A MAGAZINE FOR AIRLINE EXECUTIVES 2009 Issue No. 2

Planning departments follow industry best practices to compete

Global carriers take various steps to remain in the black

Air Malta makes big changes across entire organizations

11 20 46

A Conversation With … Dave Barger, President And Chief Executive Officer, JetBlue Airways, Page 14.

T a k i n g y o u r a i r l i n e t o n e w h e i g h t s

Happy Jetting

© 2009 Sabre Inc. All rights reserved. wearelistening@sabre.com

ServiceWithASmile

Sabre Airline Solutions® helps carriers smoothly adapt to and operate with a broad spectrum of technology through its Implementation & Support Lifecycle approach.

Russ Renfro | Ascend Contributor

The most modern technology is only as good as the implementation and service that sup-ports it. It’s not merely a matter of a technology provider offering an end-to-end range of state-of-the-art solutions but also the additional support needed from the beginning of solution implemen-tation through training and ongoing support. And Sabre Airline Solutions is committed to ensuring the highest level of support from implementation through operation.

In doing so, Sabre Airline Solutions employs the Implementation & Support Lifecycle, a compo-nent of Service360° SM Delivery & Customer Care, to help carriers and their employees get swiftly up to speed, then to extend and fully maintain their professional dexterity in operating with advanced technological capabilities.

The goal is to provide airlines around the world with solutions that deliver significant imme-diate value and improve their business operations while also constructing a platform that fully sup-ports and enhances each carrier’s future growth and business opportunities.

The Implementation & Support Lifecycle provides a proven, integrated set of delivery standards that: Promote the partnership between Sabre Airline Solutions and its partner airlines,

Drive business value,Accelerate time-to-market factors,

Focus on process improvement, Create efficiencies,

Help minimize the need for customizations.The implementation approach focuses on

maximizing a carrier’s total return on investment,

and value-optimization methods constitute a cen-tral theme that runs throughout the lifecycle.

During the implementation process, the technology provider’s project team assesses an airline’s current business practices, recommends new business practices, identifies value mea-sures and key performance indicators, or KPIs, and provides hands-on training and transition assistance to move from current practices to the carrier’s future-state solution.

The lifecycle is tailored to minimize imple-mentation risk and maximize the value carriers realize from technology provided by Sabre Airline Solutions. It is based on more than 40 years of direct practice in implementations across a wide variety of airlines, business models and technology.

The Implementation & Support Lifecycle specifically addresses all activities related to achieving live production of a carrier’s solution as well as successful ongoing operations. Practical examples include: Business-process improvement; Development of modifications (features/functions, interfaces to third-party systems, reports);

Technical installation; Application configuration;

Training of users, super users, system administrators and technical staff;

Testing/validation; Data migration;

Assistance during cutover; Transition to customer care;

Post-cutover activities;

Ongoing customer care.These functions are organized into four life-

cycle phases — Project Initiation, Interactive Pilot, Solution Adoption and Project Transition — plus the Customer Care phase.

ProjectInitiationDuring Project Initiation, both the airline and

Sabre Airline Solutions assign project managers whose first task is to establish a common under-standing in relation to the fundamental criteria for a successful project, the implementation process (a primary function of the Implementation & Support Lifecycle) and the overall project scope and goals.

Together, project managers define mile-stones and project organization as well as how the project is to be managed in practical terms (com-munication, documentation, decision process, task control, change control, risk assessments and steering/status reporting).

Upon approval of the project manager’s initial planning by the project sponsors (and/or steering team), project members assemble for an introduction and initiation of the overall plan and project objectives.

Interactive PilotThe primary objective of Interactive Pilot

is to bring the carrier’s new solution to a point at which it is ready to be personalized through param-eter setup, configuration and solution design.

Here, the carrier’s current status must be thoroughly evaluated in terms of alignment with the standard solution as well as current busi-

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The Implementation & Support Lifecyclerepresentsaformalizeddeliveryapproach,emphasizingvalue,adoptionandconsistencythathelpsensureairlinesderivemaximumbusinessbenefitfromtheirtechnologypurchases.

Projectinitiation

Interactivepilot

Solutionadoption

Projecttransition

CustomerCare

CustomerCare

Implementation&SupportLifecycle

Projectandprogrammanagement Valuemeasurement Qualityassurance

ness practices/processes, organizational skills, data/information sources, business-critical issues, KPIs and geographic locations. This vital informa-tion must be used in planning and scheduling Interactive Pilot scenario workshops and prepar-ing the technical environment for key-user training and business-scenario execution.

