agenda

Day One
7:15 Registration and Networking Continental Breakfast
8:00 Opening Remarks from the Chair
8:15 KEYNOTE PRESENTATION
Capitalizing on the Latest Airline Revenue Management Enhancements and Innovations
The economic crisis is taking a heavy toll on the airline industry and both domestic and international carriers are investing heavily in revenue management systems, but recent changes in fare structures have impaired the capabilities of revenue management systems to maximize revenues. This in-depth, educationally focused presentation will describe the impacts of changing pricing practices on airline revenues and load factors. Several recent developments designed to enhance revenue management forecasting and optimization models in simplified fare structures will be presented, including:
  • Impacts of recent pricing developments on the ability of airline RM systems to maximize revenue.
  • Limitations of traditional airline RM systems that contribute to lower yields, higher loads factors, and lower revenues.
  • Enhancements required to RM systems and models to forecast demand and optimize revenues in today’s rapidly changing airline pricing environment.
  • Peter P. Belobaba, Ph.D., Principal Research Scientist, International Center for Air Transportation, Program Manager, Global Airline Industry Program, MASSACHUSETTS INSTITUTE OF TECHNOLOGY
9:30 ROI CALCULATION
Measuring and Quantifying the Value of Integrated Network Planning
This engaging presentation will highlight the proven success strategies currently being leveraged by Southwest Airlines to maximize profit and cost-efficiency with regard to capacity planning and yield management. The presentation will additionally delve into the metrics and data analysis processes used to quantify financial impacts and P&L. Specific learning points include:
  • Leveraging clear and measureable performance metrics
  • Utilizing and capitalizing on human capital knowledge and improving strategic and tactical alignments across your airline or organization
  • How to gain cross-functional commitment from your executive leadership
  • Brook Sorem, Director, Capacity Planning, SOUTHWEST AIRLINES
10:15 Networking Refreshment Break
10:45 Capitalizing on Predictive Analytics to Maximize Profitability and Value
During this engaging presentation, learn how United Airlines is leveraging high-end analytics and predictive models – including statistical modeling, operations research and other predictive methodologies to drive bottom line value. Key learning points of the discussion will address:
  • Pricing and revenue management, CRM, and supply chain management
  • Quantifying your results to achieve bottom line value
  • Leading enterprise-wide game changing initiatives
  • Managing large teams, including virtual and offshore teams
  • Krishnan Saranathan, Managing Director - Enterprise Optimization, UNITED AIRLINES
11:30 Overcoming the Challenges and Opportunities of Revenue Forecasting and Planning in a Global Recession
This presentation will highlight the exceptional initiatives that Delta Air Lines is leveraging to achieve optimal profitability and cost-efficiency with regard to revenue management and forecasting. This session will provide answers to the following:
  • Can forecasting models adequately represent today's fast changing environment?
  • What other tools and processes are available?
  • What key competences and skills are necessary to adapt to the new environment?
  • Roberto Ioriatti, Director, Revenue & Competitive Analysis, DELTA AIR LINES
12:15 Dynamic Capacity Management: An Air Canada Case Study
A practical approach to increasingly dynamic capacity management requires carriers to be flexible and nimble. At Air Canada this has been driven by the requirement to successfully compete with low cost carriers and respond rapidly to the changing economic environment using levers such as:
  • An industry leading customer driven business model that has enabled Air Canada to adapt best of both low cost and full service models and offer a la carte pricing, subscription and flight passes. Increasingly this is causing demand to drive capacity rather than the old model of capacity driving demand.
  • Flexible fleet mix allowing the ability to allocate capacity based on demand that results in an optimal and profitable schedule, while capturing real medium and short term incremental revenue and cost saving opportunities
This case study will provide an in-depth look at how Air Canada has successfully managed change with the support of these and other levers and their impact on managing capacity within the airline.
  • Tanya Boismier, Director, Scheduling and Network Planning, AIR CANADA
1:00 Networking Luncheon
2:30 Integrating Total Passenger Spend into the Revenue Management Process
Ancillary fees have become a vital revenue source for airlines within the last year. During this presentation learn how Midwest Airlines is capitalizing on ancillary revenue sources while simultaneously managing consumer-demand and expectations to improve customer satisfaction.

This presentation will describe how Midwest is allocating for ancillary revenues and incorporating total passenger spend, into its revenue management and planning processes. Key discussion points of this presentation will detail and provide concrete answers on:

