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Improving the objective function of the fleet assignment problem

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  • Dumas, Jonathan
  • Aithnard, Fati
  • Soumis, Franois

Abstract

Most fleet assignment problem (FAP) formulations use a leg-based estimation of revenue loss to derive the passenger revenue component of their objective function. This neglects the leg interdependency of revenues, caused by multileg itineraries. We tackle this problem by modifying the objective function using information provided by a passenger flow model devised by two of the authors. It models spill and recapture between itineraries, accounts for the leg interdependency of revenues and does not control passenger flow to the airline company's advantage. We iteratively improve the FAP's objective function by alternately generating fleet assignments and analyzing them with a modified version of the passenger flow model. We have tested this process on a large-scale network made up of Air Canada data with various demand levels and distributions. Most of the profit improvement occurs in the first few iterations, and the objective function adjustment takes on average less than half the FAP resolution time.

Suggested Citation

  • Dumas, Jonathan & Aithnard, Fati & Soumis, Franois, 2009. "Improving the objective function of the fleet assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 43(4), pages 466-475, May.
    • Handle: RePEc:eee:transb:v:43:y:2009:i:4:p:466-475
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    References listed on IDEAS

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    1. Jonathan Dumas & François Soumis, 2008. "Passenger Flow Model for Airline Networks," Transportation Science, INFORMS, vol. 42(2), pages 197-207, May.
    2. Swan, William M., 2002. "Airline demand distributions: passenger revenue management and spill," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(3-4), pages 253-263, May.
    3. Cynthia Barnhart & Timothy S. Kniker & Manoj Lohatepanont, 2002. "Itinerary-Based Airline Fleet Assignment," Transportation Science, INFORMS, vol. 36(2), pages 199-217, May.
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    Cited by:

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    5. Kroon, L.G. & Maróti, G. & Nielsen, L.K., 2010. "Rescheduling of Railway Rolling Stock with Dynamic Passenger Flows," ERIM Report Series Research in Management ERS-2010-045-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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    7. Ming Liu & Yueyu Ding & Lihua Sun & Runchun Zhang & Yue Dong & Zihan Zhao & Yiting Wang & Chaoran Liu, 2023. "Green Airline-Fleet Assignment with Uncertain Passenger Demand and Fuel Price," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
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