A BI-LEVEL PROGRAMMING MODEL FOR PLANNING SCHEDULE FLIGHTS ON EXISTING OR NEW ROUTES

Abstract

this study proposes the bi-level model between the airline and market competitors to develop strategies for decision-making problem of planning scheduled flight on route. At the same time, this problem should consider the measurement of decision-making aspects, which involves the profits of airline management, the competition of market share, the current capacity of airline routes and travel demand. In the TNA study case, one outcome shows that if the airline profits as the upper level and airline market share as the lower level, the strategies will allocate new scheduled flights on new routes for the highest passenger load factor of air routes. Another outcome shows that if market share of the airline as the upper level and airline profits as the lower level, the strategies will still allocate adding scheduled flights on existing routes for the highest market share rate of air routes. Both outcomes demonstrate these strategies will take profits for airline.