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THE FUNDAMENTALS OF ROUTE
DEVELOPMENT
SETTING THE SCENE
MODULE 1
asm-global.com
MODULE 1 MODULE 1 THE FUNDAMENTALS OF ROUTE DEVELOPMENT
Mike St Laurent
Vice President, Consulting - ASM
Tony Griffin
Senior Vice President - ASM
asm-global.com
MODULE 1 MODULE 1 ASM BACKGROUND
Global consultancy
founded in 1993 to
provide route development
services for airports
and their stakeholders
asm-global.com
MODULE 1 MODULE 1 COURSE PROGRAMME
Fundamentals of Route Development
1. Welcome & Setting the scene Day 1
2. Understanding your Market Day 1
3. Understanding Airlines Day 1
4. Positioning and Competitors Day 1
5. Strategy and Targets Day 2
6. Implementation Day 2
7. Basic Route Forecasting Day 2
Guest Speaker Day 2
8. Airline Deals Day 2
9. Marketing to Airlines and the “Perfect Presentation” Day 2
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MODULE 1 MODULE 1 DELEGATE INTRODUCTIONS
EXPERIENCES, CHALLENGES, OBJECTIVES
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MODULE 1 MODULE 1 HOUSE RULES
• Don’t be inhibited - Ask lots of questions
• Compare and share experiences and learn from each other
• Help us understand your objectives, we’ll try to tailor content throughout programme
• Mobiles on quiet, breaks for e-mails etc.
• Course notes electronically
asm-global.com
MODULE 1
WHY DO WE DO ROUTE
DEVELOPMENT ?
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MODULE 1 MODULE 1 WHY AIR SERVICE DEVELOPMENT?
Airports:
• To secure & grow business
• To establish market positioning & brand
• To gain prestige – local/regional/national
• To beat the competition
• To maximize revenues
• ROI for operating company, grow value
• To diversify customer base
• Address home carrier lack of action
Tourism:
• To attract & enable visitors
• To open new source markets, grow existing
• To diversify consumer offer, enhance access
choice
• To flex seasonality
• To support hotel/accommodation providers
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MODULE 1 MODULE 1 WHY AIR SERVICE DEVELOPMENT?
Government:
• Economic stimulus, job creation
• Connectivity
• Prestige
• Influence national carrier
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MODULE 1 Economic Impact
"The non-gaming economic impact of one British Airways flight from London to Las
Vegas is currently $91 million annually," said Cathy Tull, Senior Vice President of
Marketing for the Las Vegas Convention and Visitors Authority (LVCVA). "This flight
was the result of opportunities realised at previous Routes forums….
The economic impact of air service development is vast:
asm-global.com
MODULE 1 Economic Impact
SETTING THE SCENE
asm-global.com
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MODULE 1 MODULE 1 SETTING THE SCENE
GLOBAL ISSUES
Route Dev.
World fleet orders
LCC’s
Oil prices
Middle East big 3
Aircraft technologies
BRICS Economies
Regulatory
New Era route
Development
asm-global.com
MODULE 1 MODULE 1 SETTING THE SCENE
EUROPEAN ISSUES
Europe
Long haul LCC’s
EU Economy
Airline deals
UK Referendum
Regulation
Terrorism
Geo-political events
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MODULE 1 Shift in Market Power
Source: IATA
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MODULE 1 MODULE 1 World’s Top Tourism Spenders (2015)
International Tourism Expenditure 2015
asm-global.com
MODULE 1 MODULE 1 SETTING THE SCENE
APPENDIX
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MODULE 1 MODULE 1 SETTING THE SCENE
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MODULE 1 MODULE 1 SETTING THE SCENE
A350-800 Range
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MODULE 1 MODULE 1 SETTING THE SCENE
B787 orders and deliveries (cumulative; by year-end)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Orders 56 235 157 369 93 -59 -4 13 -12 182 41 53 1,124
787-8 – – – – – – – 3 46 65 104 62 280
787-9 – – – – – – – – – – 10 50 60
787-10 – – – – – – – – – – – – –
Total – – – – – – – 3 46 65 114 112 340
Deliveries
Boeing 787 Orders and Deliveries by Year
1. ANA
2. Etihad
3. United
4. JAL
5. BA
6. American
7. Air Canada
8. Qatar Airways
9. Singapore Airlines
10. Air India
Top 10 Airline Customers
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MODULE 1 MODULE 1 SETTING THE SCENE
A380 orders and deliveries
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MODULE 1 MODULE 1 SETTING THE SCENE
Sukhoi Super Jet 100
Represents cooperation between Boeing and Sukhoi
Designed to compete with Bombardier and Embraer
products
Cost effective regional jet that costs around $35million
Highest capacity configuration totals just over 100 seats
Sukhoi Superjet 130 is designed to compete with Airbus
A320
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MODULE 1 MODULE 1 SETTING THE SCENE
COMAC ARJ21
China has been assembling aircraft under franchise for
some time
ARJ21 represents China’s ambition to take on the
duopoly in aircraft manufacturing
Launch airline is Chengdu Airlines
Cost per unit is very low at $20 million
Dense configuration is at around 100 seats.
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