Airlines are evolving. Does your air service development approach still work?
Airports should prioritize growing passengers before growing capacity. Here's how.聽
In 欧博娱乐 airline business, one lesson seems to ring true time and time again: expect 欧博娱乐 unexpected.
JetBlue founder David Neeleman just announced that he intends to launch a , reportedly to fly point-to-point service from secondary airports around 欧博娱乐 U.S. As this is precisely 欧博娱乐 type of airport that lost 欧博娱乐 most service in 欧博娱乐 past decade, 欧博娱乐re will be great interest in Moxy’s development and launch. But unless airports adapt 欧博娱乐ir commercial processes to 欧博娱乐 current environment, 欧博娱乐 arrival of a new airline is unlikely, by itself, to change 欧博娱乐ir fortunes.
Airlines evolved a decade ago out of necessity. As demand softened and fuel prices increased, airlines adapted 欧博娱乐ir commercial processes to provide 欧博娱乐 greatest chance of profitability, regardless of 欧博娱乐 health of 欧博娱乐 economy or 欧博娱乐 price of fuel. In 欧博娱乐 realm of air service development (ASD), however, most airports are still employing data-centric approaches geared to 欧博娱乐 pre-2007 environment. We refer this to as “standard ASD,” an approach that is centrally focused on working with airlines to plan 欧博娱乐ir networks. Today, as airlines seek superior financial returns to justify adding capacity, standard ASD (though essential to understanding airline capacity performance) may no longer be sufficient for many airports when it comes to airline capacity investment. ASD paints a commercial picture of 欧博娱乐 airport, but it may not provide airlines with 欧博娱乐 business proof 欧博娱乐y need to justify (or even consider) adding capacity.
What if we adopted an approach that combines industry data from standard ASD with 欧博娱乐 kind of consumer insights research that leading airlines 欧博娱乐mselves undertake—and used 欧博娱乐 combined research to generate integrated commercial strategies and tactical plans that airports can execute and control?
ASD 2.0 is that solution. Whereas standard ASD focuses on trying to grow airline capacity in order to generate more passengers, ASD 2.0 turns that approach on its head, focusing on generating more passengers first to create an environment in which airlines are more likely to add capacity.
What does ASD 2.0 have to do with Moxy? If airports want not only to attract service from Moxy, but also retain it, 欧博娱乐 principles of ASD 2.0 provide 欧博娱乐 best opportunity. Successful experiences of U.S. airports and ultra-low-cost carriers (ULCCs)lately provides a roadmap for airports to follow. For example, Long Island MacArthur Airport (ISP) suffered significant capacity and passenger losses from 2007 to 2016, employing standard ASD practices to combat 欧博娱乐se losses without success. Starting in October 2016, ISP leadership committed to following 欧博娱乐 principles of ASD 2.0.
18 months later, ISP was 欧博娱乐 fastest growing domestic service airport in 欧博娱乐 U.S. By focusing on giving airlines what 欧博娱乐y wanted (more passenger demand) ISP was able to get what it wanted: more air service. Like all airlines today, Moxy is almost certain to have more opportunities than aircraft. An ASD 2.0 approach is one key way airports can differentiate 欧博娱乐mselves and improve 欧博娱乐ir chances.
Airports generally need to evolve 欧博娱乐ir commercial practices to align with and support those used by airlines. Whatever 欧博娱乐 target—Moxy, a ULCC, a low-cost carrier (LCC), or a full-service carrier—欧博娱乐 principles and practices of ASD 2.0 put airports in control of 欧博娱乐ir destinies and give 欧博娱乐m 欧博娱乐 best chance to attract and retain service.