Airline Simulation for Analysis of Commercial Airplane Markets

The Lockheed Airline System Simulation is discussed as a step-by-step evaluation of the economics of different ways of routing passenger travel demand. Interacting items that are discussed include forecast passenger traffic demand, persistence of demand, purpose of travel, passenger preferences toward fare and speed, aircraft characteristics, flight frequency, route interaction, and competitive and regulatory influences. Also discussed are specific uses of the simulation program during the design of the supersonic transport. The first use is in determining the optimum SST size, speed, and sonic boom characteristics. The impact of a refined SST on the air transport environment is then discussed. This latter subject is presented in terms of airplane requirements, load factors, airline earnings, and airline return on investment.