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Author Topic: Route Prestige; Replaces RI  (Read 249 times)

Offline Talentz

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Route Prestige; Replaces RI
« on: September 24, 2018, 12:45:26 AM »
Sami, have you thought about expanding the role of RI within the pax/cargo calculation?

Once RI reaches 100, it pretty much becomes an after thought. Has been for years.

What if we expanded the role of RI; Call it Route Prestige. Where not only does it raise the awareness of the route through out the regions, but also continues too grow to provide a small boost against competitors who fly the route after you've opened it.

Route Prestige (RP) can keep the same top line 100 threshold, but greatly expand the time it takes too reach it.

The expanded time too reach RP 100 would look roughly like this:

RP - 0; Initial starting value for newly created route/same behavior as RI 0 in distribution calculation
RP - 25; Equals RI100 in distribution calculation; Still takes 1 year roughly to reach
RP - 26-50; Provides slow growing benefit too Airline with competitors on route. Only matters if competition is on route; Takes 5 Years to reach RP 50
RP - 51-75; Continues to increase  in benefit vs competitors on route. Only matters if competition is on route; Takes 20 years to reach RP 75
RP - 76-100; Slowly grows to reach full benefit vs competitors on route. Still only matters if competition is on route; Takes 50 years to reach RP 100.

The biggest question to be asked (and answered) is what and/or how much of a benefit would RP 100 hold over something like RP 0 or RP 25.

The way the scaling should work is:
Company A (RP 100) vs Company B (RP 0) compete. Co A should not see a noticeable reduction in traffic as per current RI 0 works. Nothing really changes in that respect.

Co A (RP 100) vs Co B (RP 25): At this point Co B can compete for all of demand on said route. Should Co B have many variables in there favor (CI, freq, price, seat, ect ect)
However, there is a 15% boost for Co A that is diminishing as Co B's RP increases from 25.

Co A (RP 100) vs Co B (RP 50): The boost for Co A is now down too just 10%. That is too say, should all variables be equal in the distribution calculation, Co A would have 10% more traffic still over Co B, with that decreasing as the years pass.

Co A (RP 100) vs Co B (RP 75): The boost is now 5% and the same above still applies. RP 100 vs 100 equates to even distribution in the calculations, all factors being equal.


The last major question: Why change anything?

Well, several minor reasons but really one major: Route/Hub invader protection.

CBD and too a small extant, the increase in Outside Base Limit will cause more competition outside the traditional hubs IRL.

Route Prestige will serve as a medium to protect airlines from both, bigger predator airlines and smaller start ups taking advantage of established routes legacy airlines spend years flushing out.

No one likes to be hub bombed from very large airlines just looking for there next meal. RP provides some benefit from them as the airline with the highest RP will hold higher traffic levels, all things being equal.

The applications of Route Prestige go beyond the examples above and work towards making AWS longevity mean more then awards at the end of GW.


Co-founder and Managing member of: The Star Alliance Group™ - A beta era, multi-brand alliance.

Offline wilian.souza2

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Re: Route Prestige; Replaces RI
« Reply #1 on: September 24, 2018, 01:15:49 AM »
The problem I see with this is that it depends only on how long an airline has been flying the route, without considering the quality of the service, so to say. Theoretically, an airline that's been flying certain route with a techstop for 25 years would have advantage over another airline that's been flying the same route, but with a direct flight, for 5 years.

I proposed an improved passenger factor appeal which would consider the aircraft each airline uses on the route and if it's being done with techstops or not (,78498.0.html). It is a new approach with the potential to terminate techstop and too small penalty, and I'll write more posts giving examples of how it will work.


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