How do Airlines Evaluate New Routes?

Posted on July 11, 2016 by Nicolas

Airlines are constantly looking to grow their route network. They do multiple evaluations in order to know if a route will be profitable in the long term or not. Airlines use many programs and tools such as Diio to perform a route study. Diio is an aviation business intelligence data that is used by more than 400 airlines in the world.

Route Map from Air Canada’s largest hub, Toronto-Pearson.

Diio collects data such as fares, routes, airlines, and connections. Airlines using Diio can determine how many passengers are traveling each day (including connections) between Daytona Beach and New York-JFK for example. There is only one daily flight between DAB and JFK (operated by JetBlue) but passengers also travel on other airlines between these two cities. You might have a passenger that has a frequent flyer status with American Airlines and will decide to fly on American with a connection in Charlotte. From a large collection of database, airlines can see the city in which each passenger connected, the airline they flew on, and the average fare they paid for the leg.

An airline will definitely not start a route and fly a Boeing 777 where there are only a few passengers traveling every day between point A and B. It would simply not make any sense to operate an aircraft of such capacity.

Airlines can predict revenue and profitability of a route depending on different times of the day. If the flight is scheduled at a time of the day where there are no possibility of connections to other cities, than the airline might not do as good as a flight that is timed for inbound and outbound connections.

I hope you learned a little more on airlines today!

Until next time,

Nicolas

Contact the author at berniern@my.erau.edu

Life in Network Planning

Posted on June 20, 2016 by Nicolas

In my last blog, I talked about my summer internship in Network Planning. In this post, I will describe important terms that we use in our department. These terms are also commonly used in the world of aviation!

Boeing 787-9 (Photo Credits: Air Canada)

Maintenance
Each of the 380 aircraft if our fleet has to undergo different types of maintenance that needs to be performed in order to be airworthy. It can range from simple line maintenance to complex heavy maintenance where the airplane is almost taken completely apart. Air Canada does the overnight maintenance in-house but the other larger maintenance checks are outsourced in other countries around the world. In Network Planning, we have to make sure that we pull out the necessary number of aircraft out of the fleet so it can go to maintenance.

Turnaround Times
Turnaround time is the period of time from when an aircraft arrives at the gate of a station (airport) to the time the aircraft is ready to depart from the gate for another flight. The turnaround time usually depends on the type of aircraft that is being handled on the ground. Fueling, catering, baggage and passengers loading/unloading is done during this time. Our smallest aircraft, the Beechcraft 1900D needs 20 minutes to turnaround. On the other side, our Boeing 777-300ER needs more than 120 minutes of minimum ground time. For airlines, it is important for their aircraft to be on the ground for the shortest amount of time possible. The more the aircraft is the air, the more they can generate revenue.

Connectivity
Most airlines have one or more hubs where they operate most of their flights. Air Canada’s largest hub is Toronto-Pearson. Our job in Network Planning is to ensure that most passenger will be able to go to the destination of their choice in our route network. For example, if you are flying out of Daytona Beach International Airport, your only options is to either fly to Atlanta, Charlotte, or New York-JFK. At these airports, the flights are timed to allow passengers to connect to another flight to eventually bring them to their final destination.

Departure Times
Some of our flights have an optimal departure time for local traffic while other flights are timed for connectivity. Air Canada flies between Montreal and Toronto at every hour during weekdays and even at every 30 minutes during peak hours. When we operate more than one daily flight per day to a city, we usually spread the flights throughout the day. Business travelers usually enjoy taking a flight early in the morning and return at the end of the day after their meetings.

Aircraft Types
Aircraft limitations are taken into account when we assign a plane to a route. For example a 70-seater regional jet cannot fly from North America to Europe because it simply does not have the range to do such missions. We fly the Airbus A319 to Mexico City (7,300 ft. of elevation) because this aircraft performs well at high temperatures and high altitudes.

Passenger Load Factor
The passenger load factor (PLF) can be described as “how full is the plane in terms of seats occupied.” The load factor can be calculated by dividing the RPMs by the ASMs on a particular route or for the whole network. You can also calculate the PLF by dividing the number of revenue passengers onboard by the number of available seats on the aircraft.

You are now an aviation expert! If you are interested in Network Planning, you should definitely take the Airline Management (BA 315) class on campus. This course is very interesting if you are an aviation passionate like me.

If you have any questions or comments regarding my internship, you can reach me at the email address listed below. I will be happy and glad to answer your questions!

Until next time!

Nicolas

Contact the author at berniern@my.erau.edu

Summer Plans: Alaska Airlines

Posted on May 24, 2016 by Lindsey

Summer is upon us, although it doesn’t feel like it in Seattle. I have been home in Seattle for about two weeks and I still have not gotten used to the chilly weather! So far, my summer has consisted of watching a lot of Netflix and reading. It’s been nice to have a few weeks off from the hustle and bustle of school. However, I’m ready to get started with my summer internship (and not-so-ready to start my online, ERAU Worldwide International Business class)!

