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