The +50 = Useless Myth

Okay. So I turned 50 this year. And aside a major C-Check that will make me take additives for lost hardware and discuss health issues with friends and strangers alike? Aside being a dirty old man? Am I useless?

Why should I be?

EinsteinI still will likely work another 15 years at minimum – maybe 20 or more! Many retirees are still fit to work and get bored if they don’t. The majority of students taking up their first new job will be with the company less than five years in the end. Inexperienced and with low salaries companies invest heavily to train them on the jobs they do (or risk to invest into their mistakes). Whereas you can hire experienced people who know their jobs, make less (costly) mistakes and who have a “knowing” touch, usually good for building trust with new customers or prospects.

Not the U.S. ... China. But this graphs looks similar in any "modern" society
Not the U.S. … China. But this graphs looks similar in any “modern” society

Now we also have less and less young people entering the market here in Europe, as well as the U.S. Politicians and commercial bodies paint the picture of lack of junior employees. At the same time, they send their experienced workers home at relatively young age. Or disqualify them as employees as “too expensive” or “less resilient”. It’s the same issue about the demand of an “academic degree” for all employees. Misjudging and neglecting the value of “practical experience”. And yes, that also goes to you Marisa Meyer, whereas I also enjoy similar such personal experience with Lufthansa Group…

Mayer-Paltrow

What really bugs me about this, is that even renowned entrepreneurs and investors often disqualify older entrepreneurs from their support activities, very often, activities address “young professionals”, “under 30” and enjoy other such limitations. The same is true in talks, where “older” entrepreneurs are faced with far higher “expectations” and demands and still don’t get the investment but “hip” high risk investments by teams without any professional experience do. I believe the time to disqualify experience or “gray hair” are over soon. If companies look for good people, they will have to pay more for the few “young professionals” left, who proof to be less loyal and require more mistakes to become experienced. And I know of too many experienced people as well as honor students leaving “bad paid” aviation or not even interested to start in it, as motivation and loyalty are no one-way-street and other industries simply proof more attractive to them than ours.

German Birthrate Image by Welt.de
German Birthrate Image: Welt.de

Oh… And didn’t I just hear Germany became Champion again? In the f#%@ing lowest birth rate in the world!!! Well, that does confirm my own experience about “political child support” by our self-proclaimed “Christian-Democratic Union” led by our Chancellor Merkel. And no, I do not want to talk about “atomic exit”, Greece or “lobbyism” in Germany today. We just have a family tax system that supports DINKs (double income – no kids), but increasingly forces single parents into poverty. With the demographic results shown. So what was that again about 50+? Im now beyond 50. And happy 😀

Food for Thought
Comments welcome
2 - click to show Jürgen you liked the post

Keeping Face

changeflightsJust screening all those wisdoms my friends keep sharing on LinkedIn and Facebook, here one from own experience…

People do not want to admit mistakes.

Developing online booking tools back in the 90s, when no-one (especially not Amadeus, Sabre, etc) believed in it, I learned that lesson good: Business travelers wanted to make the bookings with their travel department. But they wanted to CHANGE the booking themselves (online). Asked, why that is, it was simply that they considered the need to change a booking a “mistake”. No matter if the change was enforced to them. It also showed how important it was to them to keep face with their travel arrangers.

Food for Thought
Comments welcome

1 - click to show Jürgen you liked the post

CheckIn.com – Updates and Timeline

icon-routesBraunschweig, March 2015 Thanks to unforseen circumstances, the last days forced us to reconsider the entire development and timeline for the CheckIn.com project. So far, it was planned to be ready with development by February, Mid March and prepare for rollout at Routes Europe in April in Aberdeen. We have now decided to cancel that event overall, a hard and unhappy decision! But. Especially to digg out the U.K. statistical basics caused us major delays, getting incompatible figures from the same source, not just self-researched but also from the ONS (U.K. Office of National Statistics). We learned they mostly only cover England & Wales, neither Scotland or Northern Ireland. Sure with exceptions, which, if you’re kept unaware, simply cannot compute!

