Airlines face the challenge of a perishable product as their seats can only be sold up to the time of departure, after which they cannot be sold anymore. Therefore, it is important for airlines to consider their network strategy, their network management and revenue management to ensure that the maximum number of seats are sold at the right price before a flight departs. This chapter explains the concepts behind network strategy, fleet planning, economic evaluation, operational decisions and revenue management. Beginning with network strategy to tap into unserved markets, the fleet planning is vital to ensure the right equipment is ordered in sufficient numbers. To ensure the profitability of a route, it needs to be evaluated using economic evaluation methods that take the network effects into account. Furthermore, these airframes need to be assigned efficiently, ensuring that the aircraft’s daily utilisation is maximised. In a final step, the concept of revenue management is presented which aims to sell all the seats whilst maximising revenue based on the market conditions.
From Airline Network Development to Airline Operations
Classroom Companion: bus.
2021-10-14
40 pages
Article/Chapter (Book)
Electronic Resource
English
Network planning , Network strategy , Revenue management , Hub , Peak , Capacity , Fleet planning , Aircraft , Timing , Schedule , Destination , Profitability , Economic evaluation , Point-to-point , Operational planning , Productivity , Ground time , Block hours Business and Management , Industries , Operations Management , Supply Chain Management
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