Table of Contents

List of Contributors xiii

Series Preface xv

Notes on Contributors xvii

Acknowledgements xxiii

1 Introduction and Overview 1
Peter P. Belobaba and Amedeo Odoni

1.1 Introduction: The Global Airline Industry 1

1.2 Overview of Chapters 13

2 The International Institutional and Regulatory Environment 19
Amedeo Odoni

2.1 Introduction 19

2.2 Background on the International Regulatory Environment 20

2.3 Airline Privatization and International Economic Regulation 24

2.4 Airports 32

2.5 Air Traffic Management 39

2.6 Key Organizations and Their Roles 40

2.7 Summary and Conclusions 45

3 Overview of Airline Economics, Markets and Demand 47
Peter P. Belobaba

3.1 Airline Terminology and Definitions 47

3.2 Air Transportation Markets 51

3.3 Origin–Destination Market Demand 55

3.4 Air Travel Demand Models 60

3.5 Airline Competition and Market Share 67

3.6 Chapter Summary 70

4 Fundamentals of Pricing and Revenue Management 73
Peter P. Belobaba

4.1 Airline Prices and O-D Markets 74

4.2 Airline Differential Pricing 78

4.3 Airline Revenue Management 88

5 Airline Operating Costs and Measures of Productivity 113
Peter P. Belobaba

5.1 Airline Cost Categorization 114

5.2 Operating Expense Comparisons 119

5.3 Comparisons of Airline Unit Costs 136

5.4 Measures of Airline Productivity 146

6 The Airline Planning Process 153
Peter P. Belobaba

6.1 Fleet Planning 153

6.2 Route Planning 162

6.3 Airline Schedule Development 173

6.4 The Future: Integrated Airline Planning 180

7 Airline Schedule Optimization 183
Cynthia Barnhart

7.1 Schedule Optimization Problems 184

7.2 Fleet Assignment 185

7.3 Schedule Design Optimization 197

7.4 Crew Scheduling 201

7.5 Aircraft Maintenance Routing and Crew Pairing Optimization 207

7.6 Future Directions for Schedule Optimization 210

8 Airline Flight Operations 213
Alan H. Midkiff, R. John Hansman and Tom G. Reynolds

8.1 Introduction 213

8.2 Regulation and Scheduling 214

8.3 Flight Crew Activities During a Typical Flight 217

8.4 Summary 249

8.5 Appendix: List of Acronyms 250

9 Irregular Operations: Schedule Recovery and Robustness 253
Cynthia Barnhart

9.1 Introduction 253

9.2 Irregular Operations 254

9.3 Robust Airline Scheduling 269

9.4 Directions for Ongoing and Future Work on Schedule Recovery from Irregular Operations 273

10 Labor Relations and Human Resource Management in the Airline Industry 275
Jody Hoffer Gittell, Andrew von Nordenflycht, Thomas A. Kochan, Robert McKersie and Greg J. Bamber

10.1 Alternative Strategies for the Employment Relationship 276

10.2 Labor Relations in the US Airline Industry 277

10.3 Labor Relations in the Airline Industry in Other Countries 287

10.4 Human Resource Management at Airlines 297

10.5 Conclusions 307

11 Aviation Safety and Security 313
Arnold Barnett

11.1 Safety 314

11.2 Security 325

12 Airports 343
Amedeo Odoni

12.1 Introduction 343

12.2 General Background 345

12.3 Physical Characteristics 349

12.4 Capacity, Delays and Demand Management 360

12.5 Institutional, Organizational and Economic Characteristics 367

13 Air Traffic Control 377
R. John Hansman and Amedeo Odoni

13.1 Introduction 377

13.2 The Generic Elements of an ATC System 378

13.3 Airspace and ATC Structure 387

13.4 ATC Operations 389

13.5 Standard Procedures 392

13.6 Capacity Constraints 393

13.7 Congestion and Air Traffic Management 398

13.8 Future ATC Systems 403

14 Air Transport and the Environment 405
Karen Marais and Ian A. Waitz

14.1 Introduction 405

14.2 Limiting Aviation’s Environmental Impact: The Role of Regulatory Bodies 407

14.3 Airport Water Quality Control 408

14.4 Noise 412

14.5 Surface Air Quality 421

14.6 Impact of Aviation on Climate 431

14.7 Summary and Looking Forward 435

15 Information Technology in Airline Operations, Distribution and Passenger Processing 441
Peter P. Belobaba, William Swelbar and Cynthia Barnhart

15.1 Information Technology in Airline Planning and Operations 441

15.2 Airline Distribution Systems 444

15.3 Distribution Costs and E-commerce Developments 455

15.4 Innovations in Passenger Processing 463

16 Critical Issues and Prospects for the Global Airline Industry 467
William Swelbar and Peter P. Belobaba

16.1 Evolution of US and Global Airline Markets 468

16.2 Looking Ahead: Critical Challenges for the Global Airline Industry 473

Index 479