ONS

Scotland does not cover the Local Administrative Units Level 2 of Eurostat, they consider those useless and calculate “something” only on demand. Ireland came last (by end of February) and again with non-standard numbers we now have to “make compatible”. To qualify the difficulty to get the basics for the U.K.: Covering geographic Europe, including Balkan countries and other non-EU countries, the U.K. made it a multitude more difficult for us to get some useful information.

drivetimesAnother issue is drive times, where we have to deal with the fact that “unique administrative places” are not being found either in Google, nor by other on- and offline mapping tools. Often, road data is missing completely, making it impossible to calculate any drive times. Especially going east that caused us quite some headaches (and night shifts). So now finally, though with already some delay, we have everything covered. But we recognize that “mapping” is a major fuzziness, if we go with existing technologies – we should buy into commercial collections of administrative borders, though which also don’t completely match with the data we are having.

IGG_newLogos_forwebSo January 1st, we started the crowdfunding on Indiegogo, hopeful to get enough interest to finance the necessary development. Generating interest and funds mostly from unexpected sources, by early February our hopes shattered, our friends leaving us out alone in the cold. Very little buzz, not even supportive comments to us, even from our close friends, ad sure no orders for Isochrones. A real nice classic barrel burst. Simply dead silence. Not a bad thing, in fact it confirmed our initial approach to go in a step-by-step process, fund as we can, do what we can, but not to rely on investors (requiring fast return-of-investment, having their own agendas) and do “ourselves”.

surgeryThen came the shock. Within days, Jürgen went into sickleave, undergoing a major surgery Feb 27th, taken completely out of the loop for the better part of 14 days and being still hospitalized (4th week), depriving us from the most knowledgable and networked expert in our team. He is well now, still recovering, still hospitalized. The tumors identified turned out a haemangiome (as “known” since 2002) and a benign neuroendokrineous one.

So after recovering from the major surgery, he shall be almost as new (minus half a pancreas, the spleen and a bit of his liver and plus a possible diabetes). Celebrating his 50th birthday recently, he feels “old now” thanks to the fact that for the remainder of life he got to carry a pillbox and injection pens with him to cover for the lost half pancreas.

But the main setback is the delayed recovery; instead of the expected 10-14 days we now talk more about min. 4-5 weeks that we lost his support for. With all that baggage, we were faced with a tough decision. Do we keep up the plan to go live at Routes Europe? Or do we have to postpone? Especially with the desinterest showed for our crowdfunding, the missing funds to secure external development for the remaining solutions, problems with providing a solution for maps now and Jürgen’s missing help, we decided against Routes Europe and for a delay.

mathchallengeHaving the drive time calculations completeted for Europe, we will now start to work on North America already. With the custom tool received by Richard Marsden, we are hopeful to get that covered maybe in time for World Routes, for sure until next Routes Americas. Having the solution for the most complex of our algorithms (thanks Ori) we are also pre-computing the impact values for each airport from the municipality-view. As in most cases the passengers have not just one airport, but optional others to choose from. Depending on the size of the airport, the drive time to get there as well as the flight services offered. But yes, it is quite a bit work and even computerized a real lengthy task to apply these algorithms to all the airport-municipality pairs…

We also intentionally decided not to go into public transportation, as schedules make the connection inflexible – i.e. a good train connection that misses the flight is of no use. And we have found none good source for a generic application of public transportation, it only works for “given schedule”. But that’s then the task of the expert doing the route feasibility study – we specialize in the mass data, leaving individual data to the route manager.

For the maps, we now need to check “low cost solutions”, looking into Google (no “freebees” as Bing), offline mapping tools and maybe Open Street Maps. We assume this takes another 4-6 weeks minimum and we might have to use “offline mapping” as a work-around, with map-creation taking some additional “non-automated” time.

