Managing Airline Networks : Design, Integration and Innovative Technologies.

Cover -- Half Title -- Series Information -- Title Page -- Copyright Page -- Table of contents -- Figures -- Tables -- Preface -- Glossary and list of abbreviations -- Part I State-of-the-art network management at airlines -- 1 Introduction -- 1.1 Definition of networks -- 1.2 Non-linear production models -- 1.3 Definition of network management -- 1.4 Value of network management for airlines -- Notes -- 2 Planning paradigms for different types of networks -- 2.1 Hub and spoke networks -- 2.2 Point-to-point networks -- 2.3 Gateway networks -- 2.4 Comparison of network types -- 2.5 Historic evolution of network management paradigms -- 2.6 Historic approach: leg-based planning, pro-rating -- 2.7 Downsides of the pro-rating method -- 2.8 Current approach: O&amp -- D-based planning -- 2.9 Computation of O&amp -- D-based planning -- 2.10 Comparison: O&amp -- D-based approach in revenue management -- 2.11 Network management at low-cost carriers and integrators -- Notes -- 3 Key performance indicators for successful network design -- 3.1 Key performance indicators -- 3.1.1 Revenue-related indicators -- 3.1.2 Distance-related indicators -- 3.1.3 Cost-related indicators and asset utilisation -- 3.2 Heuristics and rules of thumb -- 3.2.1 Pricing -- 3.2.2 Trade-off between aircraft size and frequency of flights -- 3.2.3 What is a desirable seat load factor? -- 3.2.4 How many passengers does an airline need on a certain route to justify a direct connection? -- 3.2.5 How many passengers are needed to fill one incremental aircraft? -- 3.2.6 How many services per day or per week are needed to be profitable on a certain route? -- 3.3 Profit calculation scheme -- 3.3.1 First stage of the network profit calculation scheme -- 3.3.2 Second stage of the network profit calculation scheme -- 3.3.3 Third stage of the network profit calculation scheme.

3.3.4 Impact of fuel price and other external factors on airline profit -- 3.3.5 Impact of overcapacities on airline network profit -- 3.3.6 Profitability of low-cost carriers -- Notes -- 4 Network management processes -- 4.1 Interplay between network management processes, accountabilities and tools -- 4.2 Integrated versus fragmented network management approach -- 4.3 Unravelling network management processes by type of resource -- 4.4 Unravelling network management processes along the timeline -- 4.4.1 Long-term network planning -- 4.4.2 Mid-term network planning -- 4.4.3 Market planning and rotational planning -- 4.4.4 Customer preferences and buying behaviour -- 4.4.5 Impact of the geopolitical location of a hub on network efficiency -- 4.4.6 Role of global distribution systems (GDSs) in airline distribution -- 4.4.7 Additional operational data in the flight schedule -- 4.4.8 Frequency of flight schedules -- 4.4.9 Short-term network planning and resource steering -- 4.4.10 Cascading network planning processes over time -- 4.4.11 Design of long-term abstract plans versus actual flight schedules -- 4.4.12 Interplay between network planning and financial planning -- 4.4.13 Transition from sequential to overlapping process flow -- 4.4.14 Trade-off between stability and flexibility of plans -- 4.5 Network management and adjacent processes -- 4.5.1 Fleet planning process -- 4.5.2 Hub structure and hub resource planning -- 4.6 The 'transmission belt' concept -- Notes -- 5 Network optimisation models and planning tools -- 5.1 Linear programming for network capacity and resource allocation -- 5.2 Logit models for the description of buying criteria under competition -- 5.3 Simplified example for planning with a logit model -- 5.4 Reliability of GDS transaction data -- 5.5 Definition of strategic and financial targets -- 5.6 Calculation of market share.

