Atasoy, B., Salani, M., and Bierlaire, M. (2011)

Integrated schedule planning with supply-demand interactions for a new generation of aircrafts

International Conference on Operations Research, Zurich, Switzerland

We present an integrated schedule planning model where the décisions of schedule design, fleeting and pricing are made simultaneously. Pricing is integrated through a logit demand model where itinerary choice is modeled by defining the utilities of the alternative itineraries. Spill and recapture effects are appropriately incorporated in the model by using a logit formulation similar to the demand model. Furthermore class segmentation is considered so that the model decides the allocation of the seats to each cabin class. We propose a heuristic algorithm based on Lagrangian relaxation to deal with the high complexity of the resulting mixed integer nonlinear problem.