1. 1 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Cost Optimisation Methods in Air Crew Planning Botond Kovari : Budapest University of Technology and Economics Department of Transport Economics Hungary Email: bkovari@kgazd.bme.hu

2. 2 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 General role of crew management Role of crew is increasing in every company (little investment in crew can increase productivity) Human resource management: controls the procurement, training, assignment of staff Objective: satisfy the needs of society, company and individual Planning process levels: strategic, tactical, operational contents: objectives, measures, possibilities tasks: determine needs, procurement, training, working (assignment to jobs), inspiration, career, holiday

3. 3 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004

4. 4 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 General parameters of crew Most important influencing factors Demand on crew Objectives of the company, strategy Output (e.g. quality of service provided) QuantityQualityTime Place

5. 5 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 General parameters of crew - Quantity Gross demand Staff required for every labour processes Reserve staff because of irregularities in schedule Reserve staff because of other irregularities (illness, conference)

6. 6 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 General parameters of crew – Quality Gross demand KnowledgeMotivationExpectationSkills Place the right man to the right position!

7. 7 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 System of air crew planning Air crew costs are very high (at MALEV Hungarian Airlines, fix crew cost is about 25% of total, flight related direct fix cost, without the airplane’s rental fee) Serious competition makes cost reduction necessary Most important aim: assignment of crew to flights Crew planning system is integrated into the whole planning and operation system of an airline

8. 8 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 System of air crew planning

9. 9 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Factors that influence crew planning Crew categories: cockpit, cabin Determining factors RegulationsOthers AuthorityAirline

10. 10 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Factors that influence crew planning - Regulations Duty and rest time limits: daily limits limits on a longer term interrupted duty briefing time stand-by duty rest time etc.

11. 11 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Factors that influence crew planning - Others crew requirements location of crew base equal share of work among crewmembers seniority variable flights limits, licences (for airports, weather conditions) network structure periods when crew is not available (illness, holiday, …) etc.

12. 12 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Assignment of persons Aim is to determine, who should cover which flight Methods can be based on: maximising usefulness minimising costs Measurement of usefulness: time, performance, money

13. 13 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Assignment of persons – Maximising usefulness Objective function: Limitations: u ij :usefulness of employee i. at workplace j. [EUR] x ij :assignment of employee i. to workplace j. (decision factor) i:index of employees (i=1..n) j:index of workplaces (flights) (j=1..m)

14. 14 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Assignment of persons – Maximising usefulness Meaning of usefulness factors: dealing with the passengers flying style (e.g. soft landing) willingness to cooperate with the cabin crew flown time with the given type of airplane English knowledge knowledge of the airport, approach methods

15. 15 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Optimisation of crew pairings Crew pairing is a unit (including all crewmembers required for the flight) Objective: cover all flights exactly once

16. 16 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Optimisation of crew pairings Objective function: Limitations: P: set of feasible pairings, F: set of flights, c p : cost of pair p., x p : decision factor of pair p., J: set of duty time constraints, α fp : decision factor (1, if flight f. is performed by pair p.; 0 if not), n f : total nr. of personnel needed for flight f., b jp : duty time of pair p., m j : duty time constraints.

17. 17 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Optimisation of crew pairings Objective function: cost of chosen pairing must be minimal Constraints: - ensures the requested number for every flight (n f is usually 1) - duty time limits mustn’t be exceeded - the decision factors of pairs must be between 0 and 1 (the pair is used or not). If it is a fraction, than the pair works every second, third … day

18. 18 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Optimisation of crew pairings - Example Schedule:

19. 19 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Example - graphic solution Average crew number for a day: 2,5

20. 20 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Example – linear programming solution 1.Generate total possible assignments Totally: 17 combinations of assignment for a pair Cost: equal to the number of crew units Some assignments repeat every second day The pair work by spells This require two pairs Cost is two units

21. 21 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Example – linear programming solution v: layover (crew turn) A: base airport underlined airport: accomodation is needed

22. 22 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Example – linear programming solution 2. Choose the optimal solution - those pairings from the total combination, which are able to cover every flight with minimal cost 2/a. x i : either 0 or 1 (assignment is the same every day, because if a pair is used, it works every day) A solution can be: x1 = x8 = 1, every other x i = 0 2/b. x i : 0 or 0.5 or 1 A solution can be: x2 = x4 = x8 = 0.5, every other x i = 0 Daily cost:

23. 23 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Example – linear programming solution

24. 24 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Re-planning of the crew in case of disturbances Source of disturbances: airplane change, illness, delays, weather, wait for passenger etc. Optimal, real time reassignment can cause: reduction of departure delays less cancellation reduction of number of deadheading flights less rerouting spare of fuel spare of hotel costs and daily salaries spare of the need for passenger accommodation

25. 25 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Re-planning of the crew in case of disturbances We must consider and weight several factors during the process: accommodation of passengers effects on crew maintenance of airplane requesting a new slot Main object is to minimise total cost from additional activities: crew cost of performed flights cost from cancelled flights transfer cost of free crew to the base airport deadheading cost of the new crew to fly changed flights

26. 26 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Conclusion Crew cost is high The exercise must be taken seriously Optimal planning and reaction on disturbances is needed By optimal processes, high cost can be spared

27. 27 Botond Kovari: Crew Planning 1 st Int. Conf. on Research in Air Transportation - Zilina, Nov 22-24, 2004 Thank you for your attention!