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07Schedule planning and overcoming disruption
When it comes to network and schedule planning, challenges for airlines include the ability to ‘readjust schedules after publication towards maximizing profit in a way that minimizes impact across the network,’ which was cited by 34% of LCCs and 42% of FSCs.
- Top LCC network planning challenges included ‘simulating network performance with a ‘digital twin’ (50%) and ‘factoring in timely and complete data from our revenue management system’ (46%).
- For FSCs, the ability to build entirely new airline schedules from scratch without relying on historical data from previous operations was a top challenge, cited by 36% of respondents.
The results are interesting, given that it is now possible to use new sources of data to improve network and schedule planning, including more detailed market information and data from the revenue management systems of an airline. Both are important to align schedules and plans to commercial and operational objectives. An excellent example is provided by Southwest Airlines – the airline reported it “directly observed revenue uplift” after deploying both revenue management and network and schedule planning tools from Amadeus.
Enhancing operational capabilities.
LCCs confirmed that various new operational capabilities are priority investment areas for 2024. Some 62% of respondents plan to invest in data analytics relating to their airport operations so they can better predict mishandled bags.
Similarly, 66% plan to implement common communications channels for agents, load controllers and the airport to improve the efficiency of ramp operations. An even higher number (88%) have plans to achieve a common understanding of cargo and baggage demand so they can better maximize revenue from the hold.
When considering ramp services and preparing the aircraft and hold for departure, there are several key areas FSCs believe could be improved with technology.
Which of the following things related to ramp services would FSCs most like to see improved with technology?
To deliver easier and more secure communications between ramp agents and passenger agents
Maximizing the revenue potential of the aircraft’s hold by balancing cargo requirements and passenger bag allocation
Faster turnaround (reducing delays and improving on-time performance)
Improving ‘weight and balance’ when loading the aircraft to reduce fuel consumption
Which of the following capabilities related to
ramp services do LCCs plan to implement?
The move to modern retailing is about more than selling in new ways.
It’s about upgrading every aspect of an airline’s operations to improve commercial and operational performance. We view the ramp as a key area where modern technology can help airline agents communicate more easily and more securely.
We’re working on new approaches to provide better common awareness around baggage, which should reduce a major source of delay and frustration.”
Holger Mattig
SVP, Product Management,
Airport and Airline Operations
Amadeus
Disruption management: Challenges.
Overcoming disruption has been a major theme in the airline industry over the past two years, with 43% of all airlines revealing they are observing more disruption than before the COVID-19 pandemic. A further 24% see about the same levels, while 32% reported less disruption than pre-pandemic.
Respondents were split on whether disruption would return to its pre-pandemic norm. Some 46% of FSCs and 48% of LCCs feel elevated levels of disruption are here to stay, with 46% of FSCs and 38% of LCCs saying disruption ‘will eventually’ return to pre-covid levels.
Only 5% of Travel Technology Investment Trends respondents said there were no challenges preventing them from managing disruption effectively today.
There was widespread agreement that airlines face challenges when managing disruption, though specific challenges varied by airline business model.
Top five barriers preventing LCCs from managing disruption effectively:
%
Lack of common technology platform with operational stakeholders at the airport
%
Lack of automated and computerized planning for rebuilding flight schedules
%
Difficulty cascading key information within an airline
%
Inability to understand the impact of decisions on the onward plans of passengers
%
Lack of automated and computerized planning for re-accommodating passengers
Top five barriers preventing FSCs from managing disruption effectively:
%
Difficulty cascading key information within an airline
%
Fragmented operational systems within an airline (e.g., crew and maintenance systems do not talk to passenger systems)
%
Inability to understand the impact of decisions on the onward plans of passengers
%
Lack of common technology platform with operational stakeholders at the airport
%
Lack of automated and computerized planning for rebuilding flight schedules
Airlines agree there are a wide range of capabilities that can improve how disruption is managed – though, once again, priorities differ.
FSCs highlighted a need for the better cascading of information, enhanced data analytics and a closer integration of operation systems, while LCCs sought better data sharing with airports, the cascading of information with stakeholders and improved collaboration with other airlines.
Capabilities that would help airlines and stakeholders to better manage disruption
FSC
LCC
With this widespread understanding of disruption, and the potential of technology to overcome it, some 57% of airlines surveyed said they are currently investing in technology in this area. Only 5% of all airlines said they have no plans to invest in disruption management.
Airlines are investing in technology to overcome disruption to:
Improve brand image
Improve the passenger experience
Differentiate
Improve staff morale
Reduce costs
When asked if they have end-to-end disruption management in place, with tools to re-accommodate passengers, rebuild schedules and proactively manage flights, just 35% of respondents were confident they had this in place today. However, some 63% are intending to implement this technology by 2030, suggesting this area is a priority for every airline in the survey.
Only 38% of airlines can measure costs relating to ‘non-air’ recovery, such as compensation and overnight stays for disrupted passengers. A similar number (41%) can understand crew costs associated with disruption. However, more respondents said they can understand direct operational costs arising from fleet misalignment (44%).
Disruption is a major topic of discussion within the aviation sector – with delays potentially having a serious impact for passengers, especially when separated from their bags.
While disruption is inevitable, as not all events can be foreseen and controlled, it can be effectively dealt with – and Amadeus has the tools to help. With effective use of data, common platform solutions and a place at the center of the travel ecosystem, we are well-positioned to help airlines minimize the impact of disruption for passengers and the bottom-line.”
Holger Mattig
SVP, Product Management,
Airport and Airline Operations
Amadeus
