The asymmetric effects of service quality on passengers' choice of carriers for international air travel

The asymmetric effects of service quality on international travelers' airline choice behavior were investigated in this paper. The linear structural equation modeling system was first applied to quantify passengers' perceptions of service quality provided by airlines, which were then used as the input variables of the asymmetric response model developed to capture international travelers' airline decision. Their asymmetric responses to various service quality of airlines were assumed to be either gains or losses with respect to their reference points. The results showed that the asymmetric response model performs better than the traditional logit models that capture only symmetrical effects.     

A decomposition approach to determining fleet size and structure with network flow effects and demand uncertainty

This paper presents a new methodology to determine fleet size and structure for those airlines operating on hub‐and‐spoke networks. The methodology highlights the impact of stochastic traffic network flow effects on fleet planning process and is employed to construct an enhanced revenue model by incorporating the expected revenue optimization model into fleet planning process. The objective of the model is to find a feasible allocation of aircraft fleet types to route legs using minimum fleet purchasing cost, thus ensuring that the expected fleet profit is maximized subject to several critical resource constraints. By using a linear approximation to the total network revenue function, the fleet planning model with enhanced revenue modeling is decomposed into the nonlinear aspects of expected revenue optimization and the linear aspects of determining fleet size and structure by optimal allocation of aircraft fleet types to route legs. To illustrate this methodology and its economic benefits, an example consisting of 6 chosen aircraft fleet types, 12 route legs, and 57 path‐specific origin‐destination markets is presented and compared with the results found using revenue prorated fleet planning formulation. The results show that the fleet size and structure of the methodology proposed in this paper gain 211.4% improvement in fleet profit over the use of the revenue prorated fleet planning approach. In addition, comparison with the deterministic model reveals that the fleet size and structure of this proposed methodology are more adaptable to the fluctuations of passenger demands. Copyright © 2016 John Wiley & Sons, Ltd.     

A reliability‐based traffic assignment model for multi‐modal transport network under demand uncertainty

In densely populated and congested urban areas, the travel times in congested multi‐modal transport networks are generally varied and stochastic in practice. These stochastic travel times may be raised from day‐to‐day demand fluctuations and would affect travelers' route and mode choice behaviors according to their different expectations of on‐time arrival. In view of these, this paper presents a reliability‐based user equilibrium traffic assignment model for congested multi‐modal transport networks under demand uncertainty. The stochastic bus frequency due to the unstable travel time of bus route is explicitly considered. By the proposed model, travelers' route and mode choice behaviors are intensively explored. In addition, a stochastic state‐augmented multi‐modal transport network is adopted in this paper to effectively model probable transfers and non‐linear fare structures. A numerical example is given to illustrate the merits of the proposed model. Copyright © 2012 John Wiley & Sons, Ltd.     

The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores

As a result of the liberalisation of airline markets; the strong growth of low cost carriers; the high volatility in fuel prices; and the recent global financial crisis, the cost pressure that airlines face is very substantial. In order to survive in these very competitive environments, information on what factors impact on costs and efficiency of airlines is crucial in guiding strategic change. To evaluate key determinants of 58 passenger airlines’ efficiency, this paper applies a two-stage Data Envelopment Analysis (DEA) approach, with partially bootstrapped random effects Tobit regressions in the second stage. Our results suggest that the effects of route optimisation, in the sense of average stage length of the fleet, are limited to airline technical efficiency. We show that airline size and key fleet mix characteristics, such as aircraft size and number of different aircraft families in the fleet, are more relevant to successful cost management of airlines since they have significant impacts on all three types of airline efficiency: technical, allocative and, ultimately, cost efficiency. Our results also show that despite the fuel saving benefits of younger aircraft, the age of an airline’s fleet has no significant impact on its technical efficiency, but does have a positive impact on its allocative and cost efficiency.     

