Smaller Aircraft for More Profits? A Preliminary Examination on Airlines' Fleet Size Decision with Fare and Demand Distributions

• Main Author: Fan, Terence Ping Ching
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2002
• Subjects: Air transportation; Demand; Fares; Marginal costs; Operating costs; Profits; Revenues; Small aircraft; Business Administration, Management, and Operations; Strategic Management Policy; Transportation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2134
• Institution: Singapore Management University

At the confluence between traditional revenue-maximizing frameworks premised upon fixed aircraft seat capacity, and fleet assignment integer programming paradigms premised upon deterministic demand and uniform fares, this paper explores the use of profit-maximization as a strategic decision criterio...