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

Ryosuke Yabe () and Yudai Honma ()
Additional contact information
Ryosuke Yabe: Waseda University
Yudai Honma: The University of Tokyo

A chapter in Operations Research Proceedings 2014, 2016, pp 627-633 from Springer

Abstract: 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.

Keywords: Sales Management; Airline Network; Minimize Transportation Cost; Service Trip; Legacy Carrier (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:oprchp:978-3-319-28697-6_87

Ordering information: This item can be ordered from
http://www.springer.com/9783319286976

DOI: 10.1007/978-3-319-28697-6_87

Access Statistics for this chapter

More chapters in Operations Research Proceedings from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().