A bi-objective dynamic programming approach for airline green fleet planning

Ensuring a fleet of green aircraft is a basic step in mitigating aviation pollution issues that are expected to be worsen in the coming years due to rapid air traffic growth. This study proposed a novel methodology in green fleet planning in which both profit and green performance of airline are considered simultaneously and explicitly. To do this, a Green Fleet Index (GFI) is derived as an indicator to quantify the green performance of airline’s fleet. It measures the degree of airline compliance with a standard requirement in terms of emission, noise, and fuel consumption. A bi-objective dynamic programming model is then formulated to find optimal aircraft acquisition (lease or purchase) decision by minimizing GFI and maximizing profit. Several interesting results are obtained: (1) considering environmental issue as secondary objective yields a greener fleet; (2) airline’s profit is affected, but could be recovered from environmental cost savings; (3) increasing load factor is an effective operational improvement strategy to enhance airline’s green performance and raise profit level. It is anticipated that the framework developed in this study could assist airlines to make a smart decision when considering the need to be green.     

Optimal locations of electric public charging stations using real world vehicle travel patterns

We propose an optimization model based on vehicle travel patterns to capture public charging demand and select the locations of public charging stations to maximize the amount of vehicle-miles-traveled (VMT) being electrified. The formulated model is applied to Beijing, China as a case study using vehicle trajectory data of 11,880 taxis over a period of three weeks. The mathematical problem is formulated in GAMS modeling environment and Cplex optimizer is used to find the optimal solutions. Formulating mathematical model properly, input data transformation, and Cplex option adjustment are considered for accommodating large-scale data. We show that, compared to the 40 existing public charging stations, the 40 optimal ones selected by the model can increase electrified fleet VMT by 59% and 88% for slow and fast charging, respectively. Charging demand for the taxi fleet concentrates in the inner city. When the total number of charging stations increase, the locations of the optimal stations expand outward from the inner city. While more charging stations increase the electrified fleet VMT, the marginal gain diminishes quickly regardless of charging speed.     

Dynamic yield management when aircraft assignments are subject to swap

As a practical form of demand driven dispatch at some major airlines in North America, cockpit compatible aircraft of different capacities are paired in the fleet assignment for a possible future swap on the two involved flights. They are paired in such a way that the swap does not affect their aircraft routings on other legs. The swap decision depends on demand realization on the two flights and is made at a predetermined time prior to departure. Yield management on the two flights is studied in this paper. We begin by studying a base problem in which at a certain time before departure, the assignment on a flight is subject to change with a fixed probability. The base problem extends the threshold policy into the case where future capacity is uncertain. Secondly, we propose a heuristic for yield management over two flights with swappable aircraft by repeatedly updating the swap probability as demand unfolds. Our numerical result shows that this policy significantly enhances the airline’s capability to increase revenue under demand driven dispatch. In addition, the base problem may shed lights on derivation of optimal yield management policy in irregular operational settings where final capacity assignment is independent of yield management policy.     

Scheduling of airport runway operations using stochastic branch and bound methods

In this paper we present a solution methodology based on the stochastic branch and bound algorithm to find optimal, or close to optimal, solutions to the stochastic airport runway scheduling problem. The objective of the scheduling problem is to find a sequence of aircraft operations on one or several runways that minimizes the total makespan, given uncertain aircraft availability at the runway. Enhancements to the general stochastic branch and bound algorithm are proposed and we give the specific details pertaining to runway scheduling. We show how the algorithm can be terminated early with solutions that are close to optimal, and investigate the impact of the uncertainty level. The computational experiment indicates that the sequences obtained using the stochastic branch and bound algorithm have, on average, 5–7% shorter makespans than sequences obtained using deterministic sequencing models. In addition, the proposed algorithm is able to solve instances with 14 aircraft using less than 1 min of computation time.     

A heuristic model for frequency planning and aircraft routing in small size airlines

The flight schedule of an airline is the primary factor in finding the most effective and efficient deployment of the airline's resources. The flight schedule process aims at finding a set of routes with associated aircraft type, frequency of service and times of departures and arrivals in order to satisfy a specific objective such as profit maximization. In this paper, we develop a two‐phase heuristic model for airline frequency planning and aircraft routing for small size airlines. The first phase develops a frequency plan using an economic equilibrium model between passenger demand for flying a particular route and aircraft operating characteristics. The second phase uses a time‐of‐day model to develop an assignment algorithm for aircraft routing.     

