1. Erik Andersson CTO Carmen Systems
The Airline in a Box
Erik Andersson
CTO
Carmen Systems

2. The Box Connect all our products and some more with each other,
...replace users with bots,
...replace reality with discrete event simulation,
...to form a virtual airline within the computer
...then replace simulation with reality and run airline without planners

3. Two Decades of Planning
Gulf War
Manual Planning
10 Jobs
WTC Attack
Optimized
Planning
10 Jobs
Integrated Planning And Operation 1 Job
1991
2011
2001

4. Animation

5. Now Planned Events Q2 Historical Events Q1 Pax Revenue
-pax rerouting costs
-crew salaries, hotel, per diem
-fuel costs
-maintenance costs
-ground handling costs
-leases ...
____________________
=actual profit/loss
Pax Revenue + forecast
-pax rerouting costs (forecast)
-crew salaries, hotel, per diem...
-fuel costs
-maintenance costs
-ground handling costs
-leases ...
____________________
= profit
Historical Events Q1
Planned Events Q2

6. Profit Now Historical Events Planned Events Planned profit Major
Few hours before and under operation disruption cause costs and lost revenue.
Planned profit
Major
Disruption
Historical Events
Planned Events

7. Profit Pairing manual Historical Events Planned Events
Pairings are planned
5-15 percent tighter.
Profit
Designed to survive
operations
Pairing
manual
Actuals raised
3-7 percent
They are broken in rostering
Historical Events
Planned Events

8. Roster Profit manual Historical Events Planned Events
You can start later
because roster is fast
Roster
Profit
Reserves allocated smart for operations
manual
Actuals raised
Another 4 percent
Pairings don’t break in
optimized rostering
Historical Events
Planned Events

9. Profit Historical Events Planned Events Optimizer 2 Optimizer 1 Manual
Better recovery
Profit
Optimizer 2
Optimizer 1
The snowstorm was recovered faster and better
Manual
process
Historical Events
Planned Events

10. Profit
Feedback
Historical Events
Planned Events

11. Integration
Profit
Speed KPI
Integration KPI
=Total gain
Speed KPI
Opt Quality KPI
Historical Events
Planned Events
Three of our KPI’s relate to the profitability our customer

12. Johan Kollind, VP Crew Solutions
Carmen Systems
26 March 2003
Johan Kollind, VP Crew Solutions

13. Mission Statement
To make transportation more cost effective, reliable and environmentally friendly

14. Carmen in short... General Revenue: 21 MUSD in 2002
Growth rate: 40% (5 year period)
Employees: 164
Speciality: Resource optimization
Business model: Rental agreements
Clients: Airlines, railways
Headquarters in Sweden, branch offices world-wide

15. Carmen implements resource optimization solutions that:
Value proposition
Carmen implements resource optimization solutions that:
Improve utilization of resources
Increase operational stability
Provide measurability & control
Increase service level to client’s client
...for ambitious transportation organizations, worldwide

16. News since last year News Northwest Airlines Phillipine Airlines
New clients
Northwest Airlines
Phillipine Airlines
Finnair
Widerøe
New offices
Singapore
Miami (opens in July)
New products
Carmen Integrated Operations Control
First delivery to Aeroméxico summer 2003

17. Clients – Separate logos

18. Product Overview Carmen Passenger Recovery Solver
Carmen Fleet Assignment
Carmen Tail Assignment
Carmen Fleet Recovery Solver
Carmen Integrated Operation Control
Carmen Crew Pairing
Carmen Crew Rostering
Carmen Roster Maintenance
Carmen Crew Recovery Solver
Carmen Rave (General Modelling Language)

19. Address all problems at once
Carmen recovery solvers
Address all problems at once
Simulate also on the day of operation (e.g. impact of prolonged delays, bad weather,etc)
Low risk to add solver on top of the current system
The role of the user is changed from building a solution to evaluating a set of solutions
Scenario 1
One manual solution
Scenario 2
Scenario 3

20. Airline Operation Crew Passenger Aircraft Carmen recovery solvers
Notice that the recovery solvers produce value as separate tools as well. But when combined they can start to focus on the airline operation, rather than the individual sub-problem.
Notice also that the Fleet Recovery solver also contain basic information on crew (typically aircraft changes that are critical for the crew planning) and passenger (typically booked passenger per class or at least estimated revenue from each flight). The extra benefit of adding a dedicated recovery solver for crew or a passenger is that these solver have a much more detailed picture of all constraints, and that they will deliver an exact solution on how to recovery crew or passengers.

21. Airline Operation Crew Passenger Aircraft Carmen recovery solvers
Standbys, roster exchange, bargaining, cancellation and delay suggestions
Airline Operation
Re-bookings, upgrading, OAG flights, costs for accommodation and compensation
Crew
Aircraft
Passenger
Notice that the recovery solvers produce value as separate tools as well. But when combined they can start to focus on the airline operation, rather than the individual sub-problem.
Notice also that the Fleet Recovery solver also contain basic information on crew (typically aircraft changes that are critical for the crew planning) and passenger (typically booked passenger per class or at least estimated revenue from each flight). The extra benefit of adding a dedicated recovery solver for crew or a passenger is that these solver have a much more detailed picture of all constraints, and that they will deliver an exact solution on how to recovery crew or passengers.
Re-timings, standbys, tail swaps, fleet swaps, cancellations

22. Feasibility & cost control
Carmen recovery solvers
Feasibility & cost control
Passenger perception
Airline Operation
Crew
Passenger
Contains aggregated passenger booking info and fixed crew links
Notice that the recovery solvers produce value as separate tools as well. But when combined they can start to focus on the airline operation, rather than the individual sub-problem.
Notice also that the Fleet Recovery solver also contain basic information on crew (typically aircraft changes that are critical for the crew planning) and passenger (typically booked passenger per class or at least estimated revenue from each flight). The extra benefit of adding a dedicated recovery solver for crew or a passenger is that these solver have a much more detailed picture of all constraints, and that they will deliver an exact solution on how to recovery crew or passengers.
Aircraft

23. Carmen recovery solvers
The internal database is only accessible to the client via the message broker. Carmen must be free to change the model and the behaviour of the solvers without promising backward compatible systems. Of course the interface and the behaviour of the system must be backward compatible. The internal database currently used is Oracle.

24. Contact us for demonstrations
Carmen recovery solvers
Contact us for demonstrations
The internal database is only accessible to the client via the message broker. Carmen must be free to change the model and the behaviour of the solvers without promising backward compatible systems. Of course the interface and the behaviour of the system must be backward compatible. The internal database currently used is Oracle.