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OR Applications in The Airline Industry: Planning

OR applications in the airline industry can be used for long-term, medium-term, and short-term planning as well as execution. Long-term planning involves identifying markets, routes, frequencies, partnerships and fleet requirements. Medium-term planning optimizes crew scheduling and determines revenue and pricing. Short-term operations include re-fleeting aircraft based on demand, recovering from irregular operations like delays, and optimizing flight paths and aircraft loading.

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Srishti Vasdev
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43 views7 pages

OR Applications in The Airline Industry: Planning

OR applications in the airline industry can be used for long-term, medium-term, and short-term planning as well as execution. Long-term planning involves identifying markets, routes, frequencies, partnerships and fleet requirements. Medium-term planning optimizes crew scheduling and determines revenue and pricing. Short-term operations include re-fleeting aircraft based on demand, recovering from irregular operations like delays, and optimizing flight paths and aircraft loading.

Uploaded by

Srishti Vasdev
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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OR Applications in the Airline Industry

Planning
Schedule Planning, Crew Planning and Rostering, Fleet and
Slot Optimization, Resource Optimization
Marketing
Revenue and Price Optimization
Execution
Flight Path Optimization, Aircraft and Crew Recovery, Gate
Optimization, Aircraft Loading

Long Term
Planning
5yrs-18 months

Medium Term
Planning
18-3 months

Operate
3-0 months

Market/Customers to

Slot Optimization

Short-Term Re-fleeting

Serve

Crew Assignment and

Upgrade/Downgrade

Basic Schedule
Structure

Rostering

Equipment

Revenue and Price

Cancel Low-Demand

Partnerships

Optimization

Flights

Long-term
Facilities/Fleet

Recover Aircraft and


Crew

Plan

from Disruptions

Routes and Frequencies

Long-term Planning
Identify Markets to Serve
Select the appropriate mix of markets and service type
Routes / Frequencies
Decide the best routes and frequencies
Optimize the timing of flights to provide best connectivity
Evaluate Partnerships and Alliances
Optimize the choice of partners and flights to partner on
Determine Fleet type and count required
Assign Aircraft (Fleet) to Flights to match supply and Demand
Minimize the number of Aircraft needed to fly the planned schedule

Schedule Optimization

Design and Develop a new schedule given


Hub Structure (departure and arrival banks)
Slot restrictions
Frequency restrictions
Station curfew
Minimum ground times

Fleet Optimization
Assign aircraft type to specific flights to maximize profit
Range constraints
Airport constraints
Regulatory constraints
Maintenance constraints
Crew considerations
Use Homogenous fleet types for a given market
Match supply and demand

Medium Term Planning


Crew Optimization / Rostering
Assign Crew to Flights
Crew duty constraints
Qualifications
Union contracts
Current fleet assignment
Generate Rosters for the Crew
Union contracts
Govt. regulations
Revenue and Price optimization
Determine optimal price points and available inventory
Demand patterns
Type of market (Business / Leisure)
Available capacity

Short Term Operations


Close in Re-Fleeting
Upgrade / Downgrade equipment to match observed
demand
Cancel low-demand flights
Irregular operations
Re-assign aircraft for unscheduled maintenance
Rub-off delays on aircraft availability
Crew recovery
Overtime allocation

Flight Operations
Determine optimal flight path
Optimal fuel level
Burn rate
Cost of fuel
Range
Optimal loading of Aircraft for balance

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