VaR and its application in civil aviation transportation

Risk analyses are important problems in revenue management in civil aviation transportation. Uncertainty of the return resulted from the seat rate is a key to risk analyses. Based on the method of managing risk, VaR is applied to manage risk and return in civil aviation transportation. By giving definition of change rate of seat, the calculating methods of VaR about single-line multi-line and about the whole civil aviation company are given. Finally, the validity of VaR applying in the risk management of civil aviation transportation is verified through an example.