Passengers are the lifeblood of an airport and increasing their numbers through a targeted and effective route development strategy is key to securing long term growth.
In today’s highly competitive airport market airline engagement specialists frequently overlook the key questions that airlines want answered, namely, ‘why should I fly here?’ and ‘why are you better than the next airport?’. Engagement with airlines should be focused on succinctly identifying and introducing the opportunity, providing indicative traffic forecasts. Outlining the key economic and/or leisure indicators that will underpin the proposed services, and addressing how the route fits in with the airlines overall strategy.
Active route development is fundamental to the success of a regional airport business and airport planning. Without a knowledgeable, analytically focused and experienced team, prospective airline customers will not engage.
This includes airport network analysis, route specific airline engagement, commercial Negotiations with Airlines, designing and implementing route development/Marketing Funds. All the above processes require deep insight and knowledge, therefore engaging with a specialist company should always be considered.
The other important factor which determines the success of aviation management program is the degree of accuracy in traffic forecasting. Traffic forecasts are the primary driver of an airport’s business plan and a fundamental element of long term revenue, resource and capacity planning.
Through the use of a number of well calibrated and continually refined models, a wealth of industry knowledge, and a highly experienced team, AviaSolutions has the ability to develop reliable and accurate passenger forecasts that will drive your business. Traffic forecasting includes Short Term Forecasts for Individual Routes, Long Term Forecasts for airport master plans, airport planning, traffic forecasts to inform financial transactions, Market Risk Analysis and detailed analysis by market Sector.
A detailed market assessment underpins the traffic forecasts. The number of techniques that can be employed to assist in ‘building the picture’ of the market includes catchment analysis including socio-economic profiling, historical market analysis utilising market demand data derived from actual passenger statistics, survey data, tourism statistics, origin and Destination data and schedules data, airport infrastructure constraints and aeronautical charges, examination of external economic and regulatory factors and airline perceptions of the marketplace.
A number of analytical techniques are used to produce robust and realistic forecasts. A toolbox of forecasting techniques used at Aviasolutions depending on the nature of the forecast required includes traffic allocation model, gravity modelling, econometric modelling, including elasticity of demand and economic growth, time series, peer benchmarking, network gap analysis, peak period and design day modelling and sensitivity analysis.
As pressure on core income generation in the airport industry intensifies, the need to develop alternative income streams is increasingly important. The ability to recognise where opportunities for improvement exist is important; identifying the right strategies to realise these opportunities is crucial.
Performance benchmarking is critical to assessing the performance of an asset, to identifying potential areas for improvement and to qualifying areas where value in a business can be realised. So when looking for a better aviation management system, always consult reputed and experienced companies who bring together a wealth of airport and airline skills, experience and insight and develop a clear business model by working closely with its clients to advise on the development of robust business planning processes, ranging from ensuring the correct management reporting systems are in place to establishing a Business Plan development timetable and review strategy.