Abstract:
To compete successfully in short haul markets under 200 miles, an air transport system must offer a high daily frequency of service, N, as well as short air travel times. In a given market, N can be increased by using vehicles of smaller seat capacity, C, which are more expensive per seat to operate. A method of determining optimal values of N and C for assumed market behavior in terms of fare and time elasticities is presented. By defining total trip time to include the average wait for service, and using a demand model developed for the Northeast Corridor, the air share of total demand in any market can be calculated as a function of N and the competing fares. Plotting daily passengers versus N, and relating this to the maximum and breakeven load factors for a family of vehicles of different seating capacities, determines the values of N and C which maximize return to the operator.
