Discrete Choice Models for Airline Network Management

The task of airline network management is to develop new flight schedule variants and evaluate them in terms of expected passenger demand and revenue. Given the industry’s trend towards global cooperation, this is especially important when evaluating the potential synergies with alliance partners. From an economic point of view, this task represents a discrete choice modeling problem in which the analyst has to account for a large number of dependent alternatives. This book discusses the recently proposed approaches and introduces a new multinomial probit model specification designed for airline network management. The models proposed are suitable for any non-IIA problem with a large number of alternatives.