Saturday 25 May 2013

Managing disruptions – software hurdles and how to get over them

The fact that airline executives are still not aware about the full impact of disruptions on airline costs and overall business performance can raise lots of concerns. Current software solutions, such as scheduling, network planning, operations control, aircraft maintenance, departure control, crew planning, and various optimisation tools, are designed to fulfill individual planning and operational functions. Consequently, improvement decisions are primarily made to fulfill departmental targets where even the best solutions do not guarantee the best overall results. System integration and optimisation emerge as the most significant hurdles.  
 
Integration of basic operational software applications has always been on vendors’ agenda despite airlines’ scepticism. A senior operations executive at a Big Three US carrier once said that the ‘dream of completely integrated system that provides intelligent real time decision-making in Station Operations Centre, maintenance and airport operations is just that – a dream. There is a notion that at some point in the future this has to converge in an integrated system but it’s just not out there. The decisions we make today are far more complex than the systems are integrated to handle’.

Airlines and vendors have put in lots of effort to optimise the process of schedule recovery, but not many of their solutions have proved to be reliable and used in practice to their true potential. Some of the most costly airline disruptions have been caused by implementation of optimisation tools and ocassional software issues.

Airlines can make improvements in operational efficiency as long as they invest in workable solutions, rather than wasting their time and money developing the impossible. A Sabre’s Chief Scientist said over 20 years ago: 'The issue in operations is that you have a pretty complicated set of flows for aircrew, passengers and aircraft. There are an awful lot of possible solutions or recovery strategies for each component. If you are looking for a typical US domestic hub with complexes of 40 flights out, you’re talking literally billions of possible solutions out there. Not surprisingly, identifying the best solution, whether in terms of recovery costs or passenger service impact, is just impossible. Even airlines with the best data processing systems tend to look at some relatively simple localised solutions that may work for a particular hub at a particular point in time but that may have some downline impacts either for that particular hub later in the day or tomorrow or at other stations around the systems.' 

It is obvious that major improvements in the development of fully integrated information systems are still not in sight. The situation is pretty much the same at the other end: airline executives are still not much aware of the impact their decisions have on operational performance. Their efforts to establish these links are sporadic and mainly subjective. From these points of view, the situation may seem unresolvable.

But, what if we start seeing the disruptions from a different perspective? What if instead of just being immersed in a myriad of daily problems we step above operational to a strategic planes where operational plans are conceived? With the support of the right tool, we would be able to gain a broader understanding of disruptions, to get to know their true origins, and identify those with biggest impact on airline cost and service quality. 

We will certainly become more selective about where we direct our attention, allowing us more time to focus on problems that really matter. We will also gain better understanding of internal relationships, recognise airline, airport, and ATC limitations from a broader perspective, and take appropriate action. 

This new approach to still unexplored area of airline management, as described in my book Beyond Airline Disruptions, opens up new opportunities for airline executives to act selectively and efficiently, resulting in continuous improvement in  operational performance and the quality of services.