Context  

Developing an optimal network strategy, from deciding which routes operate to fleet selection, requires significant planning and simulation from airlines. With many potential network permutations possible, airlines face difficulty in simulating the different options of routes, alliances, and fleet options. Over the past 5 years, an increasing number of airlines are seeking tools to support different components of network strategy.

Revenue Solution

Oliver Wyman has developed a suite of tools that enable strategy simulations across critical network-based decision-making topics to optimize choices. Our proprietary network planning model NetPlan is an integral part of it. For network planning, our tool leverages Quality of Service Index (QSI) based econometric processing that allows airlines to easily simulate new route launches and hubbing strategies to optimize existing networks.

Once a network is determined, the suite supports the evaluation of joint ventures and alliances, exploring key topics like settlements and revenue proration. Further, our suite enables users to optimize fleet selection by comparing the economics of using different fleet types for each route.

ImpactTypical deployments of the network planning suite have reduced cost per available seat mile on reviewed routes by 2-5%.