Behind the Scenes: How KLM Optimizes Your Flight Experience
November 5-6, 2024

Running an airline is no small feat—it requires vigilant oversight and precise management of complex systems, constant unpredictability, and unyielding regulations.

In their keynote at the Summit Amsterdam 2024, Dr. Kunal Kumar, Principal Data Scientist, and Maarten Oosten, Senior Data Scientist, shared how KLM Royal Dutch Airlines (KLM) is using optimization to transform operations.

From groundbreaking real-time tools to overcoming legacy hurdles, KLM’s journey is a masterclass in innovation. Here’s a closer look at the challenges, solutions, and the remarkable results of their efforts.

Tackling Complexity with Precision

Operating 700 flights a day with over 170 aircraft, KLM faces monumental challenges. Each flight requires intricate coordination: from loading baggage to managing connections, all while dealing with uncertainties like weather and late arrivals. For years, the airline relied on basic planning systems that lacked the ability to adapt dynamically. But in 2018, everything changed when they were introduced to Gurobi Optimization. 

With Gurobi’s support, KLM moved beyond static systems to dynamic, data-driven decision-making. They introduced tools like digital twins and real-time optimizers that brought clarity to the chaos. These tools integrated constraints such as fuel efficiency, maintenance schedules, and passenger connections, revolutionizing how they assign aircraft and handle disruptions.  

Real-Time Resilience: A Game-Changer

One of KLM’s standout innovations is its real-time disruption management system. Imagine a storm in Lisbon causing delays—this tool evaluates cascading impacts across flights, passengers, and crew in minutes. Before this, disruptions often led to prolonged delays, costly rebookings, and unsatisfied passengers. Now, these scenarios are mitigated within two minutes, ensuring smoother operations and happier customers. 

The key? A combination of optimization and machine learning. By predicting uncertainties and embedding them into their models, KLM created a system that dynamically adjusts to the unexpected, minimizing cascading effects and enhancing overall reliability.  

Overcoming Challenges Through Innovation

Of course, this transformation didn’t come without hurdles. KLM faced significant resistance from legacy systems and user adoption barriers. Their transaction systems couldn’t integrate seamlessly with the new tools, and some teams were hesitant to change how they worked. 

The solution? A mix of technical and human strategies. They worked closely with development teams to prioritize system integration while introducing process changes that encouraged adoption. Most impressively, KLM embedded developers within business teams, fostering collaboration and trust. This not only improved the tools but also reduced the gap between technology and its users. 

The Payoff: A More Efficient, Resilient Airline

These efforts have paid off in spades. Today, KLM runs 90+ optimization models across its operations, from scheduling to real-time adjustments. The result? Improved operational robustness, cost savings, and enhanced passenger experiences. By tracking the value of their optimizers continuously, they’ve also gained buy-in from stakeholders, ensuring sustained innovation. 

The speakers highlighted one key learning: optimization isn’t just about technology; it’s about aligning teams, breaking silos, and creating solutions that work in the real world. That’s the secret sauce behind KLM’s success. 

Key Takeaways for Any Industry 

• Embrace Complexity: Use data-driven tools to simplify and enhance decision-making. 
• Integrate Dynamically: Real-time solutions keep operations nimble in the face of disruptions. 
• Foster Collaboration: Embedding developers within business teams drives better adoption and innovation. 
• Track Value: Continuous value tracking ensures stakeholder support and proof of success. 
• Invest in Optimization: It’s a long-term game changer for any operation that thrives on efficiency. 

KLM’s journey proves that with the right tools, mindset, and collaboration, even the most complex challenges can be tackled head-on. Whether you’re in aviation, logistics, or beyond, their story is an inspiring reminder of what’s possible with optimization.