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Airlines and their home airports

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Presentation on theme: "Airlines and their home airports"— Presentation transcript:

1 Airlines and their home airports
Estonian Aviation Seminar 13-14 November 2014 Airlines and their home airports Hogeschool van Amsterdam Aviation Gert

2 Introduction Airline network strategy starts with the Home airport
Estonian Aviation Seminar Airlines and Airports Introduction ■ Airlines produce connections between two airports ■ Every single flight is produced by 1 airline + 2 airports ■ Airline- en airport network systems is an integrated value chain Airline network strategy starts with the Home airport 13 November 2014 Hogeschool van Amsterdam Aviation

3 The Home Airport Size of the home airline
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ The Airline’s home airport’s catchement area defines Size of the home airline ■ The Airline’s home airport’s location defines Network structure of the home airline ■ Airline and airport need to exploit their shared value 13 November 2014 Hogeschool van Amsterdam Aviation

4 The Home Airport ■ Starting point for any airline network
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Starting point for any airline network fragmented home huge home small home multiple homes peripheral home nice home small home at a very central geographical location... Home?...home is where the markets are... 13 November 2014 Hogeschool van Amsterdam Aviation

5 Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport home location determines airline network potential Wealthy population island global city No surface alternatives dense population central poor population leisure peripheral 13 November 2014 Hogeschool van Amsterdam Aviation

6 The Home Airport catchment area geographic location O+D potential
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Every airport has two potential forces relevant to any airline: catchment area geographic location O+D potential Hub potential O+D = Origin & Destination 13 November 2014 Hogeschool van Amsterdam Aviation

7 Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location defines its O+D potential How many passengers need, want or like to fly from or to that location? and can they afford the fare? - Population size - Economic activity - Wealth Accessibility Surface alternatives Examples: LHR CDG FRA MPX O+D potential 13 November 2014 Hogeschool van Amsterdam Aviation

8 The Home Airport - Airway routing central location: Directionality
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location determines Hub potential - Airway routing Directionality Examples: AMS ZRH VIE IST central location: Hub Potential catchment area 13 November 2014 Hogeschool van Amsterdam Aviation

9 The Home Airport Airway routing and Directionality:
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location determines Hub potential Airway routing and Directionality: From this point of view, HEL is a peripherical location 13 November 2014 Hogeschool van Amsterdam Aviation

10 The Home Airport Airway routing en Directionality:
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location determines Hub potential Airway routing en Directionality: Now the position of HEL is very central! 13 November 2014 Hogeschool van Amsterdam Aviation

11 The Home Airport Hub potential Airway routing and Directionality:
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location determines Hub potential Airway routing and Directionality: ■ Northern locations have global HUB potential 13 November 2014 Hogeschool van Amsterdam Aviation

12 The Home Airport either one of two or both forces O+D potential
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Every airport has two potential forces relevant for the airline ■ Airline networks are designed for optimal utilization of either one of two or both forces O+D potential Hub potential 13 November 2014 Hogeschool van Amsterdam Aviation

13 The Home Airport - Global coverage City pair driven Capacity driven
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location with high O+D demand - Global coverage City pair driven Capacity driven Hub connectivity is secondary O+D HUB 13 November 2014 Hogeschool van Amsterdam Aviation

14 The Home Airport - Selected coverage Hub destination driven
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location at a central location - Selected coverage Hub destination driven Frequency driven Hub connectivity is key HUB O+D 13 November 2014 Hogeschool van Amsterdam Aviation

15 The Home Airport - Global coverage O+D/Hub destinations
Estonian Aviation Seminar Airlines and Airports The Home Airport ■ Airport location with high O+D demand at central location - Global coverage O+D/Hub destinations Capacity variety Mix of Hub connectivity and O+D demand O+D HUB 13 November 2014 Hogeschool van Amsterdam Aviation

16 Connecting the Home Airport
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ Every airport has two potential forces; the home airport and the destination airport Home airport Destination airport O+D O+D Hub Hub 13 November 2014 Hogeschool van Amsterdam Aviation

17 Connecting the Home Airport
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ Connecting airports is connecting potential forces Home airport Destination airport O+D O+D Hub Hub 13 November 2014 Hogeschool van Amsterdam Aviation

18 Connecting the Home Airport
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ O+D demand from&to home is the inverse of the same demand at the destination London (LHR+LGW) Destination airport San Diego Phoenix Baltimore Hyderabad Chennai Islamabad Perth Brisbane Livingstone O+D Daily flights to at any time of the day O+D Hub Hub 13 November 2014 Hogeschool van Amsterdam Aviation

