Case A On March 5, 2007 , BlueSky is setting its booking BlueSky operates Flight 97, a nonstop flight from JFK limits for the week of March 19, 2007 through March o Salt Lake City that departs at 9:30 P.M. For this 25, 2007. To make these decisions, BlueSky's revenue oute they fly an Airbus A320 that can carry 146 pas - managers have collected the daily demand for full - engers . On the airplane , all seats are economy -class fare tickets over the previous 12 months . Note that there is no business or 1st -class ), and the marginal these are estimates of actual demand , not the num - cost of each additional passenger in these seats is ber of tickets sold . These data are available in BlueSky negligible Single -Leg A demand .xls .1 All passengers on Flight 97 purchase one -way Find the optimal (revenue -maximizing ) protection ickets on that flight alone , and therefore are not level for full -fare seats and the optimal booking limit onnecting from other flights operated by BlueSky. for economy -class seats for each day of the week The airline has constructed a two -tier fare structure for beginning on March 19. You should find seven protect his flight : Advance purchase tickets (i.e., nonrefund - tion levels and seven booking limits , the best possible able tickets purchased at least 14 days in advance ) cost pair for each day of that week . 114 one-way. Full-fare refundable tickets purchased You may want to use a simple formula to calcu- t any time cost $174 . There is heavy demand for late the protection level (see , for example , the end of dvance purchase tickets , so BlueSky could sell out $5 of Netessine and Shumsky 2002 2) Think carefully, he aircraft with these discount passengers . Therefore however, about how you use the historical data to BlueSky's revenue management system may need to estimate F Q , the distribution of demand for full -fare protect a certain number of seats for full -fare tickets . tickets