Slide 1

Overview

Airlines Make Money Only When They Match Supply and Demand

The Problem is Large and Dynamic

Effective Planning and Marketing is a Continuous Process

There Should be Continuity

Significant Optimization Applications

Yield Management Objectives

YM is Essential to Airline Profitability

YM Controls

Yield Management Evolution

Revenue Mix Problem – Flight Leg

Yield Management Evolution

Revenue Mix Problem – Network

Passengers = f (Allocation, Demand)

Revenue Mix Approaches

Yield Management Evolution

Fleet Assignment – FAM

Basic FAM Formulation

FAM Extensions

Leg Revenue Modeling Approaches

Improving Revenue Modeling in FAM

Integration of FAM and YM

Revenue Function Approximation:
One Leg, One Cut

OD FAM Master

Revenue Function Approximation:
One Leg, Multiple Cuts

Planning and Marketing Integration

Ideal Planning

Planning Reality

Airline Pricing

Sales and Distribution:Multi-channel

Bid Prices Support Integration

Unsolved and Under-solved Problems

The Evolving Environment

Slide 35