Click to edit title. IMPROVING AIR CARGO THROUGH DATA INTELLIGENCE SUPPLY CHAIN CONFERENCE - BIG DATA IN LOGISTICS Alban FRANCOIS – Vice President Cargo Brussels – 22 Nov 16 ClickBrussels to Airlines edit in atitle. nutshell Key numbers Key dates 49 95 Destinations • Creation of SN Brussels Airlines following 2002 Sabena bankruptcy Aircraft 3.500 19 2005-2006 • Merger Virgin Express – SN Brussels Direct jobs >40.000 Africa hub Airlines to become Brussels Airlines Tonnage 7,5 • Entry of Lufthansa in capital (45%) >10.000 €1,27 bn Mio 2009 • Entry into Star Alliance Indirect jobs Passengers Turnover Shareholding structure 2012 • Heavy restructuring (Plan Beyond 12/13) • Continuous transformation of the 2013-2016 company to build a new “no comprise” business model Click2014 – 2016:to editBuilding title. a new Brussels Airlines New set of products adapted Focus on loyalty Focus on our guests to guest needs Development of partnerships Investments in service & tools All translated in modern building on the Belgian touch brand Click to edit title.ON THE ROAD TO OUR 2018 AMBITION… 2013 2014 2015 2018 Revenue €1.1 bn €1.2 bn €1.27 bn €1.5 bn Guests 5.9 Mio 6.7 Mio > 7 Mio 10 Mio … SOF 67.4% 71.9% 75.4% 80% Profit - €22Mio - €4 Mio €41.3 Mio >€50Mio Click to edit title. BRUSSELS AIRLINES CARGO MISSION STATEMENT WE GO THE EXTRA SMILE. We want to be the preferred air cargo provider across our network, known for its reliable service & flexibility. Going beyond filling our bellies, we focus on delivering the right solution to our customers. Click to edit title. AIR FREIGHT REPRESENTS 1% OF WORLD THE AIR FREIGHT ECOSYSTEM TRADE VOLUMES FOR 35% OF VALUE FACT 1: AIR FREIGHT IS ABOUT SPEED Click to edit title. DESPITE BEING A GROWTH SECTOR, THE THE AIR FREIGHT ECOSYSTEM GLOBAL AIRLINES PROFITS ARE LOW FACT 2: AIRLINES NEED HIGH LOAD FACTORS TO ALLOW PROFITABILITY Click to edit title. INTRODUCING OUR PARADIGM FACT 1: AIR FREIGHT IS ABOUT SPEED NEED FOR 100% FLY AS BOOKED FACT 2: AIRLINES NEED HIGH LOAD FACTORS NEED FOR OVERBOOKING TO ALLOW PROFITABILITY TO COVER « NO SHOWS » Click to edit title. CARGO CAPACITY FORECASTING & YIELD MANAGEMENT IT’S ABOUT FORECASTING TOMORROWS CAPACITY BY PREDICTING (RANDOM) EXTERNAL FACTORS D-x D USING TREND ANALYSIS WHILE CONTINUOUSLY IMPROVING THE MODEL Click to edit title. PARAMETERS IMPACTING THE CAPACITY DEFINITION FOR LONG-TERM STRATEGY FOR SHORT-TERM FLIGHT PREDICTION AIRCRAFT SHORT-TERM MARKET EVOLUTIONS SCHEDULING PASSENGER FIGURES PASSENGER EVOLUTION INCL. PREDICTION OF NO SHOWS FUTURE AIRCRAFT PERFORMANCES LUGGAGE WEIGHT & SPACE EVOLUTION OF FREIGHT CARGO BOOKING ACCURACY CHARACTERISTICS INCL. PREDICTION OF NO SHOWS WEATHER FINANCIALS INDICATORS FUEL QTY ClickHOW to editDO WE title. GO THE EXTRA SMILE? THROUGH A CUSTOMER CENTRIC IMPROVEMENT PROGRAM • Focussing on increased customer value • Methodology for processes improvements: • Clustering customer and irregularity reports • Prioritization of resources for Claim Processes investigation and corrective processing actions based on improved improvement customer satisfaction • Preventive actions in function of customer needs • Closed loop feedback: debrief corrective actions towards customers ClickGUESSING to edit THE title. FUTURE OF « BIG DATA » IN AIR FREIGHT… FROM A PAPER BASED SUPPLY CHAIN… …TO A DIGITIAL SUPPLY NETWORK • USING THE FORCE OF THE NETWORK TO STRENGTHEN POSSIBLE WEAKNESSES OF LINKS • ALLOWING PARALLEL TASKS TO BE PERFORMED & REDUCING IDLE TIME • THROUGH TRANSPARENT COMMUNICATION • ENABLING REAL-TIME COLLABORATIVE PROCESS RECOVERY Click to edit title. Thank you for your attention .