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Real-Time Route Profitability (RTRP) and Network Planning solution

Airlines operate in a complex environment characterized by:

  • Flights with different types of aircraft
  • Diverse geographies and distribution channels
  • Revenue streams in multiple currencies

In this challenging environment, a legacy airline finds it difficult to ascertain the actual revenues and operating costs for each flight. In addition, senior management may not have access to a single version of truth due to multiple data points. Decision makers can monitor route performance metrics such as cost, revenue performance, load factor and cash operating margin, but the data may be available only after two or three months. The lack of real-time route profitability information prevents airlines from taking strategic decisions to manage assets and improve profitability.

Infosys Real-Time Route Profitability and Network Planning solution is a strategic decision-making tool that enables CXOs to access timely and accurate route performance information. We offer the solution to three segments of the airline industry:

  • Replacement system for airlines with a legacy solution
  • Airlines implementing Oracle E-Business Suite Financials
  • Pluggable solution for airlines with Oracle BI tools
Challenge Solution Benefits
Lack of real-time route profitability Synthesized route profitability data is delivered to key stakeholders with key indicators such as revenue, cost-per-flight, load factor, cash operating margin, and yield per ASM Infosys leverages its enterprise resource planning (ERP) capabilities to extract data about the airline’s actual cash costs and net revenues from points-of-sale globally
Multiple sources of revenue (airline website, online travel agencies, excess baggage charges, duty-free sales in aircraft, cargo revenues, etc.) An integral part of the Infosys solution involves standardization of ERP IT systems across the airline’s global operations with a dashboard. It helps airlines take faster tactical pricing and strategic capacity and frequency decisions Improved top line and bottom line performance
Actual block time, and fuel consumption may vary depending on weather conditions as well as flight plans Faster deployment of airline capacity based on principles of operating profitability
Cannot make strategic and tactical decisions to manage assets and improve profitability Increased profitability through real-time strategic decision making

Benefits

Infosys Real-Time Route Profitability and Network Planning solution delivers significant benefits:

  • Source system independence: Allows data to be sourced from multiple systems with minimal impact to the presentation layer
  • User-friendly access: Enables non-technical users to understand and analyze data
  • Interactive dashboards: Slice and dice data easily without major back-end changes
  • Simulation: Performs ‘what-if’ profitability analysis of routes

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