1 Network types

There are three main types of network structures that airlines can adopt: point-to-point, hub-and-spoke, and hybrid. Point-to-point networks connect cities directly, without intermediate stops or transfers. Hub-and-spoke networks use a central hub airport to connect flights from different origins and destinations. Hybrid networks combine elements of both, such as using hubs for long-haul flights and point-to-point for short-haul flights. LCCs typically prefer point-to-point networks, as they reduce operational costs, avoid congestion and delays, and offer more flexibility and frequency to customers.

2 Route selection

One of the most important decisions for LCCs is which routes to serve and how often. LCCs need to identify and target markets that have high demand, low competition, and low airport fees. They also need to consider the distance, duration, and fuel consumption of each route, as well as the potential for ancillary revenue from services and products. LCCs can use data analysis, market research, and customer feedback to evaluate the profitability and attractiveness of different routes. They can also experiment with new routes and adjust their frequency and capacity based on the results.

3 Fleet composition

Another key factor for LCCs is the size, type, and configuration of their aircraft fleet. LCCs need to optimize their fleet composition to match their network design, route selection, and customer preferences. LCCs tend to use narrow-body, single-aisle aircraft that have lower acquisition and maintenance costs, higher fuel efficiency, and greater operational flexibility. They also tend to standardize their fleet to reduce complexity and increase interchangeability. LCCs can also customize their aircraft configuration to maximize the number of seats, reduce the weight, and offer different classes and amenities.

4 Schedule optimization

LCCs also need to optimize their flight schedules to increase their utilization, productivity, and reliability. LCCs need to minimize the turnaround time, or the time between landing and take-off, of their aircraft to reduce the ground costs and increase the flying hours. They also need to balance the demand and supply of their flights to optimize the load factor, or the percentage of seats filled, and the yield, or the average revenue per passenger. LCCs can use mathematical models, simulation tools, and real-time data to optimize their schedules and cope with uncertainties and disruptions.

5 Network performance

Finally, LCCs need to monitor and evaluate their network performance to identify and address any issues or opportunities. LCCs need to measure and analyze key indicators such as revenue, costs, market share, customer satisfaction, on-time performance, and environmental impact. They also need to benchmark their performance against their competitors and industry standards. LCCs can use dashboards, reports, and feedback systems to track and communicate their network performance and implement corrective or preventive actions.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?