Entering New Markets? Why Commercial Readiness Should Precede Route Launch
Introduction: Route Expansion Needs More Than Aircraft
In the aviation industry, launching a new route is often celebrated as a strategic victory—a milestone showcasing operational ambition and brand growth. However, many such expansions fail to meet financial expectations because the commercial groundwork isn’t laid in parallel with operational planning. Market readiness isn’t just about airport slots or aircraft availability; it is about building a sustainable ecosystem of demand, distribution, and partnerships. For airlines to ensure profitability, commercial readiness must be a critical precursor to route launch.
The Misstep: Prioritising Aircraft Over Audience
According to CAPA – Centre for Aviation, over 60% of new airline routes fail to achieve financial sustainability within the first year. A significant reason is the traditional overemphasis on operational execution—fleet planning, airport infrastructure, and regulatory clearances—while neglecting commercial viability. Without a localised B2B network, brand recognition, and aligned distribution strategy, a new route may exist in theory but not in consumer preference.
Understanding Commercial Readiness: A Three-Pronged Approach
- Market Intelligence & Corporate Mapping: Airlines must understand the demand pockets before announcing a launch. Who are the top outbound corporate clients? Which ethnic or diaspora groups create consistent travel demand? Which industries require regular travel between city pairs? This insight should form the bedrock of the decision-making process.
- Local Sales Networks & GSAs: A well-connected General Sales Agent (GSA) becomes the airline’s commercial face in a new market. With the ability to mobilise TMCs, B2B travel agents, OTAs, and corporate travel heads, a strategically chosen GSA can create traction even before the inaugural flight. Their knowledge of distribution channels and existing partnerships accelerates market entry.
- Government Affairs & Aero-Political Enablement: Route rights and bilateral agreements often lie in grey zones. Representation companies that understand aero-political nuances can influence local aviation authorities, advocate on behalf of the airline, and secure advantageous time slots and traffic rights—critical components for long-term success.
Case-in-Point: How Market Readiness Changed the Game
When a global carrier attempted to launch a route between a South Asian capital and a mid-sized European city, they underestimated the importance of local partnerships. Despite operating state-of-the-art aircraft, load factors remained underwhelming. However, after onboarding a regional GSA with deep corporate relationships, localised promotions, and access to diaspora travel planners, revenue per available seat kilometre (RASK) rose by 18% within the first two quarters.
Travesla’s Commercial First Approach
At Travesla, we believe route planning should begin in the boardroom, not the runway. Our model combines localised sales force enablement, data-backed corporate travel strategies, and strong ties with aviation ministries. We map the demand, build the pipeline, align the brand positioning, and then support operational activation.
We do not just inform strategy—we execute it, with a commercial roadmap tailored to each market. This ensures that airlines don’t merely open a route, but unlock a profitable new market.
Conclusion: Build Before You Fly
Airline success in new markets is no longer defined by aircraft livery or launch day fanfare. It is driven by preparation, data, and strategic partnerships that bring passengers onboard before the wheels even leave the tarmac. As new regions emerge and competition intensifies, airlines must shift focus from launching routes to launching markets.
Commercial readiness is not a checklist. It’s a mindset.
Author Bio
Salil Nath is the Founder of Travesla and a veteran in the aviation and travel industries with over 18 years of experience. Formerly the General Manager – Indian Subcontinent at Etihad Airways, Salil brings deep expertise in commercial strategy, corporate sales, route expansion, and partnerships. Through Travesla, he is redefining GSA and airline representation models to help brands achieve scalable, sustainable growth across South Asia and beyond.
Salil Nath