Fortress hubs drive 'city power' revenue scale economics, but also congestion costs, complicating the problem and challenge of running an airline reliably, on-time, impacting the service quality based on which business clientele, in particular, exhibit preferences and deliver ROIC.
Despite huge increases in CAPEX and Operating expenditures on customer experience and 'look and feel' issues including aircraft, interior retrofits, menu upgrades, uniforms, clubs, lounges, gate furnishings, and loyalty program structure, most opinion leaders fall silent, absolutely silent -- no opinion or decisive action taken whatsoever -- on the value of trying to, and actually succeeding at getting their customers where they want to be, on-time, reliably and consistently – ‘six sigma’ level Completion Factors and A0 absolute on-time arrival.
This is feasible, less expensive (CAPEX, Operating) than status quo, and can deliver airlines fare mix/premiums, airports throughput, and industry-leading ROIC.
An 85% A0 absolute on-time performance, with a 5-8% reduction in block time (much of it reflected as direct cost reduction), is achievable sequentially, within 2-3 years.
Recapture of latent aircraft and ground facilities utilization can be taken as reduced CAPEX requirement or as expanded capacity, based on carrier's unique tactical and strategic objectives.
'Phase 1' of the complete solution is (literally) available on the shelf -- business rules-based aircraft flow management via inflight sequencing and Requested Times of Arrival, delivering the industry's most accurate ETAs, based upon which all other station activities may be scheduled in real-time.
With aircraft flow stabilized, perform an internal process review, a few months’ effort, achieving sequential improvement in process duration/timing, with accuracy improvement and failure reduction from ~15% to near 1%.
Get ready to cash new checks, and avoid writing others for outdated, overly expensive processes and recovery.
The processes described here have been implemented at major airlines at single- and multi-carrier dominated hub airports, with airline operational and airport throughput efficiency results validated by independent third parties. Implementations have been on normal commercial terms, as well as one such implementation having been FAA funded and evaluated under contract from US DOT/RITA. The approaches taken are fully compliant with and transparent to FAA procedures, which always govern.
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