European Short Haul Profitability

European Short Haul
Profitability

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
REPORT .........................................................................................................................................1
Description of flights operating in every leisure and business routes ........................................1
Analysis of the revenue management strategies..........................................................................3
Total Revenue from flight and total operational costs. ...............................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Air route planning is described as process of evaluating and identifying feasibility of the
new routes for airport by given airline. Numbers are shared on success rates of the new routes.
Rate is defined as percentage of the new developed routes which remain in the service for 1 or 2
years after the inauguration. As the rate increases, this indicates that airline have capability of
properly anticipating performance of new routes in short term. The report covers the analysis of
profitability of business and leisure routes. The analysis is based on collection of ticket prices of
different airlines for same route. Report will discuss about the routes, revenues management
strategies of airlines, price fluctuations of airlines and operations cost of Easy jet and income
over particular route.
REPORT
Description of flights operating in every leisure and business routes
Leisure routes
Leisure route 1
STN – TFS (London, United Kingdom to Tenerife, Spain )
Airlines Ryanair Jet 2
Aircraft Type B737 -800 B737 - 800
Capacity 189 189
Flight duration 4 hr 30 min 4 hr 40 min
Departure time 06:10:00 14:15:00
Departure Date 26th December' 20 26th December' 20
Rynair is Irish lower cost airline company founded in 1984. It has headquarters in the
Swords, Dublin with primary operational base at London and Dublin. It has fleet size of 271
excluding the subsidiaries.
Jet 2 is low cost British liesure airline that offers scheduled and the charter flights from
UK. It is third largest in the scheduled airlines from UK. It has fleet size of 91 and operates over
82 routes.
Leisure route 2
1

MAD – IBZ (Madrid, Spain to Ibiza, Spain )
Airlines Rynair Air Europa Iberia Express
Aircraft Type B737 -800 B737 -800 B737 -800
Capacity 180 180 180
Flight duration 1 hr 20 min 1 hr 15 min 1 hr 10 min
Departure time 07:10:00 10:10:00 15:50:00
Departure Date 27th December' 20 27th December' 20 27th December' 20
Air Europa is 3rd largest Spanish Airline after the Vueling and Iberia. This airline has
been headquartered in the Llucmajor, Mallorca. It has fleet size of 45 and parent company is
Gloablia.
Iberia Express is Spanish airline company owned by the Iberia that operates over the
medium and short haul routes from parent airline hub at the Adolfo Suarez Madrid (Liao and
et.al.,2020). It has fleet size of 24 and operates over 44 destinations
Business Routes
Business Route 1
LHR – FRA ( London, United Kingdom to Frankfurt, Germany)
Airlines British Airways Lufthansa
Aircraft Type A320 A320 neo
Capacity 160 190
Flight duration 1 hr 45 min 1 hr 35 min
Departure time 15:15:00 17:30:00
Departure Date 7th December' 20 7th December' 20
British Airways is flag carrier online of UK headquartered in the London, England near
the main hub at the Heathrow Airport. Airline has fleet size of 250 and around 183 destinations.
Lufthansa is biggest German airline when combined with subsidiaries it is second biggest
airline of Europe in the terms of passengers. It has headquarters in Cologne, Germany and has
fleet size of 275 and operates over 220 destinations.
2