A Fuzzy Approach of the Competition on the Air Transport Market

The aim of this communication is to study with a new scope the conditions of the equilibrium in an air transport market where two competitive airlines are operating. Each airline is supposed to adopt a strategy maximizing its profit while its estimation of the demand has a fuzzy nature. This leads each company to optimize a program of its proposed services (frequency of the flights and ticket prices) characterized by some fuzzy parameters. The case of monopoly is being taken as a benchmark. Classical convex optimization can be used to solve this decision problem. This approach provides the airline with a new decision tool where uncertainty can be taken into account explicitly. The confrontation of the strategies of the companies, in the ease of duopoly, leads to the definition of a fuzzy equilibrium. This concept of fuzzy equilibrium is more general and can be applied to several other domains. The formulation of the optimization problem and the methodological consideration adopted for its resolution are presented in their general theoretical aspect. In the case of air transportation, where the conditions of management of operations are critical, this approach should offer to the manager elements needed to the consolidation of its decisions depending on the circumstances (ordinary, exceptional events,..) and to be prepared to face all possibilities. Keywords: air transportation, competition equilibrium, convex optimization , fuzzy modeling,