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132 Passenger Air Service Development Techniques Table 9.1. Example of operating margin sensitivity matrix. Yield / RPM -10% -5% 0% 5% 10% 18.35 19.47 20.39 21.41 22.42 10% -8.2% -2.8% 2.1% 6.5% 10.6% 15.23 5% -3.3% 1.9% 6.6% 10.8% 14.7% 14.54 CASM 0% 1.7% 6.6% 11.0% 15.0% 18.7% 13.85 -5% 6.6% 11.2% 15.5% 19.3% 22.8% 13.16 -10% 11.5% 15.9% 19.9% 23.5% 26.9% 12.46 How should the information for presentations to airlines be organized? Presentations should be tailored to match the type of meeting that is taking place with the air- line representative. The depth of analysis can vary from airline to airline, so it is important to clearly understand your audience. Some of this information may be generic in nature and can be cross-utilized in other airline presentations, while other information should be highly customized for the target airline in question. Generally speaking, the more advanced the talks, the greater the level of specificity that should be included in the presentation. Many ASD teams struggle to organize material in a manner that flows logically. Following is a general guideline for the main topics that are typically covered in an ASD presentation. These presentations can vary depending on the length and objective of the meeting. Meetings at industry conferences such as JumpStart or Network are limited to 20 to 25 minutes, so a general rule would be to include no more than one slide per minute. Airline headquarters meetings are typically 60 to 90 minutes long, allowing greater depth in presenting the ASD team's business case.

OCR for page 130
Making a Compelling Case to Airlines 133 One option for presentation organization Figure 9.a is an example of a cover for an airline pre- statistics to illustrate trends. If passenger leakage is a sentation. ASD team presentations to airlines can be significant problem, offer evidence in support of the organized in many ways. The following is one option. market's true demand. Overview: General introduction to the airport and its Route opportunities: Provide the compelling business catchment area. Highlight the things that make the case for the specific route(s) targeted for new or airport special or different. enhanced service. Provide projections and forecasts of passenger traffic, with yields or fares and revenues. Core demographic and economic information: Define Highlight business relationships between the city the core catchment area population. Highlight demo- graphic and economic metrics such as per capita pairs. income, retail sales, unemployment rates, etc. Focus Incentive program: If the airport has an established on the factors in which the catchment area performs incentive program, provide a high-level overview of better than the U.S. national average and/or nearby the program and highlight how the proposed new competing airport catchment areas. Convince the air- service could qualify. line that this market offers them the best opportu- nity for their next available aircraft. Airport developments/improvements: Tout the capi- tal improvement projects that have recently been Local business development: Point out key business completed and/or are under way. Highlight airfield developments in the community, particularly with and terminal improvements. the area's largest employers. Discuss new economic activity and job growth. If the area is Conclusions: Propose next steps, ranging from a a leisure destination, highlight issues such as follow-up conference call to an in-person meeting. If growth in hotel rooms, occupancy rates, and the meeting occurs at an industry conference such as visitor arrivals. Network or JumpStart, try to secure a follow-up meeting at the airline's headquarters. Traffic developments: Highlight the airport's traffic growth trends. Provide at least five years of traffic Figure 9.a. Cover of a Baton Rouge Metropolitan Airport pres- entation to Frontier Airlines.