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

Author

Listed:
  • Ahmed Abdelghany
  • Worachat Sattayalekha
  • Khaled Abdelghany

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.

Suggested Citation

  • Ahmed Abdelghany & Worachat Sattayalekha & Khaled Abdelghany, 2009. "On airlines code-share optimisation: a modelling framework and analysis," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 3(3), pages 307-330.
  • Handle: RePEc:ids:ijrevm:v:3:y:2009:i:3:p:307-330
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    Citations

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    Cited by:

    1. Alderighi, Marco & Gaggero, Alberto A. & Piga, Claudio A., 2015. "The effect of code-share agreements on the temporal profile of airline fares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 42-54.
    2. Chun, So Yeon & Kleywegt, Anton J & Shapiro, Alexander, 2011. "Revenue management in resource exchange seller alliances," MPRA Paper 34657, University Library of Munich, Germany.
    3. Max Gerlach & Catherine Cleophas & Natalia Kliewer, 2013. "Airline Codeshare Alliances," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(3), pages 153-163, June.

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