More destinations or more of a popular route?

I’m at a cross roads,

I’m currently building up one hub, and not sure if I should offer more different destinations, or assign more flights on already successful routes. These routes seem to be high volume so it’s unlikely I’ll be lowering prices as I add onto them.

What’s every one else’s strategy? Why have you selected that strategy & what have been the results?

You can do both with one plane. You can schedule different destinations for one airplane in one schedule so you can expand existing and creating new routes. (that’s what I’m always doing, except I plan a plane just for one super-running route)

Both strategies have pros and cons - but here’s what worked for me!

While my airline was fairly new, I concentrated on adding flights to current destinations. This gives me some certainty on a high return on the flight, which I can then quickly invest into more aircraft and build up the airline.

Starting new routes is good for transfer pax, but it does take a few weeks to determine the ideal price to charge - plus you may not have the same margins as on really successful routes.

Once you feel your already successful routes are reaching a saturation point and cannot take any more capacity without lowering the price, then add new routes.

I did this for a few months and was getting margins of around 35-40% a week - which at the time were well above of any airline listed on the stock exchange.


Thanks for that guys, yeah this really confirmed my thoughts.

I have been running relatively long routes (24 hr turn around with some 48 hr turn around) and these have been extremely profitable. I think I will continue to grow these routes.

I have also noticed that if I run many of these routes multiple times a day, it connects my network better, with more chance of internal transfers with the small routes.

Hello Dita, I have a question about the Australian market. Is there much competition? I see there are not too many airlines but are they hard to compete with? I am thinking about possibly starting an airline in Australia/

Hi LindC,

I don’t think there is too much competition, although I am probably shooting my self in the foot here!

You can certainly start an airline still. There are 4 main hubs you’d want to consider, Sydney, Melbourne, Brisbane & Perth.

I must say though, creating ultra long haul routes has been difficult for me. I’ve tried and failed to send planes to Doha & Dxb to try and cash in on the syd to LHR high demand route.

Problem is that AS traffic stats are if I remember reading right, about 5 years old. The big middle-east to Australia market hadn’t quite grown yet at that time. But if the partner is BIG at those hubs, it should be no issue finding feeder traffic to interlink with.