Without the admin borders, we think about a solution to quantify the passenger potential by municipality, thus making “hot spots” visible. Also something to keep us busy, but the benefits of not needing the municipal borders in the display justifying for that. We also got the funding to do a real good prototype of the dashboard, but it takes time to write the necessary software requirements specification.

dashboard.draftThen we have to find a web-agency that can do it (the famous needle in the haystack problem). But without map(s), the dashboard is incomplete, so there must be some “placeholder” while we create the map(s). All those tasks we now have to do on our own finally summed up to the painful decision to reschedule the development plans and skip Routes. Which was especially hard on Jürgen to convince, who is a great fan of that event. We do hope you can understand the reasoning behind our decision and appreciate your feedback – supportive, critical, honest. And if you have ideas how to speed up our agenda, if you have reference to a real good web-agency, you are very welcome! Just a little bit

Food for Thought
but as usual: comments welcome!
1 - click to show Jürgen you liked the post

Math Challenge (finished)

Thanks Ori for the speedy answer!

mathchallenge

Whoever gets me the result first in a way I can use it (calculate “percent” based on variable Z and time) can select either a dinner or a 100€ Amazon (or other online available) voucher. We need a curve calculation, fitting the following requirements…

  • X-axis is time, Zero (or 30) to infinity
  • Y-axis is percent, 0-100
  • Variable Z is a positive number between 0 and infinity (real: 1-200 mio).

The curve must not meet the X-Axis, so Y (percent) must always be larger 0, no negative values. At minute 30, the percent value should be 100. Or at minute Zero, then we simply add 30 minutes 😉 Depending on variable Z value, the curve shall slope faster or slower, but “reversed proportional”, the lower Z is, the faster the curve falls. Target values…

  • Z=500.000 should fall under 10% at about 60 minutes.
  • Z=5.000.000 should fall under 10% at about 90 minutes.
  • Z=20.000.000 should fall under 10% at about 120 minutes.
  • Z=70.000.000 should fall under 10% at about 180 minutes.

* 10% or 20%, but preferably not more! But the curve bending should be variable based on Z within that rough frame. If we have the curve, we need to calculate the coordinates, so percent (with min. two decimals), at given X minutes. We “know” minutes and the variable Z.

0 - click to show Jürgen you liked the post

Unique Selling Propositions

USPDuring my initial business education, more than 30 years ago, the General Manager of the company hosting me for the practical part told me: “Someone else always can sell cheaper”. At the time, concepts like “USPs” (Unique Selling Propositions) had not been “common”, but it practically was about how to position for success.

You Get What You Pay For
You Get What You Pay For

The mantra in the aviation industry is to be always the cheapest. The mantra in procurement / purchasing is to buy the cheapest. In Germany, we have two different words for “cheap”. Billig and preiswert: Billig is cheap. Preiswert is “worth the price”.

Another old saying is “You get, what you pay for”. And yet another saying I heard in procurement is: “Save money, no matter the cost”.

But my friend Richard told me some 15 years ago that there is a psychological price. He also told me that IT (what we both worked in and now work again in) is the first thing that procurement “saves” upon, as they don’t understand its value.

So if it is not the price, what could it be?

HAM: Hamburg Airport Marketing
HAM: Hamburg Airport Marketing

A unique identity could be one. For airlines: When I started in the industry, I could distinguish airline crews by their uniform. Today, the differences in the uniforms are so minor that flight attendants of different airlines standing in one group can not be distinguished any more.

For conferences, I keep refering to Hamburg Airport Marketing. From afar they can be identified. And even promoting Hamburg big on the shirts, it doesn’t look “cheap”, but gives identity! It can be even worn at the “business casual evening event”. And believe me, if you look for the Hamburg team, you do find them!

Though for some reason inexplicable to me, many sales managers deny to wear uniform, much less some easily identifiable wardrobe as that. They seemingly prefer to blend in with all the other black ties. Though why you want your company and products and yourself to “blend in” instead of standing out, is simply beyond me 🙂

If you can establish a unique identity, your customers associate intuively with your product, you increase your reseller base, as they will remember you when opportunity arises. If your reputation is bad, all you can do is to undercut your competitors in price. If that is your USP, I’d say you may have the problem with the fact that always, someone else can produce cheaper.

Quality is a good USP. And quality comes in many aspects. Part of quality can be friendliness – in the beginning of my career, at the time with American Airlines, we got “beaten in” that we always have to smile when interacting with other people. Not just customers, but also our own colleagues. As the saying goes “Formal courtesy between husband and wife is even more important than it is between strangers.” [Lazarus Long] – I found this especially true in companies. If you treat your own people bad, you will treat your customers likewise. Unfortunately, service is something that button sorters (accountants) don’t understand. Friendly Service does not have a price tag. Just if you don’t have it, you will pay the price. In lost customers.

