Wavescheduling–KnowHowManual–RolandBerger&PartnerCompetenceCenterAviationFrankfurt,October19971TableofcontentPageA.Introductiontonetworkmanagementandwavescheduling2B.Waveschedulingprocess7C.RolandBerger&Partner'sapproachtowaveschedulingprojects23Annexes1.Supportingtools2.Datarequirementchecklist3.Glossaryofterms2A.IntroductiontonetworkmanagementandwaveschedulingThepurposeofthischapteristointroduceyoutonetworkmanagement,theumbrellaunderwhichwaveschedulingisdeveloped.Youwillalsofamiliarizeyourselfwithbasicconnectivityanalysis,themaintoolforquantifyingandcomparingthequalityofanairline'stransfertraffic.3A.IntroductiontonetworkmanagementandwaveschedulingI.NetworkmanagementTherearetwomainkindsofairlinetrafficstreams:nonstoptrafficstreamsandthosetrafficstreamswithconnectingflightsviaathirdairport.Fromthepassengers'pointofview,onlyOriginandDestination(O&D)areofimportance.Still,carrierscanbedifferentiatedbytheamountoftraffictheytransportnonstop(point-to-point)orviagateway(transfer).Point-to-pointnetworksaremainlysuitablefortrafficstreamswithaconsistentvolume.Thekeysuccessfactorsofpoint-to-pointnetworksarepriceandtimeoftheflight.Thisissuepaperfocusesontransfernetworkswherethegatewayisthehomeairportofthecarrier(theso-calledhub).Therewillstillbealotofpoint-to-pointtraffictoandfromthathub(especiallyonbighubslikeLHR),butadditionallytheaimistoincreasetheloadfactorofthosepoint-to-pointflights(e.g.JFK–LHR,LHR-FRA)byofferinggoodconnectionsandthusmakepassengersusethehubasagateway(e.g.foraconnectionJFK–LHR–FRA).Thekeysuccessfactoristhequalityoftheoffer:connectingglobalcity-pairsasquicklyaspossiblealthoughsingletrafficstreamsarerelativelysmall.Transfernetworksareofhighimportanceinthecontextofglobalalliancesbetweenairlines.LHforexamplehasconnectionsfromFRAtoallUA-hubs(CHI,SFOetc.)whichoffersUA-customerstransferconnectionsinFRAandviceversa.Themanagementofanairline'snetworkisgettingmoreimportantthemorecompetitivethebusinessgets,andthereforethemoretheairlinestrytomeetthecustomers'demand.Aselementsoftheflightschedule,liketimeofdepartureorconnectivity,havethehighestpriorityregardingthepassengers'buyingdecision,thestructureofthenetworkofanairlineisstronglyinfluencedbythecustomers'demand.Atthesametime,thenetworkstructuredetermines80%ofthecostsofanairlinewhicharefixedoncetheflightschedulehasbeendesigned.Therefore,thenetworkstructurehastobedesignedtoachievetwoconflictingobjectives:marketorientationandproductionorientation.HavingthebetterNetworkManagementhasbecomeonemaincompetitiveadvantage.Airlineshavetomanageahighlycomplexnetworkwhereeachsinglepartisinfluencedbythetotalsystemandviceversa.Dependingonairlines'strategies,differentkindsofnetworksarepossible.Thebiggerthenetworkandthehigherthecompetition,themoredohubandspokeadvantagesoutweightheadvantagesofpoint-to-pointnetworks.Complexityandcostsofnetworksaredrivenbytrafficstreams,competitors'networksandtheairline'snetwork(airports,capacities,frequenciesandthewaytodealwithpassengers'preferences).Networkscanbecharacterizedbytheirsize,concentrationonO&Ds(e.g.regionalpreferences),numberofparticipantsandcompetitorsandthenetworkstructure.Transfernetworksarebuiltaroundbighubairports.Hubsasthecentralpointsofnetworksareofgreatestadvantageiftheyarelocatedatthecenteroftrafficstreams.However,therearealsostrategiesforthoselocatedattheedge.4II.Connectivityanalys...