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African Airlines: Strategy for Sustainable Development and Competitiveness. Business Process Outsourcing BPO Outsourcing for Competitiveness Simon Riha 37 th Annual General Assembly African Airlines Association Sun City November 14-15, 2005. e-go 169®. in cooperation with.

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African Airlines: Strategy for Sustainable Development and Competitiveness

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African airlines strategy for sustainable development and competitiveness l.jpg

African Airlines:Strategy for Sustainable Development and Competitiveness

Business Process Outsourcing

BPO

Outsourcing for Competitiveness

Simon Riha

37th Annual General Assembly

African Airlines Association

Sun City

November 14-15, 2005


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e-go 169®

in cooperation with

Hahn Air Lines GmbH

  • Established in 1997.

  • A full member of IATA, IATA Clearing House, MITA and ERAA.

  • Scheduled service between Zurich and Salzburg.

  • Major focus on providing distribution services to airline companies.

  • Interline agreements with more than 120 carriers worldwide.

  • 39 BSP memberships worldwide, coverage of 46 countries.

  • Joint cooperation with Lufthansa Systems, a IATA StB strategic partner.

10. März 2014

Outsourcing

2


Agenda l.jpg

Agenda

Outsourcing and Process Reengineering

Airline Marketing Distribution Network

e-Ticketing and e-Interlining BPO

Outsourcing


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2 companies serve 45% of the market

>500 airlines,excess capacities, strongcompetition

<3 competitors at deregulated airports

2 companies

supply 40% of the market

„Natural

Monopolies"

4

companies worldwide

2 large companies control 100%of the market

Aircraft

Manu-

facturers

Leasing companies

Airlines

Ground Handling

Catering

Airports

GDS

Return on capital:

>30%

16%

15%

11-24%

10-13%

10%

<-5%

Hurdle

Airlines: The Weakest Element of the Value Chain

Outsourcing


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Revenues

Seek incremental revenues opportunities

Deliver only what customers value

Costs

Cost reduction/cost cutting inevitable

Your influence/power limited (oligopoly)

Experience from other industries – e.g. manufacturing

Focus on Process of creating value for customer

Inputprocesses

a

g

k

j

h

b

i

d

e

f

l

c

Value

Process generates costs and errors

=

Rev’s

Inputprocesses

w

v

m

s

r

q

u

o

n

y

t

p

  • Process Analysis(Jack Welsh’s “Destroy your business”)

    • Core, Supportive, Redundant

  • Process reengineering / KAIZEN improvements (Toyota)

    • Simplify, streamline, outsource

  • No compromise on quality (ISO quality management)

Outsourcing and Process Reengineering

>500 airlines,excess capacities, strongcompetition

Airlines

ROC

<-5%

Hurdle

Outsourcing


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Agenda

Outsourcing and Process Reengineering

Airline Marketing Distribution Network

e-Ticketing and e-Interlining BPO

Outsourcing


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Airline Marketing Distribution NetworkYour Gateway to Worldwide BSP Sales

  • A network of IATA BSP memberships covering major markets on all continents (incl. whole Europe, Canada, SE Asia and ARC in USA).

  • After signing a simple unilateral interline agreement, airlines can use Hahn Air as their CLEARING CARRIER (HR / 169) on desired markets.

  • Why that? Although your flights are visible in GDSs and agents can book them, sales have to be ticketed to become revenues.

  • Meeting IATA rules and standards.

  • No cannibal effect on your existing sales:

    • HR ticket is a neutral ticketing platform.

    • HR is no GSA of any airline in the world.

  • A proven (>120 airlines) and complete BPO distribution solution including detailed reporting and revenue accounting.

  • ET interlining introduced shortly.

  • Your Benefits

    • Additional sales from more than 50,000 IATA agents in 46 countries.

    • Total flexibility: choose desired markets and commissions country by country.

    • Reputation: Worldwide sales, cooperation with HR

    • HR provides marketing support and agent help desk for its AMDN.

  • Lower Distribution Costs

    NOJoining / monthly feesNOUp-front capital investmentNOIndividual BSP expenseNOManagement & unit costs (BSPs)NOdata processing & banking feesNOCIP production & distribution expenses NOGDS ticketing feesNOADM/ACM ProductionNOExchange rate risk

Outsourcing


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Agenda

Outsourcing and Process Reengineering

Airline Marketing Distribution Network

e-Ticketing and e-Interlining BPO

Outsourcing


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Traditional Paper Based Ticket Process

Paper

Ticket

Distribution

Ticket Office

Check-In

Boarding

Lifted

Flown

RevenueAccounts

Revenue

AccountsInterline

Partners

Settlement

Outsourcing


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All paper based processes must be mirrored digitally and data channeled both through sales process and operational systems

BSP

ARC

Agent Sales Data/CC Data

Sales Data

ATO/CTO

ATO/CTO Sales Data/CC Data

CRS

Revenue AccountingSystem

Agent

Final Status to

RAS

Res/TKT System

E-TKT

Database

Final Status to RAS

  • Boarded/Flown own Coupons

  • Refund

  • Void

  • Double-Coupons

  • EA-Print

  • Ground Transportation Print

  • FIM Issued

  • Exchanged

  • Print Exchange

  • Printed to Paper

  • Flown OAL-Coupon with ESAC

  • Own Coupon flown with ESAC

Check-In /

Document Control System

E-TKT

DB

OAL

Outgoing/Incoming

Invoices via IDEC

OAL

RAS

Outsourcing


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e-Ticketing affects all areas within your company

Marketing and Sales

Airport Ground Operations

Revenue

Accounting

Reservation

Ticketing

Check in

Boarding

Flight

closure

Revenue

Accounting

Distribution and sales skills

Operational know-how

Accounting skills

Business process know-how and ability to organize a change management process

Outsourcing


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Bilateral e-Interlining versus Hub based e-Interlining

Outsourcing


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e-go 169®

in cooperation with

Challenges & Concerns

  • Upgrade GDSs (slots…)

  • Inventory system provider

  • ET databank

  • BSP testing / implementing (per country per GDS…)

  • Code share issues / interlining (mutual priority)

  • EDIFACT links

  • DCS

  • Staff / training

  • Revenue accounting

Outsourcing


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e-go 169 ® e-Ticketing and e-Interlining Platform

in cooperation with

  • Affordable plug-in BPO solution available in 3 models depending on a desired scale of BPO:

    • e-go 169 ® exclusive

    • e-go 169 ® host

    • e-go 169 ® interline

Outsourcing


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e-go 169 ® e-Ticketing and e-Interlining Platform

Outsourcing


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e-go 169®

in cooperation with

Get Ready for Transformation

Hahn Air

Simon RihaAn der Trift 65D - 63303 DreieichGermanyTel.: +49 6103 5013 0Fax: +49 6103 5013 129E-mail: frankfurt@hahnair.comwww.hahnair.com

in cooperation with

Outsourcing


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