ATE

high capacity share usually leads to an even higher market share & is basis for good profitability
→ better SLF, higher quality of traffic

Drivers:

• width of offering → many destinations
• depth of offering → many frequencies
• customer loyality programm

- Attraction for business passengers rises along with the frequency
- The profitability performs nearly similar to the S-Curve
- if airports become too crowded, delays are more likely, which leads to a decrease in passenger market share
 

1. Geographical position of a hub
   • defines feasible connections via hub
2. destination portfolio (longterm)
   • defines theoretic feasible connections, from/to destination in demand, carrier is flying to
   • all own operated & code share operated destination
3. Hub/Transfer quality (shortterm, but limited)
   • defines real offered connection, within certain transfer-quality-parameters
   • parameters:
     1. Bi-directionality
     2. MCT of the hub
     3. MCT EU-EU 90min, EU-IC 150min
     4. min 4 weekly frequencies

• how big is the demand potential of the route?
• which transfer O&Ds can be attracted? Which connections are necessary?
• how often should the route be served? (Frequencies per day / timings / days)
• which aircraft size should be employed?
• are ressources available? (traffic rights, slots, aircraft, crew)
• commercial evaluation (year 1 to 3)

Line nets
Advantages: Simple planning, understandable Steering
Disadvantages: low frequencies, massive station costs, low personnel productivity, high marketing costs

Raster nets
Advantages: Attractive for business passengers
Disadvantages: low frequencies, high station costs, high marketing costs

Hub-and-Spoke nets
Advantages: marketing leverage (increase of offer), dominance (strategic value), production economies of scale (production, infrastructure)
Disadvantages: risk of marginal cost pricing (if transfer traffic), creation of hub-concentration peaks, high delay liability