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Seminar paper from the year 1998 in the subject Business economics - Supply, Production, Logistics, grade: 1.2, The University of Sydney, language: English, abstract: This paper discusses the practice of price differentiation in the airline industry and how airlines use yield management systems to control their different prices. Consequently it is explained how price differentiation is realised. Emphasis has been laid on discussing whether price differentiation is discriminatory and why it should be acceptable, even if it is discriminatory. In the second part the principles of yield management are explained and the major challenges with regards to the latest developments in electronic commerce are reviewed.
Seminar paper from the year 1998 in the subject Business economics - Business Management, Corporate Governance, grade: 1.8, The University of Sydney, language: English, abstract: The objective of this paper is to discuss the development from the concept of economiesof scale to the concept of economies of network integrity. Furthermore it explores howin this context user costs are linked in. Empirical evidence about the implications ofthose concepts for the understanding of the market structure in local bus services,aviation, trucking services, railways and ocean liner shipping is analysed. Finally lessonsfor governments involved with privatisation processes in transport are outlined.
Seminar paper from the year 1998 in the subject Business economics - Supply, Production, Logistics, grade: 1.3, The University of Sydney, language: English, abstract: This paper reviews the conceptual basis of the heuristic model for frequency and route planning for small size airlines developed by Ghobrial et al (1992). Particularly it is referred to scheduling issues for airline hub operations as outlined by Dennis (1994). Consequently a number of critical issues are raised that could improve the heuristic model above. A number of additional variables could influence scheduling decisions and should be incorporated into the model. For instance, small size airlines can be affected by the scheduling necessities of hub-and-spokes operations of larger carriers, when they are providing services into major hubs. Furthermore, the optimal network for a small size carrier can be hub-and-spokes type network constructed around a regional hub. This case is not specifically included into the model.
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