With August here we have reached the peak of the summer holiday season in the Northern Hemisphere. With oil prices considerably lower than a year ago more families will be traveling longer distances for their summer vacations. Airline fares have remained relatively low throughout the summer season, which will encourage many travelers to fly to their holiday destination. If you are planning to travel by air this summer (or have already flown) then chances are likely that you will be fewer than six degrees of separation from B2B e-Commerce technologies. Review the questions below about the airline travel process. If you answered “Yes” to any of the questions, then you can read how B2B e-Commerce may have impacted your life.
Was there a delay to your flight?
While most flight delays are caused by weather, there are a significant number caused by mechanical problems with the aircraft as well. Maintenance of commercial aircraft is performed by either the airlines’ own staff of repairmen or by third party service providers. For example, aerospace manufacturers such as Boeing, Airbus, Embraer, Rolls Royce and GE have aircraft maintenance programs that they sell in conjunction with their products. Stocking of “service parts” to repair commercial aircraft is one of the more complex logistical challenges in the supply chain. Parts for a number of different types of aircraft (e.g. MD-88, B777, A340) must be stocked in airport locations (e.g. Chicago, Beijing, Sydney, Amsterdam, Dubai) around the world. Airline operators and third party service providers utilize B2B integration technologies to track service parts inventories; manage exchanges between carriers and to initiate parts requests for specific repairs. Specialized XML standards such as SPEC 2000 and marketplaces such as Aeroxchange exist to support these business processes. So if your plane was delayed, you can rest assured that B2B integration technologies are being utilized to expedite the requests for parts.
Was your flight on time?
Most airlines, particularly for domestic flights, have a very short turnaround timeframe for each flight of approximately 30 minutes. During this short period airline personnel must load and unload passengers, transfer baggage; clean the cabin; swap out the flight crew and re-fuel the plane. If anyone of the processes goes wrong, the flight can be delayed for 15 minutes or several hours. You probably have not given much thought to the refueling process as a source of potential delay and with good reason. Refueling is rarely a departure delay concern because most refueling requests are processed electronically using B2B e-commerce technologies. An EDI or XML message is sent from an operator such as Delta Airlines, British Airways or Lufthansa to a jet fuel supplier such as Shell Aviation, Air BP or Chevron Texaco. Most airline order the fuel only a few hours before a flight departure, which allows the pilot flexibility to adjust fuel needs based upon expected weather patterns, known actual cargo loads and the expected route of flight. Such just-in-time changes allow airlines to optimize both the economics and safety of the flight. For more information on aviation fuel data standards consult my earlier post on e-Fueling Jets at $100+ per Barrel.
Congestion in the Skies - Source: LA Times
Did you have a meal or beverage on the plane?
The airlines don’t actually make the wonderful cuisine that is available on their flights. Instead, the airline operators contract with food service companies such as LSG SkyChefs to cater the flights. Menus of meals, snacks and beverages are selected for each flight and each date then communicated to the procurement department. The procurement organization then issues electronic purchase orders to the food service operators. Purchase orders are typically sent by the airlines via B2B e-Commerce standards such as EDI. Food service operators will also use EDI technologies to acknowledge the order and to communicate any changes which might be necessary. After the meals are delivered the food service operators invoice the airlines electronically. Payment is transferred through the banking system and the details are relayed via an EDI remittance advice.
Fine Dining at 30,000 Feet
Did you travel internationally?
Following the September 11th terrorist attacks, the US Department of Homeland Security (DHS) and equivalent ministries/agencies in other countries have been more aggressively managing commercial air travel in efforts to prevent future attacks. International flights are subject to more rigorous government analysis as there is not only a threat of terrorism during airtime, but also the possibility that persons on known watch lists might be crossing into the US. Airline operators are required to send advanced copies of passenger manifests to DHS for all inbound international flights. The manifests are compared against suspect databases for possible matches. Once the screening is completed, DHS will respond with any flight restrictions required for suspicious passengers. The security screening process must be completed before an aircraft is given clearance for departure. B2B integration technologies such as EDI are utilized to transmit the information between the airline operators and government agencies. This is just one of many ways that B2B helps to keep you safe.
Did you purchase the ticket with a credit card that offers rewards?
Consumers are increasingly selecting credit cards that offer rewards in exchange for purchases. Airline miles are one of the most popular reward categories for credit card issuers. In order to offer the awards, financial institutions such as Capital One, JPMorganChase and American Express must negotiate agreements with the airlines such as United, Delta and American to make a bulk purchase of miles at a discounted wholesale rate. As consumers charge goods and services to their accounts, the card issuers credit them with rewards. Once a month, the bank sends a detailed report to the airlines instructing them on how to update the balances of various frequent fliers. Of course, these communications between the airlines and the issuing banks leverage B2B integration technologies. So if you are missing mileage credit on your frequent flier account it is possible that the B2B team at the airliner or bank did something wrong.
One Response to “B2B and Your Summer Airplane Trip”
[...] B2B and Your Last Airplane Trip – Daily flight operations activities such as maintenance and repair; international immigration policies; in-flight food service; airplane re-fueling; and frequent flier mile programs all depend upon B2B e-Commerce for success. Read more about how you were fewer than six degrees of separation to B2B on your last airplane trip. [...]