BethuneQuote

Service is also how you manage with problems. Can you truly afford your customer(s) to be upset, just to save some money? Even if you do not pay, you got to talk to the customer and explain. Do not write. And don’t “outsource” your customer communication or you will loose them.

Time is also an essential difference maker. Why else would airlines reduce the prices if you connect making a detour through their hub (connecting airport), compared to a nonstop flight? In IT, time to delivery is of essence. Too many companies succeed by selling you dreams, but failing to deliver. Leading to the next Soft USP:

erf_you_dont_have_to_be_the_presidentHonesty. I was tought early in my life to never lie if possible. Bend the truth, better tell some truth that makes the people believe you lie (and proof them better later). When Obama visited Erfurt, press asked. All I communicated was “The Pilots’ Union said that Obama’s 747 cannot land in Erfurt”. What I did not tell them, that the Union’s “experts” had missed the fact that Air Force One is usually not “fully loaded” and has the advantage of some (so public sources say) 20% higher engine power. When it came to Erfurt, I had never lied. And ever since had a good standing with them. Honesty creates trust. If you lie once, you’ll have a hard time to recover.

These are sure just examples. But it strikes me odd, how many companies, especially in aviation, do not have an understanding of their business culture and their USPs. But if you don’t communicate that to your own, how do you think your customers will learn about them?

Samsung-S5-vs.-iPhone6A final example for this article today shall be Apple. I loved Apple. Past tense. They made the first smart phones. All others copied them. Now they struggle and their answer is “me too”-products. What was their USP?

I took the iPhone6 into my hand and decided: Too big. My iPhone 4S does all I need. Intuitively and without some double tab on home to be able to access the upper screen.
If I want to watch video, I use my tablet (did I mention I shunned the iPad and got a Windows-Hybrid?).

So Apple lost a customer. Because they evolved from the pioneers to the ones limping behind. It would be time for them to reassess their USPs, their business propositions and their strategy. Then maybe they might find that they left frustrated customers behind with their “bigger is better” and instead made their phones expensive Samsung-clones, just without a “Mini”.

Sell, sell, sell. But if you do not know what you sell, all you do is lower the price until someone buys. I predict that fate even for Apple. But if you can explain the differences, if you can explain the quality, you hardly need to sell. The people buy. Though that requires management to understand and support that, to drive, not being driven.

Hmm… None of the business plans and their revisions I worked on took less than several weeks to come from an idea or product to a sales strategy for the different “customers”. Capital investors, buyers, suppliers, partners. And to answer the main three questions (beyond the idea) that all business plans contain:

  1. What is the business case?
  2. What is the USP?
  3. What is the risk and opportunity (so-called SWOT-analysis)?

Once you can answer these three questions, you have your sales strategies, your elevator pitches, you understand. Then all you still need to do is: Communicate it to your people! Spread the word.

Food for Thought
Comments welcome

2 - click to show Jürgen you liked the post

Thoughts about Networking

UpsideDownAcademic – Epidemic

During my vacation, I just had another discussion with a “senior manager”, showing how little many of these highly paid people understand about the value of networking. It often seems to me that this is nothing they ever learned during their university times…?

People buy from people, not technologies.

No matter, how good your product is, no-one will believe it, if they don’t believe they “know” it.

The Wrong Questions

I had some questions and statements (Q) repeadetly the last years and think it might be wise to share my answers (A). If that stuff is voiced that often, you may be faced with the same smart people…

Q: “It’s very much about being at the right point at the right time.”
A: And the right point is the mind of the someone who thinks about buying. If you’re not in the mind, you won’t come to mind and you won’t sell.

conferencenetworkingQ: “Why should I go to this event, I can talk to them on the phone.”
A: Do you know, how many phone calls that someone gets every week, from people trying to enter their mind and memory? At these events, like-minded people meet. With the possibility to speak longer with people and face to face, trust can be established. An important factor for purchasing decisions.

