16.75J | Spring 2006 | Graduate

Airline Management


SES # Topics Key Dates
1 Course Introduction

- Review of Syllabus and Subject Requirements
- Introduction to Airline Planning Processes and Systems

2 Airline Economics Review

- Demand and Market Share Models
- Differential Pricing and Revenues

3 Operating Costs and Productivity

- Components of Airline Operating Costs
- Measures of Aircraft and Labor Productivity

Assignment 1 out
4 Load and Spill Analysis

- Demand Stochasticity and Flight Leg “Spill Models”
- Estimation of Unconstrained Demand

5 Airline Schedule Development

- Network Supply Definitions and Concepts
- Timetable Development Issues and Constraints

6 Passenger Choice Models

- Decision Window Market Share Model
- Consumer Choice of Path/Fare Options

7 Introduction to ePODS Airline Management Game

- Baseline Networks and Schedules
- Overview of Inputs and Outputs

Assignment 1 due
8 ePODS Work Session

- Present and Discuss Baseline ePODS Results
- Software Installation and Instructions

9 Fleet Assignment Optimization (Prof. Barnhart)

- Incorporation of Spill and Recapture Rates
- Leg Independent vs. Itinerary-based Approaches

Assignment 2 out
10 ePODS Work Session

- Presentation of Round 1 Input Strategies
- Results: Initial Fleet Assignment

Round 1 Game Inputs due
11 Route Planning and Network Strategies

- Route Evaluation in Hub Networks
- Route Profitability Estimation Issues

12 ePODS Work Session

- Presentation of Round 2 Input Strategies
- Results: Hub Schedule Shifts and Fleet Assignment

Round 2 Game Inputs due
13 Scheduling and Operational Constraints

- Aircraft Rotations and Irregular Operations
- Demand Driven Dispatch - Flexible Fleet Assignment

Assignment 2 due
14 ePODS Work Session

- Presentation of Round 3 Input Strategies
- Results: Route Selection and Evaluation

Round 3 Game Inputs due
15 Mid-Term Exam (In Class)

16 Airline Fleet Planning Issues

- Commercial Aircraft Categories and Characteristics
- Technical and Performance Characteristics
- Implications for Fleet Changes in ePODS

17 AMG Work Session

- Presentation of Round 4 Input Strategies
- Results: Impacts of Fleet Changes

Round 4 Game Inputs due
18 Revenue Management Concept and Models

- Introduction to Seat Inventory Control Process
- EMSR Flight Leg Optimization

19 Overbooking Methods

- Overview of Theory and Current Practice
- Evolution of Probabilistic/Cost-Based Models

Assignment 3 out
20 O-D/Network Seat Inventory Control

- Network Optimization Models
- O-D Control Development in Practice

21 ePODS Work Session

- Presentation of Round 5 Input Strategies
- Results: Full-up Scheduling and Route Selection

Round 5 Game Inputs due

Open Session

- Guest Lecture on Pricing/RM

23 Airline Pricing Structures and Strategies

- Differential Pricing and Fare Restrictions
- Implications for Price Changes in ePODS

Assignment 3 due
24 Airline Revenue Management Systems

- Evolution of Capabilities and Current Status
- Relationships to CRS and Distribution

25 ePODS Work Session

- Presentation of Round 6 Input Strategies
- Results: Limited Fare Modifications

Round 6 Game Inputs due
26 Summary: Airline Management Challenges

- Discussion of ePODS Lessons
- Relationship to Current Airline Industry Issues

Course Info