Robust Approach for Concurrent Aircraft Design and Airline Network Design

Conceptual aircraft design directly impacts the structure of an airline’s route network and ability to service demand for various ticket itineraries between origin and destination city pairs. The decisions made in allocating new aircraft to serve predicted future demand of various ticket itineraries affects an airline’s risk and profit potential. Therefore, choices on the selection of target market travel itineraries to be served and design requirements of new, yet-to-be-introduced aircraft directly govern the tradeoff of risk against potential profit. This paper presents a concurrent engineering strategy for an airline that wishes to investigate the impact that aircraft design choices and target market capture decisions have on tradeoffs between expected profit and risk in serving particular demand itineraries. The approach considers the integrated domains of aircraft design, airline operations, and passenger demand within the context of a mathematical programming problem. More specifically, innovations ...

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