Aviation Industry Challenges

In today’s uncertain global market, the aviation industry faces formidable challenges. The traditional business models employed by airlines today are unable to support sustained profitability, resulting in fundamental problems with operating costs and productivity. Bankruptcy, liquidation and consolidation of major network carriers are all painfully commonplace.

The rising fuel prices and airline labor costs need to be contend by the aviation industry. Even more challenging, while operating costs are constantly increasing, average airfares have declined. With the growing prevalence of smaller, discount carriers and easy access to pricing information via the Internet, passengers are less inclined to pay full fare -- creating fierce low-fare competition that has become a formidable problem for major network carriers.

To overcome these challenges, airlines must optimize operations and improve productivity. Efficient resource and personnel utilization in the form of pro-active planning and workforce optimization is crucial to the success of all aviation service providers. However, any planning solution must be powerful enough to integrate multi-network resources across different planning horizons while being flexible enough to handle the constant scheduling changes that are part of the dynamic aviation environment.