Airport route development and its role in developing traffic connections and services: Case Mumbai – Helsinki route
Gholamgharehgheshlaghi, Reza (2020)
Gholamgharehgheshlaghi, Reza
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020060216219
https://urn.fi/URN:NBN:fi:amk-2020060216219
Tiivistelmä
The commissioner of this study is Finavia, the state-owned airport managing body in Finland. There are over 179 direct routes from Finavia’s airports where 162 non-stop destinations are from Helsinki airport (HEL). The objective of this study is to define and analyze demand, feasibility and viability of the route between Mumbai (BOM) and HEL. Thus, this study aims to clarify factors affecting this particular route.
Simply, air route development is a process aiming at expansion, maintaining existing air services and drawing new air services with new air carriers. This process contains the following steps: setting objectives, market analysis, business case development and initiating the route through stakeholder engagement processes.
This study has been implemented using case study method, where quantitative and qualitative approaches in data collection and analysis are used. The data of the number of both direct and indirect passengers were collected from Sabre Global Demand Data and Center for Aviation CAPA from 2014 to 2019. Power BI and Excel Pivot tools were used for analyzing the data.
This case study has been conducted prior to the COVID-19 pandemic therefore it can be interpreted in an optimistic way. Although this route would connect Mumbai region with Scandinavian and European destinations in shorter travelling times but based on feasibility anal-ysis this route would not be a profit-making route. Passenger numbers and other assumed measures are based on historical data and published reliable sources. Based on these parameters, this route would be making 34.4 million euros in revenue still leading to a negative operating profit of 302,000€ and an operating margin of -1%.
Simply, air route development is a process aiming at expansion, maintaining existing air services and drawing new air services with new air carriers. This process contains the following steps: setting objectives, market analysis, business case development and initiating the route through stakeholder engagement processes.
This study has been implemented using case study method, where quantitative and qualitative approaches in data collection and analysis are used. The data of the number of both direct and indirect passengers were collected from Sabre Global Demand Data and Center for Aviation CAPA from 2014 to 2019. Power BI and Excel Pivot tools were used for analyzing the data.
This case study has been conducted prior to the COVID-19 pandemic therefore it can be interpreted in an optimistic way. Although this route would connect Mumbai region with Scandinavian and European destinations in shorter travelling times but based on feasibility anal-ysis this route would not be a profit-making route. Passenger numbers and other assumed measures are based on historical data and published reliable sources. Based on these parameters, this route would be making 34.4 million euros in revenue still leading to a negative operating profit of 302,000€ and an operating margin of -1%.