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Fleet Planning Strategies  To Achieve An Optimal Efficiency Mohammed Salem Awad Senior Consultant  Felix Airways Fleet Optimization
Fleet Optimization  Outline Introduction  Lessons learnt from a successful low cost airline. Impact of contraction of credit Market. Optimization in Aviation – U curve Technique.  Fleet Management Strategy.  Design an optimal Fleet in point to point operating model.  Results. Summary
Fleet Optimization  Introduction Evolution of Low Cost Model  Operate from secondary Airport. Higher Aircraft Utilization  Fast Turnaround  Short haul point to point  Standard Fleet with High Seat Density  Distribution through direct channels Simple product Highly Incentive Workforce
Fleet Optimization  Lessons Learnt from a Successful Low Cost Airlines Economy of Scale  Sale Concentration on Aircraft and not passengers  Package Business Concept – A series Business Chain.
Fleet Optimization  Impact of contraction of Credit Market  Airlines :  Forecasted capacities have a negative factor leading to financial losses Order of aircrafts blocked, and fail to fulfil the financial commitments Consolidation and merge of many airlines. Manufactures  Direct effect on sale performance of aircraft  Increase of Receivable cycle which impacts the cash flow. Leasing Companies : Airline looking after short term commitments that offer leasing companies.
Fleet Optimization  Aircraft Cost By Manufacturers
Fleet Optimization  Cost By Operators ( Experience )
Fleet Optimization  Classical Evaluation of Aircraft Cost By Manufacture  Decision Matrix : Cost per Trip  Vs  Cost per Seat
Fleet Optimization  Classical Evaluation of Aircraft By Manufacturer Cost per trip vs per seat Matrix  For  - Boeing,  - Airbus,  - Embraer, and -Bombardier Who is Right ?
Fleet Optimization  How to get the Right Decision ?  Apply ……………. U Curve Technique
Fleet Optimization  Optimization in Aviation – U Curve Technique Linear Program is a Powerful tool in Optimization. Solver is the software version in Microsoft Excel. Objective :  Maximise the profit: Minimize the cost and errors. Setting up project budgets
Fleet Optimization  Optimization in Aviation – U Curve Technique Cost Minimizing : U – Curve Technique
Fleet Optimization  Optimization in Aviation – U Curve Technique Cost Minimizing : U – Curve Technique  Number of Seats Number of Spare Engines Level of Preventive Maintenance  Time Between Overhaul of Engine
Fleet Optimization  Optimization in Aviation –  U Curve Technique Number of Seats of Aircraft:
Fleet Optimization  Optimization in Aviation –  U Curve Technique Basic Equation:
Fleet Optimization  Optimization in Aviation –  U Curve Technique Optimum Operating Curve
Fleet Optimization  Fleet Management Strategy ( Point to point Model ) Fleet Standardization and Commonality.  Medium Range and Modern One One Set Configuration.
Fleet Optimization  Design An Optimal Fleet In Point to Point Operating Model   Data input :  Passengers Fares  Distance
Fleet Optimization  Design An Optimal Fleet In Point to Point Operating Model  ( Analysis) Inputs  Passengers, Fares, Distances  Number of Seats Sectors
Fleet Optimization  Design An Optimal Fleet In Point to Point Operating Model Result  at 0.055 USD  for ASK
Fleet Optimization  Optimum Operating Curve  Selecting the right Aircraft based on typical Aircraft Manufacture Values
Fleet Optimization  Optimum Operating Curve  Selecting the right Aircraft based on the experience of Operators
Fleet Optimization  Optimum Operating Curve  Getting the Right Cost  0.044
Fleet Optimization  Network Analysis Point to Point Operating Model  Aircraft: A320  Seat : 180  Cask = 0.044 USD.  Target Load Factor= 0.85
Fleet Optimization  Number of Aircrafts required in the Fleet  Total Market Define By = 668,278,864  ASK Daily Utilization = 8 Hours  Aircraft Speed: 480 Kilometers per Hour Annual ASK per A/C = 365*8*480*180 Number of Aircraft Required =  2.64    =  3 Aircrafts
Fleet Optimization  Summary  Term – Optimization – Minimize the cost .  U curve technique is a powerful tool to make a decision It is a fair method that gives the right decision Low cost carrier model can be define by 3 parameters: fares, passengers and distance which reflect the optimum operating curve
Contact  Further Information: Mohammed Salem Awad : Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.com/wingsofwisdom/   www.freewebs.com/art-of-knowledge/   www.standout-from-the-crowds.webs.com

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Fleet optimization

  • 1. Fleet Planning Strategies To Achieve An Optimal Efficiency Mohammed Salem Awad Senior Consultant Felix Airways Fleet Optimization
  • 2. Fleet Optimization Outline Introduction Lessons learnt from a successful low cost airline. Impact of contraction of credit Market. Optimization in Aviation – U curve Technique. Fleet Management Strategy. Design an optimal Fleet in point to point operating model. Results. Summary
  • 3. Fleet Optimization Introduction Evolution of Low Cost Model Operate from secondary Airport. Higher Aircraft Utilization Fast Turnaround Short haul point to point Standard Fleet with High Seat Density Distribution through direct channels Simple product Highly Incentive Workforce
  • 4. Fleet Optimization Lessons Learnt from a Successful Low Cost Airlines Economy of Scale Sale Concentration on Aircraft and not passengers Package Business Concept – A series Business Chain.
