QUICK WIN SCREENING

Thorough screening of network and schedules for immediate cash flow improvements. New angles due to unique eye-opening method. Provides you with a ready-to-implement schedule.

The Quick Win Screening focusses on adjustments that have direct financial effects. This implies an emphasis on fixes with limited side-effects.

It delivers the following results:

• CASH-SAVING SCHEDULE: Includes the best options that result from the profitability analysis, i.e. frequency adjustments, cancellations, capacity optimization, etc.
• ONLY PROFITABLE AIRCRAFT IN PRODUCTION: Check on the possibilities to improve profits by -temporarily- scaling down the fleet, also with Weakest Fleet Line Model.
  
• REVENUE MANAGEMENT FIXES: Indication of possibilities to improve the mix of traffic flows by adjusting inventory policies.
  
• FINANCIAL EFFECTS: Detailed specification of the effects of the recommendations on costs and revenues.

The recommendation is highly practical due to the bundling of improvement options into a new ready-to-implement schedule. This ensures that  essential trade-offs are included and the full consequences of the recommended decisions are accounted for.

 

 

 

THE STEPS OF THE QUICK WIN SCREENING
The Quick Win Screening unfolds in four steps:

1- ORIENTATION

2- FOUR LEVEL PROFIT SCREENING

3- ASSEMBLY QUICK WIN SCHEDULE

4- RECOMMENDATION

The process closely involves company professionals, to verify steps and to determine which options are implementable on short term.

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4-LEVEL PROFITABILITY SCREENING
The quick win screening applies the 4-level profitability screening method. This method is more refined that the traditional accountancy approach that is based on route profitability. 4-level profit screening uses calculations that are more in line with the practice of network management, thus enabling sharper planning decisions. It assesses the unbiased value of traffic flows, flights, destinations and aircraft units, all in the context of the entire production.

The 4-Level profitability screening produces a full and comprehensive inventory of improvement options, their financial effects and other criteria for their prioritization. This includes feed-back on the effectivity of yield- and revenue management policies.

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COST AND REVENUE CALCULATIONS

The adjusted schedule is subjected to a detailed cost and revenue estimate following the airlinee speciffic Network CALC method..

Revenues are produced by the OMP Strategy traffic forecasting format. Costs are calculated by indentifying the changes in their basic drivers, so no short-cuts with block hour averages or ASK fees but a calculation into the finest detail!

The results of the adjusted schedule are compared with the present production and are completed with a sensitivity analysis as input to a fully prepared management decision.

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THRU TIME 

Thru time of the Quick Win Screening is 1-3 weeks, depending on airline size and availability of company information.

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PROJECT OPTIONS

The Quick Win Screening also produces improvement options that cannot be applied on short term, or that require further research to risks and benefits. Optionally the project can be followed up by elaboration of long-term profit improvement options.

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