This summary covers the lectures of Airline Business in Block 5. All the information that is in the document comes from the slides during the lectures, or from the lecturer. Also, several figures that were used in the slides are included to give you a better insight in to the subject.
,Week 1
Lecture 1
Airline Network Strategies
• Teaches you how airline managers think
o A basis for your managerial development
Literature for this block:
Straight and Level by Stephen Holloway
o High level literature
o Difficult language
o Assumes basic knowledge on Economic
o High generic level of analysis
o Academic thinking
If you don’t understand some difficult words, look them up in a dictionary
The home airport O+D potential: How many passengers need, want of like to fly from or to
that location? And what fare can they afford? And which alternatives do they have? à
DESTEP Analysis
• O+D potential
o Population size
o Economic activity
o Wealth
o Accessibility
o Surface alternatives
o Surrounding airports
Airport location determines Hub potential
• Hub potential
o Airway routing
o Directionality
o Capacity
o Time zone
o Connecting airlines
Every airport has these two potential forces relevant for the airline.
Airline networks are designed for optimal utilization of either one of two or both forces.
Product definition
Exploiting airport potential: From, To or Via Home airport
• Via home product
o Exploiting the hub quality of the home airport
• To home product
o Exploiting the attractiveness
• From home product
o Exploiting the catchment area of the home airport
2
Airline Business Lectures Summary 2018
Jos Weil
, Markets definition
For which markets (sorts of passengers) is the network attractive?
• Leisure market
• EVFR market
• Business market
Product/Market combinations are important, they are a combination of both the products
the airport offers, and the market in which it is located.
Above are the different possible Product/Market combinations
Destinations
Home airport à Destination airport
The potential that you exploit from the home airport is the invert of what you exploit from
the destination airport.
• Connecting airports is connecting potential forces:
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Airline Business Lectures Summary 2018
Jos Weil
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