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Airline Schedule Planning: Integrated Models and Algorithms for Schedule Design and Fleet Assignment

Operations Research and Decision Support, American Airlines, MD 5358, DFW Airport, Texas 75261–9616
Center for Transportation Studies, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139
manoj.lohatepanont{at}aa.com
cbarnhart{at}mit.edu

Constructing a profitable schedule is of utmost importance to an airline because its profitability is critically influenced by its flight offerings. We focus our attention on the steps of the airline schedule planning process involving schedule design and fleet assignment. Airline schedule design involves determining when and where to offer flights such that profits are maximized, and fleet assignment involves assigning aircraft types to flight legs to maximize revenue and minimize operating cost. We present integrated models and solution algorithms that simultaneously optimize the selection of flight legs for and the assignment of aircraft types to the selected flight legs. Preliminary results, based on data from a major U.S. airline, suggest that significant benefits can be achieved.

Key Words: air transportation; airline scheduling; airports; air traffic management; revenue/yield management
History: Received: June 2001; revised: March 2002; revised: May 2002; accepted: May 2002.

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