  • Is a volume-driven strategy best for maximizing total revenues?
  • How should Revenue Management forecast and assign value to ancillary fees in the customer acceptance process?
  • Should ancillary fees be priced and revenue managed similar to airfares?
  • Melissa Skluzacek, Director - Pricing & Revenue Management, MIDWEST AIRLINES
3:15 Getting an Upper Hand on LCC’s
In deciding pricing responses to the entry of Low-Cost Competitors (LCCs), revenue managers at incumbent airlines find it crucial to estimate accurately the market demand stimulation available at reduced price points. Traffic apparently stimulated by the entry of an LCC is often diverted from substitute airports. In such settings, the relative quality of service often changes with fuller planes and more stringent capacity controls but increased nonstop flight frequency. As a result, market share can shift radically as air travelers of particular types choose among the new price-quality offerings. This presentation will outline the results of a study illustrating how an airline can address these issues in the execution of optimal Revenue Management solutions.
  • Robert Emrich, Manager, Corporate Planning, AMERICAN AIRLINES
4:00 Networking Refreshment Break
4:15 INTERACTIVE PANEL DISCUSSION
Developing a Framework to Optimize Demand Forecasting and Data Management
During this interactive session, our panel of experts will discuss the paramount challenges and issues currently impacting airline revenue management, pricing, scheduling, equipment and resource allocation and capacity planning. Audience members will be invited to share their input and engage in the discussion with panel members.
  • Donald S. Garvett, Former Vice President of Planning and Revenue Management at ALASKA AIR GROUP, Senior Strategic Advisor, SH&E
  • Krishnan Saranathan, Managing Director - Enterprise Optimization, UNITED AIRLINES
  • Robert Emrich, ,Manager, Corporate Planning, AMERICAN AIRLINES
5:00 Close of Day One & Adjournment to Networking Reception
Day Two
7:15 Networking Continental Breakfast
8:00 Call to Order and Remarks from the Chair
8:15 THE ECONOMY & AIRLINES
Managing Revenue Optimization, Profits and Pricing During Unprecedented Economic Hardship
Airlines are currently facing unprecedented times accompanied by extreme volatility. This volatility extends to economic metrics, passenger and cargo demand, yields, foreign-exchange rates, and, of course, fuel prices. While these particular elements are unique, this is not the first time that airlines faced unprecedented conditions. A similarly disruptive airline world resulted from an unprecedented rise in terrorism in the mid and late-1980’s. A case study of Pan Am’s reactions and the resulting good and bad outcomes will draw parallels relevant to today’s environment. Key discussion points will focus on:
  • Owning the problem - nearly everything is controllable
  • Uncertainty may be a bigger enemy than adversity
  • Action is often better than inaction - even if imperfect
  • Success comes from fact-based decisions, sometimes “breaking the mold”
  • Donald S. Garvett, Former Vice President of Planning and Revenue Management at ALASKA AIR GROUP, Senior Strategic Advisor, SH&E
  • Carlos Ozores, Principal, SH&E
9:00 What to Do When Your Strategy is Swamped by Analysis
Sometimes it is worth pulling back from the fine detail to analyze the strategy and tactics of your competitors. Not everyone responds to market shocks in the same way, and not every response appears rational. During this in-depth presentation, we will look at the use of guerrilla tactics in volatile airline markets. We will then assess their strengths, and weaknesses, measures the results and impact of each with regard to capacity management and revenue achievement and determine how such a model can be tailored to achieve optimal financial results for your airline. Primary learning points of this presentation will delve into:
  • The paradox of protecting core strengths
  • Moving early in the cycle to bank future revenues
  • Contrarian tactics
  • Proven success strategies, and understanding what works, what doesn’t and why
  • Ian Douglas, Former Executive of QANTAS AIRWAYS, Senior Lecturer, Department of Aviation, UNIVERSITY OF NEW SOUTH WALES
10:15 Networking Refreshment Break
10:45 Enhancing Your Operations & Productivity through Simulation Modeling
A growing number of airlines are recognizing that simulation modeling is key to improving operations and enhancing productivity. During this session you will learn how simulation modeling can be a highly effective tool in capturing complex processes and maximizing operational efficiencies. Through typical simulation applications in the airline industry, you will learn how simulations can be used in manpower planning for maintenance operations, determining the economic feasibility of super-tug acquisitions and how to develop better aircraft boarding strategies for narrow and wide-body aircraft. Learning takeaways include:
  • Common simulation applications - what works
  • Cost reductions through simulation
  • How animation plays a role in improving the process
  • How airlines can leverage universities' simulation expertise to solve complex planning and operations problems
  • Massoud Bazargan, Ph.D., Professor and Chair of Management, Marketing and Operations, College of Business, EMBRY-RIDDLE AERONAUTICAL UNIVERSITY
11:45 Capitalizing on the Use of Financial Markets, Airfare Benchmarking and Airline Yield Forecasting
Many airlines are supplementing their forecasting tool boxes through the use of financial markets and indices. This has proven to be a bona fide way for airlines and aviation companies and corporate buyers of tickets to mitigate the financial risks that stem from the constant change in airline ticket prices. Through the use of certain financial index contracts within futures markets, any company with ticket pricing risk has the ability to offset its exposure by locking in current price levels against future price increases or decreases. Anyone with risk on the future level of airfares will be interested in this product. This would include airlines, credit card issuers, companies with large travel budgets, and others. During this session, we will closely examine the value and potential posed through the use of financial indices, airfare benchmarking and airline yield forecasting.
  • Bob Harrell, Principal, AEROCOMMODITIES, HARRELL ASSOCIATES
  • Denver Lopp, Professor of Aviation Technology, PURDUE UNIVERSITY
12:45 Closing Comments
1:00 Conclusion of Forum