Promoting Australian regional airports with subsidy schemes: A vehicle routing problem perspective

Babagolzadeh, Mahla and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 and Abbasic, Babak and Shrestha, Anup ORCID: https://orcid.org/0000-0002-2952-0072 and Zhang, Anming (2022) Promoting Australian regional airports with subsidy schemes: A vehicle routing problem perspective. Transport Policy. ISSN 0967-070X


Abstract

The major metropolitan airports in Australia have become increasingly congested, resulting in substantial increases in operational costs and waiting time at these airports. This paper assesses the effectiveness of subsidy programs in shifting airfreight from metropolitan airports to regional airports assuming the vehicle routing problem approach is used to optimises the downstream (i.e., road) logistics. We analyse the freight distribution network structure and logistics decisions under two subsidy scenarios. We develop a mixed integer linear programming model incorporating the time-window and release-time constraints. A case study in Australia is used to illustrate the application of the proposed framework. The results show that introducing subsidies can effectively reduce the total costs from the prospective of industries involved in the airfreight distribution. The subsidy program under a non-linear subsidy provides a better performance from the economic and delivery time perspectives. However, if the primary goal is to reduce the volume of cargo traffic at the metropolitan airport, a linear subsidy program is preferred.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 20 Sep 2022 22:16
Last Modified: 30 Sep 2022 00:44
Uncontrolled Keywords: Airfreight distribution; Regional development; Subsidy schemes; Open vehicle routing problem (VRP); Sustainability
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350903 Logistics
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350999 Transportation, logistics and supply chains not elsewhere classified
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350901 Air transportation and freight services
Socio-Economic Objectives (2020): 11 COMMERCIAL SERVICES AND TOURISM > 1101 Environmentally sustainable commercial services and tourism > 110199 Environmentally sustainable commercial services and tourism not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.tranpol.2022.08.014
URI: http://eprints.usq.edu.au/id/eprint/51210

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