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There have been many recent developments in decision support models for airline planning, but for many airlines, these developments are outpacing their capabilities to use them effectively. The more immediate challenge is for both users and developers of airline planning decision support tools to recognize the potential of these tools, as well as their limitations. Critical to the long-term success in adoption of more sophisticated decision support tools is improved education about the underlying models, their assumptions and how users should interpret results to achieve benefits.

7 Airline Schedule Optimization Cynthia Barnhart An airlines schedule is perhaps the single most important indicator of its business strategy and competitive position. In deciding which markets to serve with what frequency, and how to schedule flights to meet these frequencies, an airline determines how and where to operate and compete. These important strategic decisions are limited by many practical considerations facing the airline, including fleet composition, the locations of crew and maintenance bases, constraints on access to certain airports due to gate or landing slot restrictions, and, for international flights, bilateral agreements and government allocations that specify where an airline may fly. Chapter 6 provided an overview of the overall airline planning process, including three major components that involve fleet planning and route evaluation, followed by airline schedule development. In this chapter, we examine the use of optimization models to develop airline flight schedules. Airline schedule optimization involves the design of future schedules for aircraft and crews. The objective is to identify profit-maximizing schedules that are consistent with a large set of operational, marketing and strategic goals. This is a complex task, involving a host of expensive and diverse elements, including: 1. numerous airport locations with various arrival and departure restrictions, and each with gates, ground personnel and equipment to manage; 2. multiple aircraft types with different operating characteristics, costs, crew requirements, seating capacities and government-imposed periodic maintenance requirements; 3. numerous crews capable of operating only particular aircraft types, and limited by a litany of rules and regulations specifying how and when they can work; and



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