This paper investigates the performance implications of firms’ vertical integration decisions. Our setting is the U.S. airline industry. Major airlines subcontract service on low-density short and medium-haul routes to regional airlines. These regional partners are either owned by the major airline or are independently owned and contract with one or more major airlines. Earlier work (Forbes and...

Due to the stochastic nature of departure operations, working at full capacity makes major US airports very sensitive to uncertainties. Consequently, airport ground operations face critically congested taxiways and long runway queues. In this report, we show how improved management of departure operations from the readyto-push-back time to the wheels-off time can potentially yield significant b...

Airlines face schedule disruptions daily because of unexpected events, including inclement weather, aircraft mechanical problems, and crew unavailability. These disruptions can cause flight delays and cancellations. As a result, crews may not be in position to service their remaining scheduled flights. Airlines must reassign crews quickly to cover open flights and to return them to their origin...

This paper presents our ongoing research on an auction model a hybrid demand management approach for congested airports. It is intended to optimize the utilization of airport time slots by maximizing passenger throughput within safe capacity, decreasing congestion and delay. The two sub-models mathematically formulate conflicting optimization problems of efficiency-driven airport regulators and...

This paper presents our ongoing research on an auction model a hybrid demand management approach for congested airports. It is intended to optimize the utilization of airport time slots by maximizing passenger throughput within safe capacity, decreasing congestion and delay. The two sub-models mathematically formulate conflicting optimization problems of efficiency-driven airport regulators and...

Broadly defined, revenue management (RM) is the process of maximizing revenue from a fixed amount of perishable inventory using “market segmentation” and “demand management” techniques. While RM is not new (in fact it is as old as commerce, e.g., haggling in a market can be considered a form of RM), the theory and practice of RM have seen significant scientific and practical advances in the las...

In this communication a bi-criterion approach for the nominal Airlines Crew Rostering Problem is developed. The nominal Crew Rostering Problem considers the assignment of the crew staff to a set of pairings covering all the scheduled flights so that operations costs are minimized while its solution must meet hard constraints resulting from the safety regulations of Civil Aviation as well as fro...

NAS-wide simulations are used to evaluate concepts of operations, technologies, and their cost/benefits. When modeling stakeholder behavior, users of state-of-the-art NAS-wide simulators must encode decision-making in fixed sets of rules before executing the simulations. Adaptability and evolution in stakeholder decision-making is a next step to accommodate progressively realistic modeling of t...