Airline rescheduling with aircraft unavailability period

Airlines design their initial schedules under the assumption that all resources will be available on time and ights will operate as planned. However, some disruptions occur due to mechanical failures and unexpected delays of maintenance, making the aircraft unavailable for a certain period of time. These deviations from the initial plan result in high operational costs in addition to the serious inconveniences experienced by passengers. In the literature, it is a common practice to develop sequential approaches at which aircraft and passenger recovery problems are consecutively handled. In this study, we address them simultaneously and propose an integrated math-heuristic framework with an aim to maximize the profit of the airline. In the first phase, we develop a nonlinear mixed integer optimization model for aircraft recovery and utilize conic programming approach to mitigate computational difficulty. We incorporate cancellation and re-routing decisions for ights utilizing cruise time controllability which results in nonlinear fuel burn and CO2 emission cost functions. In the second phase, we develop a passenger recovery algorithm that makes individual itinerary based recovery decisions under the seat capacity restrictions and provide realistic cancellation cost formulations. Lastly, we propose an integrated search algorithm to maintain the integration between two phases through fixing assignment variables in the first phase. We compare the performance of the proposed algorithm to the base policy where all disrupted ights are directly cancelled. We observe improvements in terms of profit and the number of overnight passengers.