AS402 Test 2

Factors in fleet planning

price of fuel

price of aircraft

availability of aircraft

terms of lease

cash flow

insurance

labor cost

route structure

Computer-generated fleet-planning

models provide corporate planning with the basic outputs

number and type of aircraft to be acquired based on payload and range

when to acquire

schedule of phasing out old fleet

projected 2 to 10 years in advance

Fleet system constraints

facility requirements

government regulations

aircraft avail

internal constraints

Payload and range requirements for an aircraft involve

CASM, Stage Lenght

Design characterisitcs of an aircraft involve

aircraft dimension and configuration

physical performance of an aircraft includes

engines, fuel burn, avionics

Orders versus Options?

Orders: Proposed Firm Orders

Options: Provides flexibility- change plans w/o severe financial penalties

Characterisitcs of fleet planning

variables?

important?

last decisions?

highly complex, very difficult, and an on-going process

many variables and unknowns

central to the success of any airline

decisions made will impact operations for 7-10 years

What is top management most concerned with?

financial and market performances

what two factors play the most important role in aircraft acquisition?

financial and market performance

What role do engineers, pilots and other personnel play in aircraft acquisition?

a reactive support role

airline mergers tend to lead to a (in terms of fleet)

proliferation of aircraft types

what is rationalization in terms of feet?

the reorganization to a more efficient fleet

moves fleet towards fleet commonality

What is the relationship between stockholders, the Board of Directors, and the CEO/President in an airline?

Stockholders own the company and elect the Board of Directors. The Board sets company policy and hires the President/CEO to manage daily operations.

what was the primary choice (purchase or lease) prior to 1980s?

Purchase

By late 1980s airlines were tending to ____ (lease/buy)

lease

What are the two types of leases?

operating and capital

Operating Lease

non-cancelable short-term lease

at the end of the lease, lessor retains full title to the aircraft

(renting)

Capital Lease

title to the aircraft remains with the lessor until all lease payments have been made; then title passes to the airline at the end of the lease

What is the difference between Line and Staff Administration?

Line administration performs the airline’s main operational functions (Flight Ops, Maintenance, Marketing, Safety). Staff administration provides support, planning, and analysis for line departments.

What factors affect airline ticket prices?

Time of day, day of week, season, demand, competition, and special events.

leasing disadvantages

higher cost than purchasing over time

loss of residual value of marketable aircraft

Advantages to purchasing

tax advantage of ownership

residual value of depreciated assets

purchasing disadvantages

requires large initial cash outlays

large loans affect airline's ability to get more loans

uncertainty of residual asset value during assumed aircraft life

What are the four FAR 121 required management positions?

Director of Operations, Chief Pilot, Director of Maintenance, and Director of Safety.

what do leasing firms do?

purchase large numbers of aircraft to lease to exisiting U.S. and foreign airlines

What are the main components of airline Line Administration?

 Flight Operations, Maintenance & Engineering, Marketing, and Safety.

Functions of Management

planning: What is to be done

Organizing: dividing up work/resources

Staffing: the people to do it

Directing: assigning tasks

Controlling: measuring and correcting

top 3 level of an airline organization

stock holders

board of directors

President/CEO

Line Departments

perform primary mission

directly involved in producing and selling air transportation

What are key functions of Flight Operations?

Dispatch, Scheduling, Crew Planning, Meteorology, Flight Planning, Training, and Crew Resource Management.

Flight Ops department includes

in charge of?

Operations Control Center

Network Operations Center

Integrated Operations Center or Systems Operations Control

dispatch

crew scheudling

flight planning

meterorology

Crew planning

Training

Crew Resources

Is Flight Ops required?

Yes by FAR PARTS 121 AND 135

Systems Operations Center does what

Dispatch

Meterology

Crew Scheduling

Flight Route Planning

Often Customer Service

Dispatch Department

Dispatcher

Flight Planning

Monitors progress of flights

Maintenance & Weather coordination

What does a dispatcher do?

maintains operational control with PIC

has authority to release, delay, cancel, or re-route flight

flight planning

monitors progress of flights and notifies PIC of irregularities

maintenance and weather coordination

Crew Planning does what

monthly schedules built and published

Crew Scheduling does what?

daily scheduling of aircrews, comes from Crew Planning

Crew Resources (HR) does what

airline staffing

ensure sufficient availability of aircrews

schedule training events

conduct system-wide bidding that governs the placement and promotion of aircrews

forecast future aircrew needs

What is the mission of airline scheduling?

To balance aircraft, crew, and facilities efficiently while meeting market demand and maximizing profitability.

Function of Crew Scheduling Department

manage daily aircrew resources per published schedules

ensure crew avail

manage reserve crew list

deadhead crews as necessary

sick day, delays, cancellations

FAR 121 Required Company Positions

1.Director of Operations

2. Chief Pilot

3. Director of Maintenance

4. Directory of Safety

5. Chief Inspector

119.65

Director of Operations (DO) responsibilities

ensure FAA regulatory compliance

Exercise operational control of flying

(schedule flights and flight personnel)

(supervise all operations personnel)

evaluate and record flight personnel performance

maintain current manuals, publications, revisions

Chief Pilot Responsibilities

assist and advise Director of Operations

Operationally control all flights

supervise Domicile Chief Pilots

Supervise ground and flight training/testing

Ensure aircrew standardization

Maintain checklists and aircrew records

DO and CP Quals

hold an ATP

3 years of experience as PIC in a large aircraft in either Part 121 or 135 ops

Domicile Chief Pilot Responsibilites

Insure shcedule compliance within their area

supervise flight operations

supervise assigned pilots and monitor performance

administer pilot personnel and admin fucntions

coordinate with local agencies

Meterology Department

provide weather data throughout the company

some airlines contract WX to an outside agency

Training Department

Equipment?

check airmen, instructors

flight standards or standardization

sims and ftds

other training facilities

Maintenance and Engineering

amount of employees?

