chapter  8
10 Pages

Baggage Handling

The methodology considered in contract evaluation depends on minimizing the displacement of the current leisure and business trips by the potential net demand associated with signing new corporation contracts. In addition, evaluating the contract in an ad hoc sequential procedure results in portfolios that are far from optimal and confines the potential revenues. Abdelghany presented a model for managing an air carrier's portfolio of corporation contracts that overcomes these shortfalls of current practice. The model extends the current practice's procedure by evaluating the complete portfolio of contracts simultaneously. The output of the model represents the optimal contract portfolio to be signed by the air carrier. Several initiatives are implemented by commercial air carriers to attract corporate business travelers. A common initiative is to provide incentives to business travelers in the form of ticket discounts and cabin upgrades. A contract is signed between the air carrier and different corporations for this purpose.