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Competitive integrated airline schedule design and fleet assignment

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  • Xu, Yifan
  • Adler, Nicole
  • Wandelt, Sebastian
  • Sun, Xiaoqian

Abstract

Airline profits are significantly influenced by competitive timetables that match passenger demand to fleet resources. In this research, we develop an integrated, mixed-integer optimization model to derive a comprehensive flight schedule, fleet assignment, and average airfares jointly. Passenger choice behavior is incorporated through a prospect theory-adjusted, nested, multinomial logit model which estimates market share. The competitive fleet assignment and schedule design (CFSD) formulation is embedded in a differentiated Bertrand game, such that each transport operator optimizes their best response function connected through the market share model. To solve the integrated optimization problem efficiently, a hybrid algorithm is developed that combines stabilized column generation with a large neighborhood search algorithm.

Suggested Citation

  • Xu, Yifan & Adler, Nicole & Wandelt, Sebastian & Sun, Xiaoqian, 2024. "Competitive integrated airline schedule design and fleet assignment," European Journal of Operational Research, Elsevier, vol. 314(1), pages 32-50.
    • Handle: RePEc:eee:ejores:v:314:y:2024:i:1:p:32-50
    DOI: 10.1016/j.ejor.2023.09.029
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