ABSTRACT
This chapter talks about the applications of forecasting in the aviation industry, and discusses many of the major forecasting methods used. Forecasting has many applications in the aviation industry, and probably the chief among these is the forecasting of demand. In the aviation industry, market surveys are often used to find out what improvements an airport can make, and airlines use them in the form of customer comment cards to find out ways of improving service. Due to the costs involved, market experiments are rarely used in forecasting demand in the aviation industry. In aviation, Gross Domestic Product (GDP) is a leading indicator of airline demand as changes in GDP are usually followed by changes in demand for air transportation. In regression analysis forecasters are able to provide a not only a probability of how accurate the overall forecast is, but also the reliability of the individual variables in the forecast.
