Assessing the effect of urban socioeconomic factors and the financial crisis of 2008 on domestic air cargo traffic in Florida

In this paper, we investigate the relationship between the social and economic attributes of metropolitan areas and their corresponding domestic cargo traffic. We considered a period of 14 years (2003–2016) and studied the impact of population demographics, employment, and regional industries on domestic cargo traffic of a sampled set of metropolitan areas in Florida. We considered all-cargo carriers and mixed passenger–cargo carriers. Our results provide empirical insights into factors determining the air cargo traffic in Florida. Both population and age demographics of a region is shown to be influential on cargo traffic. Manufacturing industries are shown to prefer all-cargo carriers to mixed passenger–cargo carriers and their concentration in a metro area results in an increase of cargo traffic. In contrast, service industries generate low demand for air cargo. Our results show that larger airports tend to attract cargo traffic away from smaller airports in their close proximity. We also provide insights into the impact of the financial crisis of 2008 on domestic cargo traffic in the region. We study the recovery trend and the impact of the high fuel jet prices on slowing down this trend.

     

The integration of Taiwanese and Chinese air networks for direct air cargo services

The two sides of the Taiwan Strait perform mutually dependent but complementary activities in the global manufacturing supply-chain. As a result, trade between Taiwan and China grew in double digits annually in the 1990s. With growing economic ties, direct air links are inevitable. In this research, we analyzed government documents and interviewed the air cargo carriers and airlines that currently serve the Taiwan–China air cargo market. This information enabled us to tabulate the trade, estimate the airport-to-airport air cargo demand and calibrate the international and domestic freight tariffs. We used a connectivity measurement and classified Chinese airports into national, regional and local classes in a hub-and-spoke air cargo network. We developed a mathematical model and a branch-and-bound algorithm. The results showed that at least two transit airports are economically necessary for a Taiwan–China air link. Shanghai and Xiamen were always the top two transit airports. The third airport would be Changsha if the decision becomes three air-links. These links are different from the top three passenger transit airports, Fuzhou, Xiamen and Shanghai, even though the cost saving is moderate.     

Route structures in air transportation—the situation in the federal republic of Germany

This paper deals with route structures in air transportation in general and describes the derivation of such structures. Based on an extensive analysis of scheduled air traffic in Germany, an overview of the situation in domestic and international air travel is given. In particular, relationships were found which permit—in connection with a number of influencing factors—to derive from the present situation route structures, which are also valid for a future year.

This approach was used for the assignment of origin‐destination‐passenger flows to air network routes in a forecast of demand and services in commercial air transportation of the Federal Republic of Germany for the year 1995.     

Empirical estimation of price and income elasticities of air cargo demand: The case of Hong Kong

This paper estimates the price and income elasticities of air cargo demand and examines how they may change after the 2008 financial crisis. Using a set of time series data, we simultaneously estimate the aggregated demand and supply functions of air cargo at Hong Kong International Airport (HKIA). We find that during the entire sampling period of 2001–2013, the price elasticity for air cargo transport demand at HKIA ranges from −0.74 to −0.29, suggesting that air cargo demand in Hong Kong reacts negatively to price (as expected) but does not appear to be very sensitive to price. The income elasticity ranges from 0.29 to 1.47 and appears sensitive to seasonality adjustment approaches. However, in terms of the speed of changes, air cargo demand changes much faster than overall economy, indicating the presence of a pro-cyclical pattern of air cargo traffic with respect to the overall economy. Our analysis shows that air cargo demand becomes more sensitive to changes in both price and income after 2008.     

Short-term forecasting of high-speed rail demand: A hybrid approach combining ensemble empirical mode decomposition and gray support vector machine with real-world applications in China

