Article ID: | iaor20127848 |
Volume: | 40 |
Issue: | 3 |
Start Page Number: | 793 |
End Page Number: | 804 |
Publication Date: | Mar 2013 |
Journal: | Computers and Operations Research |
Authors: | Wallace Mark, Boland Natashia, Waterer Hamish, Akartunal Kerem, Evans Ian |
Keywords: | vehicle routing & scheduling, combinatorial optimization, programming: multiple criteria, statistics: empirical, statistics: inference |
This paper is the second of two papers entitled ‘Airline Planning Benchmark Problems’, aimed at developing benchmark data that can be used to stimulate innovation in airline planning, in particular, in flight schedule design and fleet assignment. The former has, to date, been under‐represented in the optimisation literature, due in part to the difficulty of obtaining data that adequately reflects passenger choice, and hence schedule revenue. Revenue models in airline planning optimisation only roughly approximate the passenger decision process. However, there is a growing body of literature giving empirical insights into airline passenger choice. Here we propose a new paradigm for passenger modelling, that enriches our representation of passenger revenue, in a form designed to be useful for optimisation. We divide the market demand into market segments, or