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  • Airline Planning

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    Rana Imam
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    Airline operations involve multiple components including flight legs between two points, flights which can include multiple connecting legs, routes between locations, and passenger itineraries. Airlines also partner through alliances which provide benefits to customers across networks. Strategic and fleet planning by airlines determines aircraft purchases and routes while pricing strategies set fares and restrictions. Aircraft typically cost between $40-60 million for narrow-body or $200 million for wide-body planes and are depreciated over 15-30 years of operation.

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    Airline operations involve multiple components including flight legs between two points, flights which can include multiple connecting legs, routes between locations, and passenger itineraries. Airlines also partner through alliances which provide benefits to customers across networks. Strategic and fleet planning by airlines determines aircraft purchases and routes while pricing strategies set fares and restrictions. Aircraft typically cost between $40-60 million for narrow-body or $200 million for wide-body planes and are depreciated over 15-30 years of operation.

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    12 views2 pages

    Airline Planning

    Uploaded by

    Rana Imam
    Airline operations involve multiple components including flight legs between two points, flights which can include multiple connecting legs, routes between locations, and passenger itineraries. Airlines also partner through alliances which provide benefits to customers across networks. Strategic and fleet planning by airlines determines aircraft purchases and routes while pricing strategies set fares and restrictions. Aircraft typically cost between $40-60 million for narrow-body or $200 million for wide-body planes and are depreciated over 15-30 years of operation.

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    © All Rights Reserved
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    of 2

    Airline Definitions

    - Fight leg (sector, segment): the nonstop operation of an aircraft between A and B,
    with the associated departure and arrival times.

    - Flight: One or more legs operated by the same aircraft and the same fight number,
    and the same seat.

    - Route: the link in the network (given as number of flights/week)

    - Passenger paths or itineraries: combination of flight legs chosen by the passengers


    from origin to destination to complete the journey

    - Airline alliances: group of airlines working together with benefits to customers


    (earning miles; lounge access; codeshare agreements) and seamless check-in
    services. Example: Oneworld alliance, Star alliance.

    Strategic Planning: Long Term planning


    Fleet Planning: What aircrafts to buy / hire? When? How many?
    - Route Planning: decide the city – pairs, based on social and economic conditions of
    the two markets (explore education, tourism and political relations)
    - Pricing: Determination of fares and restriction.

    - Prices of Aircrafts:

    $ 40 - $ 60 Million for narrow – body aircraft; $ 200 million for wide body aircrafts
    (like Boeing 747 – 400 or Airbus A 380)
    * Depreciation: 15 years
    * Some aircrafts could work for up to 30 years (with refurbishment and major
    maintenance).

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