Short-term forecasting of high-speed rail (HSR) passenger flow provides daily ridership estimates that account for day-to-day demand variations in the near future (e.g., next week, next month). It is one of the most critical tasks in high-speed passenger rail planning, operational decision-making and dynamic operation adjustment. An accurate short-term HSR demand prediction provides a basis for effective rail revenue management. In this paper, a hybrid short-term demand forecasting approach is developed by combining the ensemble empirical mode decomposition (EEMD) and grey support vector machine (GSVM) models. There are three steps in this hybrid forecasting approach: (i) decompose short-term passenger flow data with noises into a number of intrinsic mode functions (IMFs) and a trend term; (ii) predict each IMF using GSVM calibrated by the particle swarm optimization (PSO); (iii) reconstruct the refined IMF components to produce the final predicted daily HSR passenger flow, where the PSO is also applied to achieve the optimal refactoring combination. This innovative hybrid approach is demonstrated with three typical origin–destination pairs along the Wuhan-Guangzhou HSR in China. Mean absolute percentage errors of the EEMD-GSVM predictions using testing sets are 6.7%, 5.1% and 6.5%, respectively, which are much lower than those of two existing forecasting approaches (support vector machine and autoregressive integrated moving average). Application results indicate that the proposed hybrid forecasting approach performs well in terms of prediction accuracy and is especially suitable for short-term HSR passenger flow forecasting.     

A linear programming-based method for the network revenue management problem of air cargo

One critical operational issue of air cargo operation faced by airlines is the control over the sales of their limited cargo space. Since American Airlines’ successful implementation in the post-deregulation era, revenue management (RM) has become a common practice for the airline industry. However, unlike the air passenger operation supported by well-developed RM systems with advanced decision models, the decision process in selling air cargo space to freight forwarders is usually based on experience, without much support from optimization techniques. This study first formulates a multi-dimensional dynamic programming (DP) model to present a network RM problem for air cargo. In order to overcome the computational challenge, this study develops two linear programming (LP) based models to provide the decision support operationally suitable for airlines. In addition, this study further introduces a dynamic adjustment factor to alleviate the inaccuracy problem of the static LP models in estimating resource opportunity cost. Finally, a numerical experiment is performed to validate the applicability of the developed model and solution algorithm to the real-world problems.     

The causal relationship between GDP and domestic air passenger traffic in Brazil

Abstract

This paper examines the causal relationship between economic growth and domestic air passenger transport in Brazil, using Granger's causality test. Total domestic passenger-kilometres are used as a proxy for air transport demand and gross domestic product as a proxy for economic growth. The test spans the period from 1966 to 2006. The results lead to the acceptance of the hypothesis that there is a unidirectional Granger causal relationship from economic growth to domestic air transport demand in Brazil, having a high elasticity in the short term.     

Determinants of air cargo traffic in California

Studies on the economic impacts of air cargo traffic have been gaining traction in recent years. The slowed growth of air cargo traffic at California’s airports, however, has raised pressing questions about the determinants of air cargo traffic. Specifically, it would be useful to know how California’s air cargo traffic is affected by urban economic characteristics. Accordingly, this study estimates the socioeconomic determinants of air cargo traffic across cities in California. We construct a 7-year panel (2003–2009) using quarterly employment, wage, population, and traffic data for metro areas in the state. Our results reveal that the concentrations of both service and manufacturing employment impact the volume of outbound air cargo. Total air cargo traffic is found to grow faster than population, while the corresponding domestic traffic grows less than proportionally to city size. Wages play a significant role in determining both total and domestic air cargo movement. We provide point estimates for traffic diversion between cities, showing that 80% of air cargo traffic is diverted away from a small city located within 100 miles of a large one. Using socioeconomic and demographic forecasts prepared for California’s Department of Transportation, we also forecast metro-level total and domestic air cargo tonnage for the years 2010–2040. Our forecasts for this period indicate that California’s total (domestic) air cargo traffic will increase at an average rate of 5.9% (4.4%) per year.     

Flight delays,capacity investment and social welfare under air transport supply-demand equilibrium

This paper analyzes benefits from aviation infrastructure investment under competitive supply-demand equilibrium. The analysis recognizes that, in the air transportation system where economies of density is an inherent characteristic, capacity change would trigger a complicated set of adjustment of and interplay among passenger demand, air fare, flight frequency, aircraft size, and flight delays, leading to an equilibrium shift. An analytical model that incorporates these elements is developed. The results from comparative static analysis show that capacity constraint suppresses demand, reduces flight frequency, and increases passenger generalized cost. Our numerical analysis further reveals that, by switching to larger aircraft size, airlines manage to offset part of the delay effect on unit operating cost, and charge passengers lower fare. With higher capacity, airlines tend to raise both fare and frequency while decreasing aircraft size. More demand emerges in the market, with reduced generalized cost for each traveler. The marginal benefit brought by capacity expansion diminishes as the capacity-demand imbalance becomes less severe. Existing passengers in the market receive most of the benefit, followed by airlines. The welfare gains from induced demand are much smaller. The equilibrium approach yields more plausible investment benefit estimates than does the conventional method. In particular, when forecasting future demand the equilibrium approach is capable of preventing the occurrence of excessive high delays.     

