Differential Pricing Policy
Differential pricing is a valid means of improving profits, keeping the total cost of air transportation down, and making it possible for more people to use air transportation.
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Differential pricing is a valid means of improving profits, keeping the total cost of air transportation down, and making it possible for more people to use air transportation.
Theoretical models are formulated for airline firm operations that revolve around alternative formulations of managerial goals which these firms are persuing in practice. Consideration is given to the different objective functions which the companies are following in lieu of profit maximization.
Paper reviews technical, resource planning and marketing steps an industrial organization must perform in arriving at a decision to undertake space development and production of commercial products or services for Users on the ground. Technical elements are supported by particular examples. Analysis of required resources emphasizes facility and financial inter-relationships between commercial organizations and NASA. Marketing planning covers elements of profitability. Paper addresses questions related to protection of corporate stockholders and public interest, investment decision timing, budget variations. Paper concludes with observations on timeliness of planning shuttle-based commercial ventures and on key industry/NASA problems and decisions.
Design and performance of a ferrofluid levitation separator for recovering nonferrous metals from shredded automobiles are reported. The scrap separator uses an electromagnet to generate a region of constant density within a pool of ferrofluid held between the magnetic poles; a saturated kerosene base ferrofluid as able to float all common industrial metals of interest. Conveyors move the scrap into the ferrofluid for separation according to density. Results of scrap mixture separation studies establish the technical feasibility of relatively pure aluminum alloy and zinc alloy fractions from shredded automobile scrap by this ferrofluid levitation process. Economic projections indicate profitable operation for shredders handling more than 300 cars per day.
Design studies of the application of advanced technologies to future transport aircraft were conducted. These studies were reviewed from the perspective of an air carrier. A fundamental study of the elements of airplane operating cost was performed, and the advanced technologies were ranked in order of potential profit impact. Recommendations for future study areas are given.
Concept may make it profitable to obtain hydrogen fuel from water. Laboratory tests have demonstrated that method enables decomposition of water several orders of magnitude beyond equilibrium state where only small amounts of free hydrogen are present.
Observations of challenges of technology transfer are presented with emphasis placed on the position of industry seeking technology through the media of technology searches. Factors considered are: (1) not-invented-here syndrome; (2) penetration of technological literature; (3) gap between origin and industry use; (4) large aerospace manufacturer vs. the small manufacturer; (5) link between the technology disseminator and the potential user; (6) feasibility of substitutions in terms of production costs; and (7) role of patents. It is shown that industry, government agencies, and others having technology to disseminate or use, must mutually understand the technology tools and translate to one another's capabilities, in order to profit from this national resource.
Technology assessment studies were conducted to provide an updated technology base from which an advanced supersonic cruise aircraft can be produced with a high probability of success. An assessment of the gains available through the application of advanced technologies in aerodynamics, propulsion, acoustics, structures, materials, and active controls is developed. The potential market and range requirements as well as economic factors including payload, speed, airline operating costs, and airline profitability are analyzed. The conceptual design of the baseline aircraft to be used in assessing the technology requirements is described.
Short-haul transportation systems are characterized by low average utilization, high peak but low average passenger demand, severe competition from other transportation modes, high fixed costs and high operating costs. Studies were conducted to analyze the operational requirements and market size for medium-density air transportation. The determination of the aircraft that will most efficiently meet the requirements of this market requires the careful evaluation of variable parameters such as engine cycles, payload, field length range and type of high-lift system. Low noise, low cost and thrust reversing capability are the basic criteria for the propulsion system. It is concluded that aircraft of less than 50-seat capacity cannot generate satisfactory profits operating in the medium-density market.
A high-capacity memory with a relatively high data transfer rate and multi-port simultaneous access capability may serve as the basis for new computer architectures. The implementation of a multi-port optical memory is discussed. Several computer structures are presented that might profitably use such a memory. These structures include (1) a simultaneous record access system, (2) a simultaneously shared memory computer system, and (3) a parallel digital processing structure.
It is profitable to consider the blast wave as a flow field consisting of two regions: the outer, which retains the properties of the inviscid solution, and the inner, which is governed by flow equations including terms expressing the effects of heat transfer and, concomitantly, viscosity. The latter region thus plays the role of a boundary layer. Reported here is an analytical method developed for the study of such layers, based on the matched asymptotic expansion technique combined with patched solutions.
