In this study, a two- class revenue management ( RM) model, which combines two of the most important RM strategies for a passenger airline: overbooking and seat inventory control is proposed. Using this model, it is possible to concurrently find both the optimal booking limit and the optimal overbooking limit. Consequently, on a closed- form expression for an optimal booking/ overbooking limit, sensitivity analysis was analytically assessed by changing model parameters such as revenue, the penalty cost associated with unsatisfied demand, the show- ...