ASM World Route Development Consultants looking ahead as we move into the next era of route developments. What are the airlines telling us?

1. 1 I World route development consultants
The Next Era of Route Development –
what airlines are telling us?
ASM Ltd1

2. 2 I World route development consultants
Airline Survey – Market Information
ASM Ltd2
3 4 5 6 7 8 9 10
Catchment Area and Demographics
Population GDP, Income Data
Key catchment industries, corporations
Key catchment tourist attractions
Regional economic and infrastructure development plans
Total air passenger traffic at airport
Details of existing route networks and operating airlines
Traffic seasonality profile
Route proposal traffic forecast
Route proposal traffic forecast breakdown by passenger segment
Route proposal schedule recommendations
Route proposal average fare predictions
Route proposal predicted seasonality profile
Route proposal operating costs assessment
Route proposal profit/loss assessment
1. Rating of market informationrequirementsfrom Airports
1=Not Important 10=essential

3. 3 I World route development consultants
Airline Survey – Market Information
ASM Ltd3
“We gather much of the airline-related data (eg 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”.

4. 4 I World route development consultants
Airline Survey – Understanding
ASM Ltd4
4 5 6 7 8 9 10
Your existing route network
Existing and future fleet
Ownership
Alliance membership and partnership agreements
Management structure
Your route/network planning decision-making processes
Your network development strategy
2. Understandingof you, the Airline
1=Not important 10= Essential

5. 5 I World route development consultants
Airline Survey – Understanding
ASM Ltd5
“When an airport proposes a new route to a U.S. city that is not one of the airline's hub, 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 - ie do not suggest something which based on information
reasonably available to the public would not be in scope.”

6. 6 I World route development consultants
Airline Survey – Stakeholders
ASM Ltd6
5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
Tourism Authority
Inward investment agency
Regional Government
Civil Aviation Authority
Representativesfrom major corporations in catchment
Representativesfrom major tourism operators in catchment
3. The importance of Stakeholder collaboration alongside
Airports1=Not important 10=Essential

7. 7 I World route development consultants
Airline Survey – Stakeholders
ASM Ltd7
“Knowing if there are marketing/advertising/incentive funds available to support new
routes (how much and in what form) is helpful”.
“This is general not critical except where additional stakeholders are in a position to share
key information or would be party to incentive arrangements or commercial guarantees”.

8. 8 I World route development consultants
Airline Survey – Financial Support
ASM Ltd8
8 8.2 8.4 8.6 8.8 9 9.2 9.4 9.6 9.8 10
Details of related airport charges
Route start-up airport charges discounts
Route start-up incentives
Traffic growth related charges discount incentives
Fixed tariff per passenger agreements
Start up traffic and minimum revenue guarantees
Longterm support partnership agreements
4. Financial support agreements 1=Not important 10=Essential

9. 9 I World route development consultants
Airline Survey – Implementation
ASM Ltd9
6 6.5 7 7.5 8 8.5 9 9.5 10
Preferred schedule/slotacheivementassistance
Effective catchment marketing to ensure passenger traffic
Effective destination marketing to ensure passenger traffic
Referral support of corporate sales
Referral support of cargo sales
5. Implementation action, helping make a route successful
1=Not important 10=Essential

10. 10 I World route development consultants
Airline Survey – Competitors
ASM Ltd10
6 6.5 7 7.5 8 8.5 9 9.5 10
Clear knowledge of who competitors are
Understanding of relative catchment strength
Understanding of competitor prospective route forecasts
Understanding of competitor prospective route P&L
Understanding of competitor financial support programmes
Understanding of competitor implementation programmes
6. Understandingby Airport of its competitors with regard to
attracting your business1=Not important 10=Essential

11. 11 I World route development consultants
Airline Survey – The Next Era of Route Development
ASM Ltd11
“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”.
“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” .
“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”.
“How risk and benefits need to be shared equally between airline, airport and tourism
and other stakeholders. Airlines usually exposed to most of downside (and upside)”.

12. 12 I World route development consultantsASM Ltd12
Airline Survey – If route development were perfect,
what would it look like?
“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 wld 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”.
“Provided all the information marked 7 or above plus the
information on transfer/leakage”.
“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”.

13. 13 I World route development consultants
Airline Survey – Summary
ASM Ltd13
5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
Market Information
Understanding of Airlines
Stakeholder collaboration
Financial Support
Implementation Actions
Competition Awareness
Summary Comparison