In less than 10 years, the liberalization of the European airline industry has placed flag carriers in a highly competitive and dynamic environment. One of the reasons for the demand dynamic clearly results from the peculiarity of the industry: airline carriers have to produce one of the most perishable goods (passenger transport). This fact has forced carriers to implement and refine practices and strategies in order to react promptly to the ups and downs of the demand. In Chap. 2 we described the common practices employed to face short-term demand fluctuations that usually rely on advanced pricing policies, called ‘yield management’. Long-lasting demand shifts require a reaction in terms of capacity supply described in Sect. 2.4.2 as ‘network planning’.
Chapter PDF
Keywords
- Severe Acute Respiratory Syndrome
- Terrorist Attack
- Adjustment Cost
- Crisis Period
- Severe Acute Respiratory Syndrome
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Rights and permissions
Copyright information
© 2009 Physica-Verlag Heidelberg
About this chapter
Cite this chapter
(2009). Short- and Long-Term Reaction to Exogenous Demand Shifts. In: The Airline Industry. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2088-1_3
Download citation
DOI: https://doi.org/10.1007/978-3-7908-2088-1_3
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-2087-4
Online ISBN: 978-3-7908-2088-1
eBook Packages: Business and EconomicsEconomics and Finance (R0)