A model of the market for civil aviation: The liberalization of Europe

Tomer Goodovitch, University of Pennsylvania

Abstract

The international air-transport industry is quite complex and is influenced by a variety of political, economic and environmental institutions. The intricacy of the air-transport industry affects the international regulatory system which is often affected by domestic markets, international agreements, environmental problems, and inefficient service. It is difficult, therefore, to intuitively predict the consequences of the liberalization of European aviation policy and the increasing number of mergers and acquisitions among airlines and the possible formation of supra-aviation corporations. The purpose of this study is to evaluate the changes that will result from a more liberal aviation policy in Europe by developing a formal model (CAMEC) of the European Community in order to enable decision-makers to conduct analyses of international civil aviation policies in the 1990s. We emphasized the importance of visualization and ease of use in decision support systems which facilitate the analyses of airline scheduling and routing problems. In particular we developed a network model of the European community in which we simulate each carrier's or country's route scheduling, given information about travel demand, slot availability, route and aircraft characteristics, and managerial and political constraints. We formulated and solved the problem (faced similarly by individual airlines) as a mixed linear integer program. The model is integrated with a geographical information system, which allows a user to store, retrieve and modify information through the selection of its spatial characteristics. This ability facilitates user input to CAMEC and the visual display of the results. As a flexible GIS model, users of CAMEC can perform several policy analyses and implement a course of scenarios in which one scenario is built upon another and variations are reflected graphically or as a report.

Subject Area

Transportation|European history|Operations research

Recommended Citation

Goodovitch, Tomer, "A model of the market for civil aviation: The liberalization of Europe" (1991). Dissertations available from ProQuest. AAI9200338.
https://repository.upenn.edu/dissertations/AAI9200338

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