Importance of delivering services as expected in airline industry Very competitive industry Low profit margin(5% in 2000, best year) Dissatisfied customers might shop next to competitors, jeopardizing your profitability On time service is not prime factor to attract customers but it contributes to loyalty Passenger delay distribution is not continuous, few passengers suffer high delays Passenger dissatisfaction function with respect to delay s is not linear Clear objective minimize passenger ill will with same operations costs
Importance of delivering services as expected in airline industry • Very competitive industry • Low profit margin (5% in 2000, best year) • Dissatisfied customers might shop next to competitors, jeopardizing your profitability • On time service is not prime factor to attract customers but it contributes to loyalty • Passenger delay distribution is not continuous, few passengers suffer high delays • Passenger dissatisfaction function with respect to delays is not linear • Clear objective: minimize passenger ill will with same operations costs
Trade off. Passenger service reliability versus operating costs Admissible operating cost region Feasible operating space Passenger dissatisfaction Operating costs
Trade off: Passenger service reliability versus operating costs Operating costs Passenger dissatisfaction Admissible operating cost region Feasible operating space
Passenger bookings for each scheduled itinerary PREPROCESS Build the list of disrupted Assign all non-disrupted pass engers passengers, L to their planned itinerar ies Remove seats from r emaining inventory Sort l according to serv ice poli Record pass enger del PDC END ake next disrupted pass enger in L Passenger Delay statisti Find best recov ery itinerary and assign passenger Remove s eat from remaining inventory Record passenger del ay
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Flight and passenger delays 30 25 20 口 Passengers ■ Flight Delay Passenger/flight =170% Flight delays underestimate passenger delays Key explanation lies in the disrupted passengers
Flight and passenger delays 0 5 10 15 20 25 30 (minutes)Passengers Flight Delay Flight delays underestimate passenger delays Key explanation lies in the disrupted passengers Passenger/flight = 170%
Disrupted passengers versus non disrupted passengers August 2000 AV Delay Passengers% Delays (minutes) Disrupted 320 minutes 3.2% 40% passengers Non disrupted 16 minutes 968% 60% passengers >Disrupted passengers experience long delays in general because 20% of them are stranded overnight (delay propagation results in more disruptions later during the day) Although a small percentage, disrupted passengers account for 40% of the total passenger delay and most of the severely delayed passengers(80% of passengers delayed by more than 4 hours
Disrupted passengers versus non disrupted passengers ¾ Disrupted passengers experience long delays in general because 20% of them are stranded overnight (delay propagation results in more disruptions later during the day) ¾ Although a small percentage, disrupted passengers account for 40% of the total passenger delay and most of the severely delayed passengers (80% of passengers delayed by more than 4 hours) Non disrupted passengers Disrupted passengers August 2000 16 minutes 96.8% 60% 320 minutes 3.2% 40% % Passengers % Delays Av. Delay (minutes)