Airlines

These are exciting times for the airline industry.The industry is rapidly globalizing, so operators must be flexible and make quick adjustments.

New markets are opening up, and, with it, new opportunities. How should airline operators react? How should they adapt to different geographies and different customer retention paradigms?

Safety can never be compromised, but can we make safety cheaper?

Low-cost airlines, who cut out the frill and the comfort but offer vastly reduced prices, are making a very strong entry. How should the industry react? What could be the new pricing and service strategies in this scenario?

What are the current key drivers? What could be the new key drivers?

Are airlines getting their schedules right? Are they timing their maintenance outings optimally?

What could busy airports do to manage traffic? Could we increase the number of landings and take-offs? How?

Are pilots flying their aircraft well? If no, what does it mean in terms of aircraft maintenance costs and insurance premiums?

These are just few of the questions and problems that the aircraft industry faces.

At Cranes Analytics we believe that we can find all your answers for you: Smart, thoughtful and detailed answers, and offer intelligent analytics and smart business intelligence solutions.

If the answer to your problems can emerge from your data, Cranes Analytics will find it for you.

 

Analytics for the Airline Industry

Segmentation and churn management

Airline customers can be widely different and it is vitally important to map their preferences and profiles in order to compete effectively. Based on customer segmentation, the organization can determine how much time and investment should be allocated to individual customer groups.

Cranes Analytics can offer solutions to determine the different customer segments and identify the key drivers that influence each segment’s preferences and promote churn. Are there some telltale signs of an impending customer churn? How could we spot these signals quickly?

Load factor analysis

Every airline is typically required to fill up two-thirds (66%) of its seats to break even. If the load factor, i.e. the percentage of the seats sold, is below this percentage, airlines are in trouble in the short run and deep trouble in the long run.

Cranes Analytics can accurately identify an airline’s load factor and build game-theoretic models to study trade-offs: should we increase the ticket cost or should we cut out the unnecessary frills?

Scheduling

Because of deregulation, airlines have been free to serve whatever domestic markets they feel warrant their service, and they adjust their schedules often, in response to market opportunities and competitive pressures. Cranes Analytics can propose scheduling routines based on dynamic programming or intelligent heuristics or both.

Pricing

The advent of low-cost airlines appears set to vertically divide the airline operators; indeed, many airline operators are already beginning to offer both the flavors. How can low cost airlines increase load factors? What might be an optimal ticket sale strategy to ensure that practically every seat is taken? Is it a good idea to cut down on in-flight catering, baggage management costs and endeavor to keep their aircraft flying more hours every day?