Stochastic air freight hub location and flight routes planning

This paper introduced a stochastic programming model to address the air freight hub location and flight routes planning under seasonal demand variations. Most existing approaches to airline network design problems are restricted to a deterministic environment. However, the demand in the air freight market usually varies seasonally. The model is separated into two decision stages. The first stage, which is the decision not affected by randomness, determines the number and the location of hubs. The second stage, which is the decision affected by randomness, determines the flight routes to transport flows from origins to destinations based upon the hub location and realized uncertain scenario. Finally, the real data based on the air freight market in Taiwan and China is used to test the proposed model.