Integrated optimisation model for airline bank structure and fleet assignment problem

Abstract

The airline decision-making process is intended to solve complex operations planning problems sequentially. As computational power increases so do integrated approaches to solving major airline optimisation problems. In general, network carriers encounter more complex integrated problems of fleet planning, aircraft routing and increasing connectivity in the airline network. Bank optimisation problem addresses creating competitive advantage for airline network carriers, by providing better connectivity to passengers via improving their flight schedules in the airline bank structure. The aim of this study is to determine the optimal fleet to cover all flights in a flight schedule which is designed to improve connectivity in the network. The objective function takes account of the overall fleet allocation profitability on the flight schedule, the total worth of passenger connections, route profits, and the penalty cost for using excess slot. We propose a mixed integer linear programming model for the integrated bank optimisation-fleet assignment problem which can be defined as a specific flight scheduling model. To test the model, we have utilised a dataset from a Turkish carrier. The results from the integrated model show that small changes in the bank structure create more efficient schedule and fleet assignment could increase profitability at the same time. The findings imply that network and schedule planners are able to solve two major problems, simultaneously. Advances in the optimisation techniques will increase the application of the integrated models in the other parts of airline planning world, such as operations, crew planning, revenue management.