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Extensively revised and updated edition of the bestselling textbook, provides an overview of recent global airline industry evolution and future challenges * Examines the perspectives of the many stakeholders in the global airline industry, including airlines, airports, air traffic services, governments, labor unions, in addition to passengers * Describes how these different players have contributed to the evolution of competition in the global airline industry, and the implications for its future evolution * Includes many facets of the airline industry not covered elsewhere in any single book, for example, safety and security, labor relations and environmental impacts of aviation * Highlights recent developments such as changing airline business models, growth of emerging airlines, plans for modernizing air traffic management, and opportunities offered by new information technologies for ticket distribution * Provides detailed data on airline performance and economics updated through 2013

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CONTENTS

Cover

Aerospace Series List

Title Page

Copyright

Notes on Contributors

List of Contributors

Series Preface

Acknowledgments

Chapter 1: Introduction and Overview

1.1 Introduction: The Global Airline Industry

1.2 Overview of Chapters

References

Chapter 2: The International Institutional and Regulatory Environment

2.1 Introduction

2.2 Background on the International Regulatory Environment

2.3 Airline Privatization and International Economic Regulation

2.4 Airports

2.5 Air Traffic Management

2.6 Key Organizations and Their Roles

2.7 Summary and Conclusions

References

Chapter 3: Overview of Airline Economics, Markets and Demand

3.1 Airline Terminology and Definitions

3.2 Air Transportation Markets

3.3 Origin–Destination Market Demand

3.4 Air Travel Demand Models

3.5 Airline Competition and Market Share

3.6 Summary

References

Chapter 4: Airline Pricing Theory and Practice

4.1 Airline Prices and O-D Markets

4.2 Differential Pricing

4.3 Recent Trends in Airline Pricing

4.4 Airline Pricing Strategies

References

Chapter 5: Airline Revenue Management

5.1 Computerized Revenue Management Systems

5.2 Flight Overbooking

5.3 EMSR Model for Flight Leg Revenue Optimization

5.4 Network Revenue Management

5.5 Revenue Management for Less Restricted Fare Structures

References

Chapter 6: Airline Operating Costs and Measures of Productivity

6.1 Airline Cost Categorization

6.2 Operating Expense Comparisons

6.3 Comparisons of Airline Unit Costs

6.4 Measures of Airline Productivity

References

Chapter 7: The Airline Planning Process

7.1 Fleet Planning

7.2 Route Planning

7.3 Airline Schedule Development

7.4 The Future: Integrated Airline Planning

References

Chapter 8: Airline Schedule Optimization

8.1 Schedule Optimization Problems

8.2 Fleet Assignment

8.3 Schedule Design Optimization

8.4 Crew Scheduling

8.5 Aircraft Maintenance Routing and Crew Pairing Optimization

8.6 Future Directions for Schedule Optimization

References

Chapter 9: Airline Flight Operations

9.1 Introduction

9.2 Regulation and Scheduling

9.3 Flight Crew Activities during a Typical Flight

9.4 Summary

List of Abbreviations

References

Chapter 10: Irregular Operations: Schedule Recovery and Robustness

10.1 Introduction

10.2 Irregular Operations

10.3 Robust Airline Scheduling

10.4 Directions for Ongoing and Future Work on Schedule Recovery from Irregular Operations

References

Chapter 11: Labor Relations and Human Resource Management in the Airline Industry*

11.1 Alternative Strategies for the Employment Relationship

11.2 Labor Relations in the US Airline Industry

11.3 Labor Relations in the Airline Industry in Other Countries1

11.4 Human Resource Management at Airlines

11.5 Conclusions

References

Chapter 12: Aviation Safety and Security

12.1 Safety

12.2 Security

References

Chapter 13: Airports

13.1 Introduction

13.2 General Background

13.3 Physical Characteristics

13.4 Capacity, Delays, and Demand Management

13.5 Institutional, Organizational, and Economic Characteristics

References

Chapter 14: Air Traffic Control

14.1 Introduction

14.2 The Generic Elements of an ATC System

14.3 Airspace and ATC Structure

14.4 ATC Operations

14.5 Standard Operating Procedures

14.6 Capacity Constraints

14.7 Congestion and Air Traffic Flow Management

14.8 Future ATC Systems

References

Chapter 15: Air Transport and the Environment

15.1 Introduction

15.2 Limiting Aviation's Environmental Impact: The Role of Regulatory Bodies

15.3 Airport Water Quality Control

15.4 Noise

15.5 Air Quality

15.6 Impact of Aviation on Climate

15.7 Alternative Fuels

15.8 Summary and Looking Forward

References

Chapter 16: Information Technology in Airline Operations, Distribution and Passenger Processing

