Cheng-Lung Wu and Stephen J. Maher
This chapter focuses on capacity planning and operational management for airlines (for airports, see ). In general, the purpose of airline capacity planning is to respond to current and future travel demand of passengers (see ). While the capacity of an airline is certain and can be planned, travel demand attracted to a particular airline is fairly uncertain. Travel demand typically depends on marketing, product offerings in the market, competition, and to some extent the market power (share) of an airline. Economies of density are identified in the literature for airlines running a hub-and-spoke network, while low cost carriers ...