An integrated frequency assignment and fleet assignment model: A strategic application in the Brazilian regional aviation market

Abstract

Airlines endeavour to implement substantial measures to ensure profitability and maintain a competitive edge in the market. This entails conducting extensive studies and engaging in strategic planning to make optimal decisions. A crucial element of this process involves addressing the Fleet Assignment Problem (FAP). Typically, aircraft operating within an established network are acquired before adopting this method, rather than being selected based on an optimal solution. Consequently, incumbent airlines frequently operate in Brazilian regional aviation with fleets that are not optimised for the specific routes they serve. This study aims to explore an integrated frequency assignment and fleet assignment model, which identifies the most suitable aircraft for a given network. Model parameters were estimated from historical data from multiple incumbent airlines and were applied to a fictitious airline operating from Goiania International Airport (Brazil) as the hub. The findings from multiple test runs ascertain optimal frequency and aircraft capacity selections, as well as recommended fleet sizes. Further analysis reveals, for instance, that the Embraer E190-E2 is the most suitable aircraft for a scenario constrained to a single type of fleet, demonstrating the potential for significant profitability on the routes in the simulated network.