How do you select new markets and routes for airline expansion and diversification?
Selecting new markets and routes for airline expansion and diversification is a complex and strategic process that involves multiple factors and trade-offs. Airlines need to balance the demand and supply of passengers, the competition and regulation of different destinations, the operational and financial feasibility of different aircraft and network configurations, and the alignment with their long-term vision and goals. In this article, we will explore some of the key steps and considerations that airlines use to identify and evaluate potential new markets and routes.
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Conduct a SWOT analysis:Before adding new routes, dive deep into a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. This helps you understand the market better and spot both challenges and chances for success.
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Consider brand impact:Introducing routes to off-the-beaten-path destinations might not be immediately profitable, but it can boost your brand and attract loyal customers who value innovation and exploration.