In this paper, we develop a stochastic, multiclass network equilibrium
model of airline passenger transportation. The model explicitly incor
porates the behavior of the passengers in regard to the decision wheth
er or not to travel, and route selection, and formalizes the passenger
's decision as an abstract network. The equilibrium between the realiz
ed demand for the routes of travel and the supply of the seats is show
n to satisfy a system of nonlinear equations. A Gauss-Seidel algorithm
is then proposed for the computation of the equilibrium and condition
s for convergence are established. Finally, the algorithm is applied t
o compute the solution to the national Air Canada airline passenger ne
twork, and the output is compared to the actual observed flows.