Multicriteria ranking of air shuttle alternatives

This paper outlines a simple model of passenger demand and its relation to the supply of air shuttle services. Five criteria are used to rank alternative shuttle services, with weights for each criteria developed using the entropy method. The technique for order preference by similarity (TOPSIS) is then used to combine the weighted criteria to arrive at the preferred alternative. The approach is applied to a major air corridor in Yugoslavia betwen Belgrade and Zagreb.     

Assessment of carbon emission costs for air cargo transportation

This study presents a set of models that calculate carbon emissions in individual phases of flight during air cargo transportation, investigates resultant carbon footprints by aircraft type and flight route, and estimates increases in transportation costs for airlines due to carbon taxes imposed by the EU ETS. The estimated results provide useful references for airlines in aircraft assignment on different routes and in aircraft selection for new purchases. Validation of the model is conducted by simulating the potential impact of the implementation of the EU ETS on costs of air cargo transportation for six routes and six types of aircraft. Results show that the impact may be subject to various factors including unit carbon emissions per aircraft, aviation emission allowances per airline, and carbon trading prices; and that increases in costs of air cargo transportation range from 0% to 5.27% per aircraft per route. Therefore, the implementation of the EU ETS may encourage airlines to cut down their operating costs by reducing their carbon emissions, thereby ameliorating greenhouse gas pollution caused by air cargo transportation.     

Estimating the demand responses for different sizes of air passenger groups

This paper investigates the sensitivity of demand for air travel by singleton passengers, couples, and families. It examines how the demand for air travel by these groups is potentially different. In this study, a compound Poisson structure of the demand of different passenger groups is considered, and aggregate demand observations and maximum likelihood procedures are used to decompound the processes and estimate demand sensitivity of each group of customers to price, time, season, and the economic cycle. The methodology is applied to Canadian market data and the results indicate there are significant differences among the different groups of customers.     

Demand forecasting of diesel passenger car considering consumer preference and government regulation in South Korea

Changing market regulations in South Korea have allowed diesel-fueled passenger cars in the domestic market. The diffusion of diesel cars is tied to issues of environmental impact, energy supply and demand, and changes in tax revenue. Policymakers can influence demand for diesel vehicles to protect social welfare and to observe international environmental protection laws. On the supply side, carmakers need to know consumer preferences regarding new vehicles to arrive at development strategies.This study uses microsimulated demand forecasting to address these issues and predict consumer demand for diesel passenger cars. The model accommodates governmental policies and car attributes such as price and engine efficiency. We find that consumers will likely prefer diesel passenger cars to gasoline ones due to the low operation costs of the former in spite of high purchase price when diesel is relatively cheaper than gasoline. Finally we find that diesel passenger cars will capture a 42% market penetration ratio under the pricing system suggested by the Ministry of Environment of Korea.     

Short-term shift setting and manpower supplying under stochastic demands for air cargo terminals

A good air cargo terminal manpower supply plan helps terminals deal efficiently with their cargos and reduces their operating costs. To design a good air cargo terminal manpower supply plan, a terminal has to consider not only its operating costs, but also the uncertainty of the manpower demand in actual operations. However, most air cargo terminals in Taiwan currently depend on staff experience with a fixed demand when establishing the manpower supply plan, which is neither effective nor efficient. We have developed two stochastic-demand manpower supply plan models for air cargo terminals that can resolve stochastic demands occurring in practice. The objectives of both models are to minimize the total man-hour cost, subject to the related operating constraints. The models are formulated as integer/mixed integer linear programs. To evaluate the two stochastic-demand models under stochastic demands, we have also developed two deterministic-demand manpower supply plan models, by suitably modifying two stochastic-demand models, respectively, and an evaluation method. Here, we perform a case study using real operating data from a Taiwan air cargo terminal. The preliminary results are good, showing that the models could be useful for planning air cargo terminal manpower supply.

