Challenge

A major German airline was evaluating whether to internalize ("make") or outsource ("buy") its ground handling operations at a major hub. To support this strategic decision, a robust business case was needed to assess the financial implications of self-handling. The evaluation had to consider multiple influencing factors such as flight volumes, tariff developments, and operational constraints, all within a structured scenario framework.

Approach

Conves supported the airline in building a comprehensive decision-making foundation through the following steps:

Volume estimation for relevant stations and services based on the current flight plan
Approximation of key cost components using a combination of bottom-up data analysis, top-down assumptions, and market benchmarks
Development and modeling of strategic scenarios to reflect tariff developments, operational growth, and regulatory dynamics
Financial evaluation of each scenario using an Excel-based KPI model to quantify economic impact

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Impact

Potential Levers

Key Takeaways

Key outcomes of the project included:

A transparent financial comparison between self-handling and outsourcing under multiple future scenarios
A structured framework to guide internal discussions and strategic alignment across departments
Clear decision support for the airline’s leadership on whether to proceed with a “make” or “buy” strategy for ground operations

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