27 October, 2017

 

As other European airports, Vienna has enjoyed two years of extremely successful business operations and exhibited a great overall route potential. Vienna Airport surpassed the threshold of 23 million passengers in 2016 and registered a year-over-year growth increase by 7.6% during the month of June.
Interestingly however, passenger traffic on the route Copenhagen – Vienna (CPH-VIE) has increased more slowly than in the rest of the market. The bellow Case Study focuses on the still unexploited route potential of this O&D.

 

This difference might be caused by the fact that the route presents only two carriers with direct flights. However, one more player has also operated on this route for a while, thus creating additional traffic. The carrier eventually stopped its operations on the O&D because of a considerable decrease in demand, which appears to be caused by the intense competition.

On the basis of data on the past operations of a carrier for the route and on non-direct traffic, we estimated that the route has the potential to generate extra traffic amounting to circa 7.000 passengers each month.

 

The most suitable carrier to fit into the CPH-VIE needs to have a well-planned strategy to be able to avoid wing-to-wing competition with current players: SAS and Austrian Airlines.

 

Figure 1: SAS’s average prices for the route CPH-VIE (week before departure view)

 

 

Figure 2: Austrian Airlines’ average prices for the route CPH-VIE (week before departure view)

 

 

Our Analytic Team pinpointed a number of potential carriers which could start operating profitably in the route. The analysis focused on the current players’ reaction to competition, their overall price strategy, connectivity and level of price volatility.

 

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