5.7 Estimate of revenues and costs of flight programme -- 5.8 Iteration of results -- 5.9 Impact of timing on the perceived attractiveness of an airline's offering -- 5.10 Impact of product quality on the perceived attractiveness of an airline's offering -- 5.11 Impact of pricing on the perceived attractiveness of an airline's offering -- 5.12 Iteration process in case of an unfavourable cost position -- 5.13 Convergence of market model -- 6 Impact of network design on airline planning -- 6.1 Network design and planning scenarios -- 6.2 Network and market coverage -- 6.2.1 Basic approach to market coverage -- 6.2.2 360 degree approach in hub airports -- 6.2.3 Effect of airline alliances -- 6.2.4 Ramping up a network -- 6.2.5 Extraction strategy -- 6.2.6 Examples of airlines ramping up their networks -- 6.2.7 Risks of ramp-up strategy -- 6.3 Network and fleet structure -- 6.3.1 Impact of business model -- 6.3.2 The S-curve effect -- 6.4 Network and human resources -- 6.5 Network and hub structures -- 6.5.1 Bank structure of a hub -- 6.5.2 Options for mid-sized hubs: the meta-model -- 6.5.3 Top-down versus bottom-up approaches to hub planning -- 6.6 Network and regulatory aspects -- Notes -- 7 Impact of network design on airline performance -- 7.1 Impact of network design on commercial success -- 7.1.1 Downsides for under-critical hubs -- 7.1.2 Build-up of continental feeder/de-feeder network -- 7.1.3 Types of connections realised in a hub -- 7.1.4 Case study for optimisation of bank structure -- 7.1.5 Correlation between number of banks and asset utilisation -- 7.1.6 Results of the hub reshuffling initiative -- 7.1.7 Impact of hub structure on the profitability of destinations -- 7.1.8 Clustering of destinations by O&amp -- D size and profitability -- 7.1.9 Lessons from the clustering for network design and scheduling.

7.2 Impact of network design on operational stability -- 8 Case study on levers and effects of network management -- 8.1 Basic assumptions for the case study -- 8.2 Macroeconomic view on market efficiency -- 8.3 Non-equilibrium scenarios -- 8.4 Impact of overcapacity in a market -- 8.5 Price war scenario -- 8.6 Return to equilibrium after a price war -- 8.7 Conclusion of case study -- Part II Interplay with adjacent functions -- 9 Interplay and integration with adjacent functions -- 9.1 Interplay with fleet management -- 9.1.1 Iterative fleet and network development -- 9.1.2 Integrated fleet and network development -- 9.2 Interplay with hub management -- 9.2.1 Sequential network and hub planning -- 9.2.2 Integrated network and hub planning -- 9.3 Interplay with crew planning -- 9.3.1 Iterative network and crew planning -- 9.3.2 Integrated network and crew planning -- 9.4 Interplay with maintenance planning -- 9.4.1 Iterative network and maintenance planning -- 9.4.2 Standard maintenance events: 'letter checks' -- 9.4.3 Integrated network and maintenance planning -- 9.5 Interplay with revenue management -- 9.5.1 Sequential network and revenue management -- 9.5.2 The bid price concept -- 9.5.3 O&amp -- D-based revenue management -- 9.5.4 Integrated network and revenue management -- 9.5.5 Outlook: new trends in pricing and revenue management -- Notes -- Part III Trends in network management -- 10 New demand forecasting models -- 10.1 Key questions and challenges for demand forecasting -- 10.2 Current practice: use of MIDT and booking data -- 10.3 Outlook: next-generation demand forecasting models -- Note -- 11 New database technologies ('big data') -- 11.1 The 'big data' vision -- 11.2 Big data applications at airlines -- 12 Machine learning and artificial intelligence -- 12.1 The pedigree of machine learning solutions.

12.2 Historic roots of machine learning -- 12.3 Machine learning use cases -- 12.4 Machine learning applications in network management -- Note -- 13 Alternative optimisation models -- Note -- Overall conclusion -- Appendix A: Additional information on network optimisation models -- Appendix B: Big data use case example -- Index.

Managing Airline Networks: Design, Integration and Innovative Technologies is a comprehensive description of state-of-the-art network management practices at airlines. A compendium on current practices and future trends in the field, the book offers an instructive guide through the complex world of non-linear production systems.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.