Airlines
Andy Martin
Industry Director – Travel and Transportation
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decision. The
development, release, and timing of any features
or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Safe Harbor Statement
• Leadership in Airlines
• Innovation in Airlines
• Results Achieved by Oracle Customers
Agenda
Oracle inAir Transport Did You Know?
73% of the world’s top 100 airlines use Oracle Technology73% of the world’s top 100 airlines use Oracle Technology
9 of the world’s top 20 airlines run Oracle Applications9 of the world’s top 20 airlines run Oracle Applications
47 of the world’s major airports use Oracle eBusiness Suite47 of the world’s major airports use Oracle eBusiness Suite
48 of the world’s leading airlines use Oracle eBusiness Suite48 of the world’s leading airlines use Oracle eBusiness Suite
Source: Airline rankings - IATA Economics, Sept 2006
The Challenges We’re Hearing
Increase profitability Increase profitability
and customer loyaltyand customer loyalty
“How can I identify, retain and develop business from
high-yielding customers that deliver up to 80% of my
revenue and drive my profitability upwards?”
Recent steady growth in premium traffic has helped increase airlRecent steady growth in premium traffic has helped increase airline revenuesine revenues -IATA
Improve operational Improve operational
efficiency and reduce efficiency and reduce
costscosts
“How can I increase the efficiency of my processes
and operations, and reduce my costs, to remain
competitive despite the ongoing downward pressure
on revenue and the growth of the low-fare sector?”
One lowOne low--fare airline has 67% lower costs than the average network airlinfare airline has 67% lower costs than the average network airline. US network carriers e. US network carriers have reduced their cost gap with the lowhave reduced their cost gap with the low--fare sector from 45% to 36%fare sector from 45% to 36% -IATA
Ensure regulatory Ensure regulatory
compliance, compliance,
certification and certification and
securitysecurity
“Audits mean that airlines have to prove they are “Audits mean that airlines have to prove they are
complying with legal obligations, and global aviation complying with legal obligations, and global aviation
and security regulations or they will put their and security regulations or they will put their
business at risk”business at risk”
••What we want is for the airlines to get in compliance with the [What we want is for the airlines to get in compliance with the [legal, crew, airworthiness and legal, crew, airworthiness and security] regulations. We constantly audit airlines. We have inssecurity] regulations. We constantly audit airlines. We have inspectors whose job that is.pectors whose job that is. -FAA
Industry Quotes
“The HP and Oracle solution paid for itself in the first year of operation, and the reliability helped the airline provide betterservice to customers and save time and money.”
“Oracle/Siebel's strength is in strategy execution because it hasa complete multi-channel CRM offering that can effectively execute tactics and measure the results. “
“Oracle’s strong middleware platform and greater support of standards make it a better choice than SAP for customers who will rely on custom development as well as packaged apps.”
- “Oracle Versus SAP In Enterprise Applications: Let The Battle Of Architectures Begin!”, Mar 2006
• Leadership in Airlines
• Innovation in Airlines
• Results Achieved by Oracle Customers
Agenda
Oracle Airline SolutionsProvide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market
IntelligenceIntelligence
TechnologyTechnology
Marketing& Sales
Asset Management& Operations
Procurement& Logistics
Financial
& HR Mgmt
� Increase profitability by identifying, developing and retaining loyal, high-value customers
� Reduce costs through implementation of best operational practice, including optimised use of assets and resources
� Ensure regulatory compliance, certification and security in linewith commercial and operational aviation regulations
Requirement
Uniquely identify and
track activity of individual
customers
Oracle Capability The Oracle Difference
Oracle delivers industry
tailored analytics integrated
with customer interaction
solutions
Siebel Analytics
Interaction Center;
Customer Master
Increase profitability by identifying,developing and retaining loyal, high-valuecustomers
Manage customer’s
journey, and provide
appropriate customer
information to staff at all
touch-points
Oracle provides CRM
solutions fully integrated with
leading airline reservations,
DCS and GDS systems
UCM; real time integration
with airline front-office
solutions
Offer differentiated
product and service
tailored to the needs of
high-value customers
Oracle provides loyalty,
campaign management and
marketing solutions optimised
to meet airline requirements
CRM Marketing,
Campaign Management
and Analytics
Manage and reward
regular and high-value
travelers
Only Oracle offers an end-to-
end airline-tailored loyalty
solution including full loyalty
business partner integration
Siebel Loyalty
for Airlines
� Real-time customer activitytracking and management
� Recognise true customervalue at all touchpoints
� Differentiated and focusedcustomer service
Full customer informationexchanged with front officesystems A comprehensive customer loyalty
management solution allows tracking of activity and status of various types of customers who are of value to the organisation.
