@inproceedings{9c471b05baab4abcb43b80e6985e5949,
title = "AIRLINE'S FLEET SIZING AND PRICING STRATEGIES FOR PASSENGER AND CARGO SERVICES UNDER DEMAND UNCERTAINTY",
abstract = "Air passenger and freight demands vary from day to day and from season to season. However, traditional aircraft are dedicated to either passenger or freight services and cannot be adjusted flexibly between different services in a short time (e.g., from day to day). This study examines the potential of using convertible aircraft that can be used for both passenger service and freight service, which may involve higher equipment and operation costs, but can potentially better accommodate the demand variations. This study considers a two-stage problem and distinguishes airline's decisions by two different time stages: (a) airline's fleet planning decisions in the first stage, (b) assignment decision of convertible aircraft in the second stage. The first-stage decisions are made due to the expectation of daily profit before the demands are observed. The second-stage decisions are made to maximize the airline's daily profit when the demands are observed. The findings generate new managerial insights, which will support the decisions regarding the airline fleet management and pricing policy.",
keywords = "Air cargo, Air passenger, Convertible aircraft, Demand variation, Two-stage model",
author = "Zhenwei Gong and Fangni Zhang and Wei Liu",
note = "Publisher Copyright: {\textcopyright} 2022 Proceedings of the 26th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2022. All Rights reserved.; 26th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2022 ; Conference date: 12-12-2022 Through 13-12-2022",
year = "2022",
language = "English",
series = "Proceedings of the 26th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2022",
publisher = "Hong Kong Society for Transportation Studies Limited",
pages = "153--160",
editor = "Sisi Jian and Sen Li and Lo, {Hong K.}",
booktitle = "Proceedings of the 26th International Conference of Hong Kong Society for Transportation Studies, HKSTS 2022",
}