ABSTRACT
This chapter explains the business, commercial and operational factors that determine the direction and ways in which airlines prepare for the operating day. The business model adopted by airlines plays a significant part in the manner in which airlines develop their network and their operating philosophy. A hub and spoke network design is typified by a central airport (hub), or a number of key hubs if the airline is of considerable size, through which passenger traffic is distributed often to several other destination ports (spokes). Aircraft operating across international boundaries must hold a route licence permitting the operation. The decision to select operating ports is part of an airline’s commercial strategy and culminates as a result of months or even years of direction, opportunity, and negotiation. Fleet planning, selection and acquisition is a long-term corporate strategy, dependent on the direction set out in its strategic planning and business model.