As I have mentioned before, I will be the Schedule Planning Intern at Alaska Airlines this summer. Being from Seattle, I have flown on Alaska all my life, since Seattle is their main hub. I have always loved the customer service that Alaska provides, as well as their company culture (and the signature cheese platters they offer in-flight)! Needless to say, I feel very blessed to be able to work as an intern for my hometown airline for the summer.

Alaska Airlines 737 at Sea-Tac Intl. Airport last summer

Of course, people have asked me what I am doing over the summer. When I told them I will be a Schedule Planning Intern for an airline, I discovered that many people who are unfamiliar with airlines’ corporate operations are not quite sure what schedule planning is…

A basic overview: schedule planning consists of creating the schedule that the airline will operate each day, over a few month’s time. For example, this summer the schedule planning group may be working on creating the schedule for the winter months. When creating the schedule, many different aspects of the operation are taken into consideration. Crew, maintenance, aircraft turnaround times, passenger loads, gate space, and optimal departure/arrival times are just some of the pieces that are factored into a schedule. Another major component of the schedule is which aircraft will be flying each route. Alaska Airlines’ mainline fleet is comprised of Boeing 737s. However, Horizon Air, the regional/sister airline for Alaska, operates Q400s. SkyWest also operates E175s for Alaska Airlines. The interesting part about schedule planning is that it is one big puzzle. In order to operate a profitable flight schedule, all of these factors need to be carefully considered.

What is especially exciting about working at Alaska Airlines this summer, is the recent news about Alaska Airlines and Virgin America coming together. I am excited to see how the two west coast airlines will begin to merge, and create the dominant airline of the west coast.

Alaska Airlines refreshed livery-last summer at Boeing Field before the delivery flight of this aircraft

Of course, an awesome feature of being an intern for an airline is the flight benefits. Alaska Airlines, like many other airlines, provides flight benefits to interns. I have not received the details yet, but I am excited to be able to start using those benefits once I start working. I have already looked at the destinations I am hoping to travel to this summer, so let’s hope some of them work out!

As you can tell, I am stoked to get started with this internship! I’ll be starting on May 31st, and will be sure to update you on how my first day goes.

Until next time,

Lindsey

Does your home airport use a common or exclusive use gate system?

Posted on April 26, 2016 by Nicolas

Last Thursday in my Airline-Airport Operations class, we had an interesting debate in whether or not we should favor common-use gates over exclusive leased space gates. There are many advantages and drawbacks in both cases that I will explain briefly below.

Exclusive Leased Space

In an exclusive leased space agreement, an airline will have the right to use the gate and ticket counters space in exchange it has agreed to pay a rent on the area used. For an airline that has only one scheduled flight to that airport, it might not be a plus because it will have to pay for the gate while it only uses it maybe an hour per day.

Large airlines in the United States such has Delta Air Lines might prefer the exclusive leased space even though it is more expensive. They can operate their own gates and not bother about another competitor using their gate. Airlines can also show their brand at the ticket counters, gate area, and inside the jet bridge since they basically “own” the space.

Common Use Space

At a common-use airport, airlines do not have to pay rent on the space. The airport’s gate schedule coordinator will assign each gate to the airlines. It will collect a per-use fee from the air carriers using the space. Common use airports usually have TV monitors at check-in counters and at the boarding area instead of painted walls with the airline’s brand. They can change the image of an airline in a matter of a second.

Common-use airports can generate more revenue by negotiating contracts with companies who want to show their branding around the airport. The HSBC bank branding is present in various airports worldwide.

Picture taken at around 5:30AM.

Picture taken at about 6:45AM.

The picture above on the left was taken in the morning one day last summer when I worked as an intern at the Montreal Airport in Canada. The picture on the right was taken at the same place about an hour after the first one was taken. We can see that the airport operates with common-use space.

There were four United Express’ regional jets at the gates getting ready for their morning flights back to the airline’s hub. About an hour later on that same day, we can see that those planes are gone and replaced with new Air Canada jets.

For airline ground operations, airlines usually have to move their ground vehicles around the airport to the new assigned gate for the next flight. Airports often try assign the gates to the airlines next to each other so it makes it easier for airline operations.

That’s it for this week! In my next story, I will close the 2015-16 school year and share my summer plans.

Nicolas

Contact the author at berniern@my.erau.edu

The Summer of Delta: Part 2

Posted on June 26, 2014 by Kyle

My internship at Delta Air Lines this summer has been quite the adventurous one. Besides a very busy work schedule, I have already touched the east and west coasts, mainland Europe including Belgium and The Netherlands, as well as many interior states. My trip to Brussels was quite the ever-changing one as I had to take the train to Amsterdam and catch a Boeing 777 ride home to the United States. Keeping up with the rest of the aviation geeks here, being able to spot some gorgeous airline heavy metal is a regular occurrence at the world’s busiest airport. The cell phone lot at ATL gives you the opportunity to take some great pictures, like the one above of a company Boeing 767-400, when we are using a west departure operation. Working at an airline is NEVER a boring job!

A panorama of NYC on the approach into LaGuardia.

Infamous Delta Biscoff cookies help power a lot of our 90,000 employees each day.

