On airlines code-share optimisation: a modelling framework and analysis

Ahmed Abdelghany, Worachat Sattayalekha and Khaled Abdelghany

International Journal of Revenue Management, 2009, vol. 3, issue 3, 307-330

Abstract: This paper presents an optimisation-based modelling framework for evaluating the profitability of an operating carrier's code-share agreements with multiple partnering carriers. The model examines the terms of under-negotiation agreements including flights and the number of seats open for code-share and associated fare discounts. The model provides a recommendation of the set of agreements to be accepted by the air carrier. The model explicitly considers the trade-off between the different agreements as well as the trade-off between the incremental revenue from the code-share agreements and the potential loss of revenue due to the displacement of the non-code-share passengers. A set of experiments that illustrate the model capabilities for hypothetical code-share scenarios is presented.

Keywords: air carriers; airlines; code sharing; code-share agreements; revenue management; optimisation based modelling; simulation. (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijrevm:v:3:y:2009:i:3:p:307-330

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