THE CONNECTED AIRCRAFT: Improving Dispatch Reliablity

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GEE OPERATIONAL SOLUTIONS THE CONNECTED AIRCRAFT: Improving Dispatch Reliablity PRESENTED TO World Maintenance Symposium September 23, 2015 Dr. Tulinda Larsen Vice President, Commercial

Operational Excellence is critical for consistent airline profitability and employee morale. This means that anything that gets in the way of operational excellence must be dealt with immediately... (Gordon Bethune, 2010)

DISMAL DISPATCH RELIABLITY Yet, globally 1 out of every 3 flights arrives more than 5 minutes late 1 out of 10 flights arrives more than 30 minutes late 1 out of every 100 departures cancels altogether

DISMAL DISPATCH RELIABLITY Definition: Dispatch reliability is percentage of flights that depart within a specific window after the scheduled departure time Measuring dispatch reliability varies by world region Europe & North America 15 minutes after the scheduled time for flight departures and an allowance of 14 minutes (A14) after the scheduled arrival time Middle East and Asia For example Emirates uses +/ 15 minutes not A14

DISMAL DISPATCH RELIABLITY When measuring Dispatch Reliability, airlines exclude non aircraft issues such as severe weather, air traffic control congestion, and delays driven by airport security. But real time aircraft data streaming from a Connected Aircraft can lead to better management of uncontrollable events through improved planning for and management of severe weather conditions and air traffic control congestion

DISMAL DISPATCH RELIABLITY Average dispatch reliability across the fleet operated by major US airlines was 79% on average from 2003 today An average of 80% of flights had an on time gate arrival The average gate departure delay was 11.7 minutes, and the average gate arrival delay was 12.6 minutes When flights were delayed more than 15 minutes, the average delay was 55 minutes US Carrier Dispatch Reliability Averaged 79% Source: FAA ASPM Data Set (2003 2015) n = 67.3 million flight records 100% 95% 90% 85% 80% 75% 70% 65% 60% Jun 03 Nov 03 Apr 04 Sep 04 Feb 05 Jul 05 Dec 05 May 06 Oct 06 Mar 07 Aug 07 Jan 08 Jun 08 Nov 08 Apr 09 Sep 09 Feb 10 Jul 10 Dec 10 May 11 Oct 11 Mar 12 Aug 12 Jan 13 Jun 13 Nov 13 Apr 14 Sep 14 Feb 15 Jul 15 On Time Departure Rate Dispatch Reliability Linear (Dispatch Reliability)

DISMAL DISPATCH RELIABLITY Dispatch reliability on a trailing twelve month average basis. illustrates, both positive and negative trends 2004 2007, US carriers increased capacity, resulting in increasing delays and gate holds due to crowded ramp areas, congested taxiways and airspace delays 2008 2012, a combination of lower capacity and relatively benign winter weather contributed to a significant improvement in dispatch reliability. 2013 through present, major US carriers attribute the clear decline in dispatch reliability to increased severity in winter and summer weather conditions and deteriorating operational performance due to factors such as crew scheduling 86% 84% 82% 80% Aircraft Dispatch Relibility, Trailing Twelve Months, All US Airports Source: FAA ASPM Data Set (2003 2015) n = 67.3 million flight records 78% 76% 74% 72% 2004 2007 Deteriorating 2008 2012 Improving 2013 2015 Deteriorating 70% Jun 04 Oct 04 Feb 05 Jun 05 Oct 05 Feb 06 Jun 06 Oct 06 Feb 07 Jun 07 Oct 07 Feb 08 Jun 08 Oct 08 Feb 09 Jun 09 Oct 09 Feb 10 Jun 10 Oct 10 Feb 11 Jun 11 Oct 11 Feb 12 Jun 12 Oct 12 Feb 13 Jun 13 Oct 13 Feb 14 Jun 14 Oct 14 Feb 15 Jun 15 Trailing On Time Departure Rate Trailing Dispatch Reliability

DISMAL DISPATCH RELIABLITY In the United States, about 1 out of every 5 flights is unreliable About 2/3 of late or cancelled operations are due to weather and airspace conditions But 1/3 of delays and cancellations are due to factors within an airline s control, such as: Aircraft are not available due to maintenance problems Crew legality, i.e. exceeds allowable flight time Flight crews that time out due to limits on duty days, or that are out of position due to late inbound flights or missed connections Lack of airport equipment or gate space to handle flights Passenger service issues, such as baggage transfer, IT problems or catering issues

DISMAL DISPATCH RELIABLITY Flight cancellations one component of dispatch reliability varies by aircraft type and cause

DISMAL DISPATCH RELIABLITY Cost Of Cancellations Are Significant And Vary By Type of Airline Cost per Cancelled Flight Segment (USD 2014) Controllable Events (e.g. maintenance, crew) Uncontrollable Events (e.g. weather, airspace) Regional Jets Including CRJ, ERJ aircraft Legacy Narrowbodies Boeing 737 and Airbus 320 families by legacy airlines LCC Narrowbodies Boeing 737 and Airbus 320 families by LCC/ULCC airlines Small Widebodies Boeing 767/787 and Airbus 330 on 8-hr international routes Large Widebodies Boeing 777/747 and Airbus 340 on 12-hr international routes Average Cost Based on weighted average of events across U.S. fleets $2,750 per flight $1,050 per flight $15,650 per flight $4,930 per flight $19,240 per flight $710 per flight $29,690 per flight $6,770 per flight $42,890 per flight $13,140 per flight $5,770 average per cancelled flight segment Based on masflight study of flight cancellation costs (supporting data sourced from DOT BTS Form 41, OAG)