Among the most important functions dur-ing the early stages of Interactive Pilot is to train key users on the standard solution, thus preparing them for full participation in workshops as well as providing at least an initial understanding of how best to apply the new solution in their operations.

Based on essential industry-best practices, the primary focus of Interactive Pilot workshops relates directly to standard business-process sce-narios. As workshops progress through each scenario, Sabre Airline Solutions experts work jointly with the carrier to identify business-process changes, feature/function enhancements (with a goal to eliminate or at least minimize any need for customizations), organizational recommendations and required points of integration.

Sabre Airline Solutions also offers a “Mini Interactive Pilot” during the sales process. This enables carriers to more fully understand the capabilities and value of the proposed solution and aids in the definition and refinement of the full implementation project scope.

SolutionAdoptionDuring Solution Adoption, Sabre Airline

Solutions works closely with key users as part of the agile development approach, utilizing a customer collaboration workshop to define and implement any required modifications to existing carrier business practices or functionality.

The results of each change (process, enhancements, interfaces, etc.) are vital to the collaboration workshop for direct validation with the carrier.

Once Solution Adoption is complete, all enhancements/customizations and integration have been built and validated, and the associ-ated business-process changes, organizational changes and technical installation have been fully planned.

Using this approach, the collaboration workshop is, in actuality, a hands-on validation and value optimization of the end-state solution. But the carrier doesn’t have to wait until the end of the project to appreciate the solution because its personnel are key partners in its evolution.

Project TransitionThe implementation portion of the lifecycle

concludes with Project Transition when the full-scale migration is conducted and the solution is placed into production in accordance with the rollout strategy.

This phase includes full end-user training, final carrier validation of the end-to-end solution, data migration, cutover to production and recom-mendations for value optimization.

As indicated by the name “Project Transition,” the focus is on smoothly transitioning from project implementation to a customer-care relationship.

Once the solution is successfully validated as production-ready and users are sufficiently trained, cutover to live production will quickly take place.

Depending on conditions specific to each project, several alternative strategies can be applied at the time of cutover. One consideration is whether the cutover should be performed in steps (by module, by business function, by work group, by location) or as one comprehensive cutover.

Cutover strategy is decided on a case-by-case basis, considering carrier-specific criteria such as the size, complexity and geographical distribution of the carrier’s business operations as well as the nature of the solution and specific integration needs.

To ensure smooth operations from the day of cutover, Sabre Airline Solutions assigns team members to provide onsite and/or remote support to users and system administrators for a mutually agreed-upon duration.

Other critical Project Transition activities include training the carrier’s staff on Sabre Airline Solutions support processes, introduction to its support staff, project-success recognition, KPI updates and joint post-project review.

Training ServicesTraining is a standard service that educates

a carrier’s staff on the use and capabilities of the solution being deployed. It includes onsite or remote training relating to the application features and functions as well as the application’s best-

practice use in the individual carrier’s business-process environment.

Training is typically provided to a set of key users and is usually conducted at a Sabre Airline Solutions site prior to cutover. However, it can be performed at the carrier’s site, if preferred. Sabre Airline Solutions also offers advanced and refresher training — available either before or after the carrier’s solution is in production.

Sabre Airline Solutions develops and deliv-ers high-quality product training, including a train-ing team that is responsible for establishing, com-municating and achieving well-defined, carefully quantified training standards.

During this process, the implementation project’s training procedures can be customized to address the airline’s needs. Training approaches include:

Instructor-led training — Training occurs in a classroom setting at the carrier’s site or at Sabre Airline Solutions location(s). For most solutions, this is the preferred training method.Web-mediated training — Internet-based train-ing, where a Sabre Airline Solutions instructor conducts a Web session, is best used for maintenance-release training and refresher training.

Train-the-trainer — Only the carrier’s training staff or business-area experts are trained in the use of the solution (similar to what is some-times referred to as super-user training). Then the newly trained personnel lead operation train-ing for their peers and provide ongoing monitor-ing and leadership in the use of the solution.Sabre® Airline University — The university is available via the Sabre® Community Portal, which places a knowledge bank within easy reach of the airline community and enables users to tailor their training delivery in a way that suits their applications. Each solution has its own program designed to ensure customer success through:

− Instructor-lead classes,− Virtual classroom,− Online learning,− User conference sessions.The standard training program consists of a

training-delivery methodology and supporting train-ing materials, including a training guide, which is an integral part of the training program. During user and super-user training programs, the instructor references examples and exercises in the training guide and discusses how the system functionally relates to trainees’ daily job functions.

Sections of the guide include objective and task-based modules, business-process flow and system overview, screen captures and generic data, procedures, scenarios, and exercises and business concepts relating to system functionality.

