Air Providence
A Study into the Effective Operation
of a Providence-Based Airline
Ilya Gofshteyn
AM121/EN131
December, 2006
Objectives

Choose optimal destination(s)
 Choose optimal aircraft model(s)
 Maximize profit for airline based out of
Providence, RI
Possible Destinations

Detroit
Chicago
Newark
Philadelphia
Baltimore
DC
Charlotte
Phoenix
Orlando
Providence
Aircraft Choices
Embraer 175
Boeing 737-500
Boeing 757-200
The Model
The Objective Function
Max Z = Σij xij * (Pi * tij - 2.5 * Fi * dj) – (20 * Ci * xij + Ci * ui * 1000000)
Where
xij = Number of flights per year on aircraft i and route j
Pi = Capacity of aircraft i
dj = Distance from Providence to destination j
Fi = Fuel cost per mile of aircraft i
Ci = Capital cost of using aircraft i
Nj = Demand for flight from PVD to destination j
Si = Speed of aircraft i
mij = Flight time from PVD to destination j on aircraft I
mij = dj / Si +1
tij = Ticket price of for route from Providence to destination j
tij = Ci * dj / 75
Constraints
•
•
•
•
Budget Constraint
Σ(Ciui) ≤ 100
Non-negativity, Binary, and Integer Constraints
xij ≥ 0
xij can only be integers
ui is Binary
Capacity Constraint
Σ(xij Pj) ≤ Nj
Time Constraint
xij ≤ (365 * 18) / (2 * mij)
or
xij * mij ≤ 3285
Results
•
Flights per day
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
FLIGHTSPERDAY(
•
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BAL)
CHA)
CHI)
DET)
NEW)
ORL)
PHI)
PHO)
WAS)
5.000000
3.000000
3.000000
2.000000
1.000000
2.000000
6.000000
1.000000
4.000000
Flights per year and Market Share
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
FLIGHTS(
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BOEING737,
BAL)
CHA)
CHI)
DET)
NEW)
ORL)
PHI)
PHO)
WAS)
1825.000
1095.000
1095.000
730.0000
365.0000
730.0000
2190.000
365.0000
1460.000
Average
=
62.6%
89.6%
38.2%
70%
69.1%
49.7%
80%
61.8%
84.4%
67.26%
More Results and Observations

Only Boeing 737’s used; reflective of reality.

The objective value is 0.1171709E+08 = ~ $11,717,090

All routes are traveled.

Least traveled routes are shortest and longest: Newark and Phoenix.

Most traveled are medium-range routes: Philadelphia, Baltimore.

Flight duration not an important aspect; speed doesn’t vary much.
Areas of Improvement
•
Demand function: there isn’t one.
~ Ticket prices
~ Competition
~ Season
~ Travel pattern variations
•
Cost of operation is more complicated
~ Personnel
~ Load Factor
~ Maintenance
Bibliography

“Bureau of Transportation Statistics”.
<www.bts.gov> November 16, 2006.

“The Boeing Company”.
<www.boeing.com> November 27, 2006.

“Empresa Brasileira de Aeronáutica S.A.”.
<www.embraer.com> November 28, 2006.