International Airline Alliance Network Design with Uncertainty

Abstract

This paper addresses the alliance route network design problem considering uncertainty in the unit transportation cost. An alliance route network was constructed based on a hub-and-spoke (HS) network, in which airlines could achieve inter-area passenger transport through their international gateways. The design problem was formulated with a robust model containing a set of uncertain cost parameters. The model was established based on a three-subscript model of an HS network. A case study with real-world data was used to test the proposed model. The results showed that this robust solution can reduce the impact of cost uncertainty.