A micro-simulation approach for Airline Competition Analysis and Demand Modelling

Abstract

This paper presents a modelling framework for Airline Competition Analysis and Demand Modelling (ACADM). The framework adopts a micro-simulation approach in which airline service capacity and passenger demand are represented at the finest disaggregate level. The main contribution of this modelling framework is that it simultaneously considers primary factors that affect air-carrier competition. These factors include schedule attractiveness, seat inventory control, code share agreements and ticket distribution strategies. Preliminary validation experiments in the US domestic markets show that the model replicates real-world competition scenarios with acceptable accuracy.

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