Joint Supply-Demand Control of Urban Air Mobility Operations with Variable Pricing: A Case Study of Airport Access Market at JFK

Abstract

This paper introduces a novel joint-supply-demand optimization framework for Urban Air Mobility (UAM) operations, designed to maximize operating profit by simultaneously managing fleet scheduling and pricing. While existing research treats pricing as an exogenous factor, our model recognizes the UAM operator's dual role as both service provider and market maker. By integrating a discrete choice model into a spatial-temporal optimization framework, we capture the heterogeneity of passenger demand, including variability in travel time advantages and the value of time across different Origin-Destination (OD) markets. We apply the proposed model to a case study of the airport access market at John F. Kennedy International Airport (JFK). Our results demonstrate that the integrated approach can achieve a 60% increase in profit compared to benchmark pricing schemes that only consider temporal or spatial variability. Furthermore, sensitivity analysis reveals that the joint model effectively mitigates the "Wild Goose Chase" phenomenon by aligning pricing policy with aircraft availability. This paper provide a tool with which UAM operators can identify economically viable markets. It also allows policy makers to evaluate the integration of UAM into urban transportation networks.

Keywords: Urban Air Mobility, Pricing, Fleet Scheduling Problem, Two-Sided Control