ABSTRACT
Chapter Overview
The terms ‘network structure’ and ‘route structure’ are not strictly synonymous. A network structure is an assemblage of routes which gain strength from interconnectedness; its fundamental purpose is to optimise connectivity and passenger flows, with the result that optimising flows of aircraft and crews within it can be challenging. A route structure, on the other hand, is not primarily designed to integrate passenger flows and can more readily accommodate aircraft and crew optimisation. This might seem pedantic, but in fact it goes to the heart of recent changes within the industry: network structures designed to flow passengers around them on an integrated basis carry cost disadvantages relative to route structures which can be designed to flow aircraft and so maximise their utilisation. We will look at this below. Unless a distinction needs to be drawn, however, the present chapter will use the word ‘network’ to encompass both structural forms.
Network management has two elements: design and scheduling.
Network design implements the geographical scope decision discussed in Chapter 1. It addresses two fundamental questions: which markets do we want to serve – in other words, which markets should we be adding or deleting? And, in the case of a hub-based carrier, what are the financial implications of the network structure used to serve our markets – in other words, what would be the implications of adding or deleting specific routes, and (for multi-hub carriers) of channelling O&D flows in a different way?
Schedule planning addresses several fundamental questions with regard to individual routes: if a route is to be added, how many flights should be scheduled and when? If an additional frequency is to be added, when should it be scheduled to depart? What will be the financial implications of these decisions, or of any other adjustment to the existing schedule? What are the financial implications of changing the size of aircraft operating particular departures?
The three main sections in this chapter will look at network design, network strategies and tactics, and network outsourcing. Chapter 7 considers scheduling, as well as the interface between network and fleet management. Clearly, answers to the questions above are closely tied to decisions taken in other areas of capacity management – notably fleet management and revenue management. These are the subjects of Chapters 8 and 9 respectively.