Customer CareNext, the project’s focus shifts to ensure a

successful transition to ongoing support. At this time, the primary interaction between the carrier

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Thebestbusinesssolutionscontainnotonlysuperiortechnologybutalsopreciseandskilledimplementationandsupport.TheImplementation & Support Lifecycledeliveryapproachensuresasuccessfulend-to-endimplementationexperienceaswellaslong-term,ongoingcustomercare.

and Sabre Airline Solutions is transferred from the project team to the Customer Care team. Customer Care includes a service center staffed around the clock, every day of the year, by select personnel with significant experience in both information technology and the airline industry.

Global Service CentersAs part of its world-class level of support

across its entire solutions portfolio, Sabre Airline Solutions provides global maintenance support to its airline customers. Customer Care (the main-tenance period) includes service center frontline, advanced support and operations teams located at global service centers in Montevideo, Uruguay, and Bangalore, India.

The global approach involves both solu-tions/functional and customer-service training. Infrastructure installations are highly advanced and are completely integrated between support offices, providing 24/7 support coverage around the world.

The Sabre Airline Solutions commitment to service remains strong, with the full integration of its support operations into a true “follow-the-sun” model, involving two stable groups of resources applying their knowledge and experience within the same business hours of global airlines all day, every day. This stability within the 24/7 operation results in a solid, constant knowledge base, aligned overall direction and quick turnaround times for airlines.

In Bangalore and Montevideo, the advanced-support teams are staffed with dedi-cated subject-matter experts, providing assistance for complex service requests. Each subject matter expert is dedicated to a select group of solutions and provides consultative-level analysis, expert troubleshooting and resolution coordination.

Tools used by the Customer Care team — including the Sabre® Community Portal, Siebel, eService, eKnowledge and the Sabre® Customer Experience Manager — are overseen and man-aged by dedicated, experienced developers and analysts as well as project and solutions managers.

Reports ranging from high-level overviews to detailed activity relating to each individual service request can be developed to meet spe-cific airline needs. Also available are customization of reports and consultation on reporting best practices.

Managing The RelationshipA successful delivery is just the first step of

a long-lasting relationship between Sabre Airline Solutions and its airline customers. And delivery success is critical, providing a solid foundation. But the majority of the relationship occurs after initial delivery of the solution, during which time the airline realizes the true value of the delivered solution.

A key strength of Sabre Airline Solutions is the ability to service an extensive global customer base while continuing to invest in new technology

as well as performing other customer deliveries. It’s not a boutique, but rather a key technology partner in global aviation. As such, it has the finan-cial strength to provide a full spectrum of tiered support services critical to a carrier’s business-solutions lifecycle.

Tiered Support ServicesSabre Airline Solutions customer-relation-

ship support is based on open communications and skilled-resource availability. Tiered Support Services provide a predictable and optimal service experience best suited to each airline’s unique business needs. The tiers help align the Sabre Airline Solutions service values with its cus-tomer’s operations and include:

Standard Tier — Support teams consisting of frontline, advanced support and technical resources; global 24/7 operations and region-ally based delivery and support resources; solution- and customer-specific sales and account management; industry-leading sub-ject-matter and operations-research exper-tise; Web-based self-service and automated-support systems; and a staff that is focused on each individual customer’s realization of value from Sabre Airline Solutions technol-ogy.Silver Tier — Everything from the standard tier is included as well as service credits added to standard service commitments; higher prioritization of service requests; system-uptime service-level agreements; and biannual customer checkpoints.Gold Tier — Combines the standard tier and silver tier as well as the highest service-level commitments; a dedicated gold service line; included licenses for new solutions versions; and additional services such as “health checks” and user-conference passes.

LifecyclePractices:ValueManagement

The Sabre Airline Solutions mission is to provide valuable solutions that drive an airline’s business. It is committed to backing up its return-on-investment promises by offering a comprehensive “value-measurement” activ-ity. As part of the overall delivery services, Customer Value Measurement is intended to help an airline quantify the true value the solu-tion provides to its business.

Customer Value Measurement can be performed on each airline engagement and proj-ect. Using this service, Sabre Airline Solutions and the airline agree on the measurement criteria at project kickoff and establish a mea-surement benchmark that carries through to the system’s production period and each subse-quent year during the Customer Care phase.

From a practical standpoint, it is evident that value metrics will naturally vary among solutions and can cover incremental revenue benefits, cost savings, government compliance and staff productivity.

Primary activities in the value-measure-ment process include defining the measure-ment approach and criteria (metrics), establish-ing a baseline during the delivery engagement, implementing the new solution and measuring the key metrics at predetermined intervals post implementation.

