Checkpoint week 8
Checkpoint
Week 8
John McManamon
IRN: 9048277815
IT/205
4/16/2014 John Gosney
1. How important is the reservation system at airlines such as WestJet and JetBlue? How does it impact operational activities and decision making?
As an employee of an oil company, I am keenly aware that the price of gulf coast kerosene (jet fuel) is almost $3.00 per gallon. With an estimated 30,000 flights per day in the US alone, there is a tremendous amount of money spent by planes idling at the gate, or on the jet way prior-to takeoff or after landing. The airlines ability to speed boarding, to accurately predict passenger loads, and to otherwise improve efficiency are crucial to the airlines success and failure. With today’s economy, a highly competitive marketplace, and a more educated consumer, today’s airlines operate within an ever shrinking profit margin. The ability to leverage information on the success and failure of routes, the availability and condition of the aircraft themselves, schedule information, fare information, and anticipated passenger loads are crucial to maintain profitability.
The reservation system is more than a convenient way for a passenger to buy a ticket. It is often the consumer’s first interaction with the airline and therefore could possibly set the tone for their entire experience.
The reservation system is much more than a customer service tool however. A properly implemented reservation system can help to determine staffing levels, how much fuel to purchase, how much fuel to load onto an individual plane, it can be a useful predictor of route success, and can be used to better predict operating expenses and profitability. The system seems crucial to almost every facet of day-to-day operations of the airline.
2. Evaluate the risks of the projects to upgrade the reservation systems of WestJet and JetBlue and key risk factors
The entire business model of both WestJet and JetBlue is centered on being a “low-cost, high-efficiency
Week 8
John McManamon
IRN: 9048277815
IT/205
4/16/2014 John Gosney
1. How important is the reservation system at airlines such as WestJet and JetBlue? How does it impact operational activities and decision making?
As an employee of an oil company, I am keenly aware that the price of gulf coast kerosene (jet fuel) is almost $3.00 per gallon. With an estimated 30,000 flights per day in the US alone, there is a tremendous amount of money spent by planes idling at the gate, or on the jet way prior-to takeoff or after landing. The airlines ability to speed boarding, to accurately predict passenger loads, and to otherwise improve efficiency are crucial to the airlines success and failure. With today’s economy, a highly competitive marketplace, and a more educated consumer, today’s airlines operate within an ever shrinking profit margin. The ability to leverage information on the success and failure of routes, the availability and condition of the aircraft themselves, schedule information, fare information, and anticipated passenger loads are crucial to maintain profitability.
The reservation system is more than a convenient way for a passenger to buy a ticket. It is often the consumer’s first interaction with the airline and therefore could possibly set the tone for their entire experience.
The reservation system is much more than a customer service tool however. A properly implemented reservation system can help to determine staffing levels, how much fuel to purchase, how much fuel to load onto an individual plane, it can be a useful predictor of route success, and can be used to better predict operating expenses and profitability. The system seems crucial to almost every facet of day-to-day operations of the airline.
2. Evaluate the risks of the projects to upgrade the reservation systems of WestJet and JetBlue and key risk factors
The entire business model of both WestJet and JetBlue is centered on being a “low-cost, high-efficiency