Franzen Airline Management Training in cooperation with: GAMS General Airline Management Simulation Welcome Lufthansa Consulting A simulation developed and designed by Lufthansa Consulting and Unicon Management Systems Lufthansa Consulting General Airline Management Simulation Pilots train using simulators why not managers? The General Airline Management Simulation (GAMS) is a computerbased simulation with the aim of developing airline management skills. Lufthansa Consulting About this presentation Overview Results Scenario Planning Tools Seminar procedure News & Information Decisions Feedback This presentation is designed to inform you about the key issues of GAMS. You will have the choice between a comprehensive overview or the possibility to look closer on special items. The menu on the left side will give you the options. Please make your choice and press one button Lufthansa Consulting About the simulation GAMS is designed to train managers and potential managers of the air traffic and air traffic related industries in how to manage an airline. Lufthansa Consulting Scenario GAMS is a computer simulation reflecting 3 to 5 airlines competing in the same market. Teams start from an initially identical position, taking over management functions for their virtual airline. Lufthansa Consulting Interacting Decision Variables GAMS is mainly built on four interacting decision variables: Teams can only influence decisions within their company, but have to take into consideration the other three variables at the same time. Lufthansa Consulting The route system The simulated airlines have their base in Frankfurt and operate on 4 different routes in hub-and-spoke system. All airlines transport passengers and cargo. Opening new routes is not possible, but focussing on single routes or target groups is. Lufthansa Consulting External Influences Nearly all external influences which can affect real airlines can be simulated with GAMS: $ Slots We are on Strike slot limitations strikes currency fluctuations bad weather conditions ... Lufthansa Consulting The seminar procedure briefing decisions simulation data results data GAMS is simulated over several periods. After a briefing and introduction into the system the procedure follows a circle: decisions simulation results decisions ... Lufthansa Consulting Decisions to be taken Teams fill in all relevant decisions in the participant system. On the following pages you can see 3 out of 5 decision registers that participants have to fill in. Lufthansa Consulting Decision Data Market 1 Destinations Decisions about: advertising sales promotion sales representatives market research reports Lufthansa Consulting Decision Data Market 2 Routes Decisions about: prices service public relations call for tender open tenders Lufthansa Consulting Decision Data Aircraft Decisions about: frequencies checks purchase/sale of aircraft charter in and out suspension of operation Lufthansa Consulting Results After a period has been simulated the results of the period can be generated in form of various reports. Lufthansa Consulting Example: Route Results Participants can analyse route results by different profit contributions ! Lufthansa Consulting Example: Market Report Demand, turnover, and load factors are shown for each route and both cargo and passengers ! Lufthansa Consulting Planning Tools To gain more accurate information GAMS offers two powerful planning tools: precalculation testmarketing Lufthansa Consulting Planning Tools: Precalculation Within this interface participants can take all their decisions plus an assumption about the expected demand. Under this assumption teams can generate all reports giving an exact overview about all cost involved and information about the relationship between cost and expected turnover. Lufthansa Consulting Planning Tools: Testmarketing The testmarketing allows to predict the effects of each single marketing instrument on every special market sector in a range of +/- 10%. The results help to create a sensitive marketing-mix. Lufthansa Consulting News and Information Actual news and information can be published in every period and have always the possibility to influence the existing scenario. In addition teams receive extra news in form of press releases announcing actual developments of politics and the market. Lufthansa Consulting Feedback of participants At the end of each seminar participants reflect their performance as airline in a short presentation. Lufthansa Consulting Feedback of instructors Seats Offer Passengers (seats) 400.000 350.000 300.000 Demand 250.000 Company 1 Company 2 200.000 Company 3 Instructors give their feedback in a final presentation supported by a selection of more than 60 different graphics. 150.000 100.000 50.000 0 0 1 2 3 4 5 6 7 8 Period Lufthansa Consulting GAMS seminars were carried out with participants from: Aerospatiale Air Asia Airbus Industries Toulouse Air Canada Air China Air France Airline Business ALENIA Air New Zealand All Nippon Airways Arabella Hotel Consult Asia Pacific Air Asian Shipping Augsburg Airways Austrian Airlines BAE Systems Bangkok Airways B. L. A. S. Bombardier Regional Aircraft Div. British Aerospace Cathay Pacific Airways Cargolux Commercial Airways Copenhagen Airport Daimler Benz Aerospace Airbus Dassault Aviation Delta Airlines Delta Air Regionalflug Deutsche Lufthansa DG Bank DHL Worldwide Express EDS Edec Corporation Embraer Emirates Airlines euresas Eurocopter Deutschland European Investment Bank European Business School Fachhochschule Braunschweig Fachhochschule Heilbronn Fachhochschule München Fachhochschule Köln Fachhochschule Worms Finnair Flughafen Düsseldorf Flughafen Frankfurt Flughafen Wien Fokker Frere Cholmeley Gambia Airways Grand Air Philippines INESC Interot Airways Jet Airways (India) KLM Royal Dutch Airlines LOT Polish Airlines LTU Süd Luftfahrtbundesamt Lufthansa Cityline Luxair Manchester Airport MasAIr Cargo Airline Meier's Weltreisen Merpati Air Mexicana Airlines NORDAM Group Ogilvy & Mather OGMA Olympic Airways Oman Aviation Services Onur Air Philippine Airlines P.T. Airfast Indonesia Saab Aircraft SAETA Saudi Arabian Airlines SAS Sempati Air Serunting Air Sichuan Airlines SNECMA South African Express Airways Spanair Steigenberger Consulting SunExpress Tampa Airlines Tower Air Transportes aereos pegaso United Airlines Universität Köln Varig Xijiang Airlines Yemenia Yemen Airways Yunnan Airlines Rockwell Collins Rolls-Royce Hainan Airlines Lufthansa Consulting Contacts Are you interested? We offer GAMS as: open seminar or in-house seminar Please contact us: Dr. Wolfgang Franzen Tel.: +49 7351 29 691 Fax: +49 7351 31 017 e-mail: w.franzen@lh-gams.com Airline Management Training Dr. Wolfgang Franzen Koehlesrain 92 88400 Biberach Germany www.lh-gams.com w.franzen@lh-gams.com Lufthansa Consulting Thank you! Lufthansa Consulting