Tag Archives: airline management

How do Airlines Evaluate New Routes?

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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.

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

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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)

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

The Second Semester Begins!

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Hello there!

It’s safe to say that my first semester at Embry-Riddle flew by as I cannot believe that it’s already the third week of the second semester!photo

I’m very happy to report that my first semester was a huge success on many different levels. I made a lot of new friends, interviewed for a few internships, finished the semester with terrific grades, joined two clubs on-campus (NBAA and Airport Management Club) and got very involved in the College of Business.

Winter Break

After finals, it was great to go back home to Houston, Texas for a few weeks for some R&R, to spend time with friends and family, and work a little. 9497_632518200207804_6688877303027923437_n 10646980_632517903541167_2664216326904276421_n

At the end of December, I traveled to Atlanta, Georgia to write about and attend the AirTran Airways farewell ceremony as I work as a journalist for AirwaysNews.com and Airways Magazine. Attending the farewell celebration is one of the most unique experiences and stories that I’ve gotten to report as a journalist. It reminded me why I am so passionate about airlines, and why I hope to join the industry soon.

What fascinates me the most is how thousands of people come together at an airline to get hundreds of thousands of people from point A to point B 24/7/365. As I flew to Atlanta the morning of the final flight, I began to wonder how many passengers AirTran has carried since starting out as ValuJet in 1993. Regardless of the number, we can certainly say they brought millions together for birthdays, weddings, family vacations, business meetings, holidays, and many other occasions. Thanks to AirTran and ValuJet employees, they helped make it possible.10670056_599294093530215_28090309397519307_n

My Second Semester Begins

Now, I’m in the middle of the third week of the Spring Semester, and I can already tell that it will be another great semester!

However, I do have a full load between Airline Management, Humanities: Introduction to Literature, Macroeconomics, Quantitative Methods II, Advanced Computer Based Systems, a part-time job in the College of Business, being a member of the College of Business Student Advisory Board, and exploring Daytona Beach as well as the Sunshine State.

Stay tuned as the adventure continues!

 

Why are all of those flights really delayed?

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As an aviation business major here at Embry-Riddle, I have taken a lot of neat classes in the past three years.  Everyone likes classes that make you think and answer real-world questions, and Airline Management taught by Dr. Abdelghany here in the College of Business is one of those courses.  In Professor Abdelghany’s class you learn the management side of airline operations, which is a very complex model in itself.  From who is involved with each and every flight, to how an airline schedule is built and run on a day-to-day basis, to how an airline recovers from a major storm just like Winter Storm Ion that just blasted through the Midwest and the East Coast, most every part of airline management is covered.

At landing slot controlled airports, only so many flights can takeoff and land per hour all based on what airline “owns” each slot. With any storm, the number of flights that can operate per hour is decreased because of the weather conditions which impacts every flight in the system. This diagram shows the impact during a weather system and a recovery plan below depicting what flights depart when to recover operations.

Here this week we saw US major airline jetBlue cancel all of its flights from its four major Northeast US airports: New York JFK and LaGuardia, Newark, and Boston.  Some stated that they thought it was a sign that jetBlue, or B6 as it’s known in the industry, was on the brink of failure, on the verge of shutting its doors.  In my opinion, I think it is a great way for jetBlue to recover from the terrible start to the winter season.  Two major weather systems have wrecked airline schedules to start 2014, and the flights you see on the boards aren’t the only things affected.  Resources, including airplanes and crews are misplaced at different destinations and duty hour limits (maximum hours one can work per day) are reached at difficult times.  Not only are resources limited, but worker safety is a giant factor as well.  In Indianapolis this week, exposed skin could potentially be hurt via frost bite in as little as five minutes meaning that ground crews are stressed to the max in the frigid temperatures.

Every box indicates a flight which has resources involved including the airplane, the pilots, the flight attendants, gates, etc. When a flight is delayed, a domino effect happens and all flights later on down the schedule using the previous resources are affected as shown here.

This and more is discussed in the Airline Management course at Embry-Riddle, making students in the Aviation Business major or minor very well prepared for a successful career in the aviation industry and the airlines specifically.  So the next time a flight is delayed and folks are wondering why, step back and look at all of the things affected by a major storm.

Major winter storms like Ion in January 2014 affect airports all across the world. Here you can see that it takes a massive effort between airport, airline, and government officials to get airline schedules back on track.

Happy flying,

Kyle