The Effect of Location Selection on Operational Costs and Fleet Management in the Airline Industry

Abstract

The aim of this study is to reveal the effect of location selection in the airline industry on airline operational costs and fleet management. The effect of location selection on airline operational costs and fleet management in the airline industry is seen as a multi-criteria decision-making problem. For this purpose, the TOPSIS model, a multi-criteria decision-making method, was used. The data used in the research are handled in two stages as alternatives and criteria. The alternatives of the research are 5 different types of aircraft, 8 different locations and 10 different hubs. The alternatives to the multi-criteria decision-making process are operational costs. The main starting point of the study is where the airline's location should be and which aircraft should be used in order to reach 10 different main transfer centers with the lowest operational cost. The weighting has been made according to the average costs in the industry. In addition, in order to fully measure the effect of the location on operational costs, an index was developed with the average of the GDP, HDI and SDI values of the countries where the transfer centers are located, and it is ensured that it affects the decision-making process as 30%. According to the results of the research, it has been seen that the operational costs of the airlines to be established in locations such as Istanbul, London and Delhi are lower and the fleet management is more optimal. This study is important in terms of helping airline companies in the selection process of their establishment location. In addition, unlike the studies in the literature, three different indices such as GDP, HDI and SDI were included in the study, resulting in more realistic results.

Keywords

• Location Selection
• Operational Costs
• Fleet Management
• Multi-Criteria Decision Making
• Airline Industry

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