Highlights Novel mixed-integer nonlinear flight scheduling and fleet assignment optimization model with supply-demand interactions. Demand generation and allocation consistently endogenized using a nested logit model. Least squares piecewise linearization method to approximate the nonlinearities. Computational experiments show the applicability of the approach to mid-size hub-and-spoke networks. A case study for a European carrier highlights the benefits of the approach compared to an inelastic market demand approach.
Abstract Flight scheduling and fleet assignment are important steps of an airline planning process. In light of the reciprocal relationship between air transport supply and demand, a key element of these models is to devise effective methods to both incorporating estimation of total market demand and allocating passengers over the available itineraries in a specific market. In this paper, we present a novel mixed integer nonlinear flight scheduling and fleet assignment optimization model wherein air travel demand generation and allocation are simultaneously and consistently endogenized. Using a nested logit formulation, we jointly model competition among air travel itineraries and appraise the contribution of specific itinerary attributes to demand generation, therefore yielding a more comprehensive and explicit representation of supply-demand interactions. Computational testing based on realistic problem instances reveals that the model can optimize mid-size hub-and-spoke networks within reasonable time. Further analyses illustrate the benefits that can be derived from the application of the proposed approach using real-world data for a major European airline. Results demonstrate that the proposed approach can significantly enhance operating profits by up to 6.9% and better reveal opportunities for demand stimulation against a conventional approach using inelastic trip generation.
Integrated flight scheduling and fleet assignment with improved supply-demand interactions
Transportation Research Part B: Methodological ; 149 ; 162-180
2021-05-02
19 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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