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Strategy

Market Potential Analysis for a start-up airline in West Africa

  • Provision of a cargo and passenger market potential analysis for the establishment of a regional airline in West Africa
  • Definition of future cargo and passenger target markets
  • Forecasting of air traffic for passengers and cargo

Project duration

  • Sep 2006 - Jan 2007

Services provided by Lufthansa Consulting

  • Environmental analysis (social, political, economical, legal, technological, etc.)
  • Aviation trends and effects on West Africa
  • Regulator environment in West Africa
  • Target markets, customer analysis and segmentation
  • Capacity and supply analysis OAG data based
  • Demand analysis MIDT data based
  • Cargo and passenger forecast for the next 5 years
  • Competition analysis
  • Network and schedule scenario evaluation
  • Network profitability analysis

Project description

Lufthansa Consulting was requested to assess the opportunity of launching a new airline based in West Africa (ECOWAS) to serve the regional and international demand. A further objective of the study has been to analyze the degree of the airline’s viability without state subsidies and where to locate the airline in the region. Lufthansa Consulting defined the market potentials and the target markets to be served based on a network scenario analysis. Furthermore Lufthansa Consulting did provide a competition analysis and defined the market position including the demand and capacity needed. Finally the financial viability was evaluated based on a network profitability analysis.

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