Oum, Tae Hoon; Zhang, Anming; Zhang, Yimin - In: Transportation Research Part B: Methodological 34 (2000) 1, pp. 17-29
Operating lease of the aircraft gives the airlines flexibility in capacity management. However, airlines pay a risk premium to the leasing companies for bearing part of the risks. Therefore, the airlines face a trade-off between flexibility of capacity and higher costs. This paper develops a...