 Strategic planning in fractional aircraft ownership programsYufeng Yao, Özlem Ergun, Ellis Johnson, William Schultz and J.M. Singleton European Journal of Operational Research, 2008, vol. 189, issue 2, 526-539 Abstract: In the fractional ownership model, the partial owner of an aircraft is entitled to certain flight hours per year, and the management company is responsible for all the operational considerations of the aircraft and for making an aircraft available to the owner at the requested time and place. In the recent years although the industry as a whole has experienced significant growth, most of the major fractional jet management companies have been unprofitable. To increase profitability a management company must minimize its operating costs and increase its crew and aircraft utilization. In this paper, we present a methodology for efficiently scheduling the available resources of a fractional jet management company that takes into consideration the details in real world situations. We then discuss several strategic planning issues, including aircraft maintenance, crew swapping, demand increase and differentiation, and analyze their effects on the resource utilization and profitability. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:189:y:2008:i:2:p:526-539 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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