Smart route to profitability

In a recent study about route profitability, a research team of the renowned Aviation Management faculty at the IUBH School of Business and Management in cooperation with the Airpas Aviation AG has assessed the route profitability analysis landscape of 22 leading low-cost, regional and leisure carriers.

Smart route to profitability

Under the lead of Maximilian Szesny, the research team encountered significant findings. While all airlines rate the topic route profitability as a crucial success factor, only very few airlines have sophisticated methodologies and corresponding, specialized IT systems in place allowing an accurate and efficient analysis. As a consequence, the majority of the airlines run manual, heavily time-consuming analysis which most often deliver unsatisfying results.

When the team evaluated the results with regard to the individual business models, a clear message was visible: The low-cost carriers have once again shown to be innovative airline organizations able to achieve “more with less”. Having mostly smart applications in place, they are achieving promising route profitability analysis and their profitability can, therefore, be regarded as a natural prove that investments into these applications, ultimately, pay off.

“These findings correspond with what we see within our customer airlines”, says Stephan Wilde, Director Business Development & Sales at Airpas, “there is a lot of improvement to be done and many airline managers underestimate the positive contribution specialized IT applications can deliver.”

To receive an executive summary of the study, please contact us.

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