THE FUNDAMENTALS OF

ROUTE DEVELOPMENT

MARKETING TO AIRLINES AND THE “PERFECT” PRESENTATIONMODULE 10

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MODULE 10 S

AIRLINE FEEDBACK

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MODULE 10 AIRLINE FEEDBACKS

“We gather much of the airline-related data (e.g. pax profiles by route, airline schedules) from our own sources and

don't necessarily need them from airports”.

“A profit/loss assessment is least important because the airline will calculate this on its

own, using internal data; the airport or consultant's data will not be as accurate, so it's

better for the airport to focus on and share other data about its market that is not

generally available to the airline route planner.”

“Legal aspects of international operations, e.g. intergovernmental air traffic

agreements”.

“Information about leakage and transfer versus point to point very useful”.

“The key consideration is airport needs to make a case on traffic segmentation to ensure viable service vis a vis

airline competitiveness and positioning”.

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MODULE 10 AIRLINE FEEDBACKS

“Information about leakage and transfer versus point to point very useful”.

“When an airport proposes a new route to a city that is not one of the airline's hubs, it usually means they have not

done their homework”.

“A crystal clear understanding of our business is not required, but should be inherent in the nature of business

proposals - i.e. do not suggest something which based on information reasonably available to the public would not

be in scope.”

“Knowing if there are marketing/advertising/incentive funds available to support new routes (how much and in

what form) is helpful”.

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MODULE 10 AIRLINE FEEDBACKS

“Information about leakage and transfer versus point to point very useful”.

“Airports need to understand better airlines' different business models and

suitability to the routes they are proposing”.

“Continue to approach in a collaborative effort along with ways in minimize startup

costs”

“For full service airlines seeking to attract corporate passengers, a partnership with the local business

community and attendance at some Routes events could be interesting for airlines”.

“Route analysis with proposed schedule, economics of the flight, incentives scheme, contact of local

tourism organizations and big corporates, and legal study of the route”.

“Work as a destination rather than individual

entities in a location”. “Better understanding of what the Airline's Network Strategy is to be able

to present clearly what will attract the airlines attention”.

“Identify opportunities to reduce airport costs for

airlines and customers”.

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MODULE 10 AIRLINE FEEDBACKS

Airline Survey: If Route development were perfect what would it look like?

“Information about leakage and transfer versus point to point very useful”.

“Airports need to understand the small profit margins airlines obtain and how

these margins are placed under severe pressure with a slight increase in costs” .

“Identify opportunities to reduce airport costs for

airlines and customers”.

“A positive outcome (meaning profits) for every new route, with honest and open

collaboration along the way”. “It would be fully in sync with what airlines are seeking to

do”.

“A detailed accurate set of numbers in a business case covering all risks to airline should a new route be introduced”.

“Tourism would fund 50% of route marketing, airport charges are abolished and instead airport drives revenues from non aeronautical

revenues”.

“More balanced profits for both airports and airlines”.

“Increased willingness to participate in the financial risk of launching and successfully maintaining a new

route”.

“Understand our priorities - ideally get a pretty good idea from publicly available sources/consultants. Reach out to us in advance for quick pointers

on our priorities pre-meeting. Present clear succinct information to us. We need sustainable long term cost base which includes certainty from our

airport partners and rewards ongoing growth with declining year on year costs”.

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MODULE 10 S

“Perfect Presentations”

Are about…

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MODULE 10 “PERFECT PRESENTATIONS”

Numbers

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MODULE 10 TRAFFIC FORECAST

Example illustrates the depth

of detail airline will want to

see.

Network carriers consider the

breakdown by segment type.

For point to point carriers can

focus on local traffic only.

Airlines will do their own

forecast, but this gives the

pitch credibility and

demonstrates that a scientific

approach has been taken to

show that the opportunity is

viable.

Beyond/Behind Passenger Forecast

Detail relevant for network carriers.

Statement about strength of forecast and view of resultant market share. If perceived

weakness relative to other choices then mitigation measures need to follow.

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MODULE 10 MARKET SIZE DATA

• How big is the

market today?

• Which airlines are

carrying the

traffic?

• How much is

direct vs. indirect?

• Through which

hubs are indirect

passengers

connecting?

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MODULE 10 MARKET SIZE COMPARATORS

• What are our

largest unserved

markets

• What are the

largest unserved

markets for our

target airline

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MODULE 10 AVERAGE FARE COMPARATORS

• How do the

average fares in

our market stack

up against others

in the region, and

others in the

airlines’ network?

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MODULE 10 INCENTIVES AND TRAFFIC DELIVERY

Address how route will be supported to ensure traffic and if necessary to move

opportunity up the ranking of choices for the airline

Marketing plans

Stakeholder support

Outbound/Inbound/Connectivity traffic driving plans

Yield improvement plans, through high value passenger customer engagement

Corporate sales brokering

Route incentive programmes

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MODULE 10 “PERFECT PRESENTATIONS”

Listening

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MODULE 10 Q & A/ SALES DISCUSSION WITH AIRLINES

Example questions:

- How does the opportunity sounds to you?

- What would it need to look like to be seriously considered?

- What needs to be done next to move the opportunity forward?

Establish objections (reasons why they wouldn’t operate the route)

- E.g. low yield. Counter through examples, comparison stories, or agree to revert back post

meeting.

Establish obstacles (reasons why they can’t operate the route)

- E.g. bi-lateral restriction. Agree action plan to address and revert back post-meeting. Agree

position with airline assuming obstacles are removed in the future.

- Ask for agreement of next steps. How can this opportunity be moved forward?

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MODULE 10 “PERFECT PRESENTATIONS”

Conciseness

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MODULE 10 “PERFECT PRESENTATIONS”

Being remembered

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MODULE 10 APPENDIX

Support Information

To answer questions, not to be presented

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MODULE 10 APPENDIX

Airlines take little notice of catchment since most airports overstate it.

Include ONLY if needed to illustrate that current traffic is understated due to leakage, as airlines use

traffic data to assess market size, not catchment.

If being shown, needs to be realistic and consist of population for whom our airport is the most

accessible for travel to their destination.

Catchment areas can vary by destination depending on the routes served by competing airports in the

region. Show catchment area as it relates to the airline/route being targeted.

Compare to catchment areas of competing airports

Catchment Size

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MODULE 10 APPENDIX

Catchment Characteristics

Key information about the strength of the catchment, for example:

• GDP Growth/Economic Performance/Investment information

• Hotel stock/development information

• Diaspora information

• Corporate information if relevant: e.g. Fortune 500 companies in the area with travel requirements

relevant to the airline

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MODULE 10 APPENDIX

Current Air Service Network

Background Information Only

Include ONLY if airport is not known to the airline.

Provides airline with some perspective about the destination's potential

Identifies for the airline if there is existing service to markets that are comparable to their home market.

Identifies for the airline a potential connecting network that they could access.

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MODULE 10 APPENDIX

Point of Origin and Purpose of Trip Info

Our Market

XX%

Airline’s Home

Market XX%

Tourism

XX %

VFR

XX %

8%

Business

XX %

Point of

Origin

Purpose of

Trip

Useful to an airline to know if this airport is primarily

a destination vs. origin market.

Provides insight into yield potential, and level of tour

operator involvement required.

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MODULE 10 APPENDIX

Fees and charges

Key is comparison with alternate choices for airline

Compare airport fees and charges with competitors for proposed aircraft