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Old 31st Jan 2013, 13:39
  #1036 (permalink)  
nighthawk117
 
Join Date: May 2002
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However,I will stop digressing. In my experience "route development funds", "marketing support" etc do not work in the long term if the route isn't properly viable because no airport operator can pay enough to keep an unviable route going for ever
Of course if a route isn't viable then it is never going to work. This isn't the purpose of a RDF though.

Launching a new route is a massive financial undertaking, and requires a lot of investment in marketing to make people aware of the new route. Even with an extensive advertising campaign, it can take a few years before a route starts to make a profit. It's a huge risk for an airline, and as such they tend to be very cautious about launching new routes.

The purpose of a RDF is not to make previously un-viable routes viable, but to reduce the initial risk of launch, and make the airline more likely to give the route a shot. If used correctly to attract viable routes by airlines that were previously reluctant to give it a chance, then it can be extremely beneficial. Occasionally those routes may prove to be uneconomical, but that's just the risk you take.

1/ Wizz will stay at GLA and probably increase operations. 2/ AC Rouge will, within three years, either be gone from Scotland or flying from GLA. 3/ Also within 3 years the LH DUS at GLA will either have gone altogether or returned to EDI.
I'd be interested to hear your reasoning behind this. Wizz will be price sensitive - they may be happy at GLA initially while they are receiving funding, but as soon as GLA tries to up their fees they may well be gone back down the road to PIK.

I'm not sure about the DUS flights, it really depends on the target market for this. Edinburgh has traditionally performed better on European flights, which makes the switch seem a little strange at first. However GLA has a greater catchment area and offers greater outbound numbers, so if the intention is to cater for Scots holidaying in Germany or transferring to long-haul flights then GLA may be a better bet.

Air Canada Rouge appears to be aimed at Canadian holiday makers, in which case EDI is the better choice due to it's greater inbound tourism draw. It remains to be seen if there is enough demand for this though; to be viable they may need to attract more Scottish based passengers onto the flight, which could make GLA the better option.

Time will tell if each of the airlines have made the right choice.

Last edited by nighthawk117; 31st Jan 2013 at 13:42.
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