Once the value-measurement-process definition is complete, Sabre Airline Solutions can assist the carrier in benchmarking cur- rent-state metrics during implementation and measuring actual return on investment post cutover.

ProjectAndProgramManagementProject control is provided by the Sabre

Airline Solutions project-management function. Multiple concurrent deliveries are additionally supported by a program-management func-tion. These functions provide the oversight mechanisms of the engagement and take place throughout each of the other implementation phases.

At all junctures, the goal is to provide comprehensive project-planning and -manage-ment services — from project initiation through production cutover and transition to Customer Care. The purpose is to seamlessly incorporate the responsibilities of both the airline and Sabre Airline Solutions into a comprehensive plan that achieves project goals and meets delivery targets. Sabre Airline Solutions approaches proj-ect- /program-management functions through:

Adherence to project methodology — To ensure consistency of control processes and reporting, standard methodology discipline is enforced across all projects.Management of project plans — Project plans include a variety of topics, such as the project schedule as well as change-and-issues-management and risk-mitigation

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plans. After the planning phase is complete, project plans are actively managed, with fur-ther changes handled through a formal change-request procedure.

Project-schedule updates — So progress can be computed and reported at timely intervals, project-schedule updates are solicited and received via “actual time spent” or “percent-age completed.”Project-progress reporting and communica-tion at all levels — Standard progress reports are provided to all levels of the engagement model, at the chosen level of detail, in a timely and scheduled manner. Steering sessions are held on a regular basis.Change and issue management — Project discipline is enforced through change- and issue-management tracking. To help ensure timely delivery, changes are made only through properly authorized change requests. Issues are managed, tracked and escalated as needed through completion.

Program management — Program manage-ment provides multi-project coordination through established project-to-project depen-dencies that are tracked and communicated to ensure full awareness and visibility. Programs are managed via integrated schedules for each subproject. While project managers are responsible for the plans, schedules, changes, issues, risks and budgets for their specific proj-ects, program managers are responsible for all these functions at the overall program level.

QualityAssuranceSabre Airline Solutions quality assurance

applies principles and practices to help ensure the delivered solutions satisfy customer needs and expectations. These standards are applied throughout the project lifecycle.

Quality assurance is characterized by early and frequent feedback — engaging airline cus-tomers and testers early in the process. Practices such as code inspections and test automation are applied to uncover issues before they actu-ally materialize to prevent errors and omissions rather than find them during late-phase test-ing. Experience has proven that this approach enhances quality, reduces costs and accelerates solution delivery.

Built into Sabre Airline Solutions stan-dard development, implementation and support methodology, quality-assurance activities include a requirements definition in the form of user stories, requirements traceability and acceptance criteria; iterative development methods including multiple, short development iterations with a high degree of customer-representative involve-ment; software-configuration and -release man-agement; and comprehensive validation activities and deliverables.

Additional quality-assurance factors involve:

Close customer collaboration, periodi-cally bringing the airline and solutions teams together to gain communication and feedback efficiencies;

Business-scenario-driven validation cycles (including execution of validation scripts before delivery to verify that all requirements have been met and the system and interfaces are ready for delivery); Pre-delivery checkpoints performed by the implementation team, serving as internal quality-assurance gates and involving all parties engaged in a specific customer delivery; Post-project reviews that enable Sabre Airline Solutions to learn from each subsequent deliv-ery and enhance the process.

The end result is software that is thor-oughly and properly inspected and verified for early defect resolution.

Through its Implementation & Support Lifecycle, Sabre Airline Solutions brings airlines a level of implementation and ongoing service that is unique in the airline industry. a

Russ Renfro is director of lifecycle services for Sabre Airline Solutions. He can be contacted at russ.renfro@sabre.com.

45,500+ The number of channel views the

Qantas YouTube channel has received

since its February 2006 launch,

according to the Centre for Asia

Pacific Aviation. The carrier realized

3,526 views of the relaunched “I Still

Call Australia Home” advertisement

within the first three days as well

as more than 87,000 views for its

“Painting Of The First Qantas A380”

video.

4.6+ million The number of times the “Bare

Essentials Of Safety From Air New

Zealand” safety video has been viewed

on YouTube, according to the Centre for

Asia Pacific Aviation. The video features

body-painted cabin crew and pilots

delivering the in-flight safety briefing

to customers travelling on Boeing 737

domestic jet service.

8.5 million The number of people the air trans-

port industry will directly employ by

2026 as a result of the 145 percent

increase in annual travel between now

and then, according to Travel Daily

Asia News. The airline industry is also

expected to contribute US$1 trillion to

world gross domestic product during

the same time period.

+count it up