Sabre has formed a partnership with Lufthansa German Airlines to provide the airline with a sophisticated origin and destination fleet assignment model that increases revenues and lowers costs.
Through the five-year partnership, Lufthansa will use the patented Sabre O&D FAM fleet assignment model, one of the industry`s most sophisticated decision-support tools, which uses global optimization techniques to design a schedule that assigns the most appropriate aircraft to each flight leg. The model`s mathematical optimization techniques automatically produce profitable and operationally feasible solutions that are virtually impossible to generate manually. Sabre estimates that airlines using the model for medium and long term scheduling can generate incremental annual revenue of 2 to 3 percent and increase annual profitability between $5 million and $15 million when used for short term re-fleeting.
Both companies will work closely together to identify areas of automation and decision support that will provide tangible business benefits to the airline. Lufthansa joins 12 other major airlines currently using the system, including Air France, Alitalia, Scandinavian Airlines Systems (SAS) and US Airways.
The O&D FAM model can be used for several business applications including, fleet planning, schedule structure analysis, scenario-based seasonal schedule planning, operational studies, planning for special events and short-term tactical re-fleeting. A special O&D optimization feature allows airlines to model passenger flows across the network while increasing the value of the global solution. The O&D feature benefits airlines that have more than 10 percent flow traffic or that use O&D revenue management systems and techniques.