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How Route Planning Chooses New Markets
1. Market Size Capacity

• How big is the market?

Is the market over/under-served?

• What competitive service exists?

2. Fares Traffic Mix

• Are there reasonable fares in the market?

• Is there predominantly business traffic or
  leisure/VFR in the market?

3. Cost and Aircraft Considerations

• Can the combined traffic and fares generate
  enough revenue to cover the costs?

• How much aircraft time will this consume (e.g.
  Deep South America is 2 A/C)? Is this the best
  use of said aircraft time (versus competing
  opportunities)?

• Do we have the aircraft time to offer a
  competitive schedule (e.g. late arrivals into
  Latin), and do we connect to the major flow
  points that are necessary (e.g. CLO-JFK)?

4. Competitive and Strategic Considerations

• Will starting this route precipitate a
  competitive response? (e.g. USAir in FLL-Latin)

• Will starting this route early prevent a
  competitor from entering the market before us?

• Does adding this route add a halo effect to
  existing routes? (e.g. IAH-LIR)

• Will this route cannibalize traffic from
  another existing route? (e.g. IAH-GIG)

• Is this a bilateral restricted market?
  (Restricted Higher Yield)

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How Route Planning Chooses New Markets
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How Route Planning Chooses New Markets

• Alliances Built Around Your Needs
• The Sky Team Alliance
• Aeroflot Russian Airlines
• AeroMéxico
• Air France
• Alitalia
• China Southern
• Continental Airlines
• Czech Airlines
• Delta Air Lines
• KLM Royal Dutch Airlines
• Korean Air
• Northwest Airlines
• Associate Members
• Air Europa
• Copa Airlines
• Kenya Airways

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How Route Planning Chooses New Markets
Our On-Going Mission Growth
92 growth in 10 years!
107
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How Route Planning Chooses New Markets

• ASM GROWTH AT WARP SPEED

From 12,952,514,174 ASM to 20,812,715,918 in 5
years!