In this paper, we develop a revenue management model for airline alliances. In particular, our model allows the members of the alliance to decide how to share the revenues from itineraries spanning flight legs operated by multiple airlines and how to coordinate their capacity allocation decisions. We start with a deterministic linear programming approximation to the revenue management problem t...

A specter is haunting America’s airline industry: It’s the ghost of Eastern Airlines. Once one of America’s largest carriers, Eastern went out of business in 1991 following a prolonged, crippling and acrimonious strike. The episode was a nadir for labor relations in the airline industry. Even if things are not quite as bad now as then, serious problems are weakening America’s major airlines—and...

Sustainable development has always been the objective of many fields, including the tourism and transportation sector. However, a major part of this sector, the airline industry, deals with many negative impacts, such as air pollution, noise, CO2 emission, and labor practice. Corporate social responsibility (CSR) is a strategic business activity that can enhance the sustainability of the airlin...

Dimensional analysis is widely used in physics and engineering to contribute to modeling systems in which variables are measured in incompatible units. I used dimensional analysis to rank the airlines in overall quality based on US Department of Transportation data: on-time arrivals, denied boardings, mishandled baggage, and customer complaints. The results conflict with the well-known airline ...

724 In 1981, an internal study by American Airlines found that travel agents booked the first flight that appeared on their computer screen 53 percent of the time, and a flight that appeared somewhere on the first screen almost 92 percent of the time. This provided an incentive for American to manipulate the order in which flights were listed on American’s “Sabre” computer reservation system, w...

This case takes place in the increasingly competitive environment of the airline sector.Airline websites and Internet-based booking systems enable transformation of airline operations and become strategic weapons for the majority of airlines worldwide. Established airlines are attempting to stimulate customers to use the Internet, in response to entry of low cost carriers that capture shares of...

Despite vigorous competition, airlines regularly fly their airplanes below full capacity. One reason for this is that airline fares are set before airlines observe demand. Moreover, even when airlines have accurate forecasts of demand, their ability to use prices and revenue management to smooth demand is constrained by the amount of information consumers have about prices and schedules, or mor...

Service failures are common. Consequently, firms must be prepared to recover and learn from service failures. Yet, the majority of customers are still dissatisfied with the way firms resolve their complaints. This is quite remarkable for several reasons. First, successful service recovery can turn angry, frustrated customers into loyal customers. Second, it costs more to recruit a new customer ...

COVID-19 claimed thousands of lives worldwide and put food systems, public health, the workplace in grave danger. Airline stock losses indicate industry-wide damage. We compared two large government-owned airlines to smaller for-profit over five years. A case study examined how online reviews have affected Chinese tourism. Investors hotel industry made during pandemic. This analyzed operational...

The liberalization of the aviation market has enabled low-cost airlines to take over a significant share in the aviation market. Benefits of low-cost models are multiple, both for passengers and for secondary and regional airports, which were neglected in the past and which record significant inflow of passengers with the arrival of low-cost airlines. In the structure of the air traffic in the ...