Abstract

This study addresses the problem of creating single aircraft route within strict time constraints, taking into account the uncertainty of travel times. The approach involves a two-phase decision-making process: the initial phase focuses on selecting airports from a pool of candidates by optimizing for maximum customer satisfaction; the subsequent phase involves arranging the sequence of itinerary to these airports, factoring in variable travel times to enhance the overall experience. To tackle this complex issue, we have developed a two-stage stochastic optimization model that incorporates probability-based constraints. This model is then analyzed using the sample average approximation method. To validate the efficacy of our proposed model, we compared its performance with two established benchmark models. Additionally, case studies focused on the U.S. airline network suggest that operators can optimize airline route recommendations by enhancing both customer utility and their own profitability. This approach demonstrates that strategic adjustments in route planning can lead to mutual benefits, effectively balancing customer satisfaction with financial performance.