Evaluation of Strategies to Reduce the Cost Impacts of Flight Delays on Total Network Costs

Abstract

Competitive price pressure and economic cost pressure constantly force airlines to improve their optimization strategies. Besides predictable operational costs, delay costs are a significant cost driver for airlines. Especially reactionary delay costs can endanger the profitability of such a company. These time-dependent costs depend on the number of sensitive transfer passengers. This cost component is represented by the number of missed flights and the connectivity of onward flights, i.e., the offer of alternative flight connections. The airline has several options to compensate for reactionary delays, for example, by increasing cruising speeds, shortening turnaround times, rebookings and cancellations. The effects of these options on the cost balance of airline total operating costs have been examined in detail, considering a flight-specific number of transfer passengers. The results have been applied to a 24-h rotation schedule of a large German hub airport. We found, that the fast turnaround and increasing cruise speed are the most effective strategies to compensate for passenger-specific delay costs. The results could be used in a multi-criteria trajectory optimization to find a balance between environmentally-driven and cost-index-driven detours and speed adjustments.