Real-time integration with front office systems provides a 360 degree view of each customer and also provides up-to-date details on customer activity, true customer value and status to all staff who interact with a customer which allows for differentiated service provision
Comprehensive loyalty support tracks customer activityand status throughout their lifetime as a person of value
11
22
Front Office Front Office SystemsSystems
-- Res, DCS, GDS, Res, DCS, GDS, etc.etc.
MembershipMembership
PartnersPartners
Club
Loyalty Loyalty
ProgramProgram
Loyalty Account TypesLoyalty Account TypesTier StructuresTier Structures
Partnership Partnership AgreementAgreement
Loyalty Program Loyalty Program OfferingsOfferings
Automated partnermanagement tracksnone-core activity
33
Single Customer View
Manage Customer Loyalty
Customer Success Profile
COMPANY OVERVIEW
� Leading European airline with over 27 million passengers ,147 aircrafts serving 97 destinations in 40 countries.
� 27,000 employees worldwide� 4.8 billion EUR in revenues
CHALLENGES/OPPORTUNITY
� Desire to be a true customer-centric organization
� Beat increasing competition with service differentiation
� Disjointed customer information
� Inefficiencies in lead management, marketing campaigns, and customer service
SOLUTIONS
� Siebel Marketing� Siebel Service� Siebel Call Center� Siebel Loyalty� Siebel Analytics
RESULTS
�Solution used by multiple groups,including lounges, baggage handling,flight incident compensation, claims etc.)
�Single view of customer accessible by all departments provides insight into customer value and travel patterns
� 20 organizational units directly provided input for a comprehensive CRM strategy
�Deployed Call Center and Marketing to 6,000 users
Oracle Airline SolutionsProvide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market
IntelligenceIntelligence
TechnologyTechnology
Marketing& Sales
Asset Management& Operations
Procurement& Logistics
Financial
& HR Mgmt
� Increase profitability by identifying, developing and retaining loyal, high-value customers
� Reduce costs through implementation of best operational practice, including optimised use of assets and resources
� Ensure regulatory compliance, certification and security in linewith commercial and operational aviation regulations
Requirement
Reduce time to closure at
both headquarters and
outstations
Oracle Capability The Oracle Difference
Oracle’s solutions fully meet
airline specific requirements,
and integrate with interline
and trade clearing-houses
Oracle Financials,
Oracle Daily Business
Intelligence, IATA clearing
house add-in
Reduce costs through implementation ofbest operational practice, including optimiseduse of assets and resources
Increase maintenance
efficiency, reduce spares
inventory, reduce (predict)
failures, and optimise
processes
Only Oracle offers an end-to-
end airline specific MRO
solution fully integrated with
back office including HR,
procurement, warehousing
Oracle Complex
Maintenance, Repair and
Overhaul
Reduce off-contact and
unauthorised spend,
reduce purchase costs
Oracle’s solutions are proven
to substantially reduce costs
and spend in distributed
airline environments
Oracle iProcurement
Automate end-to-end
processes to reduce
duplication in a best-of-
breed environment
Oracle offers a toolset that
provides out of the box
integration of its solutions and
leading industry solutions
Oracle BPEL tools, SOA
Optimise Asset UsageReduce costs through optimised use of assets
�Improve failure prediction, reduce asset downtime and costs resulting from unpredicted failure
�Optimise inventory to meet needs of planned and predictive maintenance, reduce inventory costs
Complex
MRO
Complex
MRO
Demand
Planning
Demand
Planning
Inventory
Optim-
ization
Inventory
Optim-
ization
Advanced
Supply
Chain
Planning
Advanced
Supply
Chain
Planning
Demand
Fulfillment
Demand
Fulfillment
UMP
Planned Visits
GlobalOrder
Promising
GlobalOrder
Promising
Future requirements
Future requirements from visit
Historical unplanned requirements