DISMAL DISPATCH RELIABLITY Looking at a Global Airline over the past 2 years a total of 1.95 million flights were scheduled, approximately 57,000 flights were cancelled, and 9,650 flights were diverted. Of the scheduled flights:

AIRCRAFT AVAILABLITY Aircraft availability is defined as all required maintenance is accomplished and the aircraft is airworthy, as defined by the regulations When an aircraft is either scheduled for maintenance or is not available due to unscheduled maintenance, it cannot perform revenue flight segments Aircraft availability is measured based on a percentage of days

AIRCRAFT AVAILABLITY To quantify the root causes of aircraft availability issues, the number of maintenance down days needs to be categorized into two broad categories: Scheduled Maintenance (Planned) Airframe Line Maintenance Airframe Heavy Maintenance Engine Maintenance Refurbishment Activities Unscheduled Maintenance (Unplanned) Systems or Components Inoperative Damage repair Emergency Airworthiness Directive

AIRCRAFT AVAILABLITY As with dispatch reliability, it is essential that airlines have access to availability information consistently and accurately to provide a baseline of data for trend identification and predictive analytics

DISMAL DISPATCH RELIABLITY In summary, dispatch reliability is a key metric with broad implications for operational profitability A maintenance fault that resulting in controllable flight cancellation can drive $35,000 or more of net cost to an airline even after taking into account operational cost savings Each cancellation triggers a chain of events that creates real operational complexities for an airline The potential benefits from Connected Aircraft are material using real time aircraft data to prevent even one annual flight cancellation per aircraft justifies Inflight Connectivity (IFC) investments

CHALLENGES Operational analysis systems use data to improve future planning, reduce operating cost and manage disruption Core data requirements: Reliable, complete, historical & real-timedata Robust and scalable data storage infrastructure Tools to process, analyze, apply data to decision making Three related challenges Source & send data Store & link data Solve problems

IMAGINE Real time data from the aircraft directly to the Analyst Updates every 50 milliseconds

THE VISION Connect aircraft with analysts in real time STREAM OPERATIONS DATA FROM AIRCRAFT TO GROUND Revolutionary new data source to improve real time decision making, operations planning, and customer experience PROCESS IN MASFLIGHT PLATFORM AND PROVIDE CRITICAL ANALYTICS Integrate with existing data sets to add meaning and context Timely information that informs real time and near real time decision making Actionable data that drive business decisions and results

OUR VISION: AIRCRAFT TO ANALYST CONNECTIVITY Get Aircraft Data Current position Fuel burn Aircraft health Connect w/efb Transmit Air to Ground Prioritize data feeds Stream from aircraft Upload to aircraft Platform independent Process, Analyze & Solve Add other data &context Analyze data & fill gaps Identify specific problems Find solutions Interface between cockpit, avionics, cabin crew & in flight connectivity Reads avionics data Presents onefbs Transmits to IFC systems Cloud based platform to process, analyze and inform Data from dozens of sources Robust big data architecture Front end apps & solutions

REAL-TIME AIRCRAFT DATA ACARS: Unformatted, irregular, expensive, limited bandwidth Using IFC: Higher volume, lower cost, faster transmission, privacy & easy integration What are the criticalenablers? Transmission over in flight connectivity (IFC) + cloud data warehouses INTERNAL AIRLINE DATA INDUSTRY-WIDE AIRLINE DATA AIRPORT, WEATHER & RADAR DATA AIRCRAFT DATA VIA CONNECTIVITY INTEGRATED CLOUD-BASED DATA WAREHOUSE PLANNING & ANALYSIS REAL-TIME OPS MANAGEMENT

DIGITAL TRANSFORMATION Next generation aircraft generate terabyte scale data Example Aircraft Current Generation B737NG, A320ceo, B757/767, B777, B747 400, A330, A340 Next Generation A380, A350, B787, B747 8i, B737MAX, A320neo Avionics bus Analog Digital Streams of data Data generation per operating month 20 40 discrete streams of avionics information 5gigabytes Sensor data thousands of simultaneous streams 30 terabytes (~30,000 gigabytes) Interfaces Requires analog to digital conversion through EFB or interface device Native digital connectivity to installed inflight connectivity systems

AIRCRAFT DATA CAPTURE Tapping DFDR/QAR bus enables real time transimission of key operational information Flight Track & Position Equipment State Events (Change in State) Latitude & longitude Altitude Speed Winds aloft Ambient temperature Pitch and bank Barometer G forces Transponder Flap, gear, brake Autopilot settings Engine settings Thrust reverser settings Squat switch Trim settings Fuel flow Fuel on board Cabin doors Cargo doors Cabin pressure Fault messages OOOI times Doors open/closed Autopilot on/off Autothrottles on/off TCAS warnings Frequency changes 2 2

DATA PROCESSING & ANALYTICS On demand cloud warehouses and big data analysissystems offer terabytes of extensible storage and fastprocessing Cost effective to load all data collected in unified warehouses Interface through human, machine or application interfaces Shift to SSDs (flash storage) driven 10x increases in performance, and cost gap narrowing quickly versus traditional HDD Compression of data costs over time 1.2TB of data can be processedin under 10 seconds with Amazon Redshift one month of 787 data crunched in 4 minutes

CONCLUSIONS Connected Aircraft impacts major cost categories across airline operations with material benefit to dispatch reliabliy From aircraft to analyst, a system of end to end capability Cockpit: transform sensor & avionics data into usable formats Transmission: fast, real time, global capability for air to ground Processing: cloud and big data tools to collect and analyze data GEE Operations Solutions From aircraft to analyst: connectivity and analytics for aviation operations Platform neutral: EFB, connectivity, solutions partnerships increase utility Stand alone: provide analytics & data solutions that are immediately useful Next gen capability: scalability to collect, use data from digital aircraft

Thank you!