The document summarizes an optimization program that airlines can use to determine the right freight capacity, operating frequency, and fleet positioning to minimize costs and maximize profits. The program takes in data on routes, yields, demands, and costs. It then runs integer programming models and U-curve techniques to find the optimum solution. A case study on Yemenia airline shows how the program can determine the best aircraft types for its network and maximize profits on a multi-stop route from Sana'a to Singapore.

1. By : Mohammed Salem Awodh Consultant Asian Aviation Conference Route Optimization And Fleet Management Kuala Lumpur, Malaysia 16-17 March 2006

5. Yield Trends Source : Boeing

6. Distribution of various markets Source : Boeing

7. Operating Cost per ATK per Airlines SQ BR GA MU CX UA CZ VN NH BA CO DL QF MH JL BI KE CA IB AF LH OZ AA EK Average Stage Length, Km NW Source : Company Reports, IATA, AAPA estimates

8. Passenger – Cargo IOC Components Source : Air Cargo Operations Cost Data Base - NASA

9. Cost per ASM for Aircrafts Source : Bhadra, Aircraft Choice Model

10. Yemenia International Network SANA’A

11. Routes Segmentation

16. Optimization Program - Integer Program / Solver ( Excel ) – Right Capacity

21. Program Input Data 100 % LF Integer Program U Curve Tech Right Capacity First Run At 100 % L/F Load Factor Result Right Capacity 

22. Optimum Freight Capacity at Minimum Cost

23. Program Input Data 70 % LF Integer Program U Curve Tech Optimum Frqcy Second Run At 70 % L/F Load Factor Result Optimum Frequency 

24. Program 100 % Load Factor 70 % Load Factor

25. Program Input Data ATK 1 , ATK 2 , ATK 3 …ATK n (A/C) ? Integer Program U Curve Tech Optimum Solution Curve  Run the Program with step function Developing Optimum Solution Curve Result Position the Fleet

26. Optimum Solution Curve

27. Optimum Solution Curve B767-300F

28. Results From Optimum Solution Curve Three Aircrafts are reflect the best solution for Yemenia Network B767-300 F , MD-11 , DC-10

29. Yemenia International Network Maximizing Route Profitability SAH-DXB-KUL-CGK

30. Optimization Program - Maximizing Route Profitability

33. Output

34. Output

35. Summary The Right Capacity : The Program runs two times Depending on inputs and constrains used. At the first run it gives the Right Capacity and at the second run it gives Optimum Frequency. The results will clearly show how efficient existing fleets are compared to the ideal results. Route Profitability : Given the results of the above analysis, it shows the best scenario that maximize the profits and the perfect ratio of load factor in Multi stop routes.

36. Contact Further Information: Mohammed Salem Awad : Tel: 00967 734777518 Email: smartdecision2002@yahoo.com www.freewebs.com/wingsofwisdom/ www.freewebs.com /art-of-knowledge/ www.standout-from-the-crowds.webs.com