Introduction to Network Planning Concepts and Practice

1
Introduction toNetwork PlanningConcepts and
Practice

• Course Outline
• Dynaston Inc.

2
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 OD 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.

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Introduction to Network Planning Network
Simulation Airline Game

• 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 teams networks
  (Day 3)
• Demonstration of Route Optimizer
  (Day 3)
• Demonstration of Strategic Fleet Assigner
  (Day 3)

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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

5
Network Planning Course OutlineModules

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

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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 OD/ 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

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Module 2 Demand The Big Picture

1. Supply vs Demand Does capacity drive demand?
2. Demand for legs vs ODs Aircraft utilization
   or customer service
3. Air Travel Demand Drivers Demographics/
   Distance/ City Size/ Economic and Political
   Barriers/ Regulation
4. Estimating Demand Methods Relative MIDT
   to city size/ Carrier history vs Share/ Gravity
   Model/ Govt Stats/ Calibrated sizes
5. Sources for Demand Estimates IATA/Govt Stats
   / MIDT?
6. Demand Forecasting Growth Estimation Economic
   factors and assumptions/ stimulation/
   historical patterns
7. Exercise Calculate demand from demographics
8. Comprehensive Examination

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Module 3 Market Share
Our Slice of the Pie

• Market share defined and example
• Market share drivers parameters/ qualities
  which effect an airlines 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

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Module 4 Network
Planning The Future is NOW

• 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 dont, which need to,
  which do not. Discussion.
• What doesnt get measured doesnt get managed,
  dilemma of OD reporting vs leg reporting.
  Discussion and examples
• Exercise Prepare a Network Strategy on
  Simulation Case
• Comprehensive Examination

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Module 5 Network Tools
Running a Big Airline

1. Market Share Models
2. Optimizers Hub/ Fleet/ Route
3. OD Reports OD Contribution/ Market Share
   Change
4. Final Comprehensive Examination