Incorporating negative externalities into productivity assessments of US airports

This paper analyses the efficiency of 44 US airports for the period 2005–2009. In addition to the conventional outputs (i.e., passengers, flights and cargo), we consider three undesirable externalities of airport activities: delays, noise and local air pollution. We adopt a directional distance function approach and perform a second stage analysis to investigate potential determinants of efficiency. Our base case results with only the positive outputs show that the greater the average aircraft size serving an airport and the larger the dimensions of the airport, the higher the technical efficiency. However, our results are sensitive to the inclusion of the undesirable outputs. The implications are that the inclusion of these externalities into the calculation of efficiency may impact policy decisions.     

Passengers’ valuations of train seating layout,position and occupancy

The layout of seating within train carriages, of which there are numerous possibilities, and also the occupancy of that seating can be expected to impact on passengers’ experiences of a train journey. However, there is very little evidence on how rail passengers value different seating experiences. On the back of exploratory research, and including attitudinal evidence, this paper provides significant and original insights into rail passengers’ preferences in this area. The primary evidence base is a Stated Preference experiment, complemented by a novel Revealed Preference exercise that uses CCTV footage to observe where rail passengers prefer to sit.The valuations, expressed as travel time multipliers, obtained from the Stated Preference exercise are generally plausible and exhibit a wide range according to the precise seating configuration, the occupancy level and the seating position within a layout. The innovative Revealed Preference analysis provides an encouraging degree of support to the Stated Preference results which, reassuringly, can themselves be reconciled with related valuations widely used in the railway industry in Britain and also the findings of the exploratory and attitudinal research. Whilst we are interested here solely in obtaining valuations, we demonstrate how they can be used in demand forecasting.     

On the relationship between airport pricing models

Airport pricing papers can be divided into two approaches. In the traditional approach the demand for airport services depends on airport charges and on congestion costs of both passengers and airlines; the airline market is not formally modeled. In the vertical-structure approach instead, airports provide an input for an airline oligopoly and it is the equilibrium of this downstream market which determines the airports’ demand. We prove, analytically, that the traditional approach to airport pricing is valid if air carriers have no market power, i.e. airlines are atomistic or they behave as price takers (perfect competition) and have constant marginal operational costs. When carriers have market power, this approach may result in a surplus measure that falls short of giving a true measure of social surplus. Furthermore, its use prescribes a traffic level that is, for given capacity, smaller than the socially optimal level. When carriers have market power and consequently both airports and airlines behave strategically, a vertical-structure approach appears a more reasonable approach to airport pricing issues.     

Dealing with the efficient allocation of scarce resources at congested airports

The existing slot allocation mechanism, based on the International Air Transport Association (IATA) system and its complementary version of the European Union (EU) regulation, produces rather poor capacity allocation outcomes for congested EU airports since it fails to properly match slots requested with slots allocated to airlines. Inefficiencies during the initial allocation are mainly due to the problem complexity in conjunction to limited decision support available to slot coordinators. On the other hand, substantial inefficiencies give rise to severe slot misuse and unreasonably low utilisation of airport resources running already into scarcity. The objective of this paper is to develop an optimisation-based model implementing the existing EU/IATA rules, operational constraints, and coordination procedures with the ultimate objective to better accommodate airlines’ preferences at coordinated airports through the minimisation of the difference between the requested and the allocated slot times to airlines. The results of the model are assessed and compared vis-à-vis the allocation outcome produced according to current slot coordination practice in three regional Greek airports. The proposed model produces very promising results and demonstrates that there is large room for improvement of the efficiency of the current allocation outcome in a range between 14% and 95%. The discussion of the model results is complemented by a sensitivity analysis highlighting the importance of declared capacity and the magnitude of its influence on slot allocation efficiency.     

Latent temporal