Assignment 3: Route Fleet Assignment Michael D. Wittman

Similar documents
Demand, Load and Spill Analysis Dr. Peter Belobaba

Assignment 2: Route Profitability Evalua8on Michael D. Wi?man

Overview of Boeing Planning Tools Alex Heiter

Evolution of Airline Revenue Management Dr. Peter Belobaba

Overview of the Airline Planning Process Dr. Peter Belobaba Presented by Alex Heiter

Airline Network Structures Dr. Peter Belobaba

Airline Schedule Development Overview Dr. Peter Belobaba

Evaluation of Alternative Aircraft Types Dr. Peter Belobaba

Assignment 7: Airport Geometric Design Standards

Route Planning and Profit Evaluation Dr. Peter Belobaba

Airplane Value Analysis Alex Philip

THAI AIRWAYS INTERNATIONAL PCL

Introduction to Fleet Planning Dr. Peter Belobaba and Ali Hajiyev

Aviation Economics & Finance

Istanbul Technical University Air Transportation Management, M.Sc. Program Aviation Economics and Financial Analysis Module November 2014

Airline Operating Costs Dr. Peter Belobaba

Introduction: Airline Industry Overview Dr. Peter Belobaba Presented by: Alex Heiter & Ali Hajiyev

Aviation Economics & Finance

Fourth Quarter and Full Year 2011 Results Presentation. February 1, 2012

From Planning to Operations Dr. Peter Belobaba

Airline Current Business Environment Alex Heiter

epods Airline Management Educational Game

Detailed seat map United Airlines Boeing B (777) - version 4. Find the best airplanes seats, information on legroom, recline and in-flight

CORPORATE STEVE BOOKING SMITH CHANNELS

SIA ANALYST/MEDIA BRIEFING Q2 and 1H FY17/18 Results 8 November 2017

SIMULATION MODELING AND ANALYSIS OF A NEW INTERNATIONAL TERMINAL

Investor Presentation Q2 2011

A380 Cabin Crew Training Manual

Russia/Central Asia Airline Capacity Winter 2013/14 Boeing Commercial Airplanes

2Q Earnings Results Presentation

Designing Hubs : Market Outlook, Opportunities and Challenges

Jeppesen Pairing & Rostering

Cathay Pacific Airways Interim Results for the six months ended 30 June 2012

Estimating Domestic U.S. Airline Cost of Delay based on European Model

Weather Translation Examples

Draft Proposal for the Amendment of the Sub-Cap on Off-Peak Landing & Take Off Charges at Dublin Airport. Addendum to Commission Paper CP4/2003

World & Regional Capacity Analysis Ali Hajiyev

Airline Scheduling Optimization ( Chapter 7 I)

Fourth Quarter and Full Year 2009 Results Presentation January 27, 2010

Decision aid methodologies in transportation

Key Performance Indicators

Data Analysis and Simula/on Tools Prof. Hamsa Balakrishnan

Optimized Maintenance Program (OMP)

Management Presentation. March 2016

Global Airline Capacity Winter 2013/14 Boeing Commercial Airplanes

Second Quarter 2004 Teleconference

INVESTOR PRESENTATION. May 2015

Aviation Updates. Mr. John Schubert. Managing Director, Marketing-Asia Pacific & India

Long Haul load factors for the month remained strong relative to last February s statistics, but both Domestic and Tasman/PI were lower:

Cathay Pacific Airways Cathay Pacific Airways 2008 Annual Results Investor Relations Meeting 11 March June 2009

ELB and other initiatives to increase efficiency and reduce the use of paper at SWISS Technical Division. Thomas Lüscher, SWISS

INVESTOR PRESENTATION. Imperial Capital Global Opportunities Conference September 2015

Operator and Solver. Matt Ardrey, Kent Young & Roei Ganzarski

New Developments in RM Forecasting and Optimization Dr. Peter Belobaba

INVITING YOU TO TAKE FLIGHT

Validation of Runway Capacity Models

FIRST QUARTER OPERATING PROFIT IMPROVES 69% TO $463 MILLION

Managing And Understand The Impact Of Of The Air Air Traffic System: United Airline s Perspective

EASA Safety Information Bulletin

Growing Size and Complexity Prof. Amedeo Odoni

Analysts Briefing. 18 March Cathay Pacific Airways Limited

SWISS sees operating profit fall to CHF 212 million; Airbus A340s to be replaced with Boeing B ERs

AerCap Holdings N.V. Aengus Kelly, CEO. January 2017

AIR NEW ZEALAND ANNUAL RESULTS ANNUAL RESULTS

INCENTIVE PROGRAM

Right-Sizing: The Right Move in the Airline Business

THIRD QUARTER OPERATING PROFIT UP 51% TO $675 MILLION

Passenger: 17.2 Million (+3.9% yoy) OTP: 85.8% SLF: 73.3% Subsidiaries Operating Revenues US$415.2 Million Cargo Carried 219.4K ton (+10.

