ABSTRACT

Estimating the number of tickets that can be offered for sale at discount prices is important so that it remains profitable for the airline. Therefore, in this paper, we deal with the policy of determining the number of discount tickets. To do this, we present the newsvendor model that determines the number of tickets that can be sold at a full price and the number of tickets that can be sold at a reduced price. The sample calculation involves a simple estimate of the division of tickets into two groups, which can be made by each aeronautical company before further in-depth analyses to avoid any resulting rough estimate.