Q: “Why should I be active on LinkedIn?”
A: For one, there are a lot more people on LinkedIn than you likely ever meet on trade shows. If these people are allowed to attend trade shows in the first place…

Q: “Then why should I attend trade shows – the people I seek to meet are not there!”
A: Because even if they themselves are not there. Their colleagues who are allowed to go will tell them. If you leave some impression.

Sales-meets-Marketing
“Wow, I had five real promising meetings today” – “Don’t worry, I didn’t sell anything either”

Q: “Is it better to have a stand or not?”
A: That depends. Can you attract people to your stand (it does require a catchy stand design and/or an established brand awareness). In my experience and for conferences with exhibition: If you are alone, skip the stand. Meet your audience face to face. Conferences are not about sitting around, but to meet and to talk to people! What I recommend though is that you use accessories that show who you are. Be it a cap, a polo-shirt (or light jacket) with logo or a catch phrase that attracts the right people to you, be it a bag – under all those black-ties, you got to stick out showing “Here I am!”
Interesting side note: I know a lot of sales & marketing people being too proud to “show off”. If you don’t want to show off (your product) you maybe got the wrong attitude for the job…

Q: Hey, I got invited for a speaker slot. I can present my product there.
A: If you can have a speaker slot, don’t use it to sell your product, but make sure you provide lasting value for your audience. If they are interested, they’ll be interested in your product. And after you paid for some of such slots, the organizers (if they’re worth their money) find you valuable and maybe even worth-while to invite or even pay you next time…

These opinions of managers do remind me too much of an old quote: “If you don’t try, you cannot win”.
But have they understood that they sell to people having their own priorities, agendas and opinions?

On the other side, I’ve received a nice graphic on LinkedIn lately I’d like to share with you. I like the first point very much, as I believe that you simply got to become a trusted partner to succeed, which is why it’s vital to build up “trusted networks”.

selling

Food for Thought
Comments welcome

0 - click to show Jürgen you liked the post

Learning from Rama II ?

The following is a transcript from Chapter 4 of the 1979 book “Rama II”, a science fiction written by Arthur C. Clarke, author of 2001 and other bestsellers.

The similarities to the current global commercial (non-?)crisis are rather frightening and I’d like to leave the following further uncommented.

4 THE GREAT CHAOS

Rama-II[…] An unrestrained burst of conspicuous consumption and global greed lasted for just under two years. Frantic acquisition of everything the human mind could create was superimposed on a weak economic infrastructure that had been already poised for a downturn in early 2130 . The looming recession was first postponed throughout 2130 and 2131 by the combined manipulative efforts of governments and financial institutions, even though the fundamental economic weaknesses were never addressed. With the renewed burst of buying in early 2132, the world jumped directly into another period of rapid growth. Production capacities were expanded, stock markets exploded, and both consumer confidence and total employment hit all-time highs. There was unprecedented prosperity and the net result was a short-term but significant improvement in the standard of living for almost all humans.

By the end of the year in 2133, it had become obvious to some of the more experienced observers of human history that the “Raman Boom” was leading mankind toward disaster. Dire warnings of impending economic doom started being heard above the euphoric shouts of the millions who had recently vaulted into the middle and upper classes. Suggestions to balance budgets and limit credit at all levels of the economy were ignored. Instead, creative effort was expended to come up with one way after another of putting more spending power in the hands of a populace that had forgotten how to say wait, much less no, to itself.

The global stock market began to sputter in January of 2134 and there were predictions of a coming crash. But to most humans spread around the Earth and throughout the scattered colonies in the solar system, the concept of such a crash was beyond comprehension. After all, the world economy had been expanding for over nine years, the last two years at a rate unparalleled in the previous two centuries. World leaders insisted that they had finally found the mechanisms that could truly inhibit the downturns of the capitalistic cycles. And the people believed them—until early May of 2134.

During the first three months of the year the global stock markets went inexorably down, slowly at first, then in significant drops. Many people, reflecting the superstitious attitude toward cometary visitors that had been prevalent for two thousand years, somehow associated the stock market’s difficulties with the return of Halley’s Comet. Its apparition starting in March turned out to be far brighter than anyone expected. For weeks scientists all over the world were competing with each other to explain why it was so much more brilliant than originally predicted. After it swooped past perihelion in late March and began to appear in the evening sky in mid-April, its enormous tail dominated the heavens.

