Aircraft replacement scheduling: A dynamic programming approach

Chaug-Ing Hsu, Hui-Chieh Li, Su-Miao Liu and Ching-Cheng Chao

Transportation Research Part E: Logistics and Transportation Review, 2011, vol. 47, issue 1, 41-60

Abstract: This study developed a stochastic dynamic programming model to optimize airline decisions regarding purchasing, leasing, or disposing of aircraft over time. Grey topological models with Markov-chain were employed to forecast passenger traffic and capture the randomness of the demand. The results show that severe demand fluctuations would drive the airline to lease rather than to purchase its aircrafts. This would allow greater flexibility in fleet management and allows for matching short-term variations in the demand. The results of this study provide a useful reference for airlines in their replacement decision-making procedure by taking into consideration the fluctuations in the market demand and the status of the aircraft.

Keywords: Dynamic; programming; Fleet; planning; Aircraft; replacement; schedule (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554510000773
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:transe:v:47:y:2011:i:1:p:41-60

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().