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A benders decomposition approach for an integrated airline schedule design and fleet assignment problem with flight retiming, schedule balance, and demand recapture

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  • Hanif Sherali
  • Ki-Hwan Bae
  • Mohamed Haouari

Abstract

The airline’s ability to offer flight schedules that provide service to passengers at desired times in competitive markets, while matching demand with an aircraft fleet of suitable size and composition, can significantly impact its profits. In this spirit, optional flight legs can be considered to construct a profitable schedule by optimally selecting among such alternatives in concert with assigning the available aircraft fleet to all the scheduled legs. Examining itinerary-based demands as well as multiple fare-classes can effectively capture network effects and realistic demand patterns. In addition, allowing flexibility on the departure times of scheduled flight legs can increase connection opportunities for passengers, hence yielding robust schedules while saving fleet assignment costs within the framework of an integrated model. Airlines can also capture an adequate market share by balancing flight schedules throughout the day, and recapture considerations can contribute to more realistic accepted demand realizations. We therefore propose in this paper a model that integrates the schedule design and fleet assignment processes while considering flexible flight times, schedule balance, and recapture issues, along with optional legs, path/itinerary-based demands, and multiple fare-classes. A polyhedral analysis is conducted to generate several classes of valid inequalities, which are used along with suitable separation routines to tighten the model representation. Solution approaches are designed by applying Benders decomposition method to the resulting tightened model, and computational results are presented using real data obtained from United Airlines to demonstrate the efficacy of the proposed procedures. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Hanif Sherali & Ki-Hwan Bae & Mohamed Haouari, 2013. "A benders decomposition approach for an integrated airline schedule design and fleet assignment problem with flight retiming, schedule balance, and demand recapture," Annals of Operations Research, Springer, vol. 210(1), pages 213-244, November.
  • Handle: RePEc:spr:annopr:v:210:y:2013:i:1:p:213-244:10.1007/s10479-011-0906-3
    DOI: 10.1007/s10479-011-0906-3
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    5. Shengzhi Shao & Hanif D. Sherali & Mohamed Haouari, 2017. "A Novel Model and Decomposition Approach for the Integrated Airline Fleet Assignment, Aircraft Routing, and Crew Pairing Problem," Transportation Science, INFORMS, vol. 51(1), pages 233-249, February.
    6. Ursavas, Evrim, 2017. "A benders decomposition approach for solving the offshore wind farm installation planning at the North Sea," European Journal of Operational Research, Elsevier, vol. 258(2), pages 703-714.
    7. Abdelghany, Ahmed & Abdelghany, Khaled & Azadian, Farshid, 2023. "The airline seat capacity allocation problem: An expected marginal profit approach," Journal of Air Transport Management, Elsevier, vol. 112(C).
    8. Birolini, Sebastian & Antunes, António Pais & Cattaneo, Mattia & Malighetti, Paolo & Paleari, Stefano, 2021. "Integrated flight scheduling and fleet assignment with improved supply-demand interactions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 162-180.
    9. Ming Liu & Yueyu Ding & Lihua Sun & Runchun Zhang & Yue Dong & Zihan Zhao & Yiting Wang & Chaoran Liu, 2023. "Green Airline-Fleet Assignment with Uncertain Passenger Demand and Fuel Price," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    10. Kenan, Nabil & Diabat, Ali & Jebali, Aida, 2018. "Codeshare agreements in the integrated aircraft routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 272-295.
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