A Mixed-Integer Programming Approach to Air Cargo Fleet Planning

This paper deals with the mathematical programming aspects of a long range planning study done for the Flying Tiger Line, an all-cargo airline. The study addressed two strategic problems: the design of the service network and the selection and deployment of the aircraft fleet. We show how the concept of a spider graph provides a natural building block for network design and present a mixed-integer programming model that enables the planner to evaluate any network constructed from spider graphs by determining the most profitable selection of aircraft and routing of cargo.