In contrast, terrestrial affairs were dominated by the emerging world economic crisis. On May 1, 2134, three of the largest international banks announced that they were insolvent because of bad loans. Within two days a panic had spread around the world. The more than one billion home terminals with access to the global financial markets were used to dump individual portfolios of stocks and bonds. The communications load on the Global Network System (GNS) was immense. The data transfer machines were stretched far beyond their capabilities and design specifications. Data gridlock delayed transactions for minutes, then hours, contributing additional momentum to the panic.

By the end of a week two things were apparent—that over half of the world’s stock value had been obliterated and that many individuals, large and small investors alike, who had used their credit options to the maximum, were now virtually penniless. The supporting data bases that kept track of personal bank accounts and automatically transferred money to cover margin calls were flashing disaster messages in almost 20 percent of the houses in the world.

In truth, however, the situation was much much worse. Only a small percentage of the transactions were actually clearing through all the supporting computers because the data rates in all directions were far beyond anything that had ever been anticipated. In computer language, the entire global financial system went into the “cycle slip” mode. Billions and billions of information transfers at lower priorities were postponed by the network of computers while the higher priority tasks were being serviced first.

The net result of these data delays was that in most cases individual electronic bank accounts were not properly debited, for hours or even days, to account for the mounting stock market losses, Once the individual investors realized what was occurring, they rushed to spend whatever was still showing in their balances before the computers completed all the transactions. By the time governments and financial institutions understood fully what was going on and acted to stop all this frenetic activity, it was too late. The confused system had crashed completely. To reconstruct what had happened required carefully dumping and interleaving the backup checkpoint files stored at a hundred or so remote centers around the world.

For over three weeks the electronic financial management system that governed all money transactions was inaccessible to everybody. Nobody knew how much money he had—or how much anyone else had. Since cash had long ago become obsolete, only eccentrics and collectors had enough bank notes to buy even a week’s groceries. People began to barter for necessities. Pledges based on friendship and personal acquaintance enabled many people to survive temporarily. But the pain had only begun. Every time the international management organization that oversaw the global financial system would announce that they were going to try to come back on-line and would plead with people to stay off their terminals except for emergencies, their pleas would be ignored, processing requests would flood the system, and the computers would crash again.

It was only two more weeks before the scientists of the world agreed on an explanation for the additional brightness in the apparition of Halley’s Comet. But it was over four months before people could count again on reliable data base information from the GNS. The cost to human society of the enduring chaos was incalculable. By the time normal electronic economic activity had been restored, the world was in a violent financial down-spin that would not bottom out until twelve years later. It would be well over fifty years before the Gross World Product would return to the heights reached before the Crash of 2134.

Food for Tought
Comments welcome

0 - click to show Jürgen you liked the post

What is ‘Low Cost’?

An interview in ATN with Girma Wake, Chairman, RwandAir triggered a question that spooks around for quite a while now.

Wake-GirmaATN: Are you afraid that this new environment will bring more low-cost carriers or do you believe that this model does not fit into the African environment?
GW: I personally believe that low-cost carriers in the African sense will be very difficult to achieve. First, because the cost of fuel in Africa is high, second there are limited  secondary airports in Africa, we all fly from the same airports, and third there are few countries where the traffic density is large enough. If you are paying more for everything, handling, fueling, overflying etc, how can you be a low cost carrier?
So the question will have to be modified, may be not so much on the low-cost aspect of it but considers the issue of flying smaller airplanes to smaller airports covering smaller destinations bringing passengers to the major hubs. Such a model will probably work but the low-cost model as it works in Europe and America will take some time to develop in most parts of Africa.

Can a regional carrier with small airlines operate low cost? Can a long haul carrier operate low cost? Why can’t the big ones operate low cost?

InterskyJust my idea on that: I truly believe that a small carrier can operate a low cost model. In the beginning the carriers operated large narrow-body like 737-800 or A320 with some 185 seats. More and more, they also operate smaller aircraft like the 737-700 or the A319. And the time the prices were really low are gone as well. In the end you have to cover cost of operations as well as secondary cost like marketing, call center, claims and refunds, taxes and the likes. Not to forget the kerosene as a main cost block, forcing the models to slowly converge. Did I mention Intersky’s regional low-cost operations?

