The Malaysian flag carrier is nw using advanced origin-and-destination (O&D) revenue management practices to control its inventory. As part of its move to more sophisticated inventory controls, the airline will convert to the O&D mode of the Sabre AirMax

Published: 30 Jan 2005

The Malaysian flag carrier is nw using advanced origin-and-destination (O&D) revenue management practices to control its inventory. As part of its move to more sophisticated inventory controls, the airline will convert to the O&D mode of the Sabre AirMax

Like many carriers around the world, Malaysia Airlines manages its seat inventory based on individual legs of a trip, but by migrating to the O&D mode of Revenue Manager, Malaysia Airlines will soon be able to manage inventory across its entire network of flights, optimizing flights that connect through its Kuala Lumpur hub. By accepting the most profitable passenger based on a complete trip rather than individual segments, Malaysia Airlines can increase yields and revenues.

"Moving to the O&D revenue management controls represents a major step for our airline, and we believe it will give us a significant advantage," said Sharifah Salwa, assistant general manager for Network Revenue Management at Malaysia Airlines. "By using Revenue Manager to move to O&D control, we can ensure that every seat on our aircraft generates the maximum amount of revenue across our entire network."

The airline, which has utilized Revenue Manager for the past three years in the leg-segment mode, will convert to the O&D version of the system in 2005.

With Revenue Manager, Malaysia Airlines will be able to use schedule, reservations and ticketing data to forecast demand by service class and determine the optimal inventory controls at the network level.

Steve Clampett, president of Airline Products and Services for Sabre Airline Solutions, said Malaysia Airlines represents the latest airline to realize the benefits of using Revenue Manager to support the most advanced revenue management practices.

"Given all the conditions affecting airlines, maximizing revenues is absolutely critical to survival," Clampett said. "Using tools such as Revenue Manager that help airlines realize every possible cent is becoming more and more critical. By taking the lead in moving to advanced inventory controls, Malaysia Airlines has shown that it intends to be not only one of the industry's survivors, but also one of its strongest competitors."

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