Introducing a framework for analyzing the cooperation of airlines by the game theory approach

In this research, a framework is introduced for analysis the cooperation of competing airlines. Because of increasing the number of passengers, airlines and their limited resources and also the limited passengers demand in each flight time and route, there is a competition between airlines. The airlines decide by using the game theory, about cooperation or non-cooperation with other airlines to gain more benefits. The pay-off functions of airlines are to maximise the benefits and minimize the empty seats in flights. For solving the problem, the multi-criteria game theory model will be used.
For analyzing the result of the model, three competitor airlines were selected in a Tehran-Shiraz route. The result of the model shows the strategy in an equilibrium point of each airline. The consequences of analysing the equilibrium point are the satisfied competitors or increasing profits, decreasing the empty seats, removing additional flights and reducing the air pollution caused by fuel consumption. Therefore, the strategy in the equilibrium point increases productivity in the fleet.