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Date	Demand for Full-Fare Tickets (# seats)
3/5/2006	106
3/6/2006	69
3/7/2006	98
3/8/2006	80
3/9/2006	85
3/10/2006	104
3/11/2006	65
3/12/2006	99
3/13/2006	62
3/14/2006	68
3/15/2006	69
3/16/2006	70
3/17/2006	119
3/18/2006	121
3/19/2006	77
3/20/2006	69
3/21/2006	55
3/22/2006	78
3/23/2006	101
3/24/2006	120
3/25/2006	102
3/26/2006	62
3/27/2006	57
3/28/2006	69
3/29/2006	82
3/30/2006	86
3/31/2006	106
4/1/2006	120
4/2/2006	68
4/3/2006	57
4/4/2006	76
4/5/2006	61
4/6/2006	57
4/7/2006	58
4/8/2006	49
4/9/2006	124
4/10/2006	61
4/11/2006	54
4/12/2006	64
4/13/2006	71
4/14/2006	147
4/15/2006	148
4/16/2006	96
4/17/2006	76
4/18/2006	78
4/19/2006	56
4/20/2006	56
4/21/2006	83
4/22/2006	62
4/23/2006	84
4/24/2006	40
4/25/2006	42
4/26/2006	71
4/27/2006	45
4/28/2006	73
4/29/2006	73
4/30/2006	121
5/1/2006	39
5/2/2006	52
5/3/2006	34
5/4/2006	56
5/5/2006	59
5/6/2006	75
5/7/2006	73
5/8/2006	48
5/9/2006	43
5/10/2006	57
5/11/2006	42
5/12/2006	45
5/13/2006	59
5/14/2006	65
5/15/2006	61
5/16/2006	31
5/17/2006	54
5/18/2006	60
5/19/2006	57
5/20/2006	73
5/21/2006	48
5/22/2006	52
5/23/2006	37
5/24/2006	43
5/25/2006	37
5/26/2006	97
5/27/2006	82
5/28/2006	51
5/29/2006	54
5/30/2006	34
5/31/2006	24
6/1/2006	42
6/2/2006	52
6/3/2006	79
6/4/2006	28
6/5/2006	44
6/6/2006	30
6/7/2006	21
6/8/2006	41
6/9/2006	88
6/10/2006	65
6/11/2006	43
6/12/2006	45
6/13/2006	18
6/14/2006	34
6/15/2006	49
6/16/2006	39
6/17/2006	72
6/18/2006	69
6/19/2006	31
6/20/2006	24
6/21/2006	35
6/22/2006	47
6/23/2006	66
6/24/2006	72
6/25/2006	45
6/26/2006	31
6/27/2006	39
6/28/2006	40
6/29/2006	22
6/30/2006	88
7/1/2006	72
7/2/2006	73
7/3/2006	56
7/4/2006	39
7/5/2006	52
7/6/2006	35
7/7/2006	65
7/8/2006	54
7/9/2006	55
7/10/2006	43
7/11/2006	41
7/12/2006	31
7/13/2006	34
7/14/2006	54
7/15/2006	74
7/16/2006	67
7/17/2006	33
7/18/2006	45
7/19/2006	38
7/20/2006	46
7/21/2006	63
7/22/2006	82
7/23/2006	84
7/24/2006	47
7/25/2006	48
7/26/2006	51
7/27/2006	47
7/28/2006	73
7/29/2006	62
7/30/2006	93
7/31/2006	31
8/1/2006	33
8/2/2006	53
8/3/2006	57
8/4/2006	93
8/5/2006	75
8/6/2006	39
8/7/2006	47
8/8/2006	54
8/9/2006	32
8/10/2006	61
8/11/2006	47
8/12/2006	85
8/13/2006	45
8/14/2006	27
8/15/2006	60
8/16/2006	45
8/17/2006	34
8/18/2006	80
8/19/2006	68
8/20/2006	76
8/21/2006	44
8/22/2006	43
8/23/2006	41
8/24/2006	43
8/25/2006	73
8/26/2006	62
8/27/2006	68
8/28/2006	38
8/29/2006	31
8/30/2006	31
8/31/2006	31
9/1/2006	110
9/2/2006	77
9/3/2006	74
9/4/2006	33
9/5/2006	63
9/6/2006	26
9/7/2006	29
9/8/2006	66
9/9/2006	54
9/10/2006	58
9/11/2006	39
9/12/2006	37
9/13/2006	34
9/14/2006	47
9/15/2006	46
9/16/2006	68
9/17/2006	65
9/18/2006	60
9/19/2006	49
9/20/2006	38
9/21/2006	36
9/22/2006	46
9/23/2006	83
9/24/2006	47
9/25/2006	44
9/26/2006	37
9/27/2006	28
9/28/2006	56
9/29/2006	78
9/30/2006	57
10/1/2006	52
10/2/2006	28
10/3/2006	32
10/4/2006	45
10/5/2006	62
10/6/2006	72
10/7/2006	56
10/8/2006	63
10/9/2006	41
10/10/2006	41
10/11/2006	24
10/12/2006	25
10/13/2006	80
10/14/2006	79
10/15/2006	76
10/16/2006	35
10/17/2006	52
10/18/2006	42
10/19/2006	50
10/20/2006	65
10/21/2006	77
10/22/2006	74
10/23/2006	58
10/24/2006	64
10/25/2006	75
10/26/2006	52
10/27/2006	86
10/28/2006	64
10/29/2006	74
10/30/2006	40
10/31/2006	62
11/1/2006	53
11/2/2006	69
11/3/2006	78
11/4/2006	102
11/5/2006	101
11/6/2006	87
11/7/2006	106
11/8/2006	79
11/9/2006	61
11/10/2006	110
11/11/2006	109
11/12/2006	99
11/13/2006	82
11/14/2006	65
11/15/2006	63
11/16/2006	109
11/17/2006	141
11/18/2006	76
11/19/2006	77
11/20/2006	132
11/21/2006	139
11/22/2006	207
11/23/2006	61
11/24/2006	150
11/25/2006	151
11/26/2006	143
11/27/2006	106
11/28/2006	54
11/29/2006	70
11/30/2006	79
12/1/2006	54
12/2/2006	153
12/3/2006	95
12/4/2006	100
12/5/2006	94
12/6/2006	69
12/7/2006	100
12/8/2006	114
12/9/2006	106
12/10/2006	89
12/11/2006	83
12/12/2006	75
12/13/2006	104
12/14/2006	44
12/15/2006	96
12/16/2006	106
12/17/2006	110
12/18/2006	87
12/19/2006	78
12/20/2006	90
12/21/2006	117
12/22/2006	163
12/23/2006	172
12/24/2006	112
12/25/2006	84
12/26/2006	133
12/27/2006	83
12/28/2006	104
12/29/2006	211
12/30/2006	156
12/31/2006	181
1/1/2007	102
1/2/2007	98
1/3/2007	70
1/4/2007	139
1/5/2007	79
1/6/2007	89
1/7/2007	113
1/8/2007	85
1/9/2007	73
1/10/2007	44
1/11/2007	98
1/12/2007	122
1/13/2007	74
1/14/2007	119
1/15/2007	69
1/16/2007	89
1/17/2007	58
1/18/2007	105
1/19/2007	100
1/20/2007	129
1/21/2007	65
1/22/2007	79
1/23/2007	78
1/24/2007	97
1/25/2007	93
1/26/2007	98
1/27/2007	95
1/28/2007	84
1/29/2007	121
1/30/2007	85
1/31/2007	68
2/1/2007	84
2/2/2007	113
2/3/2007	84
2/4/2007	99
2/5/2007	91
2/6/2007	99
2/7/2007	77
2/8/2007	86
2/9/2007	118
2/10/2007	82
2/11/2007	111
2/12/2007	46
2/13/2007	80
2/14/2007	73
2/15/2007	53
2/16/2007	148
2/17/2007	135
2/18/2007	57
2/19/2007	102
2/20/2007	78
2/21/2007	85
2/22/2007	84
2/23/2007	78
2/24/2007	82
2/25/2007	56
2/26/2007	95
2/27/2007	98
2/28/2007	65
3/1/2007	65
3/2/2007	107
3/3/2007	112
3/4/2007	89

BlueSkv Airlines: Single-Leg Revenue Management (A) Robert Shumsky, Tuck School of Business at Dartmouth December 12, 2008 BlueSky operates Flight 97, a nonstop flight from JFK to Salt Lake City that departs at 9:30 pm. For this route they fly an Airbus A320 that can carry 146 passengers. On the airplane, all seats are economy-class seats (there is no business or 1t-class), and the marginal cost of each additional passenger in these seats is negligible All passengers on Flight 97 purchase one-way tickets on that flight alone, and therefore are not connecting from other flights operated by BlueSky. The airline has constructed a two-tier fare structure for this flight: advance purchase tickets (nonrefundable tickets purchased at least 14 days in advance) cost S114 one-way. Full-fare refundable tickets purchased at any time cost $174. There is heavy demand for advance purchase tickets, so BlueSky could sell out the aircraft with these discount passengers. Therefore, BlueSky's revenue management system may need to protect a certain number of seats for full-fare tickets On March 5, 2007, BlueSky is setting its booking limits for the week of March 19, 2007 - March 25, 2007. To make these decisions, BlueSky's revenue managers have collected the daily demand for full-fare tickets over the previous 12 months. Note that these are estimates of actual demand, not the number of tickets sold. These data are available in the Excel spreadsheet, BlueSky Single -Leg (A) demand Find the optimal (revenue-maximizing) protection level for full-fare seats and the optimal booking limit for economy-class seats for each day of the week beginning on March 19. You should find 7 protection levels and 7 booking limits, the best possible pair for each day of that week You may want to use a simple formula to calculate the protection level (see, for example, the end of Section 5 of Netessine and Shumsky, 2002'). Think carefully, however, about how you use the historical data to estimate F(Q), the distribution of demand for full-fare tickets

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