Historical planned requirements
Exceptions
Recommendations
• Transfer
• Procure
• Service
Time-phasedechelon stocking recommendations
• By location
• By item
Inventory holdingmin / max
Budget
Customer service level
Flightpatterns
Fleet additions
Customer Success Profile
COMPANY OVERVIEW
• Major Hong Kong based airline with high-frequency operations throughout Asia and long haul operations to Middle East and Europe
• CHALLENGES/OPPORTUNITY• Users all around Asia Pacific but required a single consolidated view
• Reduce close cycle
• HR and Procurement functions work seamlessly with Finance
• Reduce purchasing costs e.g. improved process efficiencies, improve purchasing contracts
SOLUTIONS
• Oracle Financials & Oracle iProcurement
• Oracle HRMS & Oracle Payroll
• Oracle Training Administration & Oracle Tutor
• Oracle Database
• Oracle Application Server
• Oracle Internet Developer Suite
• Oracle Discoverer
RESULTS
• Significantly reduced close cycle – less than 10 days
• Significant reduction in process times, increase in on-contract spend, reduction in procurement costs
CUSTOMER PERSPECTIVE
“Upgrading to the latest version of Oracle’s E-Business Suite enables us to easily roll out the system to our twenty-seven outports across Asia Pacific. Single instance reporting from our headquarters in Hong Kong then becomes possible, shortening close cycles and dramatically improving the efficiency of the accounting process of the whole organization.”Francis Wai, Chief Financial Officer
Oracle Airline SolutionsProvide industry-leading capabilities that allow airlines to develop and grow in an increasingly cost-sensitive market
IntelligenceIntelligence
TechnologyTechnology
Marketing& Sales
Asset Management& Operations
Procurement& Logistics
Financial
& HR Mgmt
� Increase profitability by identifying, developing and retaining loyal, high-value customers
� Reduce costs through implementation of best operational practice, including optimised use of assets and resources
� Ensure regulatory compliance, certification and security in linewith commercial and operational aviation regulations
Requirement
Improve regulatory
staff qualification,
certification and
compliance
Oracle Capability The Oracle Difference
Oracle has proven capability
in dealing with airline specific
requirements and regulatory
authorities
Oracle Human Resources,
Learning Management
Ensure regulatory compliance, certification andsecurity in line with commercial and operationalaviation regulations
Ensure the right
resources with the right
qualifications, are in the
right place at the right
time (Operations 360)
Only Oracle integrates front
and back-office solutions to
provide end-to-end
compliance
Oracle Human Resources,
HR Analytics and Business
Intelligence
Meet governance and
accounting standards,
comply with certification
and regulatory
requirements
Oracle solutions are proven in
airline environments and offer
more localisations than any
other solution
Oracle Financials,
Oracle HR, Oracle
Dangerous Goods
Improve Compliance and Security
Oracle provides a complete solution that supports and demonstrates improved regulatory compliance, greater control over security, and audit capability
• Identify the right employees
• Develop employee skills and qualifications• Measure and reward success• Retain qualified employees
• Define resource requirements based on skills, qualifications and permissions required to undertake specific tasks
• Ensure compliance and deploy appropriately qualified resources:• Regulatory (e.g. crew and engineer qualifications)
• Security (e.g. access control)• Currency (e.g. qualification expiry and retraining)
ORACLE
e-HR
Compliant
Enterprise
Attract
Deploy
Develop
Measure
RewardRetain
Report
Analyse
Compliance
Incentives
Customer Success Profile
COMPANY OVERVIEW
• Founded in 1973, American Trans Air (ATA) is the 11th-largest airline in the U.S., with revenues of $1.29 billion in 2000. Headquartered in Indianapolis, Indiana, ATA provides high-quality air transportation for more than eight million passengers annually.
