List of Figures xi
List of Tables xxv
Preface xxvii
Section 11
1 Brands of Airlines3
1.1 Schedule Availability 3
1.1.1 Charter Airlines 3
1.1.2 Scheduled Airlines 4
1.2 Size and Domain of Service 4
1.2.1 Major Airlines 4
1.2.2 National Airlines 4
1.2.3 Regional Airlines 5
1.3 Business Model 5
1.3.1 Legacy Airlines (or Mainline) 5
1.3.2 Lowcost Airlines 6
1.3.3 Ultralowcost Airlines 6
1.4 Ownership 7
1.4.1 Public or State Ownership 7
1.4.2 Private Ownership 7
1.5 Network Structure 8
1.5.1 Hub and Spoke 8
1.5.2 PointtoPoint 8
1.5.3 Hybrid 8
1.6 Transport Service Type 8
1.6.1 Cargo Airlines 8
1.6.2 Passenger and Cargo Airlines 9
1.7 Network Coverage 9
1.7.1 Domestic 9
1.7.2 International 9
2 Airline Network Structure11
2.1 Introduction 11
2.2 Time Bank 14
2.3 Advantages of the Hubandspoke Network 23
2.3.1 Better Network Coverage 23
2.3.2 Mixed Portfolio of Passenger Demand 24
2.3.3 Dominance at the Hub 26
2.3.4 Economy of Scale Operations at the Hub 27
2.4 Limitations of the Hubandspoke Network 27
2.4.1 Congestion at the Hub 27
2.4.2 Schedule Vulnerability to Disruption at the Hub 28
2.4.3 Extended Ground Time for Resources 28
3 Airline Schedule Planning Decisions31
3.1 Definitions 31
3.1.1 Demand Forecasting and Competition Analysis 31
3.1.2 Served Markets 32
3.1.3 Flight Frequency 32
3.1.4 Flight Departure/Arrival Time 32
3.1.5 Fleet Assignment 33
3.1.6 Aircraft Schedule 34
3.1.7 Crew Schedule 35
3.1.8 Gate Assignment 35
3.1.9 Other Resources 36
3.2 Relationships Among Scheduling Decisions 36
3.2.1 Flight Frequency and Fleet Assignment 37
3.2.2 Departure Time and Citypairs 38
3.2.3 Departure Time and Demand 38
3.2.4 Fleet Assignment and Flight Arrival Time 39
3.2.5 Fleet Assignment and Flight Departure Time 40
3.2.6 Flight Departure Time, Arrival Time, and Block Time 40
3.2.7 Flight Departure Time and Aircraft Rotation 42
3.2.8 Flight Schedule and Fleet Assignment Balance 42
3.2.9 Maintenance Rotations and Fleet Assignment 42
3.2.10 Seat Capacity/Frequency and Demand 44
3.2.11 Feet Assignment and Flight Demand 46
3.2.12 Frequency and Departure Time 46
3.2.13 Departure/Arrival Time and Gate Availability 48
3.2.14 Departure Time and Crew Schedule 49
4 Measures of Performance51
4.1 Operating Cost 51
4.2 Revenue or Income 52
4.3 Net Income (Net Profit) and Operating Profit 53
4.4 Flights 53
4.5 Available Seat Miles 55
4.6 Cost per Available Seat Miles (CASM) 56
4.7 CASM EX or CASMEX Fuel 57
4.8 Passengers 58
4.9 Revenue Passenger Miles (RPM) 60
4.10 Total Revenue per Available Seat Mile (TRASM or Simply RASM) 61
4.11 Passenger Revenue per Available Seat Mile (PRASM) 61
4.12 Passenger Yield 62
4.13 Average Load Factor (LF) 62
4.14 Block Hours 66
4.15 Aircraft Utilization 66
4.16 Stage Length 66
4.17 Ontime Performance Measures 67
4.18 Aircraft Life Cycle 67
4.19 Aircraft Number and Diversification 68
5 Freedoms of Air Service75
6 Slot Availability81
6.1 Level 1 Airports 82
6.2 Level 2 Airports 82
6.3 Level 3 Airports 84
Section 291
7 Feasibility of a New Route93
7.1 Business Plan 94
7.1.1 Proposed Property 94
7.1.2 Identifying Demand Feeders 94
7.1.3 Identifying the Size of the Demand Feeders 95
7.1.4 Analyzing Competition 96
7.1.5 Estimating Market Share 96
7.1.6 Estimating Total Demand and Unconstrained Market Share 101
7.2 Application of Feasibility Study on a New Airline Route 102
7.2.1 The Proposed Route 103
7.2.2 Identifying Demand Feeders 103
7.2.3 Identifying the Size of the Demand Feeding Markets 104
7.2.4 Analyzing Competition 105
