Airline Management

Lecture Notes

With the exception of three lectures marked below, the copyright on all the lecture notes is held by Dr. Peter Belobaba. All materials are used with permission.

SES #	Topics	LECTURE NOTES
1	Course Introduction - Review of Syllabus and Subject Requirements - Introduction to Airline Planning Processes and Systems	Introduction to the Airline Planning Process (PDF)
2	Airline Economics Review - Demand and Market Share Models - Differential Pricing and Revenues	Airline Economics Review (PDF)
3	Operating Costs and Productivity - Components of Airline Operating Costs - Measures of Aircraft and Labor Productivity	Operating Costs and Productivity (PDF)
4	Load and Spill Analysis - Demand Stochasticity and Flight Leg “Spill Models” - Estimation of Unconstrained Demand	Load Factor Analysis (PDF) (Courtesy of Boeing. Used with permission.) Airline Demand Analysis and Spill Modeling (PDF)
5	Airline Schedule Development - Network Supply Definitions and Concepts - Timetable Development Issues and Constraints	Airline Schedule Development (PDF)
6	Passenger Choice Models - Decision Window Market Share Model - Consumer Choice of Path/Fare Options	Introduction to PODS Passenger Choice Models (PDF) Decision Window Model (PDF) (Courtesy of Boeing. Used with permission.)
7	Introduction to ePODS Airline Management Game - Baseline Networks and Schedules - Overview of Inputs and Outputs	ePODS Airline Management Educational Game (PDF)
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	Airline Fleet Assignment (PDF) (Courtesy of Cynthia Barnhart. Used with permission.)
10	ePODS Work Session - Presentation of Round 1 Input Strategies - Results: Initial Fleet Assignment
11	Route Planning and Network Strategies - Route Evaluation in Hub Networks - Route Profitability Estimation Issues	Route Planning and Evaluation (PDF)
12	ePODS Work Session - Presentation of Round 2 Input Strategies - Results: Hub Schedule Shifts and Fleet Assignment
13	Scheduling and Operational Constraints - Aircraft Rotations and Irregular Operations - Demand Driven Dispatch - Flexible Fleet Assignment	Demand Driven Dispatch (PDF)
14	ePODS Work Session - Presentation of Round 3 Input Strategies - Results: Route Selection and Evaluation
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	Airline Fleet Planning Models (PDF)
17	AMG Work Session - Presentation of Round 4 Input Strategies - Results: Impacts of Fleet Changes
18	Revenue Management Concept and Models - Introduction to Seat Inventory Control Process - EMSR Flight Leg Optimization	Introduction to Revenue Management: Flight Leg Revenue Optimization (PDF)
19	Overbooking Methods - Overview of Theory and Current Practice - Evolution of Probabilistic/Cost-Based Models	Flight Overbooking: Models and Practice (PDF)
20	O-D/Network Seat Inventory Control - Network Optimization Models - O-D Control Development in Practice	Network Revenue Management: Origin-Destination Control (PDF)
21	ePODS Work Session - Presentation of Round 5 Input Strategies - Results: Full-up Scheduling and Route Selection
22	Open Session - Guest Lecture on Pricing/RM
23	Airline Pricing Structures and Strategies - Differential Pricing and Fare Restrictions - Implications for Price Changes in ePODS	Pricing Challenges: ePODS and Reality (PDF)
24	Airline Revenue Management Systems - Evolution of Capabilities and Current Status - Relationships to CRS and Distribution	Origin-Destination Control: What Have We Learned? (PDF)
25	ePODS Work Session - Presentation of Round 6 Input Strategies - Results: Limited Fare Modifications
26	Summary: Airline Management Challenges - Discussion of ePODS Lessons - Relationship to Current Airline Industry Issues	Willingness to Pay and Competitive Revenue Management (PDF)