Airline route network expansion: Modelling the benefits of slot purchases

Danica Babic and Milica Kalic

Journal of Air Transport Management, 2012, vol. 23, issue C, 25-30

Abstract: This paper describes a decision-making model for estimating the value of airport slots for airlines. Assuming that an airline wants to improve its flight schedule by adding new slots to its portfolio the model would enable it to investigate if such a purchase of slots in the secondary market would be profitable. The model outputs are the new flight schedule, the years necessary to recoup the initial outlay in buying the new slots, and the number of potential connections that the airline could realize if the new slots are introduced. The solutions are feasible from the aspect of aircraft availability for new flights, the realized profit for an airline, and finally, an acceptable pay-off period for the purchased slots. The model is tested on real data from a mid-sized European airline.

Keywords: Airport slots auctions; Airline schedules; Airline profit; Airline network expansions (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969699712000695
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:23:y:2012:i:c:p:25-30

DOI: 10.1016/j.jairtraman.2012.03.002

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().