Delta is a very dynamic place to be right now, especially since we seem to be the airline with the target on our backs. Massive profits in recent times have set Delta apart from the rest of the industry, showing that massive growth and acquisition strategies have seemed to play out in the company’s favor. One of the biggest happenings at the company since I have been here was the recent opening of the Delta Flight Museum at the airline’s Atlanta General Offices location. The event was well-covered on social media and news sites as well, so check it out for more information on how to see this great attraction.

There was quite a crowd of employees and distinguished guests at the grand opening of the renovated Delta Flight Museum on June 17th, the 85th anniversary of Delta.

The internship has really opened my eyes to how complex an airline is. Thousands of people are needed to get a flight off the ground, not just the six to twelve crewmembers that are in each airplane getting the passenger from point A to point B. The typical view of an airline is one that comes from what folks see at an airport but it is really much, much more in depth.

One of our flagship machines, a Boeing 777, took me back across the Atlantic from Amsterdam to Detroit.

Departments like mine (Network Planning) touch each flight at some point and build a schedule that has integrity and will be profitable, Revenue Mangement, aka ticket pricing, prices many levels of tickets with limitations depending on what days you might be traveling or how far in advance you might be purchasing your fare, Operations Control handles each flight enroute and solves any problems that might arise, and Finance provides the money needed to get each flight off the ground by financing airplanes and projects as well as daily operations. The picture to the right shows my ride back to the US from Amsterdam, one of our Boeing 777s. Partnerships like our one with KLM in AMS make our international operations much easier by sharing gates and ground equipment plus personnel. Hundreds of other specific departments and sectors are needed as well, really showing the complexity of the world’s greatest mode of transportation: Flight.

One of the experiences that I have been able to take in at Delta has been the opportunity to fly a handful of their full-motion simulators, including this Boeing 767.

Not only am I a business major, I also have my FAA Commercial Pilot’s Certificate and keep current in both multi-engine and single-engine airplanes. One perk of being at Delta has been access to the full-motion flight simulators that our pilots use to train on their specific aircraft type. We have at least one simulator or more in-house for every type that we fly except the Boeing 717 (Boeing owns those simulators). I have been fortunate enough to fly the Boeing 767-300ER and Boeing 777-200LR sims as well as the Airbus A330. I hope to fly the other types, stay tuned for more pictures!

I am excited to see where else my non-revenue travels will take me this summer and I will be sure to share more pictures and stories as they happen!

Happy flying,

Kyle

Summer Life – Delta Air Lines Internship

Posted on May 30, 2014 by Kyle

Hey all! I hope everyone is having a great summer as we fly into the month of June. My month of May was quite eventful; I wrapped up finals at the beginning of the month and then headed up to start my summer internship at Delta on May 12th. I’m working with the great folks in the Network Planning department where a large group of individuals plan where and how we are going to fly all of the routes that are out for sale to the public. The process isn’t as easy as saying you’re flying from point A to B at this time, it is a very choreographed process with tons of steps between deciding when and where to fly and how they are actually going to do it.

: Sabre AirVision is the software that we use in Network Planning to schedule all of the flights that Delta operates.

My internship started off very quickly as I quickly became acclimated with our scheduling software, Sabre AirVision. The product is very easy to use and not only contains the flight schedule that we are working with, but it also generates reports on things such as flights that may have the same number as another (duplicates, which you cannot have on the same day) and hours that airplane types and crews will fly (we only have so many airplanes and pilots and crews are restricted by the FAA on how many hours they can fly in a day). I cannot imagine scheduling flights without a product such as this one.

Putting together the schedule is quite a challenge because of dozens of things that the normal traveler doesn’t see. Things such as performing overnight maintenance on our fleet and keeping the number of flights coming into and out of a hub within max limitations is a very hard task due to the number of flights that we are trying to fly in a day. The Delta system is based around a hub-and-spoke style layout and every hub has special characteristics that the folks in Network Planning have to keep in mind. No one flying on an airline likes delayed or cancelled flights and it is our job to make sure that every flight gets off the ground as planned, on-time through major planning months before the day of the flight.

Traveling while interning at Delta is a must! I went to NYC for the first time over Memorial Day and it was a fantastic experience!

One great perk of interning at Delta is the flight benefit package. A normal intern has the opportunity to non-rev, or fly anywhere in the world for minimal or no cost at all as long as there is an open seat in the cabin, aka a non-revenue generating seat and passenger for the airline. So far I have worked at Delta for three weeks and have gone home to Indiana twice and to New York City, Myrtle Beach, and Daytona Beach all once. Being an airline intern definitely has its perks other than gaining awesome experience behind the scenes. I cannot wait to use my non-rev benefits to travel around the world!

Delta World Headquarters, known as the G.O. by employees, is an awesome place to work and I am extremely honored to have been chosen to work for and represent such a well respected and successful entity. Stay tuned for blogs in the coming weeks and months from here in Atlanta!

Happy flying,

Kyle

My Life @ Riddle

Daytona Beach Edition

Tag Archives: airline

How do Airlines Evaluate New Routes?

Life in Network Planning

Summer Plans: Alaska Airlines

Does your home airport use a common or exclusive use gate system?

The Summer of Delta: Part 2

Summer Life – Delta Air Lines Internship