ABSTRACT

The introductory chapter provides common definitions of transportation networks and network management as a managerial function of airlines. In particular, the specifics of networks as non-linear production systems – as opposed to linear production systems in other industries – are explained. Furthermore, this chapter highlights why network management is an important and valuable function for airlines: it is the only instance when both revenue and cost aspects are taken into account. Consequently, network management determines the allocation of resources, as well as the airline’s approach to markets and customers.