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Airline Fleet Assignment with Enhanced Revenue Modeling

Author

Listed:
  • Cynthia Barnhart

    (Department of Civil and Environmental Engineering, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Amr Farahat

    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Manoj Lohatepanont

    (Department of Civil Engineering, Chulalongkorn University, Bangkok 10330, Thailand)

Abstract

The airline fleet assignment problem addresses the question of how to best assign aircraft fleet types to scheduled flight legs. This paper presents the subnetwork fleet assignment model: a model that employs composite decision variables representing the simultaneous assignment of fleet types to subnetworks of one or more flight legs. The formulation is motivated by the need to better model the revenue side of the objective function. We present a solution method designed to balance revenue approximation and model tractability. Computational results suggest that the approach yields profit improvements over comparable models and that it is computationally tractable for problems of practical size.

Suggested Citation

  • Cynthia Barnhart & Amr Farahat & Manoj Lohatepanont, 2009. "Airline Fleet Assignment with Enhanced Revenue Modeling," Operations Research, INFORMS, vol. 57(1), pages 231-244, February.
    • Handle: RePEc:inm:oropre:v:57:y:2009:i:1:p:231-244
    DOI: 10.1287/opre.1070.0503
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    References listed on IDEAS

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    2. Scotti, Davide & Volta, Nicola, 2017. "Profitability change in the global airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 102(C), pages 1-12.
    3. Renold, Manuel & Vollenweider, Janik & Mijović, Nemanja & Kuljanin, Jovana & Kalić, Milica, 2023. "Methodological framework for a deeper understanding of airline profit cycles in the context of disruptive exogenous impacts," Journal of Air Transport Management, Elsevier, vol. 106(C).
    4. Gillen, David & Jacquillat, Alexandre & Odoni, Amedeo R., 2016. "Airport demand management: The operations research and economics perspectives and potential synergies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 495-513.
    5. Christina Büsing & Daniel Kadatz & Catherine Cleophas, 2019. "Capacity Uncertainty in Airline Revenue Management: Models, Algorithms, and Computations," Transportation Science, INFORMS, vol. 53(2), pages 383-400, March.
    6. Luis Cadarso & Vikrant Vaze & Cynthia Barnhart & Ángel Marín, 2017. "Integrated Airline Scheduling: Considering Competition Effects and the Entry of the High Speed Rail," Transportation Science, INFORMS, vol. 51(1), pages 132-154, February.
    7. Catherine Cleophas & Daniel Kadatz & Sebastian Vock, 2017. "Resilient revenue management: a literature survey of recent theoretical advances," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(5), pages 483-498, October.
    8. Oliver Faust & Jochen Gönsch & Robert Klein, 2017. "Demand-Oriented Integrated Scheduling for Point-to-Point Airlines," Transportation Science, INFORMS, vol. 51(1), pages 196-213, February.
    9. Birolini, Sebastian & Antunes, António Pais & Cattaneo, Mattia & Malighetti, Paolo & Paleari, Stefano, 2021. "Integrated flight scheduling and fleet assignment with improved supply-demand interactions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 162-180.
    10. Ada Y. Barlatt & Amy Cohn & Oleg Gusikhin & Yakov Fradkin & Rich Davidson & John Batey, 2012. "Ford Motor Company Implements Integrated Planning and Scheduling in a Complex Automotive Manufacturing Environment," Interfaces, INFORMS, vol. 42(5), pages 478-491, October.
    11. Hanif D. Sherali & Ki-Hwan Bae & Mohamed Haouari, 2013. "An Integrated Approach for Airline Flight Selection and Timing, Fleet Assignment, and Aircraft Routing," Transportation Science, INFORMS, vol. 47(4), pages 455-476, November.
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    13. Jing Zhou, 2023. "Airline capacity distribution under financial budget and resource consideration," Journal of Combinatorial Optimization, Springer, vol. 45(5), pages 1-29, July.

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