Airline schedule planning: integrated models and algorithms for schedule design and fleet assignment

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 and the assignment of aircraft types to the selected flight legs. Preliminary results, based on data from a major US airline, suggest that significant benefits can be achieved.