Trends in Flight Operations. Future HCC vs. OCC

Trends in Flight Operations
- Future HCC vs. OCC Amsterdam 21st May 2008
m2p Consulting
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1 2 3
Hub vs. Ops Control An Introduction Developments, Drivers & Future Challenges Best Practice Concepts An Outlook
AGIFORS Airline Operations 2008 Amsterdam Trends in Flight Operations Future HCC vs. OCC
-2-
May 08
Both Hub and Ops Control are responsible for the Airline Operation within the agreed Business Objectives
- Airline Flight Planning Process and Business Objectives -
Commercial Planning
6 months
Tactical Planning
28 days
Operational Planning
3 days
Operations / Production
Flight Planning
Airline Operation Ops & Hub Control
Business Objectives
Regularity
Punctuality
Safety
Profitability
Airlines Profitability is driven by operations which can produce the plan with a minimum of changes
AGIFORS Airline Operations 2008 Amsterdam Trends in Flight Operations Future HCC vs. OCC -3May 08
In general the passenger journey is handled seperatly from the aircraft rotation
- Customer vs. Aircraft Journey -
B
The customer journey (typically controlled by Airline Passenger Services)
Check In
Customer boarded
Customer seated
Check In
Customer boarded
Customer seated
Check In
Customer boarded
Customer seated
The traffic flow (controlled by Airline Operations Control) Aircraft Load Depart Flight Arrive Unload Load Depart Aircraft Flight Arrive Unload
-4-
May 08
Independent from the airline network structure Ops Control responsibility is to supervice the network traffic
- Airline Network Types -
Point to Point
G I F H E K C D N E B O F G
Hub and Spoke

A F B
Multi Hub
A B
Hub 1
Hub
C D C J I H
Hub 2
G
-5-
May 08
The central responsibility of Hub Control is the efficient passenger and baggage management
- Hub Control / Main Task & Handling Processes -
Inbound
Air
Touch Down
On Block
Off Block
Airborne
Outbound
Air
RunTaxiway
RunTaxiway
Position
Aircraft Handling
Position
Pax Transfer Management Inbound Bag Transfer Management A/C / Ramp Management Outbound
The responsibilities of HCC include tasks in the area of planning, control and support functions for other areas
Operations Controls focus is on irregularity management before departure and during flight
- Ops Control / Key Processes -
Off Block Air
Airborne
In-Flight
Touch Down
On Block Air
RunTaxiway
RunTaxiway
Position
Position
Departure EQT ACH / VCH Delay CXX Diversion / Rerouting
Arrival
Turn Around
The responsibilities of OCC include tasks in the area of centralized management of all network operations, monitoring & predicting irregularities, execution of recovery plans, etc.
The turnaround of an aircraft is the result of a number of landside and airside processes
EK Outbound - Overview Turnaround Processes -
Crew Crew Transport Transport Flight Flight Dispatch Dispatch Cargo Cargo Loading Loading Fuelling Fuelling
Aircraft Aircraft Assignment Assignment
Crew Crew Briefing Briefing Baggage Baggage Loading Loading
Catering Catering
Inbound Flight
Outbound Flight
Ramp Ramp Services Services
Boarding Boarding
Check-in Check-in
Cleaning Cleaning
Gate // Bay Gate Bay Assignment Assignment
Landside
Airside Processes
-8-
May 08
During an aircraft turnaround Ops Control has to interact with Hub Control
- Overview Process Owners & Stakeholders -
Ops-Controller Crew-Controller Dispatcher .
Airline Network Control
Airport Movement Control
Gate Assigner Movement Controller
Turnaround Inbound Flight Processes Outbound Flight
Flight Supervisor Load Controller .
Airline Hub / Station Services
GroundHandler Services
Ramp Agent Aircraft Cleaner .
-9-
May 08
The Hub Control Center structure consists of 12 key s functions and consist of defined scope
- Hub Control Control Center Catering De-Icing Fueling/ Cleaning
Transfer Management
Maintenance
Handle all on-ground aircrafts securely and in time, as well as transport the passengers and their luggage as requested. This includes controlling- and scheduling functions as well as support functions, which serves as a basis for other areas. Make allowances for the traffic growth and to compensate for limitations in the infrastructure Manage all TARMAC / APRON traffic and optimisation of all ground processes Prompt and active controlling of A/C turn-around processes through customer oriented, efficient and timely communication
Yield Management
Hub Control Center
Check-In / Gate Agent
Commercial Planning Airport Services Cargo

