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Revenue management under demand driven dispatch

IP.com Disclosure Number: IPCOM000128130D
Original Publication Date: 1999-Dec-31
Included in the Prior Art Database: 2005-Sep-15
Document File: 4 page(s) / 18K

Publishing Venue

Software Patent Institute

Related People

Barocio Cots, Ruben: AUTHOR [+3]

Related Documents

http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1999-108: URL

Abstract

Demand Driven Dispatch is an operational mode by which airlines can dynamically reassign aircraft types of the same family but of differing capacities to better match capacity with demand in a profit maximizing way. Current algorithms for dynamic reassignment of aircraft types suggest that the feet assignment problem be so,ved repeatedly during the booking horizon of the pool of flights being considered in the type assignment model. This approach has been shown to produce a 1% to 5% improvement in operating profits when compared to the static fleet assignment currently practiced by airlines.

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 This record is the front matter from a document that appears on a server at MIT and is used through permission from MIT. See http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1999-108 for copyright details and for the full document in image form.

Revenue Management under Demand Driven Dispatch

by

Ruben Barocio Cots
B.S., Industrial and Systems Engineering ITESM,1995 Submitted in partial fulfillment of the requirements for the degree of Master of Science in Transportation

at the Massachusetts Institute of Technology

June 1999
(c) 1999 Ruben Barocio Cots. All rights reserved

THE AUTHOR HEREBY GRANTS TO M.I.T. PERMISSION TO REPRODUCE AND TO DISTRIBUTE COPIES OF THIS THESIS DOCUMENT IN WHOLE OR IN PART.

SIGNATURE OF author: [[signature omitted]]

Department of Aeronautics and Astronautics Department of Civil and Environmental Engineering
May 14, 1999
CERTIFIED BY: [[SIGNATURE OMITTED]]

Peter P. Belobaba

Associate Professor of Aeronautics and Astronautics Thesis Supervisor ACCEPTED BY: [[SIGNATURE OMITTED]]

Jaime Peraire

Chairman, Departmental Committee on Graduate Students ARCHIVES MASSACHUSETTS INSTITUTE OF TECHNOLOGY LIBRARIES JUL 15 1999

Massachusetts Institute of Technology Page 1 Dec 31, 1999

Page 2 of 4

Revenue management under demand driven dispatch

Revenue Management under Demand Driven Dispatch

by

Ruben Barocio Cots

Submitted to the Department of Aeronautics and Astronautics and the Department of Civil and Environmental Engineering on May 14, 1999, in partial fulfillment of the requirements for the degrees of Master of Science in Aeronautics and Astronautics and Master of Science in Transportation

Abstract

Demand Driven Dispatch is an operational mode by which airlines can dynamically reassign aircraft types of the same family but of differing capacities to better match capacity with demand in a profit maximizing way. Current algorithms for dynamic reassignment of aircraft types suggest that the feet assignment problem be so,ved repeatedly during the booking horizon of the pool of flights being considered in the type assignment model. This approach has been shown to produce a 1% to 5% improvement in operating profits when compared to the static fleet assignment currently practiced by airlines.

In our work we formalize and explore the necessary interaction between a revenue management model and the fleet assignment decisions that the airline must make under the Demand Driven Dispatch operational mode. Based on our findings, we produce a set of alternate algorithms for dynamk; fleet type reassignment which significantly reduces the number of fleet assignment problems that must be solved during the booking horizon of the pool of flights being considered.

Using demand data from a major U.S. airline, we simulate both the traditional algorithms usW for dynamic fleet reassignment and the alternate algorithms developed in this thesis. Our results show that it is indeed possible to delay the first fleet assignment decisio...