16.1 Information Technology in Airline Planning and Operations

16.2 Airline Distribution Systems

16.3 Distribution Costs and e-Commerce Developments

16.4 Innovations in Passenger Processing

References

Chapter 17: Critical Issues and Prospects for the Global Airline Industry

17.1 Evolution of US and Global Airline Markets

17.2 Looking Ahead: Critical Challenges for the Global Airline Industry

References

Index

End User License Agreement

List of Tables

Table 2.1

Table 8.1

Table 8.2

Table 8.3

Table 8.4

Table 8.5

Table 8.6

Table 8.7

Table 8.8

Table 8.9

Table 8.10

Table 8.11

Table 10.1

Table 10.2

Table 10.3

Table 12.1

Table 12.2

Table 12.3

Table 12.4

Table 12.5

Table 12.6

Table 13.1

Table 13.2

Table 13.3

Table 13.4

Table 13.5

Table 13.6

Table 13.7

Table 13.8

Table 14.1

Table 14.2

Table 14.3

Table 15.1

Table 15.2

List of Illustrations

Figure 1.1

Figure 1.2

Figure 1.3

Figure 1.4

Figure 1.5

Figure 1.6

Figure 1.7

Figure 1.8

Figure 1.9

Figure 1.10

Figure 1.11

Figure 2.1

Figure 3.1

Figure 3.2

Figure 3.3

Figure 3.4

Figure 3.5

Figure 3.6

Figure 3.7

Figure 3.8

Figure 4.1

Figure 4.2

Figure 4.3

Figure 4.4

Figure 4.5

Figure 4.6

Figure 4.7

Figure 4.8

Figure 4.9

Figure 4.10

Figure 4.11

Figure 4.12

Figure 5.1

Figure 5.2

Figure 5.3

Figure 5.4

Figure 5.5

Figure 5.6

Figure 5.7

Figure 5.8

Figure 5.9

Figure 5.10

Figure 5.11

Figure 6.1

Figure 6.2

Figure 6.3

Figure 6.4

Figure 6.5

Figure 6.6

Figure 6.7

Figure 6.8

Figure 6.9

Figure 6.10

Figure 6.11

Figure 6.12

Figure 6.13

Figure 6.14

Figure 6.15

Figure 6.16

Figure 6.17

Figure 6.18

Figure 6.19

Figure 7.1

Figure 7.2

Figure 7.3

Figure 7.4

Figure 7.5

Figure 7.6

Figure 7.7

Figure 7.8

Figure 7.9

Figure 7.10

Figure 8.1

Figure 8.2

Figure 8.3

Figure 8.4

Figure 8.5

Figure 8.6

Figure 9.1

Figure 9.2

Figure 9.3

Figure 9.4

Figure 9.5

Figure 9.6

Figure 9.7

Figure 9.8

Figure 9.9

Figure 9.10

Figure 9.11

Figure 9.12

Figure 9.13

Figure 9.14

Figure 9.15

Figure 9.16

Figure 9.17

Figure 9.18

Figure 10.1

Figure 10.2

Figure 7.3

Figure 10.3

Figure 10.4

Figure 10.5

Figure 10.6

Figure 10.7

Figure 10.8

Figure 11.1

Figure 11.2

Figure 11.3

Figure 11.4

Figure 11.5

Figure 11.6

Figure 11.7

Figure 11.8

Figure 11.9

Figure 11.10

Figure 11.11

Figure 11.12

Figure 12.1

Figure 13.1

Figure 13.2

Figure 13.3

Figure 13.4

Figure 14.1

Figure 14.2

Figure 14.3

Figure 14.4

Figure 14.5

Figure 14.6

Figure 14.7

Figure 14.8

Figure 14.9

Figure 14.10

Figure 14.11

Figure 14.12

Figure 14.13

Figure 14.14

Figure 14.15

Figure 14.16

Figure 14.17

Figure 14.18

Figure 15.1

Figure 15.2

Figure 15.3

Figure 15.4

Figure 15.5

Figure 15.6

Figure 15.7

Figure 15.8

Figure 15.9

Figure 15.10

Figure 15.11

Figure 16.1

Figure 16.2

Figure 16.3

Figure 16.4

Figure 16.5

Figure 16.6

Figure 16.7

Figure 16.8

Figure 16.9

Figure 16.10

Figure 16.11

Figure 16.12

Figure 17.1

Figure 17.2

Figure 17.3

Guide

Cover

Table of Contents

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Aerospace Series List

The Global Airline Industry, Second Edition

Belobaba, Odoni and Barnhart

July 2015

Modeling the Effect of Damage in Composite Structures: Simplified Approaches

Kassapoglou

March 2015

Introduction to Aircraft Aeroelasticity and Loads, 2nd Edition

Wright and Cooper

December 2014

Aircraft Aerodynamic Design: Geometry and Optimization

Sóbester and Forrester

October 2014

Theoretical and Computational Aerodynamics

Sengupta

September 2014

Aerospace Propulsion

Lee

October 2013

Aircraft Flight Dynamics and Control

Durham

August 2013

Civil Avionics Systems, 2nd Edition

Moir, Seabridge and Jukes

August 2013

Modelling and Managing Airport Performance

Zografos, Andreatta and Odoni

July 2013

Advanced Aircraft Design: Conceptual Design, Analysis and Optimization of Subsonic Civil Airplanes

