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BlueSky Airlines: Network Revenue Management (B) Robert Shumsky, Tuck School of Business at Dartmoutlh December 12, 2008 Frequently other airlines offer to pay BlueSky to

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BlueSky Airlines: Network Revenue Management (B) Robert Shumsky, Tuck School of Business at Dartmoutlh December 12, 2008 Frequently other airlines offer to pay BlueSky to fly passengers on its planes (this is one purpose of an alliance among airlines). For example, Air France often flies passengers from Paris to Miami. A few of Air France's passengers then go on from Miami to Houston, while other passengers are headed to Chicago. 1) Air France asks BlueSky to reserve 5 seats on BlueSky's flights from Miami to Houston, to be used for connecting Air France passengers. Air France offers to pay $104 per seat. Should BlueSky accept the offer? 2) In addition to the offer in (1), Air France offers BlueSky $285 per seat to reserve 10 seats for passengers traveling from Miami to Chicago. Should BlueSky accept this offer

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