IT integration in airline business process ITAB 2007 Grach Muradyan

© 2007 Amadeus IT Group SA General principle Information Technologies allow airline  To be aware of…  To understand…  To describe…  In order to control !!! …but only in case IT is properly integrated in airline business process…

© 2007 Amadeus IT Group SA General principle  Airline industry operates in a dynamic environment  Variety of external and internal factors:  Changes in demand  Competitors actions  Fuel cost, etc…  Impossible to predict all the variations  IT complex should provide airline  Maximum info for planning  Maximum info for ongoing situation / status  Maximum flexibility and best tools to react on the ongoing situation  Minimum time for decision delivery to the market

© 2007 Amadeus IT Group SA General principle IT complex should be organized as a system with feedback (“autopilot scheme”) Airline commercial department MARKET Other factors Competitors Regulation Data collection Data analysis Objectives & planning Optimization Implementation Control

© 2007 Amadeus IT Group SA Airline IT modules  Objectives and Planning  Revenues and costs planning  Network planning  Schedule generation & optimization (max fleet & crew utilization with given restrictions)  Optimization: Revenue Management  Prognosis, based on the historical data  Availability and overbooking level recommendations  Reporting

© 2007 Amadeus IT Group SA Airline IT modules  Implementation  Schedule publication  Connections (ongoing) optimization  Operation and disruptions management  Inventory control  Nesting  Availability  Fares  Levels per class  Rules / limitations  Taxes

© 2007 Amadeus IT Group SA Airline IT modules  Control  Revenue Integrity: increasing load factor and efficiency of RM utilization  Time limits  Fake names (“test”, etc..)  Unreal bookings  Unproductive bookings  Distribution (in GDSs)  Married Segment Control  Long Haul availability  Dynamic Availability  Journey Data

© 2007 Amadeus IT Group SA Airline IT modules  Data collection (major airline data streams)  Billing Information (BIDT / ABI): bookings on own airline  Marketing information (MIDT): bookings on own + other airlines  Global  Regional  Express  Custom, etc…  Ticketing Data (ATD)  IATA Reporting / Hand Off Tape format files  ET Flight Coupons (LIFT files)

© 2007 Amadeus IT Group SA Airline IT modules  Major Data analysis tasks  Commercial analysis  Demand for the airline services  Bookings / cancellations distribution (per markets, flights, cabin / classes, departure dates, etc…)  TAs making passive, test, fake and other unproductive bookings  Revenue / ticketing info  Cashflow / stock control  Interlining  Source for Revenue Accounting systems  Technological analysis  Sales effectiveness (e.g. TK, UN,… levels)  Billing / accounting purposes  Understanding billing of IT service providers  Supporting airline claims

© 2007 Amadeus IT Group SA Data analysis examples distribution per month of departure Market and seasonality dependence (RU / Jan)

© 2007 Amadeus IT Group SA Data analysis examples distribution per month of departure Market and seasonality dependence (DE / Jan)

© 2007 Amadeus IT Group SA Data analysis examples distribution per month of departure Market and seasonality dependence (DE / May)

© 2007 Amadeus IT Group SA Data analysis approach From global to local  Being aware something is going not the way it was expected (e.g. irregularity)…  Understanding what exactly is happening ? (e.g. bookings jumping in low season)  Finding who exactly and why is doing this ? (POS: country->TA office ID)  Deciding how to resolve the issue ? (technological and commercial actions)  Analyzing how to prevent this happening again ? (e.g. changing airline policy)

© 2007 Amadeus IT Group SA Data analysis example Regularity in long-term observation ( peaks in Jan and Sep net bookings )

© 2007 Amadeus IT Group SA Data analysis example TA activity split by country & office

© 2007 Amadeus IT Group SA Data analysis example TA activity split by office

© 2007 Amadeus IT Group SA Distribution per month of departure: Jan bookings made by one TA office (“seats freezing”) Data analysis example

© 2007 Amadeus IT Group SA Passive bookings made by an office within just one day… Data analysis example

© 2007 Amadeus IT Group SA Last but not least… Need for IT policy coordination on top management level  Internal competition (trend) between departments within airline: IT being a TOOL for commerce  Commerce dictates what  IT decides how (the best)  IT proposes new tools / approaches  Permanent control on IT activity: info processing  Regularity  Frequency  Completeness

© 2007 Amadeus IT Group SA Thank you !