SABRE Technology Provides For Optimal Seat Allocation, Price
HONOLULU, February 3, 1997 -- Hawaiian Airlines Inc. (ASE and PSE: HA) has signed an agreement with SABRE Decision TechnologiesTM (SDTTM), a business unit of The SABRE Group, to implement the industry's state-of-the-art automated yield management system called AIRMAX. Revenue management is a key part of Hawaiian Airlines' strategy for the future and foundation of financial success. After evaluating other systems, Hawaiian chose SDT's application as the tool to implement this key business strategy into its pricing system and expects to realize significant revenue gains as a result.
AIRMAX optimizes the allocation of seat inventory and pricing on a flight-by-flight, minute-to-minute basis, thereby enhancing the revenue potential of every flight. The system combines historical and current data directly from the airline's computer reservation system, revenue accounting and departure control using actual transactions, and creates passenger demand forecasts by segment fare class. The model considers day-of-week and week-of-year seasonality and constantly calculates optimal inventory control settings for advanced planning and same-day operations.
"In the highly competitive airline industry, optimal allocation of seat inventory has become an essential tool for financial success. By adding SDT's industry-leading AIRMAX system, Hawaiian has an excellent opportunity to generate stronger utilization of its assets and, thus, improve profitability," said Bruce R. Nobles, Hawaiian's president and chief executive officer.
Under the new agreement, SDT will build, test, install and maintain the AIRMAX system at Hawaiian, in addition to providing personnel training. The companies will begin loading historical data into the new system next month, and Hawaiian expects the system to be on-line by early fall.
Other airlines employing SDT's yield management system are Air France, Air New Zealand, Alitalia, Ansett Australia, British Midland Airways, Cyprus Airways, EVA Airways Corporation, Gulf Air, Kuwait Airways, Meridiana, Midway Airlines, Olympic Airways, TACA International Airlines, TAESA and Turkish Airlines.
From 10 worldwide offices, Dallas/Fort Worth-based SDT has provided business solutions to nearly 400 clients in more than 50 countries. The SABRE Group is a world leader in the electronic distribution of travel and transportation industries, including software development and product sales, transaction processing and consulting. Additional information on SABRE Decision Technologies, including previously issued news releases, is available on the Internet via http://www.amrcorp.com/sdt.
Hawaiian Airlines, the nation's 12th largest airline, provides scheduled and chartered air transportation of passengers, cargo and mail among the islands of Hawaii and between Hawaii and five West Coast gateway cities and two destinations in the South Pacific.