Whether it be ash clouds, strikes or financial difficulties, the airline industry is having a turbulent time right now.

When I used to live in London, I’d pass Heathrow airport regularly. On a clear day you could see at least 10 planes stacked on their approach to the runway – one landing every minute.

From a logistical standpoint, effective planning and forecasting for a carrier must be tough at the best of times let alone during periods of extreme volatility – there are just so many flights. The cascading consequences of just one delay can snowball pretty fast – impacting customer satisfaction, brand loyalty and revenue.

So how do airlines mitigate risk and improve operational planning?

America West Airlines uses straight forward staffing forecasts to predict employment and training needs. But for “on-call” pilots and staff (those held on reserve in case of emergencies or last minute changes) they use a multitude of data points using sophisticated forecasting tools. That data may include flight cancelation histories, weather patterns, training schedules, available vacation time, previous reserve crew levels and detailed flight schedules. Reserve crews are paid whether they are used or not so the challenge is to accurately forecast demand and strike the right balance to minimize cost and mitigate the risk of having to cancel a flight.

KLM perform many forecasts from evaluating pricing of seats to which newspapers and how many they should carry on a flight. They believe effective use of information is key to increasing revenues, improving service and cutting costs. To get the most out of the data and employee skills, they have created a Business Intelligence Competency Center (BICC). The approach minimizes continuity problems associated with employees moving in and out of the department. But more importantly helps with the cross-fertilization of ideas and employee motivation.

Scandinavian Airlines recognize that customers speak out mainly to avoid encountering the same problem – not to get compensated for what happened. With this in mind, the airline reviews over 50,000 comments per year. The information is categorized, organized and customized so that departments can see how customers experience and perceive their service. This in turn helps those departments identify and plan for improvements that will benefit both parties for a win-win.

What approaches are you using to plan and forecast the future?