MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Lufthansa meets MIT

Information Technology in all aspects of Air Transportation

Challenges and Solutions for Airline Industry

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Contents

Introduction

The Starting Point: Agility, Ubiquity and Seamlessness

Mobility: Entering the wireless era

Personalization

Dynamic Management (Optimization)

Collaboration: horizontal and vertical Integration

Summary

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

The Starting Point: Agility, Ubiquity and Seamlessness

Agility

Seamlessness Ubiquity

Ability to adapt quickly to changing conditions

Connectivity to the offered services: Anywhere, anytime, any channel

Ability to offer a product with a constant quality within a given network of airlines

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Mobility: Entering the wireless era

Tomorrow

• PDA Logbooks

• PDA Work Cards

• Integrated engineering database

• Visually augmented Maintenance

• Extended Internet access availability

Today

• Paper logbooks

• Hard copy work cards

• Engineering data from isolated sources

• Maintenance requires familiarity with access requirements

• Internet access available in the air

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Entering the wireless era

Low RiskLow Risk

Extending Internet

Availability

Integrated Engineering

Database

VisuallyAugmented

Maintenance.

PDA Logbooks

High RiskHigh Risk

Low

Ben

efit

Low

Ben

efit

Hig

h B

enef

itH

igh

Ben

efit

PDA Workcards

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Collaboration leads to horizontal and vertical integration

Tomorrow

• Horizontal (airline alliance) and vertical (supply chain) integration – Business Nets

• Collaborative decision making

• Cost and service oriented alliances

Today

• Resources (including information) are only shared partially and if necessary

• Decisions rely on “own” data only

• Creation of alliances/cooperations mainly revenue driven

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Areas of Collaboration

Low RiskLow RiskHigh RiskHigh Risk

Low

Ben

efit

Low

Ben

efit

Hig

h B

enef

itH

igh

Ben

efit

Common data bases

Standard IT-platforms

Organisational Standards

Single Sky ATM

Alliance Purchasing

Portal

Sharing resources& services

Data Definitions

Process Standards

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Personalization

Our Vision

• Personalization of customer interaction with the airlinee.g. variable check-in screens depending on ident

• Personalized on-board entertainment/work environmente.g. use the inseat screen/keyboard for own PDA

• Micro-incentives for customerse.g. for early check-in/boarding or pre-advising pax info

• Personalized information for non-travellerse.g. passenger choice for disclosing traveling data in real time

• Manageable micro-incentives system for employeese.g. 60 credits for bringing down last weeks delay rate

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Personalization

Low RiskLow Risk

Micro incentivesFor customers

PersonalizedInformation forNon-travellers

OnboardEntertainment/

Work Env.

Personalization ofCust/airlineinteraction

High RiskHigh Risk

Low

Ben

efit

Low

Ben

efit

Hig

h B

enef

itH

igh

Ben

efit

Manageable Incentives for

Employees

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Flight schedule

Fleet assignment

Crew planning

Weather forecast Ground-Delay

Strikes ...Air-delay

Intelligent continuous schedule

• flight schedule and resources allocation can be optimized up to hours before actual operation

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

slow

Server(check in-counter)

fast

medium

slow

Server(check in-counter)

queue

queue

Dynamic management: Intelligent queuing

• passenger information is available to airline (amount of luggage, nationality, number of children, visa status etc.• separate passenger into fast/medium/slow based on their demand service rate

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Customer

Customer

Customer

Travelocity.com / travel agents

Airlines

CustomerCustomer

Customer network Customer airlines

Decentralizedalliance network

Reconfiguration of ticket distribution network channel

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Risks and benefits Dynamic Management / Optimization

Intelligentqueuing

Intelligentcontinuousschedule

Reconfiguration of ticket distribution

network channel

HighRisk

LowRisk

Low benefits High benefits

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Key trends for information technology

Mobility Collaboration

PersonalzationOptimization

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Thank you for the opportunity to present

MIT

January 9th,2003 H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

Massachusetts Institute of Technology

Areas of Collaboration

RisksRisks

BenefitsBenefits

Common data bases

Standard IT-platforms

Organisational Standards

Single Sky ATM

Alliance Purchasing

Portal

Sharing resources& services

Data Definitions

Process Standards