Why Every Airline Should Conduct an Annual Commercial Health Check

Evaluating Commercial Strategy, Distribution, Revenue Performance, and Strategic Partnerships to Support Sustainable Airline Growth

Every aircraft undergoes scheduled inspections. Flight crews complete recurrent training. Maintenance programs are continuously monitored to ensure safety and regulatory compliance.

Yet surprisingly few airlines apply the same discipline to evaluating the health of their commercial organization.

Markets evolve rapidly. Passenger expectations change. Distribution channels continue to develop, while competitors constantly adjust pricing, schedules, and commercial strategies. An organization that was highly effective two years ago may no longer be optimized for today’s market.

An annual Commercial Health Check provides airline leadership with an objective assessment of the organization’s commercial effectiveness. Rather than focusing solely on financial performance, it examines the underlying processes that generate those results.

Areas worth evaluating include commercial organizational structure, revenue management practices, pricing strategies, distribution channel performance, corporate sales, marketing effectiveness, business intelligence, key performance indicators, and strategic partnerships. Together, these areas provide a clear view of the airline’s commercial strategy and whether its current approach is supporting long-term growth.

The purpose is not to criticize existing teams. On the contrary, the objective is to identify opportunities that may not be visible from within the organization. Even high-performing airlines can benefit from an external perspective that challenges assumptions and highlights opportunities for improvement.

Just as preventive aircraft maintenance reduces operational risk, periodic commercial reviews reduce strategic risk by identifying issues before they materially affect revenue or profitability. 

Successful airlines continuously invest in improving both their technical operations and their commercial performance. The strongest organizations recognize that both are equally important to long-term success. Effective use of technology and data can connect commercial systems, distribution, and decision-making processes, helping airlines respond more effectively to changing market conditions.

A comprehensive Commercial Health Check should also evaluate the effectiveness of strategic commercial agreements, including interline, codeshare, SPA, alliance participation, and other revenue-generating partnerships, to ensure they continue delivering measurable value and remain aligned with the airline’s evolving commercial strategy. This is particularly important as airlines increasingly rely on complex partnerships and distribution arrangements that require clear commercial oversight and ongoing performance evaluation.

B+B Perspective

At B+B Solutions, we believe sustainable airline growth is achieved by combining commercial strategy, operational excellence, and practical execution. Our goal is not simply to identify opportunities; we work alongside our clients to implement solutions that deliver measurable results. Our approach brings together commercial analysis, operational considerations, and practical airline compliance expertise to help clients make informed strategic decisions.

A Real-World Perspective

One of the most comprehensive commercial reviews we have supported was for a large Latin American legacy carrier that incorporated an annual Commercial Health Check into its management process. Rather than focusing solely on financial results, the review evaluated the effectiveness of every major commercial agreement, including interline and Special Prorate Agreements (SPAs), distribution performance, revenue quality, and the contribution of strategic partnerships. Particular attention was given to ensuring that commercial activities were generating profitable traffic rather than simply increasing passenger volumes that diluted overall revenue.

The review also included an in-depth assessment of the airline’s participation in a global alliance. Beyond measuring total alliance-generated revenue, the analysis identified where that revenue originated, which markets and partners were contributing the greatest value, and where opportunities existed to strengthen collaboration. 

This experience reinforced an important lesson: commercial performance should never be taken for granted. Even long-established partnerships and successful programs require periodic evaluation to ensure they continue supporting the airline’s strategic and financial objectives. 

 

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