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The aim is to develop a model linking direct operating costs to passenger route choices.

May 29, 2026Open Access

A Coupled Direct Operating Costs and Discrete Choice Model for Airline Passengers

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The aim is to develop a model linking direct operating costs to passenger route choices.
Computes direct operating costs for various aircraft types and airline types under different policy settings.
Converts costs into indicative ticket prices and inputs these into a mixed logit model to analyze passenger preferences.
Incorporates time-dependent adjustments and inflation for long-term simulations.
Facilitates a systematic assessment of the impact of regulatory and technological developments on air transport.
Captures passenger preference heterogeneity effectively, providing insights into service perception differences.
Offers a comprehensive set of mathematical formulations and implementation details for practical use.

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Technical documentation presents a model assessing airline passenger choices and operational costs, indicating impacts of market developments.

Gao et al. (2026) studied this question.

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Technical documentation presents a model assessing airline passenger choices and operational costs, indicating impacts of market developments.