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A decision support model for establishing an air taxi service: a case study

Author

Listed:
  • K Fagerholt

    (Norwegian University of Science and Technology)

  • B A Foss

    (Norwegian University of Science and Technology)

  • O J Horgen

    (Norwegian University of Science and Technology)

Abstract

Recent availability of relatively cheap small jet aircraft creates opportunities for a new air transport business: Air taxi, an on-demand service in which travellers call in one or a few days in advance to book transportation. In this paper, we present a methodology and simulation study supporting important strategic decisions, like for instance determining the required number of aircraft, for a company planning to establish an air taxi service in Norway. The methodology is based on a module simulating incoming bookings, built around a heuristic for solving the underlying dial-a-flight problem. The heuristic includes a separate method for solving the important subproblem of determining the best distribution of waiting time along a single aircraft schedule. The methodology has proved to provide reliable decision support to the company.

Suggested Citation

  • K Fagerholt & B A Foss & O J Horgen, 2009. "A decision support model for establishing an air taxi service: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1173-1182, September.
    • Handle: RePEc:pal:jorsoc:v:60:y:2009:i:9:d:10.1057_palgrave.jors.2602635
    DOI: 10.1057/palgrave.jors.2602635
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    Cited by:

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