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Introduction to Network Planning Concepts and Practice

Introduction to Network Planning Concepts and Practice. Course Outline Dynaston Inc. Intensive comprehensive coverage of Network perspectives Small class size, encourage interaction, use real examples, provoke discussion and thought

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Introduction to Network Planning Concepts and Practice

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  1. Introduction toNetwork PlanningConcepts and Practice Course Outline Dynaston Inc.

  2. 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 Course Purpose and Approach

  3. Teams of at least two and maximum three compete with other teams Presented a network problem, base environment simulated in Netline/Plan Must prepare 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 (Day 3) Demonstration of Strategic Fleet Assigner (Day 3) Introduction to Network Planning Network Simulation – Airline Game

  4. 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 Potential Value of Course

  5. Network Concepts Sophisticated Thinking Demand The Big Picture Market Share Our Slice of the Pie Network Planning The Future is Now Network Tools Running a Big Airline Network Planning Course OutlineModules

  6. 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 Leg vs Network management Ideal organizational structures, examples of different airlines, “The Perfect Team” 9 Exercise: Prepare a Network Strategy for the Simulation Case 10 Comprehensive Examination Module 1 Network Concepts “Sophisticated Thinking”

  7. 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 2 Demand “The Big Picture”

  8. Market share defined and example Market share drivers: parameters/ qualities which effect an airline’s market share/ price parity Market share measurement: Methods: Dominant carrier/ Dominant segment/ Prorated distance Forecasting market share: demonstration of a simple QSI/ introduction to LOGIT Gaining market share: How to tune your network 6. Exercise: Estimate market share using QSI 7. Comprehensive Examination Module 3 Market Share “Our Slice of the Pie”

  9. Define network planning: The practice of maximizing network profitability using the levers of network management 4 Levers of network management: 1) Destinations/ Schedules/ Flight connectivity. 2) Match resources to demand 3) Airport transfer facilities 4) Airline alliances Risks to Airlines chasing Flight Profitability versus revenue growth, how network planning encourages growth, examples Planning Horizon – Detail Strategic Planning, Network Design and Network Planning Comparative analysis – airlines which use network planning, airlines which don’t, which need to, which do not. Discussion. What doesn’t get measured doesn’t get managed, dilemma of O&D reporting vs leg reporting. Discussion and examples Exercise: Prepare a Network Strategy on Simulation Case Comprehensive Examination Module 4 Network Planning The Future is NOW

  10. Market Share Models Optimizers Hub/ Fleet/ Route O&D Reports O&D Contribution/ Market Share Change Final Comprehensive Examination Module 5 Network Tools Running a Big Airline

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