1. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Lufthansa meets MIT Information Technology in all aspects of Air Transportation Challenges and Solutions for Airline Industry January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki

2. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Contents Introduction The Starting Point: Agility, Ubiquity and Seamlessness Mobility: Entering the wireless era Personalization Dynamic Management (Optimization) Collaboration: horizontal and vertical Integration Summary

3. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology The Starting Point: Agility, Ubiquity and Seamlessness Agility SeamlessnessUbiquity Ability to adapt quickly to changing conditions Connectivity to the offered services: Anywhere, anytime, any channel Ability to offer a product with a constant quality within a given network of airlines

4. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Mobility: Entering the wireless era Tomorrow PDA Logbooks PDA Work Cards Integrated engineering database Visually augmented Maintenance Extended Internet access availability Today Paper logbooks Hard copy work cards Engineering data from isolated sources Maintenance requires familiarity with access requirements Internet access available in the air

5. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Entering the wireless era Low Risk Extending Internet Availability Integrated Engineering Database Visually Augmented Maintenance. PDA Logbooks High Risk Low Benefit High Benefit PDA Workcards

6. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Collaboration leads to horizontal and vertical integration Tomorrow Horizontal (airline alliance) and vertical (supply chain) integration – Business Nets Collaborative decision making Cost and service oriented alliances Today Resources (including information) are only shared partially and if necessary Decisions rely on “own” data only Creation of alliances/cooperations mainly revenue driven

7. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Areas of Collaboration Low Risk High Risk Low Benefit High Benefit Common data bases Standard IT-platforms Organisational Standards Single Sky ATM Alliance Purchasing Portal Sharing resources & services Data Definitions Process Standards

8. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Personalization Our Vision Personalization of customer interaction with the airline e.g. variable check-in screens depending on ident Personalized on-board entertainment/work environment e.g. use the inseat screen/keyboard for own PDA Micro-incentives for customers e.g. for early check-in/boarding or pre-advising pax info Personalized information for non-travellers e.g. passenger choice for disclosing traveling data in real time Manageable micro-incentives system for employees e.g. 60 credits for bringing down last weeks delay rate

9. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Personalization Low Risk Micro incentives For customers Personalized Information for Non-travellers Onboard Entertainment/ Work Env. Personalization of Cust/airline interaction High Risk Low Benefit High Benefit Manageable Incentives for Employees

10. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Flight schedule Fleet assignment Crew planning Weather forecast Ground-Delay Strikes... Air-delay Intelligent continuous schedule flight schedule and resources allocation can be optimized up to hours before actual operation

11. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology slow Server (check in- counter) fast medium slow Server (check in- counter) queue Dynamic management: Intelligent queuing passenger information is available to airline (amount of luggage, nationality, number of children, visa status etc. separate passenger into fast/medium/slow based on their demand service rate

12. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Customer Travelocity.com / travel agents Airlines Customer Customer network Customer airlines Decentralized alliance network Reconfiguration of ticket distribution network channel

13. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Risks and benefits Dynamic Management / Optimization Intelligent queuing Intelligent continuous schedule Reconfiguration of ticket distribution network channel High Risk Low Risk Low benefits High benefits

14. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Key trends for information technology MobilityCollaboration PersonalzationOptimization

15. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Thank you for the opportunity to present

16. MIT January 9th,2003H. Kielhorn, H. Loop, A. Ritter, N. Tan Ho, C. Choudhury, J. Chambers, A. Herrera Reyna, T. Lubecki Massachusetts Institute of Technology Areas of Collaboration Risks Benefits Common data bases Standard IT-platforms Organisational Standards Single Sky ATM Alliance Purchasing Portal Sharing resources & services Data Definitions Process Standards