Managing Airline Networks: Design, Integration and Innovative Technologies
196
Managing Airline Networks: Design, Integration and Innovative Technologies
196Paperback
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Overview
Written by a renowned consultant and aviation expert, the book discusses the impact of network management on airline resource planning and performance, and examines the interplay between network management and adjacent functions. The book includes a practical case study and is enriched with academic perspectives. Discussing upcoming trends in the sector, the book provides an outlook on advanced technologies that may play a role in next-generation network management.
Features include:
- a description of basic network types, performance indicators for profitable networks, efficient processes and success factors for network management, and common optimisation models and tools;
- descriptive overviews, supported by practical examples, and leading to a deep-dive case study;
- a section on trends in network management, outlining new demand forecasting models, ‘big data’ applications, machine learning and AI use cases, and alternative optimisation models for airlines.
Managing Airline Networks: Design, Integration and Innovative Technologies is designed as a comprehensive compendium and is essential reading for both aviation practitioners and students of airline management.
Product Details
| ISBN-13: | 9780367332372 |
|---|---|
| Publisher: | Taylor & Francis |
| Publication date: | 12/29/2020 |
| Series: | Managing Aviation Operations |
| Pages: | 196 |
| Product dimensions: | 6.12(w) x 9.19(h) x (d) |
About the Author
Table of Contents
List of figures ix
List of tables x
Preface xi
Aims of this book xi
Structure of the book xi
Glossary and list of abbreviations xiii
Part I State-of-the-art network management at airlines 1
1 Introduction 3
1.1 Definition of networks 3
1.2 Non-linear production models 4
1.3 Definition of network management 5
1.4 Value of network management for airlines 6
2 Planning paradigms for different types of networks 8
2.1 Hub and spoke networks 8
2.2 Point-to-point networks 9
2.3 Gateway networks 10
2.4 Comparison of network types 11
2.5 Historic evolution of network management paradigms 13
2.6 Historic approach: leg-based planning, pro-rating 14
2.7 Downsides of the pro-rating method 15
2.8 Current approach: O&D-based planning 16
2.9 Computation of O&D-based planning 17
2.10 Comparison: O&D-based approach in revenue management 18
2.11 Network management at low-cost carriers and integrators 18
3 Key performance indicators for successful network design 20
3.1 Key performance indicators 21
3.2 Heuristics and rules of thumb 24
3.3 Profit calculation scheme 29
4 Network management processes 35
4.1 Interplay between network management processes, accountabilities and tools 35
4.2 Integrated versus fragmented network management approach 36
4.3 Unravelling network management processes by type of resource 36
4.4 Unravelling network management processes along the timeline 37
4.5 Network management and adjacent processes 52
4.6 The 'Transmission belt' concept 55
5 Network optimisation models and planning tools 57
5.1 Linear programming for network capacity and resource allocation 57
5.2 Logit models for the description of buying criteria under competition 58
5.3 Simplified example for planning with a logit model 59
5.4 Reliability of GDS transaction data 60
5.5 Definition of strategic and financial targets 62
5.6 Calculation of market share 62
5.7 Estimate of revenues and costs of flight programme 62
5.8 Iteration of results 63
5.9 Impact of timing on the perceived attractiveness of an airline's offering 64
5.10 Impact of product quality on the perceived attractiveness of an airline's offering 64
5.11 Impact of pricing on the perceived attractiveness of an airline's offering 65
5.12 Iteration process in case of an unfavourable cost position 66
5.13 Convergence of market model 66
6 Impact of network design on airline planning 67
6.1 Network design and planning scenarios 67
6.2 Network and market coverage 67
6.3 Network and fleet structure 73
6.4 Network and human resources 75
6.5 Network and hub structures 76
6.6 Network and regulatory aspects 83
7 Impact of network design on airline performance 87
7.1 Impact of network design on commercial success 88
7.2 Impact of network design on operational stability 98
8 Case study on levers and effects of network management 100
8.1 Basic assumptions for the case study 101
8.2 Macroeconomic view on market efficiency 104
8.3 Non-equilibrium scenarios 105
8.4 Impact of overcapacity in a market 107
8.5 Price war scenario 108
8.6 Return to equilibrium after a price war 111
8.7 Conclusion of case study 112
Part II Interplay with adjacent functions 113
9 Interplay and integration with adjacent functions 115
9.1 Interplay with fleet management 115
9.2 Interplay with hub management 120
9.3 Interplay with crew planning 124
9.4 Interplay with maintenance planning 126
9.5 Interplay with revenue management 130
Part III Trends in network management 141
10 New demand forecasting models 143
10.1 Key questions and challenges for demand forecasting 143
10.2 Current practice: use of MIDT and booking data 145
10.3 Outlook: next-generation demand forecasting models 147
11 New database technologies ('big data') 149
11.1 The 'big data' vision 149
11.2 Big data applications at airlines 151
12 Machine learning and artificial intelligence 153
12.1 The pedigree of machine learning solutions 153
12.2 Historic roots of machine learning 154
12.3 Machine learning use cases 155
12.4 Machine learning applications in network management 158
13 Alternative optimisation models 160
Overall conclusion 165
Appendix A Additional information on network optimisation models 168
Linear programming for network capacity and resource allocation 168
Logit models for the description of buying criteria under competition 170
Appendix B Big data use case example 173
Index 175