Transcript Corporate Profile

Introduction to
Network Planning
Concepts and Practice
Course Outline
Dynaston Inc.
Introduction to Network Planning
Course Purpose and Approach
• Intensive comprehensive coverage of Network perspectives
• Small class size, encourage interaction, use real examples,
provoke discussion and thought
• Intent is to get the O&D concept to “click”, examinations will
confirm
• Targeted at middle level market and route decision makers at
airlines beginning network planning or exploring network
planning, can be customized for senior management
• Goal is to provide additional tools for decision makers
• 5 Modules : Total time of theoretical training: 6 hours +
• 10 hours Hands-On Network Simulation (Game)
• Published readings will complement Module workshops
• A Certificate of Completion will be awarded.
Introduction to Network Planning
Network Simulation – Airline Game
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Teams of at least two and maximum three compete with other teams
Presented a network problem, base environment simulated in Netline/Plan
Must prepare
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Network analysis on current situation
(Day 1)
Strategic Plan
(Day 1)
Network Design Plan from Strategic Plan
(Day 1)
Implement network design in a network planned schedule
(Day 1)
Network analysis on new plan
(Day 1)
Analysis vs competing teams (Facilitator)
(Day 2)
Purchase aircraft with profit , or sell aircraft to cover losses
(Day2)
Implement adjusted network plan, submit, compare, buy/sell acft 2-3 iterations
(Day 2)
• Implement adjusted network plan, submit, compare, buy/sell acft 2 iterations
(Day 3)
• Final Analysis of team’s networks
(Day 3)
Demonstration of Route Optimizer
Demonstration of Strategic Fleet Assigner
(Day 3)
(Day 3)
Potential Value of Course
4 Students run through program
Each of those students use learned Network Planning techniques to
capture $5000/ week in new market share revenue
= 1/2 additional return passenger / day from BUD to DXB
5,000 X 52 weeks = $ 260,000/ year per student
4 X 260,000 =
$1,040,000/ year
Network Planning Course Outline
Modules
1. Network Concepts
Sophisticated Thinking
2. Demand
The Big Picture
3. Market Share
Our Slice of the Pie
4. Network Planning
The Future is Now
5. Network Tools
Running a Big Airline
Module 1
Network Concepts
“Sophisticated Thinking”
1 Example of the network problem
BCN ATL
2 The Planning Horizon : Network Strategy/ Network design / Network
planning
3 Types of networks : Hub and spoke/ Point to Point/ Hybrid/ MultiHub
– advantages and disadvantages,
4 Network concepts –Hub/ Bank/ Trunk flights/ Spoke/ Pax O&D/ S
curve and Dominance/ Itineraries/ Demand/ Market / Market
Share/ Service Share/ Connectivity/etc
5 World airline networks Hubbing – Aircraft sequencing/
connectivity/ geographic advantage
6 Leg vs Network management
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Ideal organizational structures, examples of different airlines, “The
Perfect Team”
9 Exercise: Prepare a Network Strategy for the Simulation Case
10 Comprehensive Examination
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Module 2
Demand
“The Big Picture”
Supply vs Demand: Does capacity drive demand?
Demand for legs vs O&Ds: Aircraft utilization or customer
service
Air Travel Demand Drivers
Demographics/ Distance/ City Size/ Economic and
Political Barriers/ Regulation
Estimating Demand: Methods
Relative MIDT to city size/ Carrier history vs Share/
Gravity Model/ Gov’t Stats/ Calibrated sizes
Sources for Demand Estimates
IATA/Gov’t Stats / MIDT?
Demand Forecasting: Growth Estimation
Economic factors and assumptions/ stimulation/
historical patterns
Exercise: Calculate demand from demographics
Comprehensive Examination
Module 3
Market Share
“Our Slice of the Pie”
1. Market share defined and example
2. Market share drivers:
parameters/ qualities which effect an airline’s
market share/ price parity
3. Market share measurement:
Methods: Dominant carrier/ Dominant segment/
Prorated distance
4. Forecasting market share:
demonstration of a simple QSI/ introduction to LOGIT
5. Gaining market share: How to tune your network
6. Exercise: Estimate market share using QSI
7. Comprehensive Examination
Module 4
Network Planning
The Future is NOW
1. Define network planning: The practice of maximizing network profitability
using the levers of network management
2. 4 Levers of network management:
1) Destinations/ Schedules/ Flight connectivity. 2) Match resources
to demand 3) Airport transfer facilities 4) Airline alliances
3. Risks to Airlines chasing Flight Profitability versus revenue growth, how
network planning encourages growth, examples
4. Planning Horizon – Detail Strategic Planning, Network Design and Network
Planning
5. Comparative analysis – airlines which use network planning, airlines
which don’t, which need to, which do not. Discussion.
6. What doesn’t get measured doesn’t get managed, dilemma of O&D
reporting vs leg reporting. Discussion and examples
7. Exercise: Prepare a Network Strategy on Simulation Case
8. Comprehensive Examination
Module 5
Network Tools
Running a Big Airline
1. Market Share Models
2. Optimizers
Hub/ Fleet/ Route
3. O&D Reports
O&D Contribution/ Market Share Change
4. Final Comprehensive Examination