Operating expenses?

Keep equipment in condition to provide safe and salable air transportation

about 25% or airlines employees and 15-20% of operating expenses

Principal Line Departments (4)

Flight Ops

Maintenance and Engineering

Marketing and Services

Safety

Preventative maintenance

when either a certain number of cycles or a certain time has expired

when inspections reveal excessive wear

 What are the internal factors that affect airline scheduling?

Crew duty limits, aircraft maintenance, range/fuel requirements, gate and ground facility availability, weather, and ATC congestion.

What are the external factors that affect airline scheduling?

Airport curfews, slot restrictions, community noise limits, cargo and mail coordination, travel agent/hotel connections, and seasonal demand.

What is the difference between a Non-stop and a Direct flight?

A Non-stop flight goes from origin to destination without landing; a Direct flight keeps the same flight number but may stop en route.

Mission of Scheduling

Balance between adequately servicing destinations and operating economically and effieicnetly

When are schedules published?

when is fleet assignment?

when are crews added to flights?

6 to 12 months out

fleet assignment: 1 month out

Crews are added to the flights 9th of month prior

Scheduling Considerations

1.schedule coordination

2.aircraft maintenance

3.flight operations and crews

4.ground facilities

External factors

Aircraft maintenance factors

minimize out-of-service time

workload of MX personel

use of facilities and equipment

Flight Operations and Crews

airport runway lengths

aircraft fuel capacity

weather

ATC routing an congestion

Crew Avail and Scheduling

Union Agreements

Aircrew staffing is

one of the most important and complex factors affecting flight operations

total pilots on payroll determiens

pilot cost to airlines

Qualified pilots

training complete

Available pilots

less planned and unplanned absences

Qualified and available pilot

to fly the line, per bid status

utilization rates:

average pilot block hours per month by bid status

Staffing levels affect

aircrew costs to company

work/life quality and pay issues for pilots

Quality of flying lines

During cutbacks what can happen to crew?

Can be displaced or even furloughed

understaffing characterisitcs

flight delays

cancellations

less passenger friendly schedules

less flexibility

fewer days off

Overstaffing characterisitcs

under-utilized pilots on payroll

schedules with fewer block hours

Is it better to overstaff or understaff

overstaff

who manages aircrew staffing?

Crew/HR department

14 CFR 117

flight crewmember duty and rest requirements

Crew Scheduling considerations

crew positions

crew avail

other: seasonal variations and weather

Hard Line

firm schedule of trips, days off and no-fly days

Relief / Blank line

covers leftover flying that doesn't fit into hard lines

covers aircrew planned absences

Reserve Line

periods of on-call duty

covers contingencies

covers line and relief pilots unplanned absences

Composite line

mixture of some hard line flying, some reserve duty

Main concern of ground facilities

peaking due to limited:

gates and ticket counter space

baggage and cargo handling

ground equip

food and beverage service

Schedule Coordinaiton

evaluating all of the varied and partially conflicting objectives

done with marketing

Marketing handles special complex issues such as

traffic flow

schedule salability

schedule adjustment

load factor leverage

Cross-connections

hub-and-spoke service

External Factors... can or can't control

airlines can't control these but must consider

Scheduling is

trying to put together a jigsaw puzzle, constructed in three dimensions while the shape of key pieces are constantly changing

Consumer, passenger concerns with tickets

cost

Airlines concern with pricing?

Maximizing profit

factors in ticket pricing

time of day

day of week

season

business cycle

demand

type of passenger

the best fares are at the least-flown times which is when?

weekdays: Tuesdays, Wednesdays

What are the least-flown times?

before 0700 or after 1900

saturdays and early sundays

weekdays: Tuesdays and Wednesdays

midday or late afternoon

When are the most flown times?

friday night

sunday afternoon and evening

monday morning

What is demand pricing

airlines know when people want to fly such as the summer months and major holidays, so they raise prices during these peak travel periods, knowing people will pay

Revenue management objective

to achieve the highest revenue possible through a combination of price discrimination and seat inventory

most basic revenue management can increase revenue by 2-5%

Revenue management tools

seat allocation

fare nesting

network inventory allocation

seat allocation

same seat for several, different prices due to restrictions or inventory control

fare nesting

don't deny sale of higher priced ticket when lower price ticket is available

network inventory allocation

consider the seat inventory for the entire network, not just one flight

overbooking

more reservations than seats

overselling

more people show up than seats

cost to oversell

voluntary, involuntary

ticket code buckets

allows he ticketing software to only sell a certain number of tickets at a given price

What is the joint role of Dispatch and Pilots?

To plan and conduct flights safely and efficiently, sharing responsibility for flight release under FAR 121.