A multi‐class mean‐excess traffic equilibrium model with elastic demand

Recent empirical studies have revealed that travel time variability plays an important role in travelers' route choice decisions. To simultaneously account for both reliability and unreliability aspects of travel time variability, the concept of mean‐excess travel time (METT) was recently proposed as a new risk‐averse route choice criterion. In this paper, we extend the mean‐excess traffic equilibrium model to include heterogeneous risk‐aversion attitudes and elastic demand. Specifically, this model explicitly considers (1) multiple user classes with different risk‐aversions toward travel time variability when making route choice decisions under uncertainty and (2) the elasticity of travel demand as a function of METT when making travel choice decisions under uncertainty. This model is thus capable of modeling travelers' heterogeneous risk‐averse behaviors with both travel choice and route choice considerations. The proposed model is formulated as a variational inequality problem and solved via a route‐based algorithm using the modified alternating direction method. Numerical analyses are also provided to illustrate the features of the proposed model and the applicability of the solution algorithm. Copyright © 2012 John Wiley & Sons, Ltd.     

Design framework of large-scale one-way electric vehicle sharing systems: A continuum approximation model

This paper proposes a Continuum Approximation (CA) model for design of a one-way Electrical Vehicle (EV) sharing system that serves a metropolitan area. This model determines the optimal EV sharing station locations and the corresponding EV fleet sizes to minimize the comprehensive system cost, including station construction investment, vehicle charging, transportation and vehicle balancing, under stochastic and dynamic trip demands. This is a very complex problem due to the NP-hard nature of location design, the large number of individual users, and the stochasticity and dynamics of generated trips. Further, the considerable charging time required by EVs distinguishes this problem from traditional car sharing problems where a vehicle is immediately available for pickup after being dropped at a station. We find that the CA approach can overcome these modeling challenges by decomposing the studied area into a number of small neighborhoods that each can be approximated by an Infinite Homogeneous Plane (IHP). We find that the system cost of an IHP is a unimodal function of the station service area size and can be efficiently solved in a sub-linear time by the bisection algorithm. Then integrating the solutions of all IHPs yields an approximate solution to the original heterogeneous area. With numerical experiments, we show that the CA solution is able to estimate the total system cost of the discrete counterpart solution efficiently with good accuracy, even for large-scale heterogeneous problems. This implies that the proposed CA approach is capable of providing a near-optimum solution to the comprehensive design of a practical large-scale EV sharing system. With this model, we also conduct sensitivity analysis to reveal insights into how cost components and system design vary with key parameter values. As far as the author’s knowledge, this study is the first work that addresses design of an EV sharing system considering both longer-term location and fleet size planning and daily vehicle operations. The proposed CA model also extends the CA methodology literature from traditional location problems with stationary demand, single-facility based service to EV sharing problems considering dynamic demands, OD trips, and nonlinear vehicle charging times.     

A dual control approach for repeated anticipatory traffic control with estimation of network flow sensitivity

This paper investigates a strategic signal control, which anticipates travelers' route choice response and determines signal timings to optimize network‐wide objectives. In general traffic assignment models are used for anticipating this route choice response. However, model‐reality mismatch usually brings suboptimal solutions to the real system. A repeated anticipatory control resolves the suboptimality and addresses the modeling error by learning from information on model bias. This paper extends the repeated control approach and focuses on the estimation of flow sensitivity as well as its influence on control, which is a crucial issue in implementation of model bias correction. The main objective of this paper is first to analyze the estimation error in the real flow derivative that is estimated from noisy measurements. A dual control method is then presented, improving both optimization objective function and derivative estimation during the control process. The proposed dual algorithm is tested on a simple network as well as on a midsize network. Numerical examples confirm the reliable performance of the new reality‐tracking control strategy and its ability to identify (local) optimal solutions on real traffic networks. Copyright © 2016 John Wiley & Sons, Ltd.     

Optimal design of a short‐turning strategy considering seat availability

We develop a methodology to optimize the schedule coordination of a full‐stop service pattern and a short‐turning service pattern on a bus route. To capture the influence of bus crowding and seat availability on passengers' riding experience, we develop a Markov model to describe the seat‐searching process of a passenger and an approach to estimate the transition probabilities of the Markov model. An optimization model that incorporates the Markov model is proposed to design the short‐turning strategy. The proposed model minimizes the total cost, which includes operational cost, passengers' waiting time cost and passengers' in‐vehicle travel time cost. Algorithm is developed to produce optimal values of the decision variables. The proposed methodology is evaluated in a case study. Compared with methodologies that ignore the effect of bus crowding, the proposed methodology could better balance bus load along the route and between two service patterns, provide passengers with better riding experience and reduce the total cost. In addition, it is shown that the optimal design of the short‐turning strategy is sensitive to seat capacity. Copyright © 2016 John Wiley & Sons, Ltd.     

