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R. John Hansman. Tam, Ryan Aung Min, 1973- Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. Massachusetts Institute of Technology. Department of Civil and Environmental Engineering 2007-09-27T19:31:49Z 2007-09-27T19:31:49Z 2003 2003 http://hdl.handle.net/1721.1/38889 54402416 Thesis (S.M. in Transportation)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 2003. This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. Includes bibliographical references (p. 59). Major trends in the airline industry are analyzed to highlight key dynamics that govern the US domestic air transportation system. The hypothesis is that air travel supply and demand equilibriums, a reliance on outside capital, and intra-industry competition are among the most critical forces that are driving the current restructuring of the airline industry. Data on airline operational and financial performance is used to trace these dynamics as the industry evolved through periods of industry deregulation, an economic growth bubble, and the aftermath of the attacks of September 11, 2001. The thesis identifies the post-deregulation development of hub-and-spoke networks and yield management systems as the key forces that would set the stage for a bifurcation of the air travel market during a cycle of economic growth in the late 1990s. During this bubble economy, the dynamics of supply and demand fundamentally shifted as the major carriers focused on high-revenue, high-cost operations and travelers began to flock to newer low-fare, low-cost carriers. With the end of the economic growth cycle in 2000, the bifurcation of the airline industry began to affect revenues and profits at the major carriers. Massive and unprecedented industry losses would ensue, and would be compounded by the attacks of 9/11. Airline operational strategies in response to 9/11 and longer-term restructuring efforts are discussed in order to further identify the key dynamics affecting the air transportation system. These dynamics are synthesized and then discussed within the broader context of the air transportation system, the impact of air travel on the economy and mobility, and the role of government. by Ryan Aung Min Tam. S.M. in Transportation 59 p. eng Massachusetts Institute of Technology M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 Civil and Environmental Engineering. An analysis of the dynamics of the US commercial air transportation system Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="294496bd-9cf4-4fc7-9563-d57ad4fa0af5"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>An analysis of the dynamics of the US commercial air transportation system</Title> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2003</PublicationDate> <Authors> <Author> <DisplayName>Tam, Ryan Aung Min, 1973-</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Civil and Environmental Engineering.</Keyword> <Abstract>Major trends in the airline industry are analyzed to highlight key dynamics that govern the US domestic air transportation system. The hypothesis is that air travel supply and demand equilibriums, a reliance on outside capital, and intra-industry competition are among the most critical forces that are driving the current restructuring of the airline industry. Data on airline operational and financial performance is used to trace these dynamics as the industry evolved through periods of industry deregulation, an economic growth bubble, and the aftermath of the attacks of September 11, 2001. The thesis identifies the post-deregulation development of hub-and-spoke networks and yield management systems as the key forces that would set the stage for a bifurcation of the air travel market during a cycle of economic growth in the late 1990s. During this bubble economy, the dynamics of supply and demand fundamentally shifted as the major carriers focused on high-revenue, high-cost operations and travelers began to flock to newer low-fare, low-cost carriers. With the end of the economic growth cycle in 2000, the bifurcation of the airline industry began to affect revenues and profits at the major carriers. Massive and unprecedented industry losses would ensue, and would be compounded by the attacks of 9/11. Airline operational strategies in response to 9/11 and longer-term restructuring efforts are discussed in order to further identify the key dynamics affecting the air transportation system. These dynamics are synthesized and then discussed within the broader context of the air transportation system, the impact of air travel on the economy and mobility, and the role of government.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>