Gate Allocation Ground Handler
- 10 -
May 08
Operations Control Center (OCC) consist of multiple stakeholders with a well-defined scope
- Integrated Operations Control Center -
Operations Control Cargo Control Maintenance Control
Centrally manage all operations of aircraft, cargo, crews and across the entire network Close collaboration with Maintenance & Hub Control to ensure A/C availability to produce the Flight Schedule
Crew Control
Journey Management
Operations Control
Predict, and monitor potential flight & ground irregularities Implement crew, fleet and passenger recovery plans when needed Return the airline flight schedule to an s on-time state as quickly and efficiently as possible following major disruptions which occur
Yield Management Commercial Planning Airport Services
Flight Dispatch
- 11 -
May 08
With respect to the number of delays / cancellation different modes of operation are defined
- Mode of Operation & Responsibilities -
Line Management
2
Disruption
3
Incident / Accident
Crisis Management
1
Scheduled Operation Operations Control Processes P1 P2 Px
4
Major Thread
Operation is within normal bandwidth or disrupted because of major irregularities Scope of decisions are within Operations Control Line organisation is responsible for decisions
Any incident / accident or major thread for the company (Staff, Customer, etc.) Scope of decisions are mainly outside Ops Control Dedicated management team (Crisis Team) is responsible for decisions
- 12 -
May 08
1 2 3
Hub vs. Ops Control An Introduction Developments, Drivers & Future Challenges Best Practice Concepts An Outlook
- 13 -
May 08
Over recent years, the European aviation market has witnessed rapid growth in the # of Available Seat Kilometers
- Airline Indicator Traffic GrowthTraffic Growth within Europe Comments / Constraints
250000 200000 Kilom eters 150000 100000 50000 0

1 3 5 7 9 1 3 5 7 9 1 '9 '8 '8 '8 '8 '8 '9 '9 '9 '9 '0 '0 3
Within 10 years the total number of

available seat kilometers allocated in Europe has tripled
Through this sharp increase in

RPK ASK
ASK the number of flights to be s, managed within Europe airports s has increased significantly
Year
- 14 -
May 08
European airlines have witnessed a significant increase in Passenger Revenue related to this increase in ASK as well s
- Performance Indicator Revenue GrowthRevenue Development in Europe Comments / Constraints
25.000 Revnue US $ (in 1.000's) 20.000 15.000 10.000 5.000 0 1991 1993 1995 1997 Year 1999 2001 2003 Pax US$ cargo Total US$
During the last 14 years European

airlines have witnessed a significant increase in Passenger Revenue
Cargo revenue, however, has seen

neither any major increases nor decreases in revenue
As Passenger demand is driving the

majority of increased flight demand, greater focus and investment should be placed into the management of Passengers
- 15 -
May 08
Airlines, however, are facing continuously diminishing yields

- Performance Indicator Yield GrowthYield Development in Europe Comments / Constraints
For some time both Passenger and

250
Freight yields have been continuously decreasing
Since 1991, total yields have

200
decreased by approximately 35%

Total Yields Pax Yields Freight/Cargo
U S cen t
150
100
50
0 1991 1992 1993 1994 1995 1996 1997 Year 1998 1999 2000 2001 2002 2003 2004
- 16 -
May 08
The % of flights delayed across Europe major hubs has s been steadily increasing
- Performance Indicator On-Time Performance Development of % of Flights Delayed within Europe
60,00
Comments / Constraints
Between 2005 and 2007 virtually all

major hubs saw significant increases in the number of delays
Madrid Rome
50,00
Virtually all major European airports

have seen significant fluctuations in the percentage of flights incurring delays
40,00
Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
30,00
20,00
10,00
0,00 1999 2000 2001 2002 2003 2004 2005 2006 2007
- 17 -
May 08
The effect weather has played on the frequency of delays has been significantly controlled as of late
- Performance Indicator On-Time Performance% of Flights facing Weather Delays
18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 -2,0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Madrid Rome Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
Weather serves as an unavoidable

obstacle but advances in recovery plan preparation and immediate execution have begun to dampen the harsh influence once seen from weather on delays
- 18 -
May 08
Delays resulting from the inefficient handling of aircraft and passenger / cargo loads are increasing
- Performance Indicator On-time Performance% of Flights facing Delays from Inefficiencies in Flight Operations
10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Madrid Rome Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
Madrid has had the highest variation

in the percentage of delays occurring due to items within the control of Flight Operations
- 19 -
May 08
Delays are increasingly being attributed to late arriving aircraft requiring improvements in delay management
- Performance Indicator On-time Performance% of Flights facing Delays due to Late Arriving Aircraft
18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Madrid Rome Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
Approximately 1/3rd of all flight

delays are resulting from preceding delays as of the past few years
- 20 -
May 08
Delays resulting from the failures in the maintenance of equipment are again increasing
- Performance Indicator On-time Performance% of Flights facing Delays due to Equipment Maintenance Failures
6,0
During the years, Maintenance s

ability to avoid causing delays has been quite variable
Madrid
5,0
As of the last year, Maintenance

efficiency was down accounting for a 1-2% increase in delays responsible for
4,0
Rome Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
3,0 2,0
1,0
0,0 1999 -1,0 2000 2001 2002 2003 2004 2005 2006 2007
- 21 -
May 08
Delays resulting from Air Traffic Control (ATC) management of s airport operations have been significant and rising rapidly
- Performance Indicator On-time Performance% of Flights facing Delays due to ATC
20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Madrid Rome Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average
During the years the operational

burden that ATC has placed on airlines in Europe major hubs has s fluctuated greatly
Within the last year ATC has been

one of the largest causes for operational delays
With such high exponential growth in

