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.

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 (This resource may not render correctly in a screen reader.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 (This resource may not render correctly in a screen reader.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 (This resource may not render correctly in a screen reader.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

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)