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Date of Award

Spring 1997

Document Type

Thesis - Open Access

Degree Name

Master of Business Administration in Aviation

Department

Aviation Business Administration

Committee Chair

Dr. Bijan Vasigh

Committee Member

Dr. Thomas Tacker

Committee Member

Dr. Abe Harraf

Abstract

This study consisted of a simulation to maximize an airline's Origin- Destination revenues. It has been hypothesized that Linear Programming is capable of maximizing airlines' networks revenues. Simulation was performed with Linear Interactive Discrete Optimizer (LINDO). This project was designed to consider different fares and its classes along with multi flight connections. The seats' allocation process came out with the maximum possible revenues, and enough flexibility in terms of changing such allocation to work around competition and trends. Results came supportive to the hypothesis. Sensitivity analysis provided our model with a tool to modify and change different variables, like fares, without affecting the reached goal (maximized network revenues). Although, the utilized network is a portion of a real world one, this study should inspire revenue management departments build their own simulation based on this model. Conclusion and recommendations are submitted.

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