PREFACE

This report represents the results of an exploratory research study investigating the development of a methodology for determining the relationship between the supply of and the demand for air transportation services. Based upon the initial results of this exploratory research, an attempt will now be made to develop more sophisticated models to first analyze the impact of changing technology on the demand for air trans-portation and second to forecast the fleet requirements for the U.S. air transportation industry in the next fifteen years. Both the exploratory research during the past year, as well as the follow on research during this year, is supported by the Ames Research Center of the National Aeronautics and Space Administration and is con-ducted at the Flight Transportation Laboratory at M.I.T. During the entire research project, valuable help was received from Professor Robert W. Simpson and Dr. James T. Kneafsey at M.I.T. Appreciation is also extended to Louis J. Williams and Mark H. Waters o