7.2.5 Estimating Market Share 106
7.2.6 Estimating Total Flight Demand (Unconstrained Demand) 110
8 Market Share Models113
8.1 What Is a Model? 113
8.2 Model and Historical Data 114
8.3 Model Development Example 115
8.4 Categorical Dependent Variable 119
8.5 Introduction to Discrete Choice Models 120
8.6 Itinerary Choice Models 123
8.7 Applying Itinerary Choice Models: An Example 131
9 Profitability Forecasting Models139
9.1 Introduction 139
9.2 Model Input 140
9.3 Itinerary Builder Module 143
9.4 How the Model Works? 143
9.5 Load Factor, Market Share, and Market Concentration 144
10 Partnership Agreements 149
10.1 Introduction 149
10.2 Regional Airlines 150
10.3 Codeshare Agreements 151
10.4 Airline Alliances 154
10.5 Distribution Channels and Point of Sale 154
10.6 Loyalty Programs 156
10.7 Corporate Travel 156
Section 3159
11 Basic Fleet Assignment Model (FAM)161
11.1 Introduction 161
11.2 Graphical Representation: Timestaggered Diagram 164
11.3 Problem Input 167
11.4 Problem Definition and Formulation 170
11.5 The Constraints of the Basic Fleet Assignment Problem 172
11.5.1 The Coverage Constraints 172
11.5.2 Resources Constraints 173
11.5.3 The Throughflights Constraints 173
11.5.4 The Balance Constraints 174
12 A Walkthrough Example of the Basic Fleet Assignment Model175
12.1 Problem Definition 175
12.2 The Objective Function 178
12.3 The Constraints 178
12.4 Interconnection Nodes 183
13 Application of the Basic Fleet Assignment Model193
13.1 Introduction 193
13.2 Problem Input 193
13.3 Setting the Problem in Excel Solver 203
13.4 Solution Interpretation 208
13.5 Resources Constraints 210
13.6 Additional Constraints 213
Section 4215
14 The Schedule Adjustment Problem217
14.1 Introduction 217
14.2 Schedule Adjustment Decisions 218
14.3 Problem Formulation 219
15 Examples on the Schedule Adjustment Problem221
15.1 Flight Deletion 221
15.2 Flight Addition 228
15.3 Flight Departure Time 235
Section 5243
16 Itinerarybased Fleet Assignment Model (IFAM)245
16.1 Introduction 245
16.2 Spill Cost Estimates and Network Effect 246
16.3 Demand Recapture 248
16.4 The FlightItinerary Interaction 251
16.5 The Itinerarybased Fleet Assignment Problem 254
17 Example on IFAM255
17.1 Problem Definition 255
17.2 The Constraints of the IFAM Example 258
17.3 The Objective Function 259
17.4 Problem Solution 270
18 Comparing FAM and IFAM279
18.1 Problem Definition 279
18.2 Problem Solution 285
Section 6289
19 Integrated Schedule Design with the Itinerarybased Fleet Assignment Model (ISDIFAM)291
19.1 Introduction 291
19.2 Example of Demand and Supply Interactions 292
19.3 Aspects of DemandSupply Interactions: Demand Correction Factors 293
19.4 The Schedule Design and Adjustment Problem 298
19.4.1 The Objective Function of ISDIFAM 298
19.4.2 The Constraints of the ISDIFAM 298
20 Example on ISDIFAM301
20.1 Problem Definition 301
20.2 The Constraints of the Problem 304
20.3 The Objective Function 305
20.4 Problem Solving 324
20.5 Solution Interpretation 327
20.6 Changing the Operations Cost 331
Section 7345
21 Schedule Robustness347
21.1 Introduction 347
21.2 Lesspronetodisruptions Schedules: The Concept of Adding Slack Times 348
21.2.1 Slack in Flight Block Time 348
21.2.2 Slack Time of a Connecting Resource 349
21.2.3 Slack Time of an Inbound Flight 351
21.3 Recoverable Flight Schedules 353
21.3.1 Background 353
21.3.2 Station Purity 355
21.3.3 Short Cancellation Cycles 356
21.3.4 Maximizing Swapping Possibility 357
21.3.5 Allocating Standby and Reserve Crew 358
References 359
Index 369
