Flight Operations and Scheduling in the Airline Industry

Introduction

Although the airline industry was rocked by the terrorist attacks of September 11, 2001, many carriers have overcome the aftermath to emerge as profitable businesses with numerous opportunities for growth on the horizon. The successful carriers that managed to weather this period were characterized by high levels of employee commitment and loyalty — as was the case with Southwest Airlines — while others sought to achieve a competitive advantage by eliminating waste and improving their supply chain management procedures. The recent purchase of a petroleum refinery by Delta Airlines, described by industry analysts as a "fixer-upper," also suggests that some major actors in the airline industry are facing the harsh reality that their traditional business models may not be viable in the 21st century.

One hallmark of successful air carriers has been efficient flight operations and scheduling, which contribute to passenger satisfaction and brand awareness. To determine how some air carriers have succeeded in this area while others have failed, this paper provides a review of relevant peer-reviewed literature. A summary of the research and its important findings are presented in the conclusion.

The Airline Industry After September 11

The importance of an efficient and modern air industry to the nation's commercial and security interests is well established, but the industry has experienced a number of significant shocks and challenges over the past decade. Most notably, the terrorist attacks of September 11, 2001, bankrupted some carriers while forcing the survivors to become even more cost-effective in their operations (Guzhva, 2008). Unfortunately, despite their best efforts, many carriers have continued to struggle during a period of rising energy costs and increasing competition, due in large part to their reliance on conventional business models that lack the responsiveness needed to remain nimble and profitable. In this regard, Guzhva emphasizes that "the majority of the US airline industry losses in the post-September 11 period can be explained by the inability of the traditional airline business model to profitably operate in times of unfavorable economic conditions, increasing competition and decreasing yields" (2008, p. 244).

Flight Delays: Costs and Consequences

The airline industry is certainly not unique in its need to satisfy customers, but some carriers are doing a better job than others when it comes to flight scheduling. It is reasonable to suggest that most air passengers expect timely, efficient, and safe service from their carriers, and delays can have severe consequences for travelers. According to Bishop, Rupp, and Zheng (2011), "airline flight delays, like any other form of waiting for service, may negatively affect customers (passengers) in many ways. A passenger may not mind a delay of 10, 20, or even 30 minutes, but anger, anxiety, uncertainty, and boredom mount at an increasing rate as a delay prolongs" (p. 544).

The U.S. Department of Transportation (DOT) defines an air flight as "delayed" when it arrives 15 minutes or more late (Bishop et al., 2011). Fifteen minutes may not seem like much, but for passengers already faced with long security and check-in lines, those 15 minutes may mean the difference between arriving on time at their next destination or not. In some cases, even minor delays can cause passengers to miss connecting flights, generating adverse publicity. As Bishop et al. add, "delays can increase passengers' anger, uncertainty, and dissatisfaction with the service provided. In addition, flight delays are costly" (2011, p. 544).

Beyond inconvenience and dissatisfaction, there are enormous financial costs associated with flight delays. During a period when jet fuel costs are skyrocketing, delays consume airline profits when aircraft sit on the runway waiting to take off. A report from the Joint Economic Committee estimated that domestic flight delays in the United States cost the airline industry and passengers more than $40 billion in 2007 alone (Bishop et al., 2011). Despite increasing airline industry attention to this performance area, the situation appeared to be worsening rather than improving. In December 2007, nearly 33 percent of all domestic flights in the United States arrived late, and 2007 had an annualized late-arrival rate of almost 25 percent — the highest levels since the Bureau of Transportation Statistics began tracking flight delays in 1995 (Bishop et al., 2011). In response to the growing scheduling problems, the Federal Aviation Administration began imposing financial penalties of up to $25,000 per violation for chronically delayed flights (Bishop et al., 2011).

Conclusion

Flight scheduling was shown to be fraught with opportunities for delays, including arrivals and departures, en route congestion, en route severe weather, and airport weather. Unexpected eventualities in any of these areas can create significant delays and flight cancellations. The research was consistent in showing that such delays are costly to both passengers and air carriers alike. At the same time, the research also demonstrated that even the most sophisticated software solutions cannot overcome airport congestion caused by carriers scheduling their flights without regard for the impact of those decisions on domestic and international competitors. In the final analysis, all forms of travel carry inherent potential for delays and there is no perfect solution, but the problems associated with flight scheduling are well documented and are actively under review.