If not by changing schedules, how DO airlines make flights more on-time?
I wanted to write a quick post to react to the ongoing debate being waged regarding the DOT rules announced last December and to be enforced at the end of April.
I wanted to write a quick post to react to the ongoing debate being waged regarding the DOT rules announced last December and to be enforced at the end of April.
However, the regulations are long overdue due to the fact that airlines had no incentive to do the right thing -- and after years of being put "on notice" they still manage to leave people overnight on a cramped diverted RJ a few yards from a gate. Oh, do you realize that the FAA had nothing to do with this incident?
As far as CHRONICALLY late flights, this is due 100% airline scheduling. Flights that are delayed air traffic control, weather, congestion, inbound aircraft, airport issues are not CHRONICALLY late; but when airlines schedule more flights that the airport can handle even when the weather is fine, guess what, those flights are always late. CHRONICALLY.
And yes, that's deceiving. And there's lots of data showing this: http://www.faa.gov/about/office_org/headquarters_offices/ato/publications/ben...
So, the legacy airlines over-schedule in an attempt to maximize profits. While trying to maximizing an airline's profits is certainly not a crime, not understanding the systemic relationship between unit revenue, unit costs and maximizing profitability should be considered economic incompetance. The nature of the relationship between unit revenue, unit costs and maximizing profitability would take longer than I have time today to explain. However, maximizing each individual flight's efficiency (load factor) while ignoring the size of the aircraft that make up each flight and consequently the greater number of pax (and revenue) that can be carried on larger aircraft utilizing (landing and taking-off) the available runways in any given period of time, shows a fundamental lack of understanding of systemic revenue vs. systemic costs. This is cost accounting at its worst and all of the legacy airlines do it.
When a subway train starts at either end of the line (its route) it doesn't start with just one car, adding a car at every stop as it fills up to maximize its load factor (ASM efficiency). If a subway train added a car at each stop, it would be an inefficent use of the train's time. A subway train starts and ends its route with enough cars to handle the greater number of paxs in the middle part (downtown) of its route. It doesn't add a car at every stop to maximize efficiency on each leg of the entire line (route), but tries to maximize productivity along the entire route. While the subway train is inefficent at either end of its route it does maximizes efficiency in the middle. This way the train maximizes the total number of passengers (and revenue) across the entire system (systemically) but not on a leg by leg (unit) basis.
This is a fundamental error of attempting to maximize system profitabiity by trying to maximize unit revenue vs. unit costs. The legacy airlines are trying to maximize their profits by trying to maximize individual flight efficiency (unit load factor) instead of maximizing their systemic productivity (number of paxs & revenue that can flow trough the available runways).
Solving problems always involves asking the right questions. The legacy carriers will never solve their profitability problem because they are asking the wrong questions. Here's to asking the right questions!