This thesis addresses problems of optimization and estimation encountered in the process of airline yield management, also called airline seat inventory control. Optimality conditions are given for the problem of setting booking limits for multiple, stochastically independent demand classes that are booked in a nested fashion into a fixed pool of airline seats. These optimality conditions are compared with the approximations given by the EMSR method. Additional conditions are given for two stochastically dependent fare classes, and extensions are made that allow for incorporation of passenger goodwill and upgrades of passengers between fare classes. The model developed for the dependent demand case is also applied to the problem of determining an optimal overbooking limit in a single fare class. Finally, a methodology is developed for using multivariate multiple regression in conjunction with the EM method to estimate the parameters of demand distributions on the basis of historical demand data that have been censored by the presence of booking limits. / Business, Sauder School of / Operations and Logistics (OPLOG), Division of / Graduate

The use of expensive and highly specialized equipment in any industry is only advisable if the eost of the equipment can be justified by a sufficiently large output. The greater the output, the smaller will be the cost of the equipment to be borne by each unit. Thus, once such equipment has been purchased, management endeavours to maintain output at a maximum in order to reduce unit costs or to increase profits. It is for this reason that airline managements continually endeavour to increase the utilization of jet aircraft. By increasing the number of revenue flying hours only one hour each week on one jet aircraft, an airline will realize an additional net contribution to overhead (or profits) of approximately $60,000 per year. One method of increasing utilization is to decrease the downtime of the aircraft for maintenance purposes. This requires a reduction of the total elapsed time of the maintenance check. The critical path technique has found wide application in solving the general problem of reducing the time required to complete a project which consists of many inter-related jobs. For example, the technique has been used to reduce the time required for constructing a building, for completing the periodic overhaul of a chemical plant, and for completing the Polaris Missile Development Program. It was therefore felt that the critical path technique might be of use in solving this problem of increasing the utilization of jet aircraft. This thesis, based on the results of a study carried out at Canadian Pacific Air Lines during the months of May through August, 1963, describes the various ways in which the technique can be of use in solving this problem. It was found that the technique did have a wide applicability. In the initial period of application, it would be of great value as a tool for analyzing the problems of the check. It can be used both to point out the jobs or chains of jobs which prohibit the reduction of the check time and also to direct the revision of the scheduling of these jobs in such a way that the elapsed time is reduced. This reduction of elapsed time will have the effect of increasing the number of jobs which must be completed at the earliest possible time if the check completion time is to be a minimum. As a result there will be a greater need to use the technique both for scheduling and monitoring all the jobs of the check. / Business, Sauder School of / Graduate

An examination of historical changes in technical efficiency in the U.S. air transportation industry and trends in relative factor prices reveals a relationship that is consistent with the economic theory of production. The study attempts to show the extent to which this relationship reflects causality. Average factor productivities for selected aircraft introduced between 1948 and 1972 were calculated on an ad hoc basis to document the particular events that established the overall trends in technical efficiency. Those aircraft and innovations that had characteristics consistent with prevailing factor price incentives were identified and the circumstances surrounding their introduction analyzed to determine whether factor proportions had been set in accordance with these incentives. It is found that exogenous technological developments and considerations related to the improvement of quality of output had just as great an influence in establishing trends in technical efficiency as considerations related to the maximization of economic efficiency. The influence of the military, oligopolistic interdependence in the aircraft manufacturing industry, and the effects of speed on quality of output created problems of identification. Possible effects on past events of a higher relative price for energy were examined. It is shown that this modification of factor price conditions would quite likely have had a significant impact on the historical pattern of technological development. / Graduate and Postdoctoral Studies / Graduate

Catering flights is an important part of an airline's operations. The meal service has a critical impact on customer service quality and represents significant costs. Unfortunately, due to high passenger load variability and minimum production lead-time requirements, it is difficult to get the number of meals to exactly match the passenger count on each flight. The objective of the project is to reduce meal-catering costs due to over-catering while simultaneously improving service level by reducing under-catering. The proposed solution takes the form of a meal bank system. This concept suggests that flights should be systematically under-catered with the possibility of uploading a generic meal to fill in any shortage at the last minute when the final passenger load is known. A thorough investigation of current processes was carried in order to define and recommend process change based on the meal bank approach. The project concludes with a costing analysis of recommended solutions weighing additional investments, cost savings, and service improvement against current performance. Costing analysis results for Vancouver International Airport operations showed that service level could be improved by an approximate reduction of 50 percent in revenue passenger meal shortages. Also, net costs can be reduced up to an estimated $190,000 annually. / Business, Sauder School of / Graduate

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No description available.

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by Biala, Winnie Lata, Cheng Ka Lar, Cara. / Thesis (M.B.A.)--Chinese University of Hong Kong, 2002. / Includes bibliographical references (leaf 57). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF ILLUSTRATIONS AND TABLES --- p.v / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- EVOLUTION OF AIR TRANSPORT --- p.3 / Chapter III. --- KEY FACTORS IN THE AIR TRANSPORT INDUSTRY --- p.5 / Economy --- p.5 / Aircraft --- p.6 / Airlines --- p.7 / North America --- p.7 / Europe --- p.7 / Asia-Pacific --- p.8 / Chapter IV. --- CURRENT ISSUES IN THE AIR TRANSPORT INDUSTRY --- p.9 / Downturn --- p.9 / Consolidation --- p.10 / Price --- p.11 / Jet Fuel --- p.11 / New Generation Airlines --- p.12 / Chapter V. --- CHINA'S AVIATION INDUSTRY --- p.14 / Overview --- p.14 / The CAAC and the Aviation Market in China --- p.15 / Underlying Problems of China's Aviation Industry --- p.17 / "Small Pie, Many Players" --- p.17 / Industry Still Regulated --- p.17 / Lagging Behind International Standards --- p.19 / Lack of Corporate Governance Within Airlines --- p.20 / Heavy Losses and Debts --- p.20 / The Civil Aviation Reform --- p.21 / The Post-WTO Era --- p.24 / Chapter VI. --- CHINA SOUTHERN AIRLINES --- p.26 / Company Background --- p.26 / Routes --- p.27 / Fleet --- p.27 / Performance --- p.28 / Finance --- p.28 / Operations --- p.29 / Chapter VII. --- COMPETITORS ANALYSIS --- p.31 / China Eastern Airlines --- p.31 / Air China --- p.33 / Hainan Airlines Group --- p.34 / China Sky Enterprises Group --- p.35 / Chapter VIII. --- TAKING CSA TO THE NEXT STAGE: MANAGEMENT CHALLENGES AND OPPORTUNITIES --- p.37 / Building the Brand --- p.37 / Improving Service Quality --- p.38 / Enhancing Corporate Governance --- p.39 / Smoothing Up Consolidation --- p.40 / Dealing with Losses and Debts --- p.41 / Chapter IX. --- CONCLUSION --- p.43 / APPENDIX --- p.45 / BIBLIOGRAPHY --- p.57

published_or_final_version / abstract / toc / Transport Policy and Planning / Master / Master of Arts in Transport Policy and Planning

Thesis (M.B.A.)--University of Hong Kong, 1995. / Includes bibliographical references.