Competitive integrated airline schedule design and fleet assignment

Yifan Xu, Nicole Adler, Sebastian Wandelt and Xiaoqian Sun

European Journal of Operational Research, 2024, vol. 314, issue 1, 32-50

Abstract: Airline profits are significantly influenced by competitive timetables that match passenger demand to fleet resources. In this research, we develop an integrated, mixed-integer optimization model to derive a comprehensive flight schedule, fleet assignment, and average airfares jointly. Passenger choice behavior is incorporated through a prospect theory-adjusted, nested, multinomial logit model which estimates market share. The competitive fleet assignment and schedule design (CFSD) formulation is embedded in a differentiated Bertrand game, such that each transport operator optimizes their best response function connected through the market share model. To solve the integrated optimization problem efficiently, a hybrid algorithm is developed that combines stabilized column generation with a large neighborhood search algorithm.

Keywords: Airline scheduling; Non-cooperative game; Column generation; Prospect theory (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:314:y:2024:i:1:p:32-50

DOI: 10.1016/j.ejor.2023.09.029

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