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On airlines code-share optimisation: a modelling framework and analysis

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  • Ahmed Abdelghany
  • Worachat Sattayalekha
  • Khaled Abdelghany
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    Abstract

    This paper presents an optimisation-based modelling framework for evaluating the profitability of an operating carrier's code-share agreements with multiple partnering carriers. The model examines the terms of under-negotiation agreements including flights and the number of seats open for code-share and associated fare discounts. The model provides a recommendation of the set of agreements to be accepted by the air carrier. The model explicitly considers the trade-off between the different agreements as well as the trade-off between the incremental revenue from the code-share agreements and the potential loss of revenue due to the displacement of the non-code-share passengers. A set of experiments that illustrate the model capabilities for hypothetical code-share scenarios is presented.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Revenue Management.

    Volume (Year): 3 (2009)
    Issue (Month): 3 ()
    Pages: 307-330

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    Handle: RePEc:ids:ijrevm:v:3:y:2009:i:3:p:307-330

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    Web page: http://www.inderscience.com/browse/index.php?journalID=99

    Related research

    Keywords: air carriers; airlines; code sharing; code-share agreements; revenue management; optimisation based modelling; simulation.;

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    Cited by:
    1. Max Gerlach & Catherine Cleophas & Natalia Kliewer, 2013. "Airline Codeshare Alliances," Business & Information Systems Engineering, Springer, Springer, vol. 5(3), pages 153-163, June.
    2. Chun, So Yeon & Kleywegt, Anton & Shapiro, Alexander, 2013. "Resource Exchange Seller Alliances," MPRA Paper 49759, University Library of Munich, Germany.

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