Recent figures from analysts tell us that the Airline industry lost US$ 25 billion in 2001 and 2002. In this volatile environment radical changes are impossible to avoid, as the industry fights back with massive cost reductions, efficiency gains and new business models. Mathematical methods and algorithms are key to solving very large and complex problems.

I recently read some work of the economist Dr Oscar Morgenstern, whose contributions were later developed by Nobel-prize-winning mathematician and economist John Nash. Dr Morgenstern said, "As models become more accurate simulations of the real situation, it becomes possible to try out proposed policies and see what the effect will be. If the proposal is not sound, it is obviously much better to find this out by making some mathematical calculations rather than from actual experience."

The recent deals signed with KLM, one of our first airline clients, and Aeroméxico show how the management teams in both companies see the crucial value of strategic resource optimization. Through a joint effort of change processes and the use of Carmen’s advanced optimization - substantial saving and increased flexibility will be achieved. Together with the determination of these companies to make strategic investments in a tough industry environment - we guarantee that we will deliver great results.

Another example is at SJ, Green Cargo (Swedish Railways) where Vadis, the Optimal Freight Car Distribution system, has been developed and implemented by optimization experts at Carmen Consulting and their business partners. Yearly savings are confirmed to be EUR 7 million allowing fantastic opportunities for productivity gains for the railway industry.

Finally, I am extremely honored and proud that Carmen Systems was selected the “IT Company of the year 2003” in Sweden by the largest business magazine ‘Veckans Affärer’. This is further substantiation for the transport industry, our clients who have supported us, and the dedicated Carmen employees that together, long-term relationships and optimization… matters!

Per Norén
Chief Executive Officer

”Mathematical methods and
algorithms are key to solving very
large and complex problems.”

Per Norén Chief Executive Officer