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Airline Priority Systems

Project Potfolio Management

(project/investment portfolio optimization, project/investment
  prioritization, or optimal capital resource/budget allocation)






"Of all the things that a manager can do, figuring out the best way
  to allocate capital is probably the most important."




Determining what projects to include in the budget is one of the most challenging tasks for airline executives. In the airline business, the pressure has never been greater to improve the investment returns. Traditional methods do not provide a complete solution to the most complex and entailing task of selecting the right portfolio of projects since these methods:

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provide insufficient understanding of the costs, risks, and benefits of proposed projects,

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encourage biased estimates from project proponents,

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under-value spending by failing to account for the “soft benefits” of projects, such as new capability and knowledge,

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result in unjustified project portfolios that are unaligned with strategy,

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lose up to 40% of the value potentially available from their project portfolios.


CA Advisors is teaming with Lee Merkhofer Consulting to provide project prioritization and portfolio management tailored to the needs of airlines. Lee Merkhofer Consulting provides high-quality, affordable training, assistance and software for prioritizing projects and optimally managing project portfolios. CA Advisors is an analytically-sophisticated management consulting firm with deep experience and specialized skills in the airline industry.


Our approach:

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identifies, for any resource constraint, the optimal set of projects,

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determines the equivalent dollar value of each project, accounting for “soft” as well has hard, dollar benefits,

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accounts for interdependencies among projects,

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quantifies risk, taking into account the performance risks of individual projects as well as market risks,

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ensures that resource allocations are aligned with strategic objectives,

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facilitates a more effective decision-making process that reduces “gaming” and “levels the playing field” for the competition for resources.


We understand that airlines want results, not just advice. Airline priority system capabilities and outputs include:

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standardized, electronic forms for obtaining project proposal information,

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project inventory database summarizing each project’s costs and benefits,

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a prioritized portfolio of investment opportunities, plus the ability to analyze alternative portfolios,

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an efficient process for updating the budget solution.


Please contact us for further information regarding our work in this area.






Fortune Magazine

  Download Airline Priority Systems

project abstract.

  Download brochure for Project Prioritization

and Project Protfolio Management seminar.