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Optimal Airline Networks, Flight Volumes, and the Number of Crafts for New Low-Cost Carrier in Japan

In: Operations Research Proceedings 2014

Author

Listed:
  • Ryosuke Yabe

    (Waseda University)

  • Yudai Honma

    (The University of Tokyo)

Abstract

Recently, numerousYabe, Ryosuke low-cost carriers (LCCs) have beenHonma, Yudai established and have become popular as a new style of airline service. In Japan, Peach Aviation began business as an LCC in 2012. However, while it is true that some airline companies are suffering from a slump in business, Peach Aviation has succeeded because it set up a hub airport at Kansai International Airport and runs many cash-cow routes. To establish a new LCC, consideration of airline networks is most important for success. Therefore, in this study, we propose a mathematical model to optimize the airline network, flight volume, and number of aircrafts for maximizing a new LCC’s profit supposing a hub-spoke style network, and solve the model as a mathematical programming problem. First, we investigate the case of a single-hub network, and subsequently consider a two-hub network. It was determined that, when both Narita and Kansai International Airports are chosen as hub airports, a new LCC’s profit is maximized.

Suggested Citation

  • Ryosuke Yabe & Yudai Honma, 2016. "Optimal Airline Networks, Flight Volumes, and the Number of Crafts for New Low-Cost Carrier in Japan," Operations Research Proceedings, in: Marco Lübbecke & Arie Koster & Peter Letmathe & Reinhard Madlener & Britta Peis & Grit Walther (ed.), Operations Research Proceedings 2014, edition 1, pages 627-633, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-28697-6_87
    DOI: 10.1007/978-3-319-28697-6_87
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