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Old 16th Oct 2013, 15:21
  #466 (permalink)  
Shed-on-a-Pole
 
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The mindset of the airline industry is quite straightforward.

Question 1: Will the deployment of our scarce resources on the route DSA-XXX result in a healthy profit for our company? [Note: Profit matters; passenger numbers are incidental].

Question 2: If the answer to Q1 is 'yes', will the profit on the service(s) ex-DSA exceed those anticipated from alternative opportunities offered by other airports which are also available to us?

If the answer to both questions is 'yes', DSA is in the running. If not, an alternative will be selected.

And don't forget, a "winning" bid may not be geographically nearby. For example, if Typical Airways evaluates three potential new routes from its base at Koln-Bonn ... let's say DSA, Tel Aviv and Helsinki ... these options will be ranked in order of anticipated profitability. If Helsinki looks most profitable, CGN-HEL would be the new route. Thus, DSA would lose out to a route which is geographically distant from its own operation.

Note too that the thought process is not done on the basis that the contenders will be one of a cluster of nearby airports (eg. DSA / LBA / EMA / HUY). Consider only revenue and profitability. DSA is in competition with every other potential destination in Europe, not just local rivals. It will have to present a compelling case if significant new business is to be attracted. All the local civic pride stuff is purely the preserve of mayors and councillors.

EDIT: Hi Skipness - No intention to tread on your toes there; our postings crossed. Regards.

Last edited by Shed-on-a-Pole; 16th Oct 2013 at 15:23.
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