CHALLENGES/OPPORTUNITY
• Integration of core technology foundation • Easy access to 28 years of corporate records • Enhance employee communication on benefits and training systems through enhanced human resources functions
SOLUTIONS
• Advanced Benefits, Assets, Cash Management, Discoverer, Oracle Consulting Services, Oracle Financials, Oracle Human Resources, Oracle Support, Oracle Database, Oracle Forms, Oracle Reports, Oracle Portal, Oracle Payroll, Oracle Project Costing, Oracle Purchasing, Oracle Self-Service HR, Oracle Training Administration
RESULTS
• Gave ATA ability to adhere to stringent Federal Aviation Agency requirements for information storage
• Positioned company to meet aggressive goals for growth
• Gained quick and easy communication with ATA's 7,800 dispersed employees
CUSTOMER PERSPECTIVE
"How do you put a value on managers and supervisors being empowered with the information from Oracle HR to make sure that our records--which are extremely vital to our existence--are kept up-to-date and accurate? That's invaluable to ATA."Glen Baker, VP Information Services
Business Operations
Customer Channels
E-Business Siebel ISV Partners
Infrastructure
Partner ManagementMarketing Customer Service
Loyalty
Management
Maintenance
Repair and Overhaul
Purchasing and
Inventory
Corporate Administration
Sales
Indirect
ProcurementCPM
Facilities
Management
Human
ResourcesProjects Compensation
HR IT
Helpdesk
20
Technology [e.g. Database, Spatial, Application Server, RAC, Oblix, Times Ten]
Integration Framework (e.g. BPEL)
Hubs (Asset Hub) Universal Customer Master
Supply Chain
And Warehousing
Self Service
Analytics
CRM
Supply Chain
Human Resources
Financials
Call Center
Asset
Management
Airline Operations
and Crew Scheduling
Financials
Solution Footprint - Airlines
Reservations and
Departure Control
Inventory and
Yield Management
Cargo
Management
Rev. Acc’ting
Operating System
Database
Fusion
Middleware
Tools / J2EE
Applications
Consulting
Top to Bottom Support
for Airlines• #1 enterprise software vendor
• ERP, CRM, HR and more
• Most scalable, reliable, secure infrastructure
• Most complete range of on-demand and on-premise deployment options
• Built-in Airline capabilities• Airline-tailored full-function loyalty (frequent flyer) solution
• End-to-end asset management support, including tailored management of assets such as aircraft and ground equipment
• Industry-specific functionality in Finance, HR and Learning
• Integration with market-leading airline reservations, DCS and GDS solution, and with industry clearing houses
• Compliant with industry regulatory and certification requirements
• Airline-specific business intelligence, data analysis & data mining algorithms and reports
• Largest software support team• 3,000+ support engineers in 145+ countries
The Oracle Difference
• Can deliver solutions that provide end-to-end identification, management, tracking and differentiated personalised support for high-value customers at all airline touch points, before travel, during travel and post travel, including an airline-tailored loyalty solution
• Can demonstrate measurable benefit working with airlines to improve best-practice process, reducing costs and reduce spend across all major back-office and asset management processes, with solutions tailored for the airline industry
• Offers solutions that can deliver proven benefits in ensuring airlines comply with federal regulations - managing employees, their training, qualifications, certifications and expirations with in-built auditability, shipping of dangerous goods, etc, which leads to increased regulatory and security compliance
Only Oracle…
• Leadership in Airlines
• Innovation in Airlines
• Results Achieved by Oracle Customers
Agenda
Customer Quotes“The CRM infrastructure we have built with PeopleSoft and IBM is the most sophisticated in the airline industry. No other company hasanything like it.”
“We were impressed by Oracle’s industry knowledge and the closeness of fit of its functionality to our business requirements. We are convinced that the benefits of this project will enable goodreturns for Virgin Atlantic both in terms of cost savings and business process improvements that will impact both short term results and help us build for future growth”
“With Oracle Internet Procurement solution, Cathay Pacific expects to conduct 35% to 50% of its purchasing over the Internet within the next three years. This Internet Procurement solution is expected to help reduce the airline’s total expenditure by more than HK$300 million a year with much of the saving coming from online purchasing and a substantial reduction in inventory carrying cost.”
“Oracle Integrated Financials System was selected for overseas accounting initially, however the scope was expanded to include corporate finance functions Oracle was able to meet the airlines requirements and in addition, was flexible in tailoring to SAS specific needs.”
“”Siebel Business Analytics provides us with the ability to be more proactive as a marketing and service operation and be more relevant to the customer. It also allows us to be more mindful of customers’ needs whilst at the same time being respectful of their time and privacy. That is where our customers will find true value”
Oracle Airline SolutionsSummary
Increase aviation regulatory compliance, certification and security
Increase aviation regulatory compliance, certification and security
Reduce operational costsReduce operational costs
Improve profitability and increase customer loyalty
Improve profitability and increase customer loyalty
• Comprehensive customer management and analytics
• Relevant customer information delivered to all touch-points
• Full integration with reservations, DCS and GDS solutions
• Full-function airline-optimised loyalty (frequent flyer) solution
• Strategic, value added financial support including optimisedbuying (on-contract, in catalogue, procurement)
• Improved failure prediction resulting in reduced asset downtime
• End-to-end fully integrated support of total life-cycle asset management including aircraft MRO
• Full training, certification and security qualification and expiry tracking. Integration of qualification and clearances with staffscheduling, MRO operations and security systems
• Full compliance with corporate governance and international accounting standards
• Compliant with federal and other regulatory authority record keeping and audit requirements (including dangerous good)