CEFIS is a winner of the UK Department of Trade and Industriy's Smart Award for innovative software solution for operational loss control

Book, Articles, presentations, blog

Inside the book

You can buy the book here

ARTICLES:

Hidden Costs of Ailrline Operations

Managing the Cost Controls

PRESENTATIONS

AGIFORS Conference - Hidden costs of airline operations

BLOG:

Beyond Disruptions

 

 

CEFIS

What we do

Increasing pressures to cut down the costs and achieve operational improvements is forcing airline executives to look at more effective ways of cost management. However, the lack of information about daily changes in operating costs and their root causes is preventing them from taking appropriate actions. According to industry estimates, the growing number of flight disruptions is generating tens of billions in losses worldwide and affecting hundreds of millions of passengers every year, increasing the business and safety risks, affecting the economy and the environment. How much money is really at stake and why? How many flights have been disrupted because of operational uncertainties, and how many of them were cancelled, delayed or diverted due to the weaknesses in strategic, network, schedule and operations planning, inadequate internal procedures or poor cross-functional communication? Not many airlines can answer this question. In absence of reliable information about disruptions, senior managers traditionally focus on performance metrics based on unreliable delay reports, and often unknowingly contribute to further deterioration in flight punctuality and regularity. There is obviously a need for better factual data, more ‘system’ thinking, improved internal communication, and integration of operations risk management into day-to-day decision making. Our mission is to fulfil these airline needs and help them explore new cost saving opportunities while improving operational performance.

How we do it

We look at disruptions from a wider perspective – as generators of undesirable cost and loss of revenue, but also as an opportunity to learn about cross-functional dependencies, and understand the true causes of disruption problems. This knowledge is crucial for the creation of strategies that recognise operational limitations and can keep avoidable disruption costs under control. Our method for disruption loss management (DLM) is based on information provided by our proprietary software , which allows us to simplify the process by separating the most damaging disruption events from trivial ones using the operational and cost criteria. Further benefits of methods for DLM include comprehensive measurement of airline operational performance, close monitoring of deviation from planned costs and punctuality, and improvements in interdepartmental communication. These activities help management and staff to understand the effects their actions have on other parts of organisation and external service providers. The basic principles of DLM are described in the book 'Beyond Airline Disruptions', written by Jasenka Rapajic, the Cefis founder .

Service offerings

With our diverse experience and knowledge about the wider aspects of disruption problems, supported by our proprietary DLM tool, we offer airlines the opportunity to benefit from currently unexplored potential for cost saving and improvement of operational performance. Our service offerings include:

- Introduction of methods for operational loss control

- Evaluation of airline operating risk for airlines and investors

- Operating Loss Management workshops for airlines, airports, ATC, invetsors, air transport regulators and academic institutions

- Disruption loss recovery caused by third parties

 

Interested, or need more information?

Please send your email to jasenka.rapajic@cefis.co.uk

QUOTES:

‘If I had a formula for bypassing trouble, I would not pass it round. Trouble creates a capacity to handle it. I don’t embrace trouble; that’s as bad as treating it as an enemy. But I do say meet it as a friend, for you’ll see a lot of it and had better be on speaking terms with it.'  (Oliver Wendell Holmes)

‘I used to think that running an organisation was equivalent to conducting a symphony orchestra. But I don’t think that’s quite it; it’s more like jazz. There is more improvisation.’  (Warren Bennis)