The Stochastic Model of Multi-leg Capacity Allocation for Air Cargo Revenue Management

This paper considers an air cargo capacity allocation problem with multi-leg network. It mainly bases on the differences between the air passenger and air cargo revenue management. We develop a stochastic model of the problem and solve the model with the chance constrained programming method. Through the numerical simulation, we can find the model´s feasibility. Finally we give an allocation policy which is near optimal. The results show that it can improve the revenue of the air company