ATC delays at all of Europe major s hubs, better management of Hubs is required
- 22 -
May 08
Change in Rank of Airport in Terms of IFR Departures

- Airport Ranking / Gradual Shift Eastwards Actual 2005
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Paris CDG Frankfurt London Heathrow Amsterdam Madrid Munich Barcelona Rome Copenhagen London Gatwick Zurich Vienna Brussels Stockholm Milan Malpensa Manchester Paris Orly Istanbul Oslo Dusseldorf London Stansted Helsinki Palma de Mallorca Dublin Athinai E. Veniz
Globalisation/Rapid Growth 2025

Paris CDG Frankfurt Madrid Amsterdam London Heathrow Munich Barcelona Rome Copenhagen Prague Vienna Budapest Milan Malpensa Zurich Stockholm Dublin London Stansted Brussels Manchester Warsaw Helsinki Athinai E. Veniz Palma de Mallorca Oslo Paris Orly 0 0 2 0 -2 0 0 0 0 16 1 25 2 -3 -1 8 4 -5 -3 12 1 3 0 -5 -8
- 23 -
Business as Usual 2025

Frankfurt Paris CDG Madrid Amsterdam Munich London Heathrow Barcelona Rome Prague Vienna Copenhagen Dublin Manchester Warsaw Budapest Zurich Stockholm London Stansted Milan Malpensa Athinai E. Veniz Brussels Palma de Mallorca Helsinki Antalya Oslo 1 -1 2 0 1 -3 0 0 17 2 -2 12 3 18 22 -5 -3 3 -4 5 -8 1 -1 19 -6
Comments Rankings are based on IFR departures standing in terms of passengers would look significantly different Two dynamics influence the shuffling of airport rankings: airport capacity and stronger growth in Eastern Europe
Strong traffic growth as well as
solid national economic growth contribute to Prague, Dublin, Budapest and Warsaw advancing sharply in the rankings
*Datasource: EUROCONTROL Long-Term Forecast IFR Flight Movements 2006-2025
May 08
In the future some major challenges for airlines will include enhancing punctuality, passenger connections and smooth & efficient operations
- Future Challenges of an Airline -
Enhance punctuality, improve passenger connection at airline hubs and ensure smooth / efficient operations Integrate the Hub and Operations Control of the airline to manage disruptions / delays and provide efficient passenger re-accommodation and aircraft / crew recovery Ensure complete system coverage over an airline entire route network of international, s domestic, LCC and Cargo flights Employ systems / processes that ensure continuous liaison between the IT systems / personnel managing reservations, revenue management, scheduling, sales & marketing engineering and operations so to allocate appropriately range aircraft to routes consistent with fluctuating demand Optimize aircraft and related resource utilization with appropriate interfaces between the resource allocation systems and commercial and financial functions
AGIFORS Airline Operations 2008 Amsterdam Trends in Flight Operations Future HCC vs. OCC - 24 May 08
1 2 3
Hub vs. Ops Control An Introduction Development, Drivers & Future Challenges Best Practice Concepts An Outlook
- 25 -
May 08
As decision making shifts from OCC to HCC the question is how s s, airlines can best align their organization and various responsibilities
- HCC / OCC Business Model -
Business Processes
Hub Control Center processes & responsibilities Operations Control processes & responsibilities Collaboration with other departments from the organization Process Blueprints
IT Architecture IT Framework HCC / OCC IT System Vendors Physical layout of Command Control Center Performance Benchmarking
IT / Infrastructure
HCC / OCC Strategy

Organisation Example Structure of Hub Control Center Example Structure of Operational Control Center Hub Control Manager Operations Control Manager People
- 26 -
May 08
With a shift in control responsibility, OCC can focus on the outstations timely A/C turnaround and HCC on the Hub transfer management s
- Transition of Control from OCC to HCC & OCC-
1970
2005
OCC
OCC
HCC
OCC
Outstations
Hub
Outstations
Outstations
Hub
Outstations
- 27 -
May 08
General Structure of a Command and Control Centre including OCC and HCC
- Integrated OCC and HCC Model -
Parking Allocation Airspace Display
MOCON Airflow Display
Airflow Display
CCTV Display Holding Area Display
HCC
OCC
Security Security
Passenger Service Passenger Service
Passenger Checkin Passenger Checkin
Maintenance Control Maintenance Control
Line Maintenance Line Maintenance
Engineering Engineering
Cargo Prep Cargo Prep
Cleaning Cleaning
Catering Catering
Aircrew Control Aircrew Control
Cargo Cargo
Aircraft Planning Aircraft Planning
Passenger Transportation Passenger Transportation
Connectivity Connectivity
Flight Dispatch Flight Dispatch
Yield control Yield control
Supporting functions like Commercial, Sales, etc.
This is an example of how an IOC Command Centre looks