Health externalities of ship air pollution at port – Piraeus port case study

This paper is employing the well-known methodology of impact pathway approach to assess the external costs in human health from ship air pollution at port areas. The passenger port of Piraeus, Greece is the scenery of the study. Piraeus port is in the vicinity of the greater Athens metropolitan area where almost half of the country’s population lives. Hence, this port is the central hub of the Greek coastal passenger ship system which connects the islands of the Aegean Sea with land and is characterized by heavy ship traffic. The case study presented in this paper assesses the annual external cost in human health from air emissions produced by all passenger ships and cruise ships calling the port of Piraeus. Health cost from ships at port has been estimated at both local (Athens metropolitan area) and regional level (entire territory of Greece). Results show that higher costs occur at the local level. The dominant pollutants creating this cost are particulate matter (PM_2.5, and PM₁₀). Overall, the results indicate that the health impact of Piraeus’s passenger port emissions is not negligible; however the cost of PM₁₀ is considerably lower than the corresponded cost deriving from the land based industries of the Athens regional area for which comparison has been available.     

Development of railway station choice models to improve the representation of station catchments in rail demand models

ABSTRACT

This paper describes the development of railway station choice models suitable for defining probabilistic station catchments. These catchments can then be incorporated into the aggregate demand models typically used to forecast demand for new rail stations. Revealed preference passenger survey data obtained from the Welsh and Scottish Governments was used for model calibration. Techniques were developed to identify trip origins and destinations from incomplete address information and to automatically validate reported trips. A bespoke trip planner was used to derive mode-specific station access variables and train leg measures. The results from a number of multinomial logit and random parameter (mixed) logit models are presented and their predictive performance assessed. The models were found to have substantially superior predictive accuracy compared to the base model (which assumes the nearest station has a probability of one), indicating that their incorporation into passenger demand forecasting methods has the potential to significantly improve model predictive performance.     

Forecasting the short-term metro passenger flow with empirical mode decomposition and neural networks

Short-term passenger flow forecasting is a vital component of transportation systems. The forecasting results can be applied to support transportation system management such as operation planning, and station passenger crowd regulation planning. In this paper, a hybrid EMD-BPN forecasting approach which combines empirical mode decomposition (EMD) and back-propagation neural networks (BPN) is developed to predict the short-term passenger flow in metro systems. There are three stages in the EMD-BPN forecasting approach. The first stage (EMD Stage) decomposes the short-term passenger flow series data into a number of intrinsic mode function (IMF) components. The second stage (Component Identification Stage) identifies the meaningful IMFs as inputs for BPN. The third stage (BPN Stage) applies BPN to perform the passenger flow forecasting. The historical passenger flow data, the extracted EMD components and temporal factors (i.e., the day of the week, the time period of the day, and weekday or weekend) are taken as inputs in the third stage. The experimental results indicate that the proposed hybrid EMD-BPN approach performs well and stably in forecasting the short-term metro passenger flow.     

Comparing air pollution from ferry and landside commuting

Recent and anticipated growth in passenger ferry service has been complicated by concerns about air pollution from marine engines that are only starting to be regulated. While marine engines are known to be a significant and growing source category in some locations, sparse data and analytical difficulties have prevented rigorous comparisons of marine and on-land passenger travel. Using data gathered in the San Francisco Bay Area, we model emissions from three passenger ferries and the matching on-land travel that would be used by commuters if ferry service were not available. The results are analyzed parametrically for levels of ridership and induced travel demand, and for new technologies, including selective catalytic reduction and natural gas fuel. Results indicate that under some conditions, passenger ferries reduce some emissions (including particulate matter emissions) relative to the matching on-land service but increase others. Emissions of NO_X are particularly problematic––all the technologies examined lead to increased NO_X emissions due to ferry commuting. Some of the emissions comparisons are sensitive to mode split, ridership, or induced travel demand. However, NO_X emissions are not––ferry commuting always raises NO_X emissions, even with the most advanced technologies. Implications for local air quality regulators and for technology development are discussed.     

The evolution and competitiveness of air cargo transportation: the case of Israel's airborne trade

Abstract

Air freight traffic has grown rapidly in the last decade. Although, in terms of volume carried, air cargo represents only a small fraction of the total trade, in value terms, its share is very significant. Against the background of the development of the world's air freight traffic and the factors behind it, this paper reviews the growth of air cargo movements in Israeli international trade and analyses the major components of this transport mode. Because of Israel's geopolitical position, air transport is a significant mode in the country's foreign trade. Air and sea transport are the only modes available for any trade going to and from Israel. The proportion of airborne trade in the total Israeli foreign trade is reviewed in light of the factors affecting the competition between air and sea transport.