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Airline Schedule Development 175 airline can decide to offer even greater frequency of departures (further increasing its own market share of the local O-D market) and/or operate larger aircraft with lower costs per seat kilometer on the route. Although frequency planning is introduced here as being separate from the choice of aircraft type for each flight on the route (i.e., “fleet assignment”), it should be clear that the two decisions are interrelated. The airline’s supply decision for a route in fact consists of two simultaneous choices - the number of departures per day and the number of seats to be offered on each departure. If the demand estimates for a route suggest that 400 seats per day are required to accommodate the expected traffic, the airline can choose to operate one frequency per day with a 400-seat aircraft or four frequencies per day with a 100-seat aircraft. Although both choices supply 400 seats per day to the route, the outcome in terms of this airline’s market share, passengers carried and revenues generated will be very different, especially if there exists a competitor on the route that operates four flights per day. In this example, a decision to offer one flight with 400 seats will almost certainly give the airline a relatively low market share due to its low-frequency (20%) share, with prices and quality of service equal. Such a low market share would not likely allow the airline to fill its 400-seat aircraft to profitable levels. Although hypothetical, this example illustrates how frequency planning can be driven as much by the presence and frequency of one or more competitors as by an assessment of the supply of seats required to carry expected demand on a route. This example also illustrates how airlines have little choice but to operate smaller-capacity aircraft with higher operating costs per seat and per seat kilometer in competitive markets, especially those involving relatively short-haul routes. The objective of “load consolidation” also affects frequency and aircraft size decisions. A single flight with multiple stops provides service to several O-D markets at the same time. Consolidation of traffic from multiple O-D markets onto one aircraft can allow that