IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v16y1982i1p31-43.html
   My bibliography  Save this article

Analysis of airline operating strategies under stochastic demand

Author

Listed:
  • Powell, Warren B.

Abstract

Variability in the demand for air travel is studied with respect to stochastic and time varying components which affect the distribution of passengers who will want to travel on a particular day. The problem is then cast as one of optimizing the total capacity offered in a given time period using operating net revenues as the objective. The distribution of demand is assumed to be normal, and passengers lost on those days when demand is high are assumed to travel on another airline or a different mode. An airline must therefore balance the costs of increased capacity against the benefits of carrying more people. Tradeoffs are studied parametrically, with particular emphasis on the effect the variance of the distribution of demand has on different relationships. Also shown is a simple procedure for estimating actual market mean and variance given the mean and variance of the number of passengers actually flown, which has a truncated distribution.

Suggested Citation

  • Powell, Warren B., 1982. "Analysis of airline operating strategies under stochastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 16(1), pages 31-43, February.
    • Handle: RePEc:eee:transb:v:16:y:1982:i:1:p:31-43
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0191-2615(82)90039-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hsu, Chaug-Ing & Wen, Yuh-Horng, 2002. "Reliability evaluation for airline network design in response to fluctuation in passenger demand," Omega, Elsevier, vol. 30(3), pages 197-213, June.
    2. Wen, Yuh-Horng & Hsu, Chaug-Ing, 2006. "Interactive multiobjective programming in airline network design for international airline code-share alliance," European Journal of Operational Research, Elsevier, vol. 174(1), pages 404-426, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transb:v:16:y:1982:i:1:p:31-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.