A cryptographic cloud-based approach for the mitigation of the airline cargo cancellation problem

Abstract In order to keep in good long-term relationships with their main customers, Airline Cargo companies do not impose any fee for last minute cancellations of shipments. As a result, customers can book the same shipment on several cargo companies. Cargo companies try to balance cancellations by a corresponding volume of overbooking. However, the considerable uncertainty in the number of cancellations does not allow to fine-tune the optimal overbooking level, causing losses. In this work, we show how the deployment of cryptographic techniques, enabling the computation on private information of customers and companies data can improve the overall service chain, allowing for striking and enforcing better agreements. We propose a query system based on proxy re-encryption and show how the relevant information can be extracted, still preserving the privacy of customers’ data. Furthermore, we provide a Game Theoretic model of the use case scenario and show that it allows a more accurate estimate of the cancellation rates. This supports the reduction of the uncertainty and allows to better tune the overbooking level.