The flight perturbation problem

Airlines spend considerable time, effort and financial resources on planning. It is essential to create a competitive timetable and construct a fleet and a crew schedule that utilizes these resources to the maximum. Unfortunately, it is all too common that an airline is faced with the necessity of reconstructing their schedules due to some unforeseen event, for example an aircraft breakdown or a crew member that is indisposed. In this paper, an application that can help airlines solve the complex problem of reconstructing aircraft schedules is presented. A mixed integer multicommodity flow model with side constraints is developed and further reformulated into a set packing model using the Dantzig—Wolfe decomposition. Cancellations, delays and aircraft swaps are used to resolve the perturbation, and the model ensures that the schedule returns to normal within a certain time. Two column generation schemes for heuristically solving the model are tested on real problem data obtained from a Swedish domestic airline. The computational tests show that the application is capable of presenting high quality solutions in a few seconds and therefore can be used as a dynamic decision support tool by the airlines.     

Learning-based framework for transit assignment modeling under information provision

The modeling of service dynamics has been the focus of recent developments in the field of transit assignment modeling. The emerging focus on dynamic service modeling requires a corresponding shift in transit demand modeling to represent appropriately the dynamic behaviour of passengers and their responses to Intelligent Transportation Systems technologies. This paper presents the theoretical development of a departure time and transit path choice model based on the Markovian Decision Process. This model is the core of the MIcrosimulation Learning-based Approach to TRansit Assignment. Passengers, while traveling, move to different locations in the transit network at different points in time (e.g. at stop, on board), representing a stochastic process. This stochastic process is partly dependent on the transit service performance and partly controlled by the transit rider’s trip choices. This can be analyzed as a Markovian Decision Process, in which actions are rewarded and hence passengers’ optimal policies for maximizing the trip utility can be estimated. The proposed model is classified as a bounded rational model, with a constant utility term and a stochastic choice rule. The model is appropriate for modeling information provision since it distinguishes between individual’s experience with the service performance and information provided about system dynamics.     

An aggregate demand model for air passenger traffic in the hub-and-spoke network

In this paper, we build an aggregate demand model for air passenger traffic in a hub-and-spoke network. This model considers the roles of airline service variables such as service frequency, aircraft size, ticket price, flight distance, and number of spokes in the network. It also takes into account the influence of local passengers and social-economic and demographic conditions in the spoke and hub metropolitan areas. The hub airport capacity, which has a significant impact on service quality in the hub airport and in the whole hub-and-spoke network, is also taken into consideration.Our demand model reveals that airlines can attract more connecting passengers in a hub-and-spoke network by increasing service frequency than by increasing aircraft size in the same percentage. Our research confirms the importance of local service to connecting passengers, and finds that, interestingly, airlines’ services in the first flight leg are more important to attract passengers than those in the second flight segment. Based on data in this study, we also find that a 1% reduction of ticket price will bring about 0.9% more connecting passengers, and a 1% increase of airport acceptance rate can bring about 0.35% more connecting passengers in the network, with all else equal. These findings are helpful for airlines to understand the effects of changing their services, and also useful for us to quantify the benefits of hub airport expansion projects.At the end of this paper, we give an example as an application to demonstrate how the developed demand model could be used to valuate passengers’ direct benefit from airport capacity expansion.     

A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company

ABSTRACT

In this paper, a fuzzy-stochastic optimization model is developed for an intermodal fleet management system of a large international transportation company. The proposed model integrates various strategic, tactical and operational level decisions simultaneously. Since real-life fleet planning problems may involve different types of uncertainty jointly such as randomness and fuzziness, a hybrid chance-constrained programming and fuzzy interactive resolution-based approach is employed. Therefore, stochastic import/export freight demand and fuzzy transit times, truck/trailer availabilities, the transport capacity of Ro-Ro vessels, bounds on block train services, etc. can also be taken into account concurrently. In addition to minimize overall transportation costs, optimization of total transit times and CO₂ emission values are also incorporated in order to provide sustainable fleet plans by maximizing customer satisfaction and environmental considerations. Computational results show that effective and efficient fleet plans can be produced by making use of the proposed optimization model.     

Flight schedule punctuality control and management: a stochastic approach

The insufficiency of infrastructure capacity in an air transport system is usually blamed for poor punctuality performance when implementing flight schedules. However, investigations have revealed that ground operations of airlines have become the second major cause of flight delay at airports. A stochastic approach is used in this paper to model the operation of aircraft turnaround and the departure punctuality of a turnaround aircraft at an airport. The aircraft turnaround model is then used to investigate the punctuality problem of turnaround aircraft. Model results reveal that the departure punctuality of a turnaround aircraft is influenced by the length of scheduled turnaround time, the arrival punctuality of inbound aircraft as well as the operational efficiency of aircraft ground services. The aircraft turnaround model proposed is then employed to evaluate the endogenous schedule punctuality of two turnaround aircraft. Model results, when compared with observation data, show that the operational efficiency of aircraft ground services varies among turnarounds. Hence, it is recommended that the improvement of departure punctuality of turnaround aircraft may be achieved from two approaches: airline scheduling control and the management of operational efficiency of aircraft ground services.     

Inter-city bus routing and timetable setting under stochastic demands

Vehicle fleet routing and timetable setting are essential to the enhancement of an inter-city bus carrier’s operating cost, profit, level of service and competitiveness in the market. In past research the average passenger demand has usually served as input in the production of the final fleet routes and timetables, meaning that stochastic disturbances arising from variations in daily passenger demand in actual operations are neglected. To incorporate the stochastic disturbances of daily passenger demands that occur in actual operations, in this research, we established a stochastic-demand scheduling model. We applied a simulation technique, coupled with link-based and path-based routing strategies, to develop two heuristic algorithms to solve the model. To evaluate the performance of the proposed model and the two solution algorithms, we developed an evaluation method. The test results, regarding a major Taiwan inter-city bus operation, were good, showing that the model and the solution algorithms could be useful in practice.     

Transit-oriented autonomous vehicle operation with integrated demand-supply interaction

Autonomous vehicles (AVs) represent potentially disruptive and innovative changes to public transportation (PT) systems. However, the exact interplay between AV and PT is understudied in existing research. This paper proposes a systematic approach to the design, simulation, and evaluation of integrated autonomous vehicle and public transportation (AV + PT) systems. Two features distinguish this research from the state of the art in the literature: the first is the transit-oriented AV operation with the purpose of supporting existing PT modes; the second is the explicit modeling of the interaction between demand and supply.We highlight the transit-orientation by identifying the synergistic opportunities between AV and PT, which makes AVs more acceptable to all the stakeholders and respects the social-purpose considerations such as maintaining service availability and ensuring equity. Specifically, AV is designed to serve first-mile connections to rail stations and provide efficient shared mobility in low-density suburban areas. The interaction between demand and supply is modeled using a set of system dynamics equations and solved as a fixed-point problem through an iterative simulation procedure. We develop an agent-based simulation platform of service and a discrete choice model of demand as two subproblems. Using a feedback loop between supply and demand, we capture the interaction between the decisions of the service operator and those of the travelers and model the choices of both parties. Considering uncertainties in demand prediction and stochasticity in simulation, we also evaluate the robustness of our fixed-point solution and demonstrate the convergence of the proposed method empirically.We test our approach in a major European city, simulating scenarios with various fleet sizes, vehicle capacities, fare schemes, and hailing strategies such as in-advance requests. Scenarios are evaluated from the perspectives of passengers, AV operators, PT operators, and urban mobility system. Results show the trade off between the level of service and the operational cost, providing insight for fleet sizing to reach the optimal balance. Our simulated experiments show that encouraging ride-sharing, allowing in-advance requests, and combining fare with transit help enable service integration and encourage sustainable travel. Both the transit-oriented AV operation and the demand-supply interaction are essential components for defining and assessing the roles of the AV technology in our future transportation systems, especially those with ample and robust transit networks.