Integrated schedule planning with supply-demand interactions for a new generation of aircrafts

We present an integrated schedule planning model where the decisions of schedule design, fleeting and pricing are made simultaneously. Pricing is integrated through a logit demand model where itinerary choice is modeled by defining the utilities of the alternative itineraries. Spill and recapture effects are appropriately incorporated in the model by using a logit formulation similar to the demand model. Furthermore class segmentation is considered so that the model decides the allocation of the seats to each cabin class. We propose a heuristic algorithm based on Lagrangian relaxation to deal with the high complexity of the resulting mixed integer nonlinear problem.