United vs. Southwest Airlines’ Flight Planning Strategies, Explained | WSJ Booked

Summary

Patrick Quayle, a global network planning executive at United Airlines, explains the complexities of airline route systems and their impact on travelers. He details two main network structures: hub and spoke, used by legacy airlines like United, Delta, and American, and point-to-point, favored by low-cost carriers. The hub and spoke model concentrates traffic at hubs for efficient long-haul connections but can be costly and create peak and trough periods. In contrast, point-to-point offers more nonstop options and serves mid-size cities but has limitations for trans-oceanic flights and can suffer from a ripple effect of disruptions. Quayle also discusses factors influencing new route decisions, such as demand, competition, and partnerships, and the regulatory process involved.

Takeaways

• 🌐 Patrick Quayle, a global network planning executive at United Airlines, is responsible for deciding where the airline flies, when it flies, and the type of aircraft used.
• ✈️ Airlines use two main network structures: hub and spoke, and point to point. United, Delta, and American use the hub and spoke model.
• 🔁 The hub and spoke model concentrates flights into a central hub, where passengers change planes to reach their final destinations.
• 📈 Hub and spoke creates high and low volume periods at the hub, which can drive costs due to the fluctuation in activity.
• 💼 Legacy airlines use the hub and spoke model due to its ability to support larger aircraft for long-haul flights and provide more options for travelers.
• 🛫 Low-cost carriers like Southwest, Spirit, and Frontier use the point-to-point system, offering more nonstop flights and simplified operations.
• 🚫 Point-to-point airlines face challenges with a ripple effect if something goes wrong, as each flight is directly connected to the next without a hub.
• 🌍 Adding a new route involves considering nonstop demand, competition, and potential partnerships with other airlines for broader connectivity.
• 🏢 To add a route, airlines must go through a government regulatory process to protect their route ideas from being copied by competitors.
• ⏱️ The process of adding a new route can take from a few months to a couple of years, reflecting the complexity of network planning.

Q & A

What is Patrick Quayle's role at United Airlines?

Patrick Quayle is a global network planning executive at United Airlines, responsible for deciding where the airline flies, when it flies, and what type of aircraft it uses.

How many years of experience does Patrick Quayle have in planning flight routes?

Patrick Quayle has over 15 years of experience in planning flight routes.

What are the two main network structures used by airlines?

The two main network structures used by airlines are hub and spoke, and point to point.

How does the hub and spoke model work?

In the hub and spoke model, a central hub is used with flights from various spoke cities flying into it. Passengers then change planes at the hub to disperse to different cities across the country.

What is the purpose of the spokes in the hub and spoke model?

The spokes are designed to feed travelers into the hub around the same time to make connections easier and more efficient.

Why is the hub and spoke model more expensive?

The hub and spoke model is more expensive because it requires assets like gates, lounges, and terminal space, as well as a larger workforce to support the operations at the hub.

How does the point-to-point system differ from the hub and spoke model?

In the point-to-point system, aircraft fly directly from one city to another without needing to connect through a major hub, offering more nonstop flight options.

What is one benefit of the point-to-point system mentioned in the script?

One benefit of the point-to-point system is that it allows airlines to offer more nonstop flight options, which can be particularly beneficial for passengers in smaller communities.

What is a challenge associated with the point-to-point model?

A challenge with the point-to-point model is the ripple effect when something goes wrong, as a problem in one leg of the journey can impact subsequent flights and passengers.

How does Southwest Airlines respond to lengthy delays or cancellations in the point-to-point model?

Southwest Airlines responds to lengthy delays or cancellations by bringing in another aircraft or rerouting travelers to minimize disruptions.

What are some factors Quayle considers when deciding whether to add a new route?

Quayle considers factors such as nonstop demand between cities, support from other spoke cities feeding into the hub, whether no other airline flies to that destination, and the level of competition at the destination.

What is the government regulatory process like for adding a new route?

The government regulatory process for adding a new route can take anywhere from a couple of months to a couple of years and prevents other carriers from piggybacking off the new route idea.