Air Service Development
We bridge the gap between an airport route development perspective and an airline operational and financial view of routes.
The basis of successful Air Service Development is a strong prognosis of passenger demand facilitated through an MPA and more
The Lufthansa Consulting approach to Air Service Development begins with an intensive market analysis and traffic forecasting through our access to reliable traffic data from a wide range of industry databases. We analyze your passenger statistics and third-party data from the wider aviation and tourism ecosystem in your region. These data are used to refine traffic data and define accurate O&D volumes. Depending on your airport’s individual situation, tourism and business data will complement the analysis. Demand adjustments are made to arrive at the relevant passenger volumes for the period of analysis. These should reflect the IATA forecasts for regional traffic recovery and growth.
The passenger traffic forecast is based on socio-economic indicators such as GDP/GRP for domestic, population and trade. It also takes inorganic factors through external forces into consideration such as a pandemic, crisis or war. Historical demand elasticity of the GDP and available industry forecasts are used to validate the forecast.
Our experts carry out a leakage study to help your airport understand the potential passenger demand it is losing to competing airports and alternative transportation. We then estimate your airport competitiveness to quantify the impact of various Air Service Development (ASD) initiatives on your airport traffic by modeling the airport’s competitiveness (e.g. distance from city, network, hub airline etc.) in relation to other airports with overlapping catchments.
Air Service Development services based on Route Studies support the network decisions of the targeted operators on behalf of the airport
As a result of our long-term project experience and our airline and airport expertise, our experts are able to bridge the gap between an airport’s route development perspective and an airline’s operational and financial view of routes. Your airport benefits from our unique knowledge of Air Service Development (ASD). We prepare your airport to approach potential passenger and cargo airlines as well as Tour Operators with tailor-made Route Studies and an incentive strategy. Route Studies include all KPIs relevant to airline network planners and are therefore a strong basis for their network decisions. With our “airliner view”, the value of these Route Studies is exceptional to the targeted airline(s).
Your benefits:
- Qualified experts, with a wealth of experience in airline network management
- Latest and advanced airline network planning software used to deliver optimal results
- Selection of sophisticated passenger flow data bases; economies of scale ensure maximum accuracy and relevance
- Relevant Airline revenue and cost data taken from real-time flight operations to deliver maximum precision and, thus, client benefit
- Strong relationships with/access to airlines and Tour Operators
Air Service Development services based on Route Studies support the network decisions of the targeted operators on behalf of the airport
As a result of our long-term project experience and our airline and airport expertise, our experts are able to bridge the gap between an airport’s route development perspective and an airline’s operational and financial view of routes. Your airport benefits from our unique knowledge of Air Service Development (ASD). We prepare your airport to approach potential passenger and cargo airlines as well as Tour Operators with tailor-made Route Studies and an incentive strategy. Route Studies include all KPIs relevant to airline network planners and are therefore a strong basis for their network decisions. With our “airliner view”, the value of these Route Studies is exceptional to the targeted airline(s).
Your benefits:
- Qualified experts, with a wealth of experience in airline network management
- Latest and advanced airline network planning software used to deliver optimal results
- Selection of sophisticated passenger flow data bases; economies of scale ensure maximum accuracy and relevance
- Relevant Airline revenue and cost data taken from real-time flight operations to deliver maximum precision and, thus, client benefit
- Strong relationships with/access to airlines and Tour Operators
We assist your airport in approaching potential airlines, establish relationships and targeted marketing to various stakeholders
Our experts assist your airport in approaching airline partners by preparing a structured strategy to support your Air Service Development. We arrange, prepare and actively participate in the meetings between your airport and potential airline partners. Our specialists present the Route Studies illustrating passenger and cargo potentials as well as the airport incentive scheme.
A strategic marketing plan requires the determination of specific marketing objectives, which translate into B2B and B2C marketing tools. A B2B marketing plan for each route will support you in attracting air carriers to your airport. Our ASD experts will provide detailed guidance during each phase of the B2B marketing concept. The B2C marketing plan will be created for each target route to support the airline in making the air service viable.
Airline incentive schemes serve as a risk-sharing model between the airline and the airport operator can provide motivational arguments when approaching airlines. These might involve discounts based on passenger volume increases or destination portfolio enhancements. Airports can also offer destination marketing support which is often used by the airline for promotional campaigns. Investments in advertising and PR campaigns for the route using the airport communication channels and promotional areas at the airport can also be used as support incentives for the airline.
Another marketing tool recommended by our experts is route development stakeholder engagement which aims at creating synergies from partnerships. This involves collaborating with other stakeholders which share the common interest of boosting air connectivity to a particular destination. These can be governments, local businesses, tour operators etc.
Route simulations show the future development of passenger and cargo volumes
Prioritizing routes with high potential to be (re-)launched or expanded is the next step. It is important to also considering cargo contribution when examining the route potential. The top route candidates are selected for the development of around 20 Route Studies and Route Performance Simulation. Once the target routes are prioritized, our team identifies suitable airlines to serve these markets based on a range of criteria.
The route simulation for airport and airline network planning is performed in one of several ways, depending on the nature of the route and the client agreement. Our experts use a range of performance simulation tools. The simulation can focus on network or hub airlines and routes with high connecting potential. This gives details of connecting flows and multiple levers for optimization. Another type of simulation concentrates on point-to-point routes, especially leisure-oriented flows. This is a custom analysis using market share models and stimulation curves.
Once an optimal scenario for a route is identified, our experts develop a convincing route study to approach the selected airline. This includes a comprehensive overview of the relevant markets and a route performance study.
Building on the Air Service Development (ASD) strategy, our team can deliver various services as and when needed such as:
- International Passenger Studies,
- Domestic Passenger Studies
- International Cargo Studies
- Custom Reports and Analyses
How can we help with our airline and airport consulting services?
Get in touch with our team of experts to discuss how we can help you fulfill your business aspirations.
We look forward to hearing from you.