Airline CEO for the day – expanding your domestic business to Asia

Where would you base a hub for a one-stop, single aisle (~3000nm range) fleet to Asia


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dk4

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Here’s a thought for discussion - you are the CEO of an Australian airline, with a large fleet of dual class, single aisle aircraft. You are expanding your business, and want to develop a hub that will allow you to service new Asian destinations with one-stop services from Australian ports, using this existing economical aircraft type.

You don’t want to completely cede your customers to a partner airline, and become a total “codeshare bystander”; however, you aren’t opposed to forming a joint venture where you wouldn’t be a junior partner, and can retain brand/product control. (Your goal from such a joint venture would be to increase the quantity of one-stop destinations serviced, where your passenger demand alone is too low to make second leg “own metal” services viable.)

You have around 3000 nautical miles of "aircraft range" to play with, and a large local competitor that can deploy a mixed fleet of wide & narrow body metal, in a dual class configuration from Australian ports (including a large hub in one Australian city, which allows it scale to congregate its customers onto wide body aircraft services directly to anywhere in Asia) but it also has hubs with – single aisle, single class fleets, based offshore & in northern Australia.

map-gc-sea.gif

http://www.gcmap.com/map?P=bom-dps-pek,+tyo,%0d%0asin-adl,+tsv-kul,+bne-cgk,+syd-dps,+hba,+del,+icn&R=3000nm%40sin,+3000nm%40dps,+3000nm%40cgk,+3000nm%40kul,%0d%0a3000nm%40ceb&MS=wls&MR=900&MX=540x540&PM=*

There are numerous other airlines from the region, offering dual class, wide body, non-stop services from their local Asian bases into a handful of larger Australian cities, with differing frequency (some are members of global airline alliances). Those with the highest frequency of service, are often attracting through traffic to Europe (short leg into their hub, then long leg into a few select EU destinations), which you hope to counter using a different strategy (expensive new aircraft, capable of flying the long leg into a mid-east hub, then in collaboration with a joint venture partner, offering scale for a much larger selection of final EU destinations on the second shorter leg service).


All international regulations being equal - where would you want to base your new South East Asian hub, and why?
 
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DPS is the obvious for coverage (assuming there was a large Oz ownership), but for infrastructure, SIN wins hands down!
 
CGK/DPS/CEB probably not workable because of infrastructure available
This is a tough question! I guess that's why we see DRW being used over direct to Asia by JQ - I think as there's no airports within A320 range that offer sufficient facilities
Perhaps thinking outside the square maybe East Timor if the new Regional Refugee processing centre gets up could be the hub - then government contracts could enhance traffic hehe
 
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