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Scope

The airline industry is facing a period of major change. Besides the serious impact on airline profitability caused by factors such as 9/11 and the SARS epidemic, the whole economic structure of the industry is being challenged by the rapid development of low cost carriers in most regions of the world. As a consequence customer behaviour and expectations are changing and this is leading all airlines to fundamentally reconsider the ways in which they do business - central to any such appraisal is the network strategy.

This means that established methods and long held assumptions are no longer appropriate and new solutions must be implemented. Key network questions which airlines must answer in the context of their existing operations and market niches include the following:

• Are the routes served still appropriate?
• Are the frequencies operated and the aircraft types deployed still appropriate in the new competitive environment?
• What will be the impact on profitability of a revised operating plan?

The answers to these questions will vary significantly according to the geography, size of each airline, along with the characteristics of the key markets and the nature of existing and potential competition.

The MSP Solutions Approach

The Network Audit will examine the following topics:

• Existing route portfolio and route profitability
• New route opportunities
• Route closures
• Frequency implications
• Hub implications and connectivity
• Fleet issues

A cost revenue evaluation model will be used to examine alternative operating scenarios.

The benefit to our clients

The Network Audit Audit will conclude with a written report and presentation to Management. These will contain key recommendations, which will fall into three categories:

• Short term improvements that can be implemented within the immediate schedule season. These are most likely to be changes to frequencies operated, with little or no investment and simple changes to procedures.