Regardless of being an established network carrier or a low-cost startup airline: Your network strategy leads to subsequent decisions in most other areas (ground- onboard product, pricing & fares, revenue management etc). Therefore a thorough and comprehensive analysis with appropriate questions about your business objectives, business restrictions and potential markets (including customers /competitors) need to be carried out including items like:
- Most profitable markets (including opportunity costs for non-serviced routes)
- Market potential & restrictions
- Business potential, resources and restrictions
- Hub & Spoke or decentralized Point-to-Point network
- Frequency and capacity (including competitor analysis)
- Time slots (including competitor analysis)
- Partnerships and alliances
- Estimated market share, market development including profitability
- Estimated development of competitors
Based on your airline’s detailed answers a profound Network Strategy will be introduced.
PROLOGIS has profound expertise in Network Management including route planning, scheduling, rotation optimization, airline business planning and data analysis.
- Network strategy & design: Evaluation of strengths and weaknesses of the current network strategy. Identification of additional potential, recommendations for adjustments. Network integration due to merger or cooperation
- Fleet & capacity evaluation: Analysis of estimated passenger volume over time combined with optimal aircraft size and frequencies for current and potential future routes/markets
- Competition response: Modeling of results as an impact of competitor’s action and reaction
- Start-up planning: Establishing best practice Network Management for new carriers incl. route selection, network planning, scheduling, airline business planning including forecasting of revenues and costs
- Network planning for established airlines: Network optimization and -development, traffic and revenue forecasting, market and competitor analysis, scenarios for profit-optimized networks incl. hub-strategies, evaluation of alliances/cooperation incl. Special Prorate Agreements and route joint-ventures
- Training/coaching: Transfer of knowledge and experience to customers’ staff
- Interim management
Our consultants have experience from major legacy carriers, hybrid carriers as well as start-up carriers and know the airline business processes from scratch. Based on best practice and proven analysis methodologies we can identify key issues and contribute to a improved profitability of your airline.
As a customer you will receive significantly improved processes including optimal cross-functional workflow implementations, various potential planning options with all pros and cons, higher transparency in your future planning and last but not least an increased profitability.
PROLOGIS’ mission is to provide a high quality of consulting expertise in one of the critical area of any airline. Our project goal is to deliver a sustainable and identifiable value to your airline’s profitability after completion of the project.
Due to a highly dynamic and competitive environment in today’s aviation industry many airlines are struggling to achieve profitability. One of many reasons is inefficient processes combined with insufficient best-practice know-how and therefore missing control of increasing complexity. One of the key areas of success for an airline is its Network. Being one of the most important management areas, Network Management is defining an airline’s revenue opportunities as well as its cost drivers. Together with its revenue optimization (Revenue Management), Network Management is a decisive factor for the profitability of any airline.
Do you have any questions or would you like more information?
We look forward to hearing from you!
Contact: Jürgen Krumtünger