Modelling the estimation of the airline profit in case of purchasing new slots for increasing flight frequency

Abstract

To achieve network optimization, most airlines depend on slot allocation process. The secondary slot market enables airlines to get additional slots for improving their networks and flight schedules. The idea of developing the model presented in this paper was not just to help in selecting the flight(s) for new slot(s) that maximizes the airline‟s revenue, but to estimating the number of years necessary for refunding the initial outlay for purchasing that slot. The essence of the model is to help an airline to check if the purchasing of new slot(s) is profitable or not in the case when new slot(s) is used for increasing the flight frequency on existing route.