A strategic multistage tactical two-stage stochastic optimization model for the airline fleet management problem

Abstract

This work proposes stochastic optimization for the airline fleet management problem, considering uncertainty in the demand, operational costs, and fares. In particular, a multistage tree is proposed, compounded of strategic and tactical nodes. At the former ones, fleet composition decisions are made, while at the latter ones, aircraft assignment decisions are formulated. Computational experiments are based on a small air network with seven strategic nodes and fourteen tactical nodes (i.e., seasons) where two fleet types are available to be included: Airbus 320, and Boeing 737. These results provide the optimal fleet planning and assignment at both strategic and tactical scopes. Finally, it is shown the superior performance of the stochastic version of this problem against the deterministic one.