As the visibility, outsourcing and option limitation of outstations continue to increase, utmost importance will concentrate around the Hub
- Shift of Majority Control from OCC to HCC -
Future
B C D H G F A E
Airline Entire Network s

J K L P O N I M W V X Q U R S T
HCC
OCC
HCC
OCC
HCC
OCC
HCC
OCC
- 29 -
May 08
Possible Structure of a Future Command and Control Centre including HCC and OCC
- Integrated Model of a Majority Control Focused HCC with Support from OCC -
Parking Allocation Airspace Display
MOCON Airflow Display
Airflow Display
CCTV Display Holding Area Display
HCC
OCC
Security Security
Passenger Service Passenger Service & Check-in & Check-in
Engineering Engineering
Maintenance Control Maintenance Control
Line Maintenance Line Maintenance
Network Control Network Control
Cargo Prep Cargo Prep
Cleaning Cleaning
Catering Catering
Aircrew Control Aircrew Control
Cargo Cargo
Passenger Passenger Transportation Transportation
Connectivity Connectivity
Flight Dispatch Flight Dispatch
Yield control Yield control
Aircraft Planning Aircraft Planning
Supporting functions like Commercial, Sales, etc.
This is an example of how a Future Command Centre could look

Main challenges for Airlines decision making process in HCC/OCC for the future years to come
Airlines not Justified for Adopting this Concept While the concept of a more influential HCC is justified for airlines operating out of multiple hubs, single hub airlines would not notice valuable benefits Effect on Delays & Performance Trends Through its ability to more proactively partake and influence the decision making of an airline on the operational level, improvements within Turnaround, Transfer & OTP management could be achieved by an airline Continued Influence of Airport Infrastructure If an airline chooses to shift control from its OCC to even the most efficient and state-ofthe-art HCC, airlines operating out of hubs which have poor airport infrastructure will not see all if any of the many possible improvements
- 31 -
May 08

Trends in Flight Operations. Future HCC vs. OCC

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Trends in Flight Operations

- Future HCC vs. OCC Amsterdam 21st May 2008

Airline Operation Ops & Hub Control

Hub and Spoke

Off Block Air

Departure EQT ACH / VCH Delay CXX Diversion / Rerouting

Aircraft Aircraft Assignment Assignment

Crew Crew Briefing Briefing Baggage Baggage Loading Loading

Gate // Bay Gate Bay Assignment Assignment

Ops-Controller Crew-Controller Dispatcher .

Airline Network Control

Airport Movement Control

Gate Assigner Movement Controller

Turnaround Inbound Flight Processes Outbound Flight

Flight Supervisor Load Controller .

Airline Hub / Station Services

Ramp Agent Aircraft Cleaner .

Hub Control Center

Check-In / Gate Agent

Commercial Planning Airport Services Cargo

Gate Allocation Ground Handler

Operations Control Cargo Control Maintenance Control

Yield Management Commercial Planning Airport Services

250000 200000 Kilom eters 150000 100000 50000 0

Within 10 years the total number of

Through this sharp increase in

During the last 14 years European

Cargo revenue, however, has seen

As Passenger demand is driving the

Airlines, however, are facing continuously diminishing yields

For some time both Passenger and

Freight yields have been continuously decreasing

Since 1991, total yields have

decreased by approximately 35%

Between 2005 and 2007 virtually all

Virtually all major European airports

Munich Paris CDG Frankfurt Zurich Amsterdam London Heathrow Average

Weather serves as an unavoidable

Madrid has had the highest variation

Approximately 1/3rd of all flight

During the years, Maintenance s

As of the last year, Maintenance

During the years the operational

Within the last year ATC has been

With such high exponential growth in

Change in Rank of Airport in Terms of IFR Departures

Globalisation/Rapid Growth 2025

Business as Usual 2025

HCC / OCC Strategy

Parking Allocation Airspace Display

MOCON Airflow Display

CCTV Display Holding Area Display

Passenger Service Passenger Service

Passenger Checkin Passenger Checkin

Maintenance Control Maintenance Control

Line Maintenance Line Maintenance

Cargo Prep Cargo Prep

Aircrew Control Aircrew Control

Aircraft Planning Aircraft Planning

Passenger Transportation Passenger Transportation

Flight Dispatch Flight Dispatch

Yield control Yield control