Airfield Capacity Prof. Amedeo Odoni

Financial overview. Adjusted operating cash flow* Annual dividend (excluding special dividend) Dollar movement. Percentage

Fourth Quarter 2006 Results Presentation February 15, 2007

Pricing and Revenue Management

ETIHAD AIRWAYS ANNOUNCES ORDER FOR UP TO 117 AIRBUS AIRCRAFT

STRONG OPERATING RESULTS LIFT NET PROFIT 7.3% TO $932 MILLION

Demand Patterns; Geometric Design of Airfield Prof. Amedeo Odoni

Airfield Geometric Design Prof. Amedeo Odoni

Abstract. Introduction

Holiday Cruise Lines. Spreadsheet Design Introduction: Dealing With Costs & Revenues 1.011

Randy Tinseth Vice President, Marketing Boeing Commercial Airplanes

Appendix B Ultimate Airport Capacity and Delay Simulation Modeling Analysis

Cathay Pacific Airways 2011 Analyst Briefing 23 June 2011

Do Not Write Below Question Maximum Possible Points Score Total Points = 100

Airline Performance and Capacity Strategies Dr. Peter Belobaba

Fundamentals of Airline Markets and Demand Dr. Peter Belobaba

Airline Passenger Transportation System: Structure and Dynamics. Lance Sherry 04/2101

Management Presentation. August 2012

Airfield Geometric Design Prof. Amedeo Odoni

Cathay Pacific Airways 2013 Analyst Briefing 25 June Cathay Pacific Airways Analyst Briefing 27 November 2013

Runway Length Analysis Prescott Municipal Airport

PARENT AIRLINE OPERATIONS LIFT GROUP PROFIT

Singapore Airlines Group Analyst/Media Briefing HALF YEAR FY RESULTS 5 NOVEMBER 2012 THE PARENT AIRLINE 1H FY2012/13 RESULTS

Bank of America Merrill Lynch 2018 Emerging Markets Corporate Credit Conference. Miami, May 2018

The Need and Urgency for a Three-Runway System (3RS) August 7, 2014

Dynamic and Flexible Airline Schedule Design

Cathay Pacific Airways 2012 Analyst Briefing 28 June 2012

Daedalus Sales & Marketing Consultants

Atennea Air. The most comprehensive ERP software for operating & financial management of your airline

MEDIA/ANALYST PRESENTATION FY RESULTS 11 MAY 2007

SAS Group Asia Tour Financial Hearing Presentation May 14, 2012

SECTOR ASSESSMENT (SUMMARY): Transport, and Information and Communication Technology - Air Transport 1

Transcription:

Assignment 3: Route Fleet Assignment Michael D. Wittman Istanbul Technical University Air Transportation Management M.Sc. Program Network, Fleet and Schedule Strategic Planning Module A3 : 12 March 2014

Assignment 3: Fleet Assignment Turkish Airlines (hypothetical) flight TK64 operates non-stop daily from Istanbul (IST) to Bangkok (BKK), departing at 1955. During last summer s peak months (June-August), this flight was operated with an Airbus A330-300 aircraft, configured with 28 J-class (Business) and 261 Y-class (Economy) seats. THY observed the following loads over 90 operations of TK64 during the schedule period Jun.-Aug. 2013: JCabin Y Cabin Seating Capacity 28 261 Average Load (Pax) 24.7 234.2 Std Dev of Load 54 52 9 2

Assignment Structure During the fleet assignment process, THY needs to make a decision as to which specific aircraft type should be assigned to this IST-BKK flight for the 2014 peak June-August schedule period. We assume that the demand levels and distributions of summer 2013 will once again be valid for summer 2014. You are provided with the following pieces of information: Table of relevant aircraft and market characteristics Boeing Spill Table (k=0.35) 3

Aircraft and Market Data The following data is provided to you: Note that we are trying to decide which of three aircraft (A330-200, A330-300, B777-300ER) to assign to the IST-BKK route. 4

Question 1: Demand and Spill Factors Use the Boeing "Spill Table" to estimate the demand factor and the spill factor for the J and Y cabins of TK64, given the data provided above. Then, enter these values into the spreadsheet provided to generate estimates of the following metrics for both the J and Y cabins, given the observed average loads and an assumed coefficient of variation of unconstrained demand equal to k=0.35 Unconstrained demand Standard deviation of unconstrained demand Average spill per flight Spill rate 5

Worksheet Structure Entering in the correct demand factor and spill factor into the yellow cells below will automatically compute unconstrained demand, spill rates, etc. 6

Recall: Spill Table for K=0.35 DF and SF given LOAD FACTOR LF DF SF LF DF SF Assuming underlying demand has K=0.35 Then, 0.850 observed average load factor translates to 0.972 demand factor and 0.122 spill factor Load factor = demand factor spill factor Source: Boeing 7

Question 2: Spill Modeling Use the flight leg spill modeling approach (and the Boeing Spill Table provided) to determine which aircraft type would have the highest contribution to profit for the June-August 2014 schedule period. That is, assuming the mean unconstrained demand that you estimated in (A), use the Boeing Spill Table (k=0.35) to estimate: Average load factor Average load Expected spill per flight for each cabin under each alternative aircraft. Note: the demand factors are computed for you. 8

Worksheet Structure (2) Fill in the correct load factors from the Boeing Spill Table to see the effects on loads, profit, and margin 9

Question 3: Recommendation Based strictly on your analysis in (B), which one aircraft type should Turkish use for this flight leg in summer 2014? What additional considerations (including aircraft rotations, crew requirements, scheduling issues, network impacts, operations) would have to be incorporated into the decision as to which aircraft type Turkish should assign to this leg? In other words, which other factors does the spill model not take into account? 10

Questions? Have fun! 11