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A benders decomposition approach for an integrated airline schedule design and fleet assignment problem with flight retiming, schedule balance, and demand recapture

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  • Hanif Sherali
  • Ki-Hwan Bae
  • Mohamed Haouari

Abstract

The airline’s ability to offer flight schedules that provide service to passengers at desired times in competitive markets, while matching demand with an aircraft fleet of suitable size and composition, can significantly impact its profits. In this spirit, optional flight legs can be considered to construct a profitable schedule by optimally selecting among such alternatives in concert with assigning the available aircraft fleet to all the scheduled legs. Examining itinerary-based demands as well as multiple fare-classes can effectively capture network effects and realistic demand patterns. In addition, allowing flexibility on the departure times of scheduled flight legs can increase connection opportunities for passengers, hence yielding robust schedules while saving fleet assignment costs within the framework of an integrated model. Airlines can also capture an adequate market share by balancing flight schedules throughout the day, and recapture considerations can contribute to more realistic accepted demand realizations. We therefore propose in this paper a model that integrates the schedule design and fleet assignment processes while considering flexible flight times, schedule balance, and recapture issues, along with optional legs, path/itinerary-based demands, and multiple fare-classes. A polyhedral analysis is conducted to generate several classes of valid inequalities, which are used along with suitable separation routines to tighten the model representation. Solution approaches are designed by applying Benders decomposition method to the resulting tightened model, and computational results are presented using real data obtained from United Airlines to demonstrate the efficacy of the proposed procedures. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Hanif Sherali & Ki-Hwan Bae & Mohamed Haouari, 2013. "A benders decomposition approach for an integrated airline schedule design and fleet assignment problem with flight retiming, schedule balance, and demand recapture," Annals of Operations Research, Springer, vol. 210(1), pages 213-244, November.
  • Handle: RePEc:spr:annopr:v:210:y:2013:i:1:p:213-244:10.1007/s10479-011-0906-3
    DOI: 10.1007/s10479-011-0906-3
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    5. Xu, Yifan & Adler, Nicole & Wandelt, Sebastian & Sun, Xiaoqian, 2024. "Competitive integrated airline schedule design and fleet assignment," European Journal of Operational Research, Elsevier, vol. 314(1), pages 32-50.
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    7. Masood Kiarashrad & Seyed Hamid Reza Pasandideh & Mohammad Mohammadi, 2021. "A mixed-integer nonlinear optimization model for integrated flight scheduling, fleet assignment, and ticket pricing in competitive market," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(5), pages 596-607, October.
    8. Liang, Zhe & Feng, Yuan & Zhang, Xiaoning & Wu, Tao & Chaovalitwongse, Wanpracha Art, 2015. "Robust weekly aircraft maintenance routing problem and the extension to the tail assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 238-259.
    9. Okan Örsan Özener & Melda Örmeci Matoğlu & Güneş Erdoğan & Mohamed Haouari & Hasan Sözer, 2017. "Solving a large-scale integrated fleet assignment and crew pairing problem," Annals of Operations Research, Springer, vol. 253(1), pages 477-500, June.
    10. Glomb, Lukas & Liers, Frauke & Rösel, Florian, 2022. "A rolling-horizon approach for multi-period optimization," European Journal of Operational Research, Elsevier, vol. 300(1), pages 189-206.
    11. Shengzhi Shao & Hanif D. Sherali & Mohamed Haouari, 2017. "A Novel Model and Decomposition Approach for the Integrated Airline Fleet Assignment, Aircraft Routing, and Crew Pairing Problem," Transportation Science, INFORMS, vol. 51(1), pages 233-249, February.
    12. Ursavas, Evrim, 2017. "A benders decomposition approach for solving the offshore wind farm installation planning at the North Sea," European Journal of Operational Research, Elsevier, vol. 258(2), pages 703-714.
    13. 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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