ABSTRACT
In this Chapter we shall address the fundamentals of market modelling as applied
to aircraft decision-making. The first step will cover the basics of productivity
measurement. In order to facilitate a comparison between different types of market
model, we shall construct a simple route network. We will then examine two
seemingly opposing, yet complementary, approaches to the modelling of demand:
the macro and micro approaches. With reference to our route network we shall firstly
construct a macro fleet plan. Then we shall address market segmentation and its
link to the all-important concept of spill, which is defined as an excess of average
demand over capacity. We shall look at a modelling approach appropriate for a
single sector, then expand this into a more complex micro-network model. Finally
in this Chapter, we shall take a look at some specific and independent techniques for
assessing market share.
