summarise and paraphrase this into what fleet management is and how it is important for optimising operational utilisation of Aircraft and Gates:A structure for fleet planningThere has been a change in the way in which airlines structure their fleet planning organisations. In days gone by it was not uncommon for most major airlines to include substantial fleet planning departments in their organisations. New business models throw much more emphasis on supporting only the core activity. Anything else can be outsourced. It is not entirely surprising that classical airline fleet planning departments have been stripped down to a shadow of their former selves, to be replaced by a new breed of project managers with a broader spectrum of activity. It is gratifying that some airlines still consider fleet planning to be of sufficient importance to merit a Senior Vice President title. Qatar Airways is an example.
Fleet planning as an activity has been augmented by fleet management, which is focused on issues such as optimising the deployment of aircraft on the network, monitoring individual aircraft values, trading of aircraft, leasing out of surplus capacity, and managing contracts with lessors and maintenance providers. Sometimes, the activities surrounding the financial management of a fleet are in the hands of an asset management team, as in the case of Emirates. Figure 3.1 Nesting of fleet planning p.38
The aircraft type decision and deployment decisions are closely related, one being strategic and the other tactical. Similarly, the work associated with the acquisition of specific aircraft is separate from the evaluation part of fleet planning. Determining the best aircraft from an operational point of view is not the same as establishing what kind of financing may be appropriate. It is not feasible or even wise to determine the financing of a particular aircraft too far in advance of the delivery.
Growing complexity in fleet planning has resulted in greater responsibility of functional departments in the airline. Indeed, today’s fleet planner has become a project manager, rather like the conductor of a choir and orchestra. He or she selects the players, ensuring that everyone sings in the same key and remains in tune. The conductor allows each player their solo spots at the right time, and makes sure that everyone finishes at the right time.
This leads us to another important change: The rise to prominence of the techniques and principles of project management in fleet planning. Recognised project management techniques are certainly applied by the aircraft manufacturers to manage their design, production and overall programme activities. However, the application of these well-established techniques appears to be lagging behind in the world of airline fleet planning, although airlines are certainly embracing the spirit of the concepts. The Project Management Institute has published a reference document called the ‘Project Management Book of Knowledge’ (PMBOK®). This document lays down a set of 10 knowledge areas, five process groups and 47 individual processes. These are shown in Figure 3.2.2
Not all of these processes would appear at first glance to be directly relevant to the world of fleet planning. However, research of 213 global businesses conducted by the Economic Intelligence Unit, covering major aerospace giants such as NASA and Honeywell, reveals that since the financial crisis of 2008 there has been a realisation that correct application of project management can help reduce risks.3
Indeed, a structured approach to project management goes further than risk mitigation. Applying the techniques helps all involved parties adhere to schedules, avoids omitting crucial elements, and ensures that budgets are managed and that projects are closed in an effective manner.
Iberia’s fleet planning department is a good example of a small organisation that does not have the services of dedicated project managers, but fully understands that practically all of its activities are, in fact, projects. Such projects may be as extensive as a complete fleet evaluation, or could be as specific as measuring the impact of an aircraft weight change or reconfiguration.
For each project that involves Iberia’s fleet planning department the starting point is to identify and meet all the stakeholders in order to understand their objectives and expectations. These stakeholders might include representatives from the various major departments in the airline, such as Network Development, Product, Engineering, Marketing, Customer and Legal.4
p.39 Figure 3.2 The processes of project management
Source: Adapted from PMBOK Guide®, 2013 and from W. M. da Silva, Fundamentos do gerenciamento de projetos, FGV, São Paulo, 2013 p.40
To underline the importance of project management in fleet planning, we will be referring to the PMBOK® and research undertaken by Daniel de Oliveira Costa,5 and adapting it for our needs.