Alabama Airlines opened its doors in June 1995 as a commuter service with its headquarters and only hub located in Birmingham. A product of airline deregulation, Alabama Air joined the growing number of successful short-haul, point-to-point airlines, including Lone Star, Comair, Atlantic Southeast, Skywest, and Business Express.

Alabama Air was started and managed by two former pilots, David Douglas (who had been with the defunct Eastern Airlines) and Savas Ozatalay (formerly with Pan Am). It acquired a fleet of 12 used prop-jet planes and the airport gates vacated by the 1994 downsizing of Delta Air Lines.

1. What would you advise Alabama Air to do for the current reservation system based on the original call distribution? Create a simulation model to investigate the scenario.

Describe the model carefully and justify the duration of the simulation, assumptions, and measures of performance.

2. What are your recommendations regarding operator utilization and customer satisfaction if the airline proceeds with the advertising campaign?