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Summary Airline Business

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Airline Business
Lecture 1.1 Airline Networks Strategies
O+D potential  Catchment area
Belangrijke kenmerken:
 Population size = Bevolkingsomvang
 Economic activity = Zitten er veel bedrijven in de buurt?
 Wealth = Hoe rijk de mensen zijn
 Accessibility = Toegankelijkheid (Openbaar vervoer etc.)
 Surface alternatives = Naar Parijs kan je met het vliegtuig en met de trein
 Surrounding airports = Zijn er vliegvelden in de buurt?

HUB potential  Geographic location
Belangrijke kenmerken:
 Airway routing = Hoe centraal een luchthaven ligt
 Directionality = Dat je directe vluchten hebt en niet allemaal overstaps
 Capacity = Of de luchthaven veel menen trekt
 Time zone = Hoe de fluctuerende vraag naar de tickets zich
evalueert.
 Connecting airlines = Of er veel handige vliegtuigmaatschappijen op de
luchthaven zijn voor eventuele overstappen. (Codeshare)

Via home product Faciliteren van activiteiten die belangrijk zijn voor een HUB-
carrier (KLM, Air France, Emirates)
To home product Het creëren van de aantrekkingskracht van een home airport
From home product Het creëren van een aantrekkelijke luchthaven zodat er een
grote catchment area zal ontstaan.


Lecture 2.1 Airline Economics: Cost Management
Cost allocation (waar je uitgaves op gebaseerd zijn)
 Management dashboard Waar genereren we welke kost?
 Cost effectiveness Wat krijgen we van deze kosten?
 Cost comparison (vergelijken) Zijn we onze concurrenten voor? Zijn we te duur?

Cost Control
 Cost allocation Identify real cost
 Cost effectiveness Kunnen we ons product op de markt krijgen voor dit
bedrag (zodat je nog wel winstgevend bent)
 Cost comparison Indien we de kosten vergelijken met andere
maatschappijen zijn we dan nog concurrerend.
There are many variable costs who are not directly manageable think about fuel costs, user
charges (gebruikers kosten), labor costs (personeelskosten).
When you have a higher utilization, your costs are also higher, because you’re flying more so
the maintenance costs will increase (steigen). But because of the high-ticket sale they will
earn more money. So, the profit (winst) is higher.
The airline planning wants to receive a minimizing fixed cost per unit (ASK). This can be
approved by a higher utilization and lower the total cost. Op korte termijn zijn alle kosten

, vast maar indien je kijkt naar het lange ter mijn dan zijn deze variabel door veranderingen in
de werksnelheid, type toestel etc. je fixed cost blijft altijd gelijk maar indien je meer gaat
vliegen dan zullen je variabele kosten gaan veranderen.




Cost versus revenues: when production (hoe meer je gaat vliegen) goes up, cost per unit
goes down.
When you do research to the profitable (winstgevendheid) of an airline, you have to find out
if the costs are too high or the revenues are too low or both.
Successful airline management is understanding cost (producing the right product in the
right quantities (hoeveelheid)) and revenue (For markets prepared to pay more than the
production cost).


Lecture 3.1 Creating the Network
Het netwerk van een Airline is de waarde die je creëert naar de markt.

Network potential
These three factors determine (bepalen) out size/operational requirements:
Home base potential
 O + D (Catchment area) VS hub (Geographic location) potential
 Single/bi/multi home
Destinations
 Market potentials
Market potentials of destinations define (bepalen) the volume and the value of our
business. (Market potentials = tijden dat je vliegt, denk aan is er plek voor jou op de
markt).
 Distances
 Frequencies
Capacities
 Unit capacities
 Quantities
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