Air Transport World

Grading IT: Finnair and Lufthansa Systems have developed an extensive relationship that has added to the bottom lines of both companies.(IT Case Study)(Finnair Oy, Lufthansa Systems Aeronautics, information technology)

Finnair's seven-year relationship with information technology provider Lufthansa Systems Aeronautics, a member of Lufthansa Group, has yielded millions of dollars in savings and revenue for the Nordic carrier through scheduling, planning, pricing, profit, route planning and management software.

For Finnair, pinpointing the precise monetary benefits of using LHS's suite of network tools is difficult. The savings derived from software implementation tend to be in soft rather than hard dollars. But the carrier's use of the Net-Line/Sched and NetLine/Profit systems, which help it to plan and control resources better by reacting quickly to prevailing market conditions, contributed to a 1% increase in annual passenger revenue--roughly $10 million-VP-Network Strategy and Management Petteri Kostermaa tells ATW.

And with introduction of the SalesAdvance and NetAdvance option tools, Finnair was able to analyze Market Data Information Tapes, giving it a clearer picture of what the competition was up to.

Increased revenue comes in part because the carrier can use the LHS software package to analyze potential and existing markets several months in advance. The tools allow it to add capacity when needed. According to Kostermaa, LHS's ProfitLine/Price, which Finnair began using in June, is an "excellent tool" for delivering competitors' latest pricing data and analyzing and estimating O&D flow on longer routes.

NetLine/Plan, which provides support for O&D-based network planning as well as profitability evaluations of large-schedule scenarios, has helped Finnair take advantage of its geographic location to turn Helsinki into a medium-sized jumping-off-point to Asia, offers LHS Director-NetLine and ProfitLine Sales Norbert Muller. …

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