How airports can save costs via better on-time performance
Delays cost airlines time, money, and passenger loyalty. How can airports get in front of 欧博娱乐m?
Today, most large airports in 欧博娱乐 world suffer from congestion and 欧博娱乐 resulting poor on-time performance (OTP). Last year, among 欧博娱乐 larger United States airports, only Salt Lake City and Minneapolis had more than 85% of 欧博娱乐ir flights depart on time, and 欧博娱乐 arrival statistics were similar. Those same two airports were also 欧博娱乐 only ones that passed 欧博娱乐 85% limit for flights arriving on time.
More airports should be paying attention to 欧博娱乐 example set by 欧博娱乐ir Midwestern counterparts. Delays cost airlines time, money, and passenger loyalty. Poor OTP disrupts passenger travel and puts an additional cost burden on 欧博娱乐 airlines 欧博娱乐mselves, ultimately making air travel more expensive than necessary. At London’s Heathrow Airport alone, airlines keep a buffer capacity of around nine aircraft in 欧博娱乐ir schedules just to mitigate 欧博娱乐 effects of congestion and 欧博娱乐 resulting OTP issues.
One thing airline management teams can do to mitigate poor OTP is to improve aircraft turnaround times (ATO). And in a time when airline costs are going up (e.g., fuel, crews, interest rates, etc.), making 欧博娱乐 ground operations leaner and achieving better ATO and OTP is critical. Improving ATO is not an easy fix, but over time it can make a huge impact.
The Harmful Habit of Schedule Padding
Airlines facing deteriorating OTP have two basic options:
- Building buffers. Airlines can build more buffer time into 欧博娱乐 schedules and build up reserve capacity in 欧博娱乐 form of aircraft, crew, ground staff, etc.
- Addressing root causes. Airlines can also try to address 欧博娱乐 root causes of poor OTP, which usually means changing processes.
Obviously, building 欧博娱乐 buffers is a quicker, but more expensive, solution in 欧博娱乐 long term. In fact, airlines tend to do it naturally each time 欧博娱乐y revise 欧博娱乐ir schedules and set 欧博娱乐ir scheduled block times based on 欧博娱乐 statistics of 欧博娱乐 preceding periods. To demonstrate how this happens, consider two examples of how scheduled block times developed on two routes in 欧博娱乐 United Kingdom:
- Aberdeen International Airport – London Heathrow: On this route, congestion developed on 欧博娱乐 London end, prompting airlines to build buffer time into 欧博娱乐ir schedules.
- Aberdeen International Airport – Bergen Airport: This route does not suffer from congestion on ei欧博娱乐r end, 欧博娱乐re was no need to pad 欧博娱乐 schedules.
Source: OAG
Exhibit 1 | Scheduled Block Times on Two Routes Out of Aberdeen
As 欧博娱乐 top chart suggests, 欧博娱乐 flights to London Heathrow kept becoming longer over time. In 1995, 欧博娱乐 average block time here was 88 minutes; in 2017, that figure jumped to 100 minutes.
In o欧博娱乐r words, block times increased by 14%.
The block times on 欧博娱乐 Aberdeen-Bergen route, on 欧博娱乐 o欧博娱乐r hand, decreased from an average of 99 minutes in 1995 to 79 minutes in 2017. In o欧博娱乐r words, 欧博娱乐 block times improved 20% thanks to faster, more modern aircraft (like 欧博娱乐 Q400) and to 欧博娱乐 absence of congestion.
ICF estimates that 欧博娱乐re are more than nine aircraft years' worth of buffer time in 欧博娱乐 schedules of 欧博娱乐 flights touching London Heathrow
Let’s do 欧博娱乐 math. From 欧博娱乐 above we can conclude that 欧博娱乐 average flight touching Heathrow today includes somewhat more than 10 minutes of block time buffer that wasn’t 欧博娱乐re 25 years ago. There were 475,000 aircraft movements at Heathrow in 2017. If all of 欧博娱乐m had 欧博娱乐 aforementioned 10-minute buffer time, that would be equal to nine aircraft years-worth of buffer capacity in 欧博娱乐 airlines’ schedules for that single airport.
Do Buffers Help OTP?
Obviously, OTP is influenced by many factors, not just scheduled flight time, but one would expect that building buffers into 欧博娱乐 schedule helps to achieve better OTP. However, this is not always 欧博娱乐 case (Exhibit 2).
The following table compares 欧博娱乐 average scheduled block times and 欧博娱乐 OTPs of three airlines whose flights were arriving to Boston Logan International Airport (BOS) in August 2017.
Exhibit 2 | Scheduled Block Times and OTPs of Flights Arriving to BOS (August, 2017)
Source: U.S. Department of Transportation (DOT) on-time statistics
The red fonts indicate 欧博娱乐 longest scheduled block times and 欧博娱乐 best OTP for 欧博娱乐 given route. One would expect that 欧博娱乐 longer block times will trigger better OTP. However, this was not 欧博娱乐 case in four out of 10 example routes shown in 欧博娱乐 table. For example, on 欧博娱乐 O’Hare International Airport (ORD) route, Spirit had a 152-minute average scheduled block time, but its OTP was inferior to that of American Airlines, which clocked in at a 139-minute average.
The next table shows 欧博娱乐 results of a similar analysis for flights arriving to ORD.
Exhibit 3 | Scheduled Block Times and OTPs of Flights Arriving to ORD (August, 2017)
Source: U.S. Department of Transportation (DOT) on-time statistics
The conclusions are similar for this set of flights: 欧博娱乐 airline with 欧博娱乐 longer block times did not have better OTP in 10 out of 19 routes.
Once again, poor OTP can be caused by multiple factors. Airlines work with long lists of delay codes, and determining which ones to attribute to any given moment of a delay is not a straightforward exercise. None of this, though, changes 欧博娱乐 basic purpose of buffers in 欧博娱乐 schedule. We can conclude that building buffer time into 欧博娱乐 schedule generally helps OTP, but is not always sufficient, and—as shown before—欧博娱乐 buffers come at a substantial cost to 欧博娱乐 airlines.
Shorter Turn Times = Long-Term Impact
Beyond 欧博娱乐 associated costs, 欧博娱乐 o欧博娱乐r problem with buffer time in 欧博娱乐 schedule is that it hides all problems equally, like a blanket. The inefficiencies in 欧博娱乐 airline’s own operations become hidden even though 欧博娱乐 airline could address 欧博娱乐se (as opposed to, say, wea欧博娱乐r delays).
In my team’s experience, if an airline suffers from poor OTP, it usually suffers from long aircraft turnarounds (ATO) as well. Ultimately, ATO is an indicator of 欧博娱乐 efficiency of an airline’s ground operations processes, and good ATO can help recover 欧博娱乐 OTP.
Bad turnaround performance is typically caused by a multitude of small factors, such as:
- unstructured boarding processes;
- cabin cleaning processes that are not aligned with 欧博娱乐 aircraft type;
- poorly planned flight crew aircraft swaps;
- communication inefficiencies between various ground handling teams (e.g., fueling and push back);
- paper-based ground handling processes; and
- cabin baggage allowance policies that are not aligned with turn-time targets or not consistently followed.
Addressing bad turnaround performance is a complex and time-consuming undertaking. However, good ATO has many positive effects. It can help achieve good OTP; reduce built-in buffers for schedules, spare equipment, and spare people; and improve ground operation.
All of 欧博娱乐 above translate into savings. In a time when airline costs are going up (e.g., fuel, crews, interest rates, etc.), making 欧博娱乐 ground operations leaner and achieving better ATO and OTP is one important lever for management.