1485. A Scalable Bilevel Continuous Approach to Profit-Maximizing Airline Hub-and-Spoke Network Design
Invited abstract in session FA-51: Airline Network Design, stream Hub Location and Network Design.
Friday, 9:00-10:30Room: HG – Seminar-Raum Geschichte 1 (1st floor, st. 10)
Authors (first author is the speaker)
| 1. | Fernando Real-Rojas
|
| Signal Theory and Communications, King Juan Carlos University | |
| 2. | Victor M. Tenorio
|
| Signal Theory and Communications, King Juan Carlos University | |
| 3. | Luis Cadarso
|
| Transportation Research and Network Data Science Center, Rey Juan Carlos University |
Abstract
We study the airline hub-and-spoke network design problem with profit maximization. Traditional MIP models become intractable for realistic networks because infrastructure decisions are binary and passenger capture is often described by a logit model. We propose a bilevel continuous approach: the lower level solves a convex entropy-regularized network design model that efficiently achieves logit share, while the upper level adjusts market weights to maximize profit. Fixed infrastructure costs are handled through an iterative penalty that prevents operating unnecesary routes and hubs.
Keywords
- Network Design
- Transportation
- Bilevel programming
Status: accepted
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