This thesis develops a prototype simulation model to assist in evaluating the benefits of the Contract Air Service Program. This program provides special fares for government employees traveling on official business aboard certain scheduled domestic flights. Because deregulation of the airline industry has generated a profusion of discount fares, a model is needed to evaluate the contract fares against a cross section of fares rather than full coach fares alone, as has been done in the past. Route selection for the model was based on passenger volumes and full coach fares. All combinations of passenger volumes and fares were represented in the initial selection of routes. Only routes with low total costs and, therefore, little impact on potential savings were discarded from further consideration. Discount fares for each route were selected to represent the entire spectrum of restrictions. The scope of government travel characteristics required for the model were identified. Parameters were established to exercise the model's ability to apply discount fares for eligible travelers. The results of the research prove the feasibility of implementing simulation as an improved means for evaluating the effectiveness of the Contract Air Service Program. Recommendations for the development of a comprehensive model are discussed. Keywords: Travel, commercial transportation, air transportation, computerized simulation, network flows.


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