Capacity Control Strategy Research Of Airline Alliance

Under the background of economic globalization, in order to achieve the goal toexpand their network, many airlines usually reach an agreement of cooperation agreement,sharing both or all parties of the aviation network, thus forms the airline strategic alliance.In fact, cooperation between alliance members is built on the basis of bilateral agreementsbetween the two sides, from the view of revenue management, how to determine thecapacity allocation mechanism between alliance members to maximize the alliance benefitsbecomes one of the most important research problems in the alliance.As the main research object, the airline strategic alliance is based on the capacitycontrol strategy. With revenue management thoughts as the instruction, this paper sums upthe revenue management in recent years, as well as research fields and directions of theairline revenue management. In turn, this paper proposes two airline alliances capacitycontrol basic strategy of single segment. This strategy builds a DLP model for a variety ofticket mechanisms to make decisions and analyzes the effect through numerical examples.On this basis, combining with the real option theory, this paper builds DLP capacity controlmodel of single segment two airline alliances based on real option process, puts forward thedecision-making mechanism of airlines, and evaluates the efficiency of different marketingmechanism based on63cases numerical simulation. The analysis found that, in this paper,capacity control method based on the option process is better than first come first servicemethod. With the increase of the total capacity and demand intensity, based on the optionmethod is more better than first come first service process and close to the ex post method.The bigger of each reservation price gaps, the greater the method based on process ofoptions performs. When the sum of option price and the strike price are less than the lowerranks operator fares, based on the option process method is superior to the effect of firstcome first service. When the buy-back price is less than lower ticket prices of operation,revenue of airline alliance will increase.