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Fleeting with Passenger and Cargo Origin-Destination Booking Control

Author

Listed:
  • Rivi Sandhu

    (Department of Mechanical and Industrial Engineering, University of Illinois at Urbana-Champaign, Urbana, Illinois 61801)

  • Diego Klabjan

    (Department of Mechanical and Industrial Engineering, University of Illinois at Urbana-Champaign, Urbana, Illinois 61801)

Abstract

In tactical planning of an airline, fleeting or capacity planning is the process of assigning an equipment type to each flight. The existing fleeting models take into account only passenger flow while completely ignoring cargo traffic. We propose a fleeting model that captures both passenger and cargo revenue. In addition, the model integrates fleeting and a bid price based origin-destination (O-D) revenue management approach. We use Benders decomposition to solve the model. We give extensive computational experiments on data obtained by a major carrier.

Suggested Citation

  • Rivi Sandhu & Diego Klabjan, 2006. "Fleeting with Passenger and Cargo Origin-Destination Booking Control," Transportation Science, INFORMS, vol. 40(4), pages 517-528, November.
    • Handle: RePEc:inm:ortrsc:v:40:y:2006:i:4:p:517-528
    DOI: 10.1287/trsc.1060.0157
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    References listed on IDEAS

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    1. Cynthia Barnhart & Timothy S. Kniker & Manoj Lohatepanont, 2002. "Itinerary-Based Airline Fleet Assignment," Transportation Science, INFORMS, vol. 36(2), pages 199-217, May.
    2. Diego Klabjan, 2005. "Large-Scale Models in the Airline Industry," Springer Books, in: Guy Desaulniers & Jacques Desrosiers & Marius M. Solomon (ed.), Column Generation, chapter 0, pages 163-195, Springer.
    3. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
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    5. Cynthia Barnhart & Ellis L. Johnson & George L. Nemhauser & Martin W. P. Savelsbergh & Pamela H. Vance, 1998. "Branch-and-Price: Column Generation for Solving Huge Integer Programs," Operations Research, INFORMS, vol. 46(3), pages 316-329, June.
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    Cited by:

    1. Delgado, Felipe & Mora, Julio, 2021. "A matheuristic approach to the air-cargo recovery problem under demand disruption," Journal of Air Transport Management, Elsevier, vol. 90(C).
    2. Yuri Levin & Mikhail Nediak & Huseyin Topaloglu, 2012. "Cargo Capacity Management with Allotments and Spot Market Demand," Operations Research, INFORMS, vol. 60(2), pages 351-365, April.
    3. Long Gao & Jim (Junmin) Shi & Michael F. Gorman & Ting Luo, 2020. "Business Analytics for Intermodal Capacity Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 310-329, March.
    4. Wai Hung Wong & Anming Zhang & Yer Van Hui & Lawrence C. Leung, 2009. "Optimal Baggage-Limit Policy: Airline Passenger and Cargo Allocation," Transportation Science, INFORMS, vol. 43(3), pages 355-369, August.
    5. Delgado, Felipe & Trincado, Ricardo & Pagnoncelli, Bernardo K., 2019. "A multistage stochastic programming model for the network air cargo allocation under capacity uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 292-307.
    6. Delgado, Felipe & Sirhan, Cristóbal & Katscher, Mathias & Larrain, Homero, 2020. "Recovering from demand disruptions on an air cargo network," Journal of Air Transport Management, Elsevier, vol. 85(C).
    7. Tatsiana Levina & Yuri Levin & Jeff McGill & Mikhail Nediak, 2011. "Network Cargo Capacity Management," Operations Research, INFORMS, vol. 59(4), pages 1008-1023, August.
    8. Yuen, Andrew & Zhang, Anming & Hui, Yer Van & Leung, Lawrence C. & Fung, Michael, 2017. "Is developing air cargo airports in the hinterland the way of the future?," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 15-25.
    9. Lin, Danping & Lee, Carman Ka Man & Yang, Jilin, 2017. "Air cargo revenue management under buy-back policy," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 53-63.

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