Airlines Industry

Group no. 7
Mayank Gupta
Pritesh Mehta
Siddhesh kale
Vishwas Bhanarkar

2015029
2015042
2015055
2015062

Introduction
The first aircraft was built during WW-I and WW-II.
First commercial flight between St Petersburg and Tampa Florida USA.
It is regarded as one of the only true global business.
There are three types for transportation provided in the industry.
a. Scheduled and Non- scheduled.
b. Passenger and cargo.
c. International, Intercontinental and domestic.
. Industry comprises of 240 member airlines company in 188 countries covering 84% of world International
traffic.

. It creates employment for 5.5 million people worldwide.

. It is a capital intensive industry.

Information System
Information system is a combination of hardware, software, infrastructure and
trained personnel organized to facilitate planning, control, co-ordination and
decision making in organization.

Transaction Processing System(TPS)

TPS is a system to capture and process the detailed information necessary to update

data on the fundamental operations of an organization.

Examples:
Global distribution system: A worldwide computerized reservation network used as
a single point of access for reserving airline seats and other travel related items by
travel agents and online reservation sites.
4 types of GDS:
a) Sabre (created by American Airlines)
b) Amadeus (created by Iberia, Air France, SAS, Lufthansa)
c) Galileo (created by Air Canada, Swiss Airways, US Airways, British Airways)
d) World Span (created by Delta, Northwest, Trans World Airlines)
)Air ticket reservation.
)Payroll: Pilots, Air-hostess, Staff.

Management Information System(MIS)

MIS

is a computerized database of financial information organized and

programmed in such a way that it produces regular reports on operations for
every level of management in a company.
In the Airlines industry the service that the airlines could offer are varied
and the customers views the airlines in accordance with the distinctive
service that they provide.
Examples:
Scheduling of flights ( Aircraft availability, Delay report, Revised schedule)
Passenger database (Name, contact no. Type, Class, Purpose of Travel, food
habits, Language, etc.)

Decision Support System(DSS)

DSS

tools that help companies assess and resolve business questions in a

timely and effective manner.

Examples:

DSS in American Airlines helps to decide how much to overbook and how to
set prices for each seat so that plane is filled and profits are maximized.

DSS helps in crew scheduling.

DSS helps in Aviation weather Decision Support System.

Executive Support System(ESS)

An ESS is software that allows users to transform enterprise data into

quickly accessible and executive-level reports, such as those used by

billing, accounting and staffing departments. An ESS enhances decision
making for executives.
Examples:
Planning new routes.
Planning new flight.
Planning to increase new market strategy for next 5 years.
Performance Management.

Customer Relationship Management(CRM)

CRM

is the process of managing detailed information about individual

customers and carefully managing customer ultimately leading to customer
loyalty
With the help of CRM Airlines can achieve operational efficiency and longterm relationship management and growth.
Example:
Airlines offers special scheme for regular customers.
Special benefits and services for senior citizens.

Strategic Information System(SIS)

SIS are used to gain competitive advantage over the competitors.

Both the company as well as the customer gets benefited.
Enable a company to be an effective competitor.

Examples:
Low-cost strategy
In-flight services

Case

Southwest airlines

It is the united states most successful low fare, high frequency,

point-to-point carrier known as a discount airlines since 1973.
its headquarter is situated in Dallas, Texas.
It has excellent customer satisfaction rating.
It began adding Wi-Fi to its aircraft in the first quarter of 2010 and
streaming live television in summer of 2012
First airline to offer online booking by creating it own web page

Issues
Southwest lost $176 million during the second half of 2008.
There were low maintenance and safety problems inspected by FAA.
Causes
Legacy information system have been unable to keep up with the increasingly
large amount of data being generated.
Information about what replacement parts were available at a given time was
difficult or impossible to acquire.
Lack of information visibility.

Solutions
Implemented technologies.
a) i2 demand planner (improves forecast accuracy)
b) i2 service parts planner (lower inventory investment)
c) i2 service budget optimizer (gets the most from your budget)
)i2 helps southwest to make sure that they have the right part, in the right
quantity, in the right place, at the right time.

Results

Low CASM (Cost per Available Seat Mile)

Reduced parts inventory by 15%.
Now they have better flow, accessibility and better data management.
No or minimal delay of flight.

Video

References
https://en.wikipedia.org/wiki/Global_Distribution_System
http

://www.slideshare.net/NadiaIIT/southwest-airlines-takes-off-with-bett
er-supply-chain-management?qid=68545496-235d-48f2-8384-df88cedecdf7&v
=&b=&
from_search=10
http://www.garfors.com/2014/06/100000-flights-day.html
http
://www.columbia.edu/cu/consultingclub/Resources/Airlines_Eric_Henckels.p
df
http://www.firstflightcentennial.org/the-first-commercial-flight/
https://www.iata.org/pressroom/pr/Pages/2015-06-08-03.aspx
http://marketrealist.com/2014/07/low-cost-carrier-strategies-to-maintaincompetitive-advantage/

Thankyou