German DLR recently made a study on the fare levels. Comparable flights turned out i.e. an average fare incl. taxes/fees (selected days) like

Ryanair (FR) 78,78
Easyjet (U2) 97,44
Germanwings (4U) 144,33
Air Berlin (AB) 158,64
Wizz (W6) 69,99

With “low cost” and “traditional” airlines offering about the same price levels, it is about cost of operations and you got to cover your cost – low cost or “old model”.

IHS actually reports on the importance of low cost carriers for the smaller regional airports. With cost savings programs reducing services (and service), the “old carriers” loose quickly ground to the ever-expanding, young and hungry competitors. Where Lufthansa services about any German airport in the past, today Turkish Airlines offers more services to German Airports from Istanbul than Lufthansa from Frankfurt! easyJet (with a large base in Berlin) today operates more aircraft (199) than Air Berlin Group (153). And easyJet has 166 aircraft on order plus 100 options (Air Berlin Group 55 orders).

But easyJet can be booked in the GDS. There website even supports to book multiple flights connecting, which I did myself to the U.K. lately (via LGW). As I keep saying: The difference between Lufthansa or Air Berlin and easyJet is NOT that they are only bookable on the Internet (which is simply not true), but that easyJet doesn’t have legacy systems and processes – for easyJet, they focus on the business case! Where “airline sales” often gives special rates to portals and travel agency chains, easyJet does not see a benefit to sell low. They focus to sell high. So if you negotiate with them, you don’t negotiate competing the cheap fares. Also repeating myself: Anyone can sell “cheap”, you need no sales manager to do that.

And two remarks closing: Carolyn McCall, CEO of easyJet is known to understand and promote “service” as a unique selling proposition (USP). And WestJet with its Christmas Miracle had clearly a promotion for the WestJet trade mark in mind. While the “established” airlines keep diluting their own trade marks: What again has “Lufthansa” to do with “Germanwings” (Swiss, Austrian, …)? Ain’t they competitors?

Post Scriptum: ANNA.aero just announced axing of Ryanair, mostly of regional routes.

Ryanair_Cuts__2013-14

You should not rely on Ryanair for anything more than a door opener to make your airport known… And as an airport and region, you should have a strategy to sustainably place your airport on the “road map” of the global aviation network. That requires a strategy, incoming, route feasibility studies and all that common homework.

Food for Thought
Comments welcome

In memoriam: Airline Sales Representatives Association Frankfurt e.V

asra

Having addressed “Airline Sales & e-Commerce” in presentations between 1994 and 2007, I became honorary member in 1999. I have tried to raise awareness for the changes our industry faces but now regretfully have to accept the official disbanding of the association effective August 1st, 2014.

0 - click to show Jürgen you liked the post

APOC, OCC, NMOC and A-CDM – a Bigger Picture

IHS Jane's ATC Innovation Award 2014
IHS Jane’s ATC Innovation Award 2014

Returning from World ATM Congress in Barcelona (with the IHS Jane’s ATC Innovation Award in my baggage!), I think it’s time to address some feedback on an issue that I keep discussing in LinkedIn and elsewhere: The need to “link” the Airlines Operations Control Center (OCC) and the APOC (Airport Operations Center), the latter being a vital part in A-CDM.

Unfortunately, I see it happening frequently that these “control centers” live in their own little universe with little to no links to their peers. Talking about “Big Data”, Sabre as well as Amadeus and Travelport are “big data players”, though in danger to keep the silo thinking up too long.

Where Sabre once brought global e-Commerce to aviation, back in the 60s, back in the mid-80s, we installed the first Sabre Terminals in European travel agencies, aviation now stumbles behind on the possibilities of global e-Commerce, thanks mostly to technical limitations. As no-one wants to invest… If AA wouldn’t have invested at the time, where would we all be today? But is TPF (Transaction Processing Facility) still the core of our being? Or is it time to move on?

“When we are taught aviation at university we get the impression of how advanced aviation technology really is. When we start working, we are at awe, how little common sense or state-of-the-art is applied in aviation technologies.”

