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Carrier collaboration with endogenous fleets and load factors when networks are complementary

Author

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  • Czerny, Achim I.
  • van den Berg, Vincent A.C.
  • Verhoef, Erik T.

Abstract

This paper analyzes the effect of carrier collaboration on fleet capacity, fleet structures in terms of the number and the size of vehicles, and load factors. The model features complementary networks, scheduling, price elastic demands, and demand uncertainty. For the case of a given number of vehicles, the analysis shows that carrier collaboration increases vehicle sizes (thus, fleet capacity) if marginal seat costs are low while fleet capacity remains unchanged if marginal seat costs are high. If both vehicle sizes and vehicle numbers can be varied, then collaboration will always increase vehicle numbers and fleet capacity, while the effects on vehicle sizes and, thus, also load factors, are ambiguous and therewith hard to predict. Numerical simulations indicate that collaboration increases expected load factors also when the number of vehicles is endogenous.

Suggested Citation

  • Czerny, Achim I. & van den Berg, Vincent A.C. & Verhoef, Erik T., 2016. "Carrier collaboration with endogenous fleets and load factors when networks are complementary," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 285-297.
  • Handle: RePEc:eee:transb:v:94:y:2016:i:c:p:285-297
    DOI: 10.1016/j.trb.2016.09.005
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    References listed on IDEAS

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    Cited by:

    1. Daniel Rijken & Vincent (V.A.C.) van den Berg, 2017. "The Impact of Airline Mergers on Quality: Why Do Different Mergers Have Such Different Effects?," Tinbergen Institute Discussion Papers 17-079/VIII, Tinbergen Institute.
    2. repec:eee:transb:v:104:y:2017:i:c:p:483-500 is not listed on IDEAS

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