What you will learn
Upon completing this course you will be able to:
- Discuss the main route demand drivers (historical capacity, O&D figures, fares, macros)
- Apply industry methodologies for calculating and estimating route profile and profitability
- Explain regulatory (bilaterals, designation, route rights) and commercial (slots, airport costs) issues
- Make the differentiation between direct and connecting traffic, and the potential of interlining and partnerships
- Develop your route profitability model and long-term capacity growth management approach
Course content
The key topics that are covered during this course include:
- The importance of airline route profitability
- Cross-functional inputs for route evaluation
- Market demand and market share forecasting
- Modelling cost and revenue inputs and drivers
- Pricing and Yield growth forecasting over time
- Yield management for new and mature routes
- Cost drivers (stage length, airport costs, aircraft costs, flight costs, etc)
- Route performance evaluation, KPI monitoring and long-term profitability management
Activities
- Interactive exercises on route profitability
- Practical exercises on cost and revenue forecasting
- Case studies on route calculations and evaluations