Airline Strategy Alliance on Fleet Dry/Wet Lease Planning

• Main Authors: Peng-Shien Huang, 黃鵬先
• Other Authors: Chaug-Ing Hsu
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/wnztv7

碩士 === 國立交通大學 === 運輸科技與管理學系 === 92 === Airline industry is highly sensitive to economic cycle, and the operation costs of airline are deeply influenced by the fleet capacity. Therefore, it is important for airlines to make the optimal fleet planning decisions to reduce operation costs and increase revenues. Recently, airlines have been forming alliance and successfully decrease operation costs by sharing markets, information, human resource, fleet and facilities. Code sharing, dry lease, and wet lease are commonly used strategies for airline alliance. Previous literature on airline alliance usually focused on flight code sharing problems, however, little literature has been focused on fleet planning which takes combined dry lease and wet lease into account. Furthermore, no theoretical model has been formulated on analyzing airline fleet planning with lease alliance in response to passenger demand fluctuation. This research aimed on fleet planning for airlines by incorporating the influence of strategy alliance, including dry and wet lease of fleet. The model dealt with issures regarding fleet purchase, lease, dry lease, wet lease, and disposal, and divides the entire study period into several stages. Then, we formulate a multi-objective model by minimizing total fleet planning cost using dynamic programming to determine the initial optimal numbers and types of aircraft for dry/wet lease, purchase and lease in fleet planning decision. Further, the study simulates step-by-step bargaining process for two of airlines’ decision makers. Through bargaining process, airlines’ decision makers could adjust alliance related parameters to trim their profit differences and obtain the final bargaining compromise solution which are accepted by both airlines. An empirical study is provided to illustrate the application of the model and simulate bargaining process of two airlines’ decision makers to show its usefulness. The study also conducts the sensitivity analyses which demonstrate the effects of key variables on the solution of the alliance model. The results also show the price ceiling and floor of fleet dry/wet lease and the critical price of fleet purchase, lease, dry lease and wet lease. The model we developed can not only determise among decisions on fleet planning solution for airlines alliance, but also provide a bargaining plan for airlines’ decision makers to obtain the bargaining compromise solution.