The encyclopedia · Strategy & Leadership · Technical decision · 1993–2000
Air Transat bought ALTITUDE optimizers and cut costs 8–12%
Air Transat bought a three-module optimizer for routing, crew and shifts, saving 8–12% of costs and becoming Canada's largest charter.
Air Transat
the move
Air Transat operated charter flights to vacation spots. In 1993 it had an opportunity to expand, but its manual planning and scheduling system could not support rapid growth — each schedule was built by hand.
The airline acquired ALTITUDE, a three-module optimization package for aircraft routing, crew pairing, and monthly work assignment. The modules produced cost-effective solutions and interfaced easily, streamlining planning and freeing the airline to focus on expansion.
The results were measured: savings of an estimated eight to 12 percent of total costs in the first year and over a million dollars in the second. With planning no longer the bottleneck, Air Transat became the largest charter operator in Canada.
why it works
- Optimized routing, crew and shifts attacked the big cost lines at once.
- Shorter planning cycles removed the growth ceiling.
- Bought, not built: the system scaled with the airline.
what transfers
When growth is blocked by planning, buying an optimizer beats hiring planners: integrated routing, crew, and work-assignment optimization cut costs enough to fund the expansion.
what came after
ALTITUDE stayed at the center of Air Transat's operations as the carrier grew into Canada's largest charter operator, and the 2000 Interfaces article documented the cost savings and the implementation path.
references
- Air Transat Uses ALTITUDE to Manage Its Aircraft Routing, Crew Pairing, and Work Assignment
- Air Transat Uses ALTITUDE to Manage Its Aircraft Routing, Crew Pairing, and Work Assignment
spotted an error? The archive wants to know.