Monday, September 03, 2007

A Capacity Management Lesson From the Airlines

Simply amazing! The airlines, to no one's surprise, are a mess and will only getting worse according to an article in Business Week (Fear & Loathing at the Airport). And the solution is not simple so the FAA commissioner will now, after five years in the role, admit defeat in her efforts to fix the system. Is it really so complex? It seems that our flights are delayed because too many flights are arriving and departing at the same time. (Pardon me, but, "DUH!"). No one is in charge of ensuring that the individual airlines don't over tax the existing capacity. In IT we would call the solution, "differential charging." We would charge a different rate for use of our existing capacity during peak times. The overcrowding at peak times in New York and Chicago can be resolved by a simple scheduling mandate: Once the maximum number of flights that may depart during a specific period is reached, no other flights should be scheduled for departure. The article even admits the simplicity of this idea recommending that peak hour departures be auctioned off. That way, if an airport can handle only 47 departures during a specific day part, then only 47 can be scheduled.

But the airlines are whining about this proposal because it may cost too much. They all want to schedule the best flights for the best, customer-preferred, times. Enter DIFFERENTIAL CHARGING. If I HAVE to depart at a peak departure time, then CHARGE ME for the privilege! Let the free market regulate.

If that's not acceptable, then it's technology to the rescue! The future is satellite-based GPS! When? How much will that cost? What would a good data center manager do if he or she couldn't wait for budget approval to install new technology? D-I-F-F-E-R-E-N-T-I-A-L C-H-A-R-G-I-N-G. Not that the technology upgrade isn't need. It is. But what are we going to do in the interim?

Oh, but there's another problem: No one individual, agency or organization is in charge. So, you're telling me that the airports have no control over the use of their own capacity? Hey, IT folks, does this sound familiar? I'll ask again, what would a data center manager do given a similar challenge?

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