Concurrent Aircraft Design and Airline Network Design Incorporating Passenger Demand Models

Conceptual aircraft design and the network routes that they travel on are inextricably linked to passenger driven demand. Decisions made in the acquisition and subsequent allocation of aircraft assets to serve chosen links translate to latent passenger observations of ticket pricing and routes served between origin-destination (OD) pairs. It is proposed that such latency gives rise to a reflexive behavior in demand as subsequent operational decisions give rise to reflexive passenger demand conditions. In this paper, a unifying conceptual framework that builds upon previous works is proposed to concurrently design aircraft and the operational network by incorporating established passenger demand models. A conceptual scenario formulated and solved to exhibit the methodology employed and reflexivity of demand.