Torenbeek

June 2013

Design and Analysis of Composite Structures: With Applications to Aerospace Structures, 2nd Edition

Kassapoglou

April 2013

Aircraft Systems Integration of Air-Launched Weapons

Rigby

April 2013

Design and Development of Aircraft Systems, 2nd Edition

Moir and Seabridge

November 2012

Understanding Aerodynamics: Arguing from the Real Physics

McLean

November 2012

Aircraft Design: A Systems Engineering Approach

Sadraey

October 2012

Introduction to UAV Systems 4e

Fahlstrom and Gleason

August 2012

Theory of Lift: Introductory Computational Aerodynamics with MATLAB and Octave

McBain

August 2012

Sense and Avoid in UAS: Research and Applications

Angelov

April 2012

Morphing Aerospace Vehicles and Structures

Valasek

April 2012

Gas Turbine Propulsion Systems

MacIsaac and Langton

July 2011

Basic Helicopter Aerodynamics, 3rd Edition

Seddon and Newman

July 2011

Advanced Control of Aircraft, Spacecraft and Rockets

Tewari

July 2011

Cooperative Path Planning of Unmanned Aerial Vehicles

Tsourdos et al

November 2010

Principles of Flight for Pilots

Swatton

October 2010

Air Travel and Health: A Systems Perspective

Seabridge et al

September 2010

Design and Analysis of Composite Structures: With applications to aerospace Structures

Kassapoglou

September 2010

Unmanned Aircraft Systems: UAVS Design, Development and Deployment

Austin

April 2010

Introduction to Antenna Placement & Installations

Macnamara

April 2010

Principles of Flight Simulation

Allerton

October 2009

Aircraft Fuel Systems

Langton et al

May 2009

The Global Airline Industry

Belobaba

April 2009

Computational Modelling and Simulation of Aircraft and the Environment: Volume 1 - Platform Kinematics and Synthetic Environment

Diston

April 2009

Handbook of Space Technology

Ley, Wittmann Hallmann

April 2009

Aircraft Performance Theory and Practice for Pilots

Swatton

August 2008

Aircraft Systems, 3rd Edition

Moir & Seabridge

March 2008

Introduction to Aircraft Aeroelasticity And Loads

Wright & Cooper

December 2007

Stability and Control of Aircraft Systems

Langton

September 2006

Military Avionics Systems

Moir & Seabridge

February 2006

Design and Development of Aircraft Systems

Moir & Seabridge

June 2004

Aircraft Loading and Structural Layout

Howe

May 2004

Aircraft Display Systems

Jukes

December 2003

Civil Avionics Systems

Moir & Seabridge

December 2002

The Global Airline Industry

Second Edition

Edited by

Peter Belobaba

Department of Aeronautics & Astronautics, MIT, USA

Amedeo Odoni

Departments of Aeronautics & Astronautics and Civil & Environmental Engineering, MIT, USA

Cynthia Barnhart

Department of Civil & Environmental Engineering, MIT, USA

This edition first published 2016

© 2016, John Wiley & Sons, Ltd

First Edition published in 2009

Registered office

John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom

For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com.

The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

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Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book

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A catalogue record for this book is available from the British Library.

ISBN: 9781118881170

Notes on Contributors

Editors

Cynthia Barnhart is Chancellor at the Massachusetts Institute of Technology and Ford Professor of Engineering. She has developed and teaches courses including Carrier Systems, Optimization of Large-Scale Transportation Systems, Airline Schedule Planning, and the Airline Industry. Her research activities have focused on the development of optimization models and methods for designing, planning, and operating transportation systems. She currently serves or has served as Area Editor (Transportation) for Operations Research, as Associate Editor for Operations Research and for Transportation Science, as President of the INFORMS Women in Operations Research/Management Science Forum, as President of the INFORMS Transportation and Logistics Section, and as President of INFORMS. At MIT, Professor Barnhart has served as Associate and Interim Dean of Engineering, as Co-Director of the Operations Research Center, and as Co-Director of MIT's Center for Transportation and Logistics. She is a member of the National Academy of Engineering, and has been awarded the Franz Edelman 2nd Prize for Achievement in Operations and the Management Sciences, the Junior Faculty Career Award from the General Electric Foundation, the Presidential Young Investigator Award from the National Science Foundation, the First Prize Award for Best Paper in Transportation Science & Logistics, and the INFORMS award for the Advancement of Women in Operations Research and Management Science.

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