  • 5. Fleet Optimization Impact of contraction of Credit Market Airlines : Forecasted capacities have a negative factor leading to financial losses Order of aircrafts blocked, and fail to fulfil the financial commitments Consolidation and merge of many airlines. Manufactures Direct effect on sale performance of aircraft Increase of Receivable cycle which impacts the cash flow. Leasing Companies : Airline looking after short term commitments that offer leasing companies.
  • 6. Fleet Optimization Aircraft Cost By Manufacturers
  • 7. Fleet Optimization Cost By Operators ( Experience )
  • 8. Fleet Optimization Classical Evaluation of Aircraft Cost By Manufacture Decision Matrix : Cost per Trip Vs Cost per Seat
  • 9. Fleet Optimization Classical Evaluation of Aircraft By Manufacturer Cost per trip vs per seat Matrix For - Boeing, - Airbus, - Embraer, and -Bombardier Who is Right ?
  • 10. Fleet Optimization How to get the Right Decision ? Apply ……………. U Curve Technique
  • 11. Fleet Optimization Optimization in Aviation – U Curve Technique Linear Program is a Powerful tool in Optimization. Solver is the software version in Microsoft Excel. Objective : Maximise the profit: Minimize the cost and errors. Setting up project budgets
  • 12. Fleet Optimization Optimization in Aviation – U Curve Technique Cost Minimizing : U – Curve Technique
  • 13. Fleet Optimization Optimization in Aviation – U Curve Technique Cost Minimizing : U – Curve Technique Number of Seats Number of Spare Engines Level of Preventive Maintenance Time Between Overhaul of Engine
  • 14. Fleet Optimization Optimization in Aviation – U Curve Technique Number of Seats of Aircraft:
  • 15. Fleet Optimization Optimization in Aviation – U Curve Technique Basic Equation:
  • 16. Fleet Optimization Optimization in Aviation – U Curve Technique Optimum Operating Curve
  • 17. Fleet Optimization Fleet Management Strategy ( Point to point Model ) Fleet Standardization and Commonality. Medium Range and Modern One One Set Configuration.
  • 18. Fleet Optimization Design An Optimal Fleet In Point to Point Operating Model Data input : Passengers Fares Distance
  • 19. Fleet Optimization Design An Optimal Fleet In Point to Point Operating Model ( Analysis) Inputs Passengers, Fares, Distances Number of Seats Sectors
  • 20. Fleet Optimization Design An Optimal Fleet In Point to Point Operating Model Result at 0.055 USD for ASK
  • 21. Fleet Optimization Optimum Operating Curve Selecting the right Aircraft based on typical Aircraft Manufacture Values
  • 22. Fleet Optimization Optimum Operating Curve Selecting the right Aircraft based on the experience of Operators
  • 23. Fleet Optimization Optimum Operating Curve Getting the Right Cost 0.044
  • 24. Fleet Optimization Network Analysis Point to Point Operating Model Aircraft: A320 Seat : 180 Cask = 0.044 USD. Target Load Factor= 0.85
  • 25. Fleet Optimization Number of Aircrafts required in the Fleet Total Market Define By = 668,278,864 ASK Daily Utilization = 8 Hours Aircraft Speed: 480 Kilometers per Hour Annual ASK per A/C = 365*8*480*180 Number of Aircraft Required = 2.64 = 3 Aircrafts
  • 26. Fleet Optimization Summary Term – Optimization – Minimize the cost . U curve technique is a powerful tool to make a decision It is a fair method that gives the right decision Low cost carrier model can be define by 3 parameters: fares, passengers and distance which reflect the optimum operating curve
  • 27. Contact Further Information: Mohammed Salem Awad : Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.com/wingsofwisdom/ www.freewebs.com/art-of-knowledge/ www.standout-from-the-crowds.webs.com