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A model for the airlines’ fuel management strategies

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  • Abdelghany, Khaled
  • Abdelghany, Ahmed
  • Raina, Sidhartha

Abstract

In this paper, a model for the airlines’ optimal fuel management strategies is presented. The model determines the optimal amount of ferry fuel to be loaded at each airport for a given aircraft route. The problem is formulated in the form of a mathematical program with an objective function that captures the trade-off between cost saving associated with loading excess fuel at airports with lower fuel prices, and extra fuel burn cost and extra maintenance cost associated with flying the aircraft with heavier fuel weights. A set of experiments is performed using the model to examine the potential benefits and limitations of the proposed fuel ferrying strategies. The experiments consider different fuel price scenarios and various operational conditions for the flights. The results of these experiments are presented along with a case study that uses real aircraft routing data.

Suggested Citation

  • Abdelghany, Khaled & Abdelghany, Ahmed & Raina, Sidhartha, 2005. "A model for the airlines’ fuel management strategies," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 199-206.
    • Handle: RePEc:eee:jaitra:v:11:y:2005:i:4:p:199-206
    DOI: 10.1016/j.jairtraman.2004.10.002
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    References listed on IDEAS

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    1. Rao, Vadhindran K., 1999. "Fuel price risk management using futures," Journal of Air Transport Management, Elsevier, vol. 5(1), pages 39-44.
    2. D. Wayne Darnell & Carolyn Loflin, 1977. "National Airlines Fuel Management and Allocation Model," Interfaces, INFORMS, vol. 7(2), pages 1-16, February.
    3. John S. Stroup & Richard D. Wollmer, 1992. "A Fuel Management Model for the Airline Industry," Operations Research, INFORMS, vol. 40(2), pages 229-237, April.
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    Cited by:

    1. Das, Deepjyoti & Sharma, Somesh Kumar & Parti, Raman & Singh, Jagroop, 2016. "Analyzing the effect of aviation infrastructure over aviation fuel consumption reduction," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 89-100.
    2. Khan, Waqar Ahmed & Chung, Sai-Ho & Ma, Hoi-Lam & Liu, Shi Qiang & Chan, Ching Yuen, 2019. "A novel self-organizing constructive neural network for estimating aircraft trip fuel consumption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 132(C), pages 72-96.
    3. Tsai, Wen-Hsien & Hsu, Jui-Ling, 2008. "Corporate social responsibility programs choice and costs assessment in the airline industry—A hybrid model," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 188-196.
    4. Kobe Boussauw & Thomas Vanoutrive, 2019. "Flying Green from a Carbon Neutral Airport: The Case of Brussels," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    5. Wang, Y.F. & Li, K.P. & Xu, X.M. & Zhang, Y.R., 2014. "Transport energy consumption and saving in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 641-655.
    6. Deo, Vinicius Ayello & Silvestre, Flavio J. & Morales, Mauricio, 2020. "The benefits of tankering considering cost index flying and optional refuelling stops," Journal of Air Transport Management, Elsevier, vol. 82(C).

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