Medium and Small Hub Airports Must Compete For Their Futures
In the post-2007 environment, airlines look at markets very differently from the way anyone who started in the industry before then would have learned it. In short, airlines are looking for either short-term profitability, or a long-term strategic payoff. Because, like all consultants, we like quadrant models, we developed one to illustrate this.
Airports that provide airlines neither short-term profitability nor long-term strategic benefit will continue to be on airlines’ front burner when it comes to capacity cuts to fund growth elsewhere or to boost network profitability. The way forward for most airports is to focus on what they can control or affect to increase demand for their brands and, as result, improve the airlines’ view of their markets. Medium and small hub airports that do this will start to outperform those that don’t.