Why Do Airlines Often Choose Indirect Routes Between Two Countries?

Airlines make strategic decisions to choose indirect routes between two countries, often involving third-party countries. This practice can be attributed to various business, operational, and political reasons. Here, we will explore the key factors that drive these decisions.

Financial Considerations and Distances

Distance and Aeroplane Capabilities: One of the primary reasons for choosing indirect routes is the limitations of aeroplane technology and distance. For example, flights between Australia and the United Kingdom or Europe, such as the Kangaroo Route, which involves a layover in Eastern Hemisphere countries like Singapore, are common. This happens because modern airplanes cannot cover such vast distances non-stop. However, that is set to change with the upcoming introduction of the Airbus A350-1000ULR, which can fly non-stop from Sydney to London, potentially reducing travel time by three hours in each direction and entering service in 2025.

Passenger Numbers and Operational Logics

Commercial Viability: Another significant factor is the number of passenger trips. Airline operators might choose indirect routes to maximize passenger traffic. For instance, KLM operates routes such as Amsterdam-Singapore-Denpasar and Amsterdam-Kuala Lumpur-Jakarta because these routes are profitable when combined. These flights can carry passengers going to Singapore to Bali and passengers from Singapore to Bali, making it economically viable to operate individual segments of the journey.

Operational Efficiency and Schedule Flexibility

Operational Efficiency: Similarly, airlines might operate one-stop services to serve distant locations during flights that would otherwise remain idle. A good example is the service operated by European airlines to destinations like Santiago de Chile or Buenos Aires. Planes arrive from Europe in the morning but won't leave again until night. Instead of letting these planes idle, airlines can operate through services, making them more profitable.

Political and Regulatory Factors

Political Protectionism: Airline routes can be influenced by international politics and regulations. Countries often implement protectionist policies to support their national airlines. For instance, Australia has strict restrictions on direct flights to and from Middle Eastern airlines, forcing them to use layover points. This was the case with Emirates, which gained access to Australian airspace through strategic agreements involving layovers in Singapore. These strategies ensure that national airlines like Qantas, Air Canada, and Lufthansa maintain competitive advantages.

Political Agreements: Open skies agreements can significantly impact flight routes. An open skies agreement typically involves mutual benefits, allowing airlines to operate more flights and avoid bureaucratic red tape. Singapore, for example, has an open skies agreement with Australia, facilitating capacity increases for airlines like Emirates. Prior to this agreement, Emirates had to use layover points in other countries to meet their demand.

Conclusion

Indirect routes between countries are not just about convenience but are driven by complex economic, operational, and political considerations. Airlines carefully weigh these factors to ensure profitability and compliance with regulatory frameworks. Understanding these factors can provide insights into why airlines opt for certain routes and how they manage their operations to maximize efficiency and profits.