This report is divided into three sections: 1. The Research Payoff, 2. Technology Twice Used, and 3. Technology Utilization at Work. The first describes a wide variety of current space spinoffs of use in business or personal life, as well as the space explorations from which they have been derived. The second provides information on specific examples of technology transfer that are typical of the spinoffs resulting from NASA's Technology Utilization Program. The third briefly describes the different activities of the Technology Utilization Office, all of which have as their purpose the profitable utilization of aerospace technology.
The aerodynamic phenomena that may profitably be employed by the designer at subsonic speeds seem now to be well understood. At supersonic speeds such phenomena show a greater and more interesting variety. Search for the minimum number of guiding principles of design thus becomes more difficult and more dangerous. Studies which can cover an adequate range of geometrical form are at present limited to the linearized version of aerodynamic theory. Such studies, especially those by variational methods, have disclosed certain basic principles of design for aerodynamic efficiency. In present-day experiments, however, the indicated trends are rather quickly confronted with effects of viscosity and nonlinearities. While the theory indicates that good values of aerodynamic efficiency are possible at supersonic speeds it is not yet clear how closely these expectations may be approached in practice. In the present paper several arrangements of supporting surfaces and bodies are discussed and in some cases comparisons of theory and experiment are made. Finally, certain phenomena connected with lift and drag in a rarefied medium are considered briefly.
A comparison of facility and operating costs of alternate methods shows open burning to be the lowest cost incineration method of waste propellant disposal. The selection, development, and implementation of an acceptable alternate is recommended. The recovery of ingredients from waste propellant has the probability of being able to pay its way, and even show a profit, when large consistent quantities of composite propellant are available. Ingredients recovered from space shuttle waste propellant would be worth over $1.5 million. Open and controlled burning are both energy wasteful.
Studies of residential energy use, solar-energy technology for buildings, and the requirements for implementing technology in the housing industry led to a project to develop a solar water heater for apartments. A design study for a specific apartment was used to establish a solar water-heater cost model which is based on plumbing contractor bids and manufacturer estimates. The cost model was used to size the system to minimize the annualized cost of hot water. The annualized cost of solar-assisted gas-energy water heating is found to be less expensive than electric water heating but more expensive than gas water heating. The feasibility of a natural gas utility supplying the auxiliary fuel is evaluated. It is estimated that gas-utilizing companies will find it profitable to offer solar water heating as part of a total energy service option or on a lease basis when the price of new base-load supplies of natural gas reaches $2.50-$3.00 per million Btu.
A critical review of the history, current state of the art, and future prospects for cargo aircraft systems indicates that three of the major advantages of air cargo are rapid delivery, ability to bridge geographical boundaries, and capability to provide a flexible market response. Foreseeable advances in large aircraft development offer even greater profit potential by increasing the payload ton-miles per pound of fuel. Intermodal containers and handling systems and computerized control and billing may be key ingredients. Details of a NASA program for large aircraft systems technology are outlined, which includes systems studies, research and technology investigations, and determination of the need for critical flight experiments. Innovative advanced technologies and configuration concepts are discussed. Numerous illustrations supplement the text.
The risk and cost of a bearing restoration by grinding program was analyzed. A microeconomic impact analysis was performed. The annual cost savings to U.S. Army aviation is approximately $950,000.00 for three engines and three transmissions. The capital value over an indefinite life is approximately ten million dollars. The annual cost savings for U.S. Air Force engines is approximately $313,000.00 with a capital value of approximately 3.1 million dollars. The program will result in the government obtaining bearings at lower costs at equivalent reliability. The bearing industry can recover lost profits during a period of reduced demand and higher costs.
Attempts at operational usage of the LANDSAT imagery by non NASA users are studied with particular emphasis on profitable use of the imagery, as contrasted with investigations concerned with research and development of a technology. An evaluation is given of the functional capabilities of the LANDSAT follow-on and ground systems designs in terms of user requirements and desiderata for data measurements, products, and parameters. Applications survey groups (ASGs) were formed for mineral and petroleum exploration, inland water resources, land inventory, and agriculture. The members were drawn from all segments of the user community: Federal agencies, state and local governments or agencies (or from associations of such constituencies), industry and universities. They were selected so that in aggregate they would be able to adequately assess the state-of-the-art in their technical areas and represent this in the ASG deliberations.