Signal Hill

We plan the network that your pricing then sells

Revenue starts with which routes you fly, when you fly them and with which aircraft. We work on these four decisions with your planners, from the same data as the revenue work, and flown results feed the next plan.

  1. 1Which routes would earn money?
  2. 2When should each flight leave?
  3. 3What does each route earn?
  4. 4Which aircraft flies where, and when?

Which routes would earn money?

New routes and frequencies

A new route or an added frequency has to win its passengers from somewhere: from rivals, from connections through other hubs, or from people who would not have travelled.

We size each market from O&D demand data and forecast your share against the rivals on that market, using a quality of service model that counts frequency, timing and connections. Then we work out the load factor and average fare the route needs to break even, so you can compare the forecast with what the route requires.

  • A ranked list of routes and frequencies
  • Demand and share forecast by market
  • Break-even load factor and average fare
  • A business case for each route you take forward

When should each flight leave?

Schedule and connections

Departure times decide which passengers can use a flight at all, and which connections it can feed.

We test timings, turnarounds and connecting banks at your hub and at your partners' hubs, and count the connections each option creates or loses. Each option is measured by the revenue it adds across the network, including passengers who connect to another flight. At coordinated airports, such as Johannesburg, Cape Town and Durban, every timing also needs a slot, so we plan around the slots you hold and those you can request.

  • Timing options by route
  • Connections created or lost by each option
  • Bank structure at your hub
  • A schedule for each IATA season, with slot requests

Johannesburg, Cape Town and Durban are coordinated under South Africa's Airport Slot Coordination Regulations.

What does each route earn?

Route profitability

A route can look full and still lose money, and a thin route can bring connecting passengers that pay for it elsewhere in the network.

We combine flown revenue with route costs and add the connecting revenue each route brings to the rest of the network. You then see which routes to grow, which to re-time and which to cut, and what each decision does to the result.

  • Profit and loss by route
  • Contribution from connecting passengers
  • A list of routes to grow, re-time or cut
  • Reporting your finance team accepts

Which aircraft flies where, and when?

Fleet and seasons

Aircraft size has to follow demand through the year. Too small turns away passengers who would have paid the most, and too large flies empty seats at a cost.

We match aircraft to demand by route and season, and compare more seats on fewer flights with fewer seats on more flights. Pricing and seat control then work with the capacity that this plan puts on sale.

  • Aircraft by route and season
  • Seat and frequency options
  • The effect on cost and revenue
  • A seasonal capacity plan

The plan sets what goes on sale. Pricing, seat control and channels sell it, and what actually flew goes back into the next plan.

See the pricing and revenue review