International Airline Alliance Network Design with Uncertainty

This paper addresses the alliance route network design problem considering uncertainty of unit transportation cost. An alliance route network is constructed based on the hub-and-spoke (HS) network , in which airlines can achieve inter-area passenger transport through their international gateways. The design problem is formulated with a robust model containing a set of uncertain cost parameters. The model is established based on the three-subscript model of the HS network. A case study collected from real-world data is used to test the proposed model. The results show that the robust solution can reduce the impact of cost uncertainty.