Interface & GDS/CRS

Page 18: Airlines Mis
Page 19: Airlines Mis
Page 20: Airlines Mis
Page 21: Airlines Mis
Page 22: Airlines Mis
Page 23: Airlines Mis
Page 24: Airlines Mis
Page 25: Airlines Mis

Revenue Management Systems

 

The revenue management system is summarized in the figure above. Once a customer or an agent using a GDS logs into the

server and puts in a search criteria for flights, the system connects to the airline central inventory database which contains information on routes and the number of tickets on that particular date. The central

database in turn connects to a business rules engine which determines the price of tickets on a particular route based on certain

factors which may include :

1. Time of travel – early morning and late evening flights are generally more expensive

2.Day of travel – Friday and Monday’s tickets are more expensive than the other days of the week

3.Class of travel – Generally very less variation is seen in business class tickets than economy class.

4.Time of booking – The earlier you book tickets before the scheduled date of departure the cheaper it is.

5. 

Page 26: Airlines Mis

Customer/agent logs in to interface

Searches for flight as per need

System connects to the central inventory DB

The search engine provides information to user

Central Inventory

DB

2 Way data flowBusiness rules

Engine(price points)

The customer selects his seat

Updated DB

Page 27: Airlines Mis

There are three essential conditions for revenue management to be applicable:

• That there is a fixed amount of resources available for sale.• That the resources sold are perishable. This means that there is a time limit to

selling the resources, after which they cease to be of value.• That different customers are willing to pay a different price for using the same

amount of resources• When the aircraft departs, the unsold seats cannot generate any revenue and thus

can be said to have perished.

Page 28: Airlines Mis

Baggage Handling systems

Page 29: Airlines Mis

• All major airports around the world use RFID based baggage handling systems. Once the passenger checks in his baggage,a tag is stuck onto the bag, a counterfoil of which is stuck on the boarding pass. This tag contains a barcode which is scanned by the system during check in and through this screening, the baggage gets onto a conveyor belt.

• At an airport there are multiple flights to multiple destinations so there are risks of sending a baggage on the wrong flight. So there are RFID readers along the conveyor belt which reads the tag from a distance and guides the baggage to the loading tray of the destination airline.

Page 30: Airlines Mis

FLIGHT COMMUNICATION SYSTEMSIt is a generalized computer system that can link information provided by airplane systems, flight crews, and cabin

crews to the airline when the airplane is remote from the airline home base. Integrated with the Boeing ELB, it provides real time administrative information from the airplanes to the airline so that the airline can make high value operational decisions. Administrative information is that information which helps the airline manage its business and is not associated with the flight currently in progress.

• Traditionally, maintenance teams have had to wait for the airplane to land to gather enough information to begin their “parts and planning” to make

• repairs. Today, by integrating ground-based and airplane-based systems, information can be received and decisions made in real time. For example, if a flight deck effect fault occurs in flight, the pilot enters the fault information into the Boeing ELB, which then automatically enters the fault code into the fault recording form. The system is designed to allow the pilot to easily enter the initial fault; additional information can be added during a low workload phase of flight. As soon as the captain electronically signs the fault, the ELB transmits an accurate fault description to the ELB ground control system in the maintenance center and to any other airline organizations that need the information. (Because the fault is automatically correlated to the fault code, the deferral status is automatically available.) Even though the airplane might still be several hours from landing, the airline can have people, parts, and equipment prepositioned and ready to make any needed repairs when the airplane arrives. This system offers operators a number of additional advantages, including:

• • Maintenance efficiency. • Operational efficiency. • .Reduction or elimination of paper documents

Page 31: Airlines Mis
Page 32: Airlines Mis

Customer Relationship Management

Page 33: Airlines Mis

A vexing question for a number of airlines is how much value does customer relationship management, or CRM, really deliver to the bottom line and how does an airline go about getting it?

•As stated above, the bottom line impact of CRM is significant, but varies according to the airline implementing the initiatives. The range estimates are:•For a large airline: $100-$250 million per year; •For a midsize airline: $25-$60 million per year; •For a smaller airline: $15-$50 million per year

Page 34: Airlines Mis

• Airline's success depends heavily on its ability to intelligently manage sales, marketing, and service processes and to draw mutual advantages from understanding of airline's customers. To help airline maximise the strategic value of customer centric initiatives, Airline e-CRM model provides a comprehensive analytical solution, it can contribute toward improving the way that measure and optimize airline's relationships with customers.

• Airline e-CRM model can be conceptualized as a system that is made up of components, linkages amongst the components, and dynamics-that takes advantage of the properties of the Internet to make money. It takes advantage of the properties of the Internet in the way it builds each of the components-value, scope, revenue sources, pricing, connected activities, implementation, capabilities and sustainability-and crafts the linkages among these components. It is what, preferably, enables an airline to have a sustainable competitive advantage. It includes three components (subsystem): Web Basec Airline-Passenger Interaction subsystem; Airline Data Warehouse subsystem; and Airline e-CRM operation subsystem