Research on the Optimization Strategy of Airline Capacity Sharing under Complex Market Environments

DOI

10.2991/978-94-6239-699-9_31How to use a DOI?

Keywords

Airline capacity sharing; Ancillary services; Stackelberg game

Abstract

As a solid bridge spanning the globe, air transport serves as an indispensable key component in the development of modern society. However, behind the growing ease of transportation, airlines are facing the dual pressures of imbalanced capacity supply and demand and fierce price competition. This paper constructs a Stackelberg game model consisting of a leading airline with a larger market size and a following airline with a smaller market size. It investigates capacity-sharing strategies under price and ancillary service competition, considering scenarios of capacity supply-demand imbalance between the two airlines. The results indicate that when the leading airline enhances its ancillary service level, both its own demand and pricing increase, but this tends to inhibit its capacity expansion. Conversely, the following airline can leverage its fuel efficiency advantages to capture market share by expanding capacity under mandatory blending ratio policies. Additionally, increases in cross-service sensitivity and service cost coefficients diminish the leading airline’s willingness to invest in services. This paper provides a theoretical basis and decision-making support for airlines to formulate capacity-sharing strategies in the context of ancillary service competition.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Lei Xu
AU  - Yao Shen
PY  - 2026
DA  - 2026/06/02
TI  - Research on the Optimization Strategy of Airline Capacity Sharing under Complex Market Environments
BT  - Proceedings of the 2026 4th International Conference on Digital Economy and Management Science (CDEMS 2026)
PB  - Atlantis Press
SP  - 286
EP  - 295
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-699-9_31
DO  - 10.2991/978-94-6239-699-9_31
ID  - Xu2026
ER  -