[a student at DLR German Aerospace Agency I recently talked to]

Today’s Agenda

Some keywords what I mean to address here are definitions such as A-CDM (vs. CDM) and Departure – or concepts like Collaboration or Rotation

What is the difference between an Airline Operations Control Center (OCC) and an Airport Operations Center (APOC)? And what about the Air Traffic Control’s Network Management Operations Center (NMOC)? And where is the “collaborative aspect” in these?

Right now, they are just three different data silos and collaboration, where it exists, is on a very small local level.

The OCC focuses to limit the negative impact any disruptions have on the operation of any single aircraft in the fleet. The OCC is – so far – the only point that has a rotational point of view, looking at the entire rotation of the aircraft and trying to minimize the impact of disruptions not just on the flight in question, but for all the ones following that particular “segment” (flight A to B).

PassengerRights2With increasing legal demand to reimburse passengers on late or canceled flights beyond the value of their net fare they paid, this is were money for the airline is burned. And impact of disruptions and delays at the airport or in the air space may be a nuisance for the work at the airport or the air traffic controllers, but they have a commercial impact on the airline:

They are expensive.

Nevertheless, I seem to be rather alone in that point of view in discussions. Yes, there is an intellectual understanding at airports and ANSPs, but I have a gut-feeling, that it does not “compute” there really: Or why is it, that many ANSPs are not having their representative in the APOC? Not to talk about direct links yet. Or in the OCC? Or why do many APOCs not have direct (data) links to the OCCs of even their most important airlines?

What is … Departure Time?

Eeee...gypt_One discussion a few days ago addressed the definition of “departure”. And it is such a basic difference in definition, it hit me like a hammer, making me understand the impact of that different perception! When air traffic control talks about departure, they talk about the take-off of the aircraft (ATOT). When the airline and airports talk about the departure, they often talk about the time, the aircraft leaves it’s parking position at the terminal or on the apron, the off-block-time (AOBT). I had trouble, understanding, why an airport should invest into a “Pre-Departure Sequencer” instead of a DMAN in the delair-definition. The difference is based on the same subtle misperception of departure. The PDS and most “DMANs” out there focus on the TOBT, taking somewhat into account the delivery of the aircraft “in time” to the runway. Based on a rather “static” assumption of ATC capacity. The DMAN in delair perception optimizes the “real” departure. Taking into account minimum separation of aircraft, depending on the Standard Instrument Departure (SID) route and other highly complex parameters, the DMAN calculates the best TOBT. Thus, no matter the general disruptions at the airport and the real throughput on the runway by ATC, it delivers as many aircraft as possible for departure. That maximises the throughput and in turn minimizing the recovery time after general delays or disruptions.

All that though happens at the given airport, i.e. Zürich. Talking with airports about departure management, the issue is about always that ATC (the ANSP) does not participate in the departure management, does not provide the needed information and – heresy! – how could we just imply that we could sort out the sequence for the air traffic controller? It works in Zurich? Heresy!

Is A-CDM not an FAA and Eurocontrol requirement? Burn it at the stake!

But now we go a step further…

Rotation

The impact of the aircraft rotation and why A-CDM is something airlines should consider linking OCC to APOC, consider to spend time though the ANSPs who initiated the entire process are the ones stumbling behind their once shining visions of collaborative approaches:

Because the ANSP thinks in “Silo” and leg (flight from A to B).

A friend just recently told me about a major market, offering free access to the excellent flight-data for all flights within the region to the ANSP of a neighboring region, giving this to be offered in reverse to them. The neighboring ANSP (smaller) is not interested, the data is for sale. And they don’t see the additional value having access to the live flight data offered to them. Excuse me? That is Silo thinking.

eastman

And that is, why aviation technology today is way behind other industries. Because there is still silo-thinking. “Collaborative Decision Making” is a nice concept, but it fails real life on a large scale for the narrow-minded thinking of the people who’s job it would be to push the idea! It’s not about the bigger picture, but simply about own benefit. People call that “Greed” and it’s a mortal sin.

Food for Thought
Comments welcome

0 - click to show Jürgen you liked the post