The document discusses various quantitative tools used in airline revenue management and decision making. It covers topics like demand forecasting, fleet management, scheduling models, pricing concepts, yield management, and competitive analysis. Yield management involves clustering fare classes into buckets based on price and adjusting authorized seat levels for different fare classes based on forecasted versus actual demand trends. Key factors considered in airline yield management calculations include fare levels, restrictions, passenger demand elasticities, and market-specific conditions.

1. Decision Making and Quantitative Tools Operating demand and cost forecast, interest rates forecast Aircraft acquisition Forecasting air travel demand, fuel prices etc. Fleet Capacity and composition Fleet management (Strategic) Scheduling models, assignment problems Productivity Spread sheet models, Markov models Wage Structure HRM Quantitative Tools Decision

2. Forecasting Seat Demand, No shows, Marginal Analysis Yield Management: Aircraft seat configuration/protection levels settings Competitive analysis Response to competitor initiatives Pricing (Tactical) Modelling consumer demands, micro economic modelling (elasticities) Fare Levels, restrictions Pricing (Strategic) Mathematical Programming Allocation of Fleet & crew/ Terminal or hub Route Structure (Tactical) Competitive Analysis Route Planning/Hub Planning Route Structure (Strategic) Inventory models, spare parts location model, spare part life forecasting Maintenance Fleet Management (tactical)

6. Q. Which of the Four is more relevant for this analysis?

7. Chicago-San Francisco Fare Structure - $177 $177 Discount (restricted) $159 - - Discount (unrestricted) $310 $525 $525 Full Coach Continental (connected) United (non stop) American (non stop)