OBC Group LLC

In the aftermath of several high-profile US bankruptcy cases, and as soaring fuel prices continue to bite into airlines’ bottom lines, software that can show the profitability-level of US routes in explicit detail has generated increased interest including from StartupBoeing , which assists entrepreneurs in launching new airlines.

Washington DC-based software and consultancy firm OBC Group has played a role in assisting some of the USA ’s biggest carriers in establishing flight profitability systems. Airlines often seek-out these solutions when they face crisis, such as Chapter 11 bankruptcy protection. But a robust performance management system is critical for the effective management of any organization, says OBC Group founder John Cullom.

One of four managing directors at OBC Group, Cullom “was critical to the success of the Delta flight profitability system, contributing improvements in flexibility, precision and functionality that drove Delta’s decision to upgrade our technology,” says Delta general manager – flight profitability analysis, Brett Wilkes.

“The result was a quick and successful implementation of a system that is relied upon to set scheduling strategy and aircraft allocations for the entire airline.”

US Airways director – treasury, operations Kevin Grasmick says Cullom served as a key advisor to the carrier’s team in the establishment of allocation methodologies, operational performance metrics and network profitability algorithms. “We had a quick, successful implementation for a system that informed key restructuring decisions during a critical time for our airline.”

Using expertise gained in these high-profile jobs, OBC Group has since developed a highly-specified yet intuitive tool that drives airlines financial performance data down to individual products and operations to accurately identify growth opportunities and target corrective actions. A launch customer is being sought.

A broader insight analysis solution that combines public information, engineering data and proprietary financial models to show the profitability of each route operated in the USA is also being offered, and has garnered attention from carriers, consultancies and StartupBoeing , which assists entrepreneurs in landing new airlines.

Created by Boeing in 2006, StartupBoeing provides guidance, review, analysis, data, resources, contacts, and referrals to qualified start-up airlines.

The concept of StartupBoeing is to offer a “one-stop resource for aviation entrepreneurs worldwide who are considering launching airlines”, says a Boeing spokesman, who notes that while the team does not endorse any one solution, they believe market analysis information such as that provided by OBC Group is “really important”.