Revenue Sharing in Airline Alliances

A Duality Based Approach for Network Revenue Management in Airline Alliances

In this paper, we develop a revenue management model for airline alliances. In particular, our model allows the members of the alliance to decide how to share the revenues from itineraries spanning flight legs operated by multiple airlines and how to coordinate their capacity allocation decisions. We start with a deterministic linear programming approximation to the revenue management problem t...

Alliance Revenue Management in Practice : Techniques and Simulation Analysis

The primary motivations for the formation of airline alliances have been to increase revenues and decrease costs for alliance partners. A major advantage comes through increase in the number of destinations served by an airline at little costs, by using codesharing. Airlines share seat inventory on each other's codeshare flights which complicates their revenue management practice and leads to s...

Dynamic Revenue Management in Airline Alliances

Major airlines are selling increasing numbers of interline itineraries, in which flights operated by two or more airlines are combined and sold together. One reason for this increase is the rapid growth of airline alliances, which promote the purchase of interline itineraries and therefore virtually extend the reach of each alliance member’s network. This practice, however, creates a difficult ...

Decentralized Code-Share Revenue Management in Airline Alliances

 Airline Alliances Partner Selection in Uncertain Environment: A Fuzzy Hybrid Evaluation Model Based on BSC

With respect to the importance of commercial alliances in airline hypercompetitive environment, partner performance evaluation is a critical matter before making any decision about partnership. In this article, utilizing Fuzzy theory, a hybrid airline evaluation model is developed in a way that all airline performance strategic dimensions are considered, as well as, it can deal with qualitative...