19 Connecting the Home Airport
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ HUB need from&to home is the inverse of the same connectivity need at the destination Home airport Destination airport O+D O+D Hub Hub 13 November 2014 Hogeschool van Amsterdam Aviation

20 scheduled in transfer banks
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ HUB need from&to home is the inverse of the same connectivity need at the destination Vienna Destination airport Washington San Francisco Bangkok Singapore Johannesburg O+D O+D Hub Daily flights to scheduled in transfer banks Hub 13 November 2014 Hogeschool van Amsterdam Aviation

21 scheduled in transfer banks
Estonian Aviation Seminar Airlines and Airports Connecting the Home Airport ■ Hub airlines need hub connections ■ Hub airlines need hub connectivity at the destination ■ That destination is the home airport of another airline O+D O+D Hub Connection to scheduled in transfer banks Hub 13 November 2014 Hogeschool van Amsterdam Aviation

22 scheduled in transfer banks
Estonian Aviation Seminar Airlines and Airports Connecting Home Airports ■ These airlines cooperate in alliances Vienna Destination airport O+D O+D Hub Daily flights to scheduled in transfer banks Hub 13 November 2014 Hogeschool van Amsterdam Aviation

23 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ Alliance airlines connect their home HUB airports 13 November 2014 Hogeschool van Amsterdam Aviation

24 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ Skyteam members... 13 November 2014 Hogeschool van Amsterdam Aviation

25 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ Skyteam members connect their home HUB airports SVO AMS DTF CDG MPX INC ATL SVG TPE MEX NBO EIZ 13 November 2014 Hogeschool van Amsterdam Aviation

26 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ Star Alliance members .... 13 November 2014 Hogeschool van Amsterdam Aviation

27 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ Star Alliance members connect their home HUB airports CPH YYV FRA/MUC ZRH/VIE ORD SFO LIS INC NRT PEK BKK ADD SIN RIO GRU JNB 13 November 2014 Hogeschool van Amsterdam Aviation

28 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ OneWorld Alliance members .... 13 November 2014 Hogeschool van Amsterdam Aviation

29 Alliance home airports
Estonian Aviation Seminar Airlines and Airports Alliance home airports ■ OneWorld Alliance members connect their home HUB airports HEL LHR DUS ORD MAD NRT DFW DOH HKG CMB KUL RIO GRU SYD SCU 13 November 2014 Hogeschool van Amsterdam Aviation

30 Estonian Aviation Seminar Airlines and Airports LCC Home airports ■ LCC’s exploit the O+D force of the Home airport only ■ They do so by exploiting many homes 13 November 2014 Hogeschool van Amsterdam Aviation

31 LCC Home airports ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
Estonian Aviation Seminar Airlines and Airports LCC Home airports ■ exploiting many homes 13 November 2014 Hogeschool van Amsterdam Aviation

32 LCC Home airports ■ LCC’s exploit the O+D force of the Home airport
Estonian Aviation Seminar Airlines and Airports LCC Home airports ■ LCC’s exploit the O+D force of the Home airport ■ They do so by exploiting many homes ■ They did not invent this network model... 13 November 2014 Hogeschool van Amsterdam Aviation

33 Multiple Home airports
Estonian Aviation Seminar Airlines and Airports Multiple Home airports ■ They copy it from the US majors... . ■ Homes of 13 November 2014 Hogeschool van Amsterdam Aviation

34 Multiple Home airports
Estonian Aviation Seminar Airlines and Airports Multiple Home airports ■ They copy it from the US majors... ■ Homes of 13 November 2014 Hogeschool van Amsterdam Aviation

35 Multiple Home airports
Estonian Aviation Seminar Airlines and Airports Multiple Home airports ■ They copy it from the US majors... . ■ Homes of 13 November 2014 Hogeschool van Amsterdam Aviation

36 Airlines and Airports:
Estonian Aviation Seminar Airlines and Airports Airlines and Airports: Airlines exploit O+D and Hub potentials of airports Airport potentials determine airline success 13 November 2014 Hogeschool van Amsterdam Aviation

37 Thank you for your attention
Estonian Aviation Seminar Airlines and Airports Thank you for your attention 13 November 2014 Hogeschool van Amsterdam Aviation


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