Research On Economy Of Airline-network And Application

Each airline is a fine air transportation market segment, and the whole airline-network is airlines'market domain, so improving the economy of airline and airline-network is a key problem to strengthen competition of airlines. Applying marketing, econometrics, operational research etc, based on market demand, the paper brings forwards analytically on the problem of the economy of airline and airline-network. Based on the transport capacity of the airlines, the aim of this paper is acquiring the maximum profit of whole airline-network. The main content includes: First, the paper set forth several aspects related to economy of airline: air transportation market, operating cost and profit, operating strategy, and qualitatively analyzed effects of these aspects on the airline economy. Then, based on passenger utility, the paper analyzed and forecasted the market share in an airline market segment, analyzing the cost and profit, and deduced the relationship between expenditure and revenue of airlines. Finally, considering the flight distance of every airline in the airline-network, using"seat kilometre"as the unit of the capacity, the paper optimized the capacity assignment in airline-network. As the result of above, types of aircraft and the amount of them, the flight frequency and types of aircraft were optimally constituted. The two preceding optimization procedures are all based on balance of capacity expenditure and the market share of airlines,aiming at the maximum profit in whole airline-network.