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- W3122285059 abstract "This paper develops an analytic model to study the effect of network design on an airline's cost and passengers' service level. Four different types of networks are considered: direct, hub and spoke, tour and subtour. Service levels are measured by the cost borne by passengers due to travel time, schedule delay (the time difference between the ideal departure time and the actual departure time) and late arrival. Airline cost is the carrier's cost of operating its network. Results of the paper include that the schedule frequency that minimizes total airline and passenger costs is a function of the network, and that direct service has lower schedule frequency than the other networks. If passengers are sensitive to schedule delay, than a tour can be optimal, but if not, direct service can be optimal. Parametric studies are performed on the effect of distance between cities, demand rate and the number of cities served on the optimal network. If the distance between cities is small, direct service is optimal; if it is large, a tour is optimal; and for intermediate values, hub and spoke is optimal. If the number of cities is small, direct service dominates; if it is large, hub and spoke is optimal; and for intermediate values other networks are best. An airline's schedule includes time as a buffer against delays. This planned delay time increases passengers' travel time and airline cost since more aircraft are required, but reduces passengers' chances of arrival after the schedule time. It is shown that if schedule reliability is chosen to minimize total airline and passengers' costs, schedule reliability is highest for direct routing. This explains the superior on- time performance of non-hub carriers such as Southwest Airlines. An example shows that congestion at the hub does not change optimal network design unless delays at the hub are very much larger than at spoke city airports." @default.
- W3122285059 created "2021-02-01" @default.
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- W3122285059 date "1999-10-24" @default.
- W3122285059 modified "2023-09-23" @default.
- W3122285059 title "Airline Network Design" @default.
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