Single-Leg Airline Revenue Management with Overbooking

Airline revenue management is about identifying the maximum revenue seat allocation policies. Since a major loss in revenue results from cancellations and no-show passengers, over the years overbooking has received a significant attention in the literature. In this study, we propose new models for static and dynamic single-leg overbooking problems. In the static case, we … Read more

Robust Airline Schedule Planning: Minimizing Propagated Delay in an Integrated Routing and Crewing Framework

To retain a degree of tractability, the airline scheduling problem has traditionally been sequentially decomposed into various stages (eg. schedule generation, fleet assignment, aircraft routing, and crew pairing), with the decisions from one stage imposed upon the decision making process in subsequent stages. Whilst this approach greatly simpli es the solution process, it unfortunately fails to … Read more

A MATHEMATICAL PROGRAMMING MODEL FOR THE DESIGN OF AIRPORT CONFIGURATIONS

A mathematical programming model for assessing the design of an optimal airport topology is presented herein. It takes into account the efficient and safe taxiing of aircraft on the ground. We balance a set of conflicting factors that depend directly on aircraft trajectories on the ground, such as the number of arriving and departing flights … Read more

What Multistage Stochastic Programming Can Do for Network Revenue Management

Airlines must dynamically choose how to allocate their flight capacity to incoming travel demand. Because some passengers take connecting flights, the decisions for all network flights must be made simultaneously. To simplify the decision making process, most practitioners assume demand is deterministic and equal to average demand. We propose a multistage stochastic programming approach that … Read more

Pointillism via Linear Programming

Pointillism is a painting technique in which the painter places dots of paint on the canvas in such a way that they blend together into desired forms when viewed from a distance. In this brief note, we describe how to use linear programming to construct a pointillist portrait. CitationDept. of Mathematics, Oberlin College, Oberlin, OH … Read more

Optimal Pricing Policies for Perishable Products

In many industrial settings, managers face the problem of establishing a pricing policy that maximizes the revenue from selling a given inventory of items by a fixed deadline, with the full inventory of items being available for sale from the beginning of the selling period. This problem arises in a variety of industries, including the … Read more

Maximising Revenue in the Airline Industry Under One-Way Pricing

This paper describes a methodology that has been implemented in a major British airline to find the optimal price to charge for airline tickets under one-way pricing. An analytical model has been developed to describe the buying behaviour of customers for flights over the selling period. Using this model and a standard analytical method for … Read more

Using Heuristics to Solve the Dedicated Aircraft Recovery Problem

The Dedicated Aircraft Recovery Problem (DARP) involves decisions concerning aircraft to flight assignments in situations where unforeseen events have disrupted the existing flight schedule, e.g. bad weather causing flight delays. The dedicated aircraft recovery problem aims to recover these flight schedules through a series of reassignments of aircraft to flights, delaying of flights and cancellations … Read more

Disruption Management – Operations Research between planning and execution

For a large number of applications Operations Research has a proven track record: it can deliver high quality solutions for planning problems. Important examples can be found in the airline industry, logistics and production management. This report will describe real-world examples of a novel way of applying Operations Research: As plans have to be adjusted … Read more

On some difficult linear programs coming from Set Partitioning

We deal with the linear programming relaxation of set partitioning problems arising in airline crew scheduling. Some of these linear programs have been extremely difficult to solve with the traditional algorithms. We have used an extension of the subgradient algorithm, the volume algorithm, to produce primal solutions that might violate the constraints by at most … Read more