An airline has to decide whether to accept an incoming customer request for a seat in the airplane or to reject it in hope that another customer will request the seat later at a higher price. Capacity control, as one of the instruments of revenue management, gives a solution to this decision...

Recently, an option-based capacity control process for the case of airline alliance revenue management with two partner airlines providing flight tickets on a single flight leg has been proposed. This previous work describes the determination of the booking limits as control variables for the...