A newly published airline's schedule could include flights or routes operated previously by the airline and new routes that are to be flown for the first time. For the new routes, airlines usually perform preliminary studies to investigate the feasibility of these new routes and estimate their potential profitability. This chapter presents an example that illustrates how airlines perform these preliminary studies to evaluate the feasibility of new routes. The techniques used by airlines to evaluate the feasibility of new routes are generally similar to those adopted by entrepreneurs and capital ventures to evaluate the profitability of a new business. The chapter provides an example of a business feasibility study that the reader can easy grasp. Next, it illustrates the application of the steps of this study to evaluate the feasibility of a new route considered by a hypothetical airline.
Feasibility of a New Route
2018-11-16
21 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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