Dynamic airline scheduling

Dynamic airline scheduling

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Article ID: iaor200970700
Country: United States
Volume: 43
Issue: 3
Start Page Number: 336
End Page Number: 354
Publication Date: Aug 2009
Journal: Transportation Science
Authors: ,
Keywords: scheduling
Abstract:

Demand stochasticity is a major challenge for the airlines in their quest to produce profit maximizing schedules. Even with an optimized schedule, many flights on departure have empty seats while others suffer a lack of seats to accommodate passengers who desire to travel. We approach this challenge, recognizing that demand forecast quality for a particular departure date improves as it approaches, by developing a dynamic scheduling approach that reoptimizes elements of the flight schedule during the passenger booking process. The goal is to match capacity to demand given the many operational constraints that restrict possible assignments. We leverage flight retiming as a new dynamic scheduling mechanism and develop a reoptimization model that integrates both flight retiming and refleeting. Our reoptimization approach, redesigning the flight schedule at regular intervals, uses information from both revealed booking data and improved forecasts available at later reoptimizations. We conduct experiments using data from a major U.S. airline and demonstrate that significant potential profitability improvements are achieved.

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