Please answer the questions one by one.

1. To whom do some airline managers blame for the increase in delays in last summer?
2. What is the reason for the delays?
3. At the simplest level, what are the airline managers looking for?
4. What might be the reason why the schedules might work in May but not get the same result in late July?
5. How did the Easy Jet on-time performance change in the third quarter compared with the last year according to interim management statement?
6. How many EasyJet flights operating to/from the UK were late more than their hours in 2018 according to CAA data?
7. How much could the EasyJETs liability have been roughly in USD for 2018? and pls state the assumptions for this calculation
8. Could you pls compare the EasyJet liability for a delayed flight in 2018 with its earnings for the same year?
9. What is the solution of the airlines including Easyjet to reset the balance of cost?
10. What is the need for fewer delays and less passenger dissatisfaction? Are the most affected airlines concerned enough to solve the problem?

Who should bear the cost of delays? Some carriers are quick to blame others during disruption, but their own capacity decisions deserve scrutiny Swith an ini bere are no hicides time kamining the pedige same thin this is something that is and airports. CHRIS TARRY In this respect, all airlines 2,606 flights to 847, and delays of focuses the mind in respect of the CTAIRA based in or operating from Eu- more than three hours falling by meeting the schedule. rope will be only too aware of the 32% year-on-year. Beyond this, if we look at the provisions of EU261 and the de- Management also noted, how- number of flights that for a passen- lay-related compensation, where ever, that the operating environ- ger are "annoying and disruptive" in large part the objective was to ment in the summer remained because they are late but not suffi- encourage or reinforce behav- challenging. If by this EasyJet ciently so for compensation to be ioural change. means that there has been a sig- payable under EU261, the same in Europe coincides We have been spending some nificant number of late flights, CAA data suggests that in 2018 there were some 32,200 EasyJet and some airline managers be- of a number of European airlines clearly borne out by the data we flights that were between 31 and moaning the situation by direct against their timetables from a are tracking. 60 minutes late; some 18,360 that ing the blame towards ANSPs business and operational perspec- were between 61 and 120 minutes tive. Unsurprisingly, history has LATE LIABILITY late; and 4.470 that were between The reality is that the capacity repeated itself , not just in delays Our penchant for looking behind 121 and 180 minutes late. As part provided by these suppliers is a increasing as the summer season the headlines is well known. To of our ongoing exercise we are also known constraint. The delays suf- progresses but also in terms of put this in context, EasyJet's perfor- examining the extent to which de- fered by passengers are often the "overscheduling" against the mance in data from the CAA sug- lays have shifted from above three result of airline managements at- background of what are entirely gested that in 2018, excluding can hours to below, reducing the expo- tempting to maximise utilisation, predictable and repeatable con cellations, there were some 6,800 sure to EU261 liabilities. but where aircraft and crew num- straints associated with ANSP and EasyJet flights operating to/from As we suggested earlier, hav- bers are insufficient to achieve the airport capacity. The airlines" the UK that were more than three ing a timetable that works in outcomes suggested by schedules. schedules and resulting perfor-hours late. At the simplest level, as- May but not in July is not good Generally, students of econom- mance would not appear to take suming all of the passengers on enough today, particularly ics and business start their courses sufficient or necessary recognition those flights would be eligible for where in the case of flights that with an introduction to the conse- of such constraints. In most cases, EU261 compensation, and that are significantly delayed but not quences for all interested partici- it is the passengers that incur the they claimed it, it is reasonably sufficiently so to attract compen- pants of decisions taken when associated disbenefits connected straightforward to calculate sation, the cost is borne by pas- there are finite resources. While to the delay and disruption EasyJet's liability. If the flights were sengers. Clearly, in order to reset the usual examples are around In many instances there is little all up to 1,500km and the average the balance there is a cost to the how you might administer a need for sophisticated mathemat- load was 150 passengers, then the airlines, where we have seen healthcare budget, the reality is ics to identify flights that are like- potential maximum liability aris- some carriers including EasyJet that the same approach is almost ly to be late or are delayed ing from these late arrivals alone introducing back-up aircraft and universally applicable to all indus- enough to cause passenger an- would have been in the order of crews - something that was a tries, including air transport, as in- noyance and disruption, while 250 million ($309 million). feature in the past but where the deed are the underlying issues. short of the delays that To put this another way, on the reason was related to the dis- will trigger compensation. basis of our calculations, the max- patch reliability of the aircraft, GAME THEORY Against this background it was imum potential compensation Returning to where we started, Getting a grip on the issues of particular interest to read in payable for each such EasyJet however, the fundamental issue is around resource allocation comes the recent EasyJet interim man- flight delayed over three hours, who bears the cost of delays, in way before moving on to any con- agement statement that on-time and where EU261 compensation whatever form they might be man- cepts related to profit maximisa- performance (OTP) in the quarter is due, is equivalent to the average ifest. It is important to recognise tion,"maxi-min" and "mini-max" had improved with cancellations profit that it earned from 40 flights that passenger tolerance is not infi- analysis as part of the study of in its third quarter falling from in 2018 - something that clearly nite and there equally good game theory, and who wins and reasons for the threshold for who loses. EU261 compensation in respect of At the e simplest level, an airline late arrivals to be set at two hours manager is seeking to establish, and rather than three hours, given that also operate, a schedule that max- targets become "norms". imises utilisation and minimises Similarly, there would appear the costs of operation, including to be good grounds for suggesting compensation payable to passen- that for some airlines, the need is gers for delay and associated dis- to apply more capacity to deliver ruption. There are many examples fewer delays and less passenger in Europe showing that while a dissatisfaction. But are the most schedule might work in May, it is affected airlines concerned not always the case by the time you enough about the issue to allocate get to early July EasyJet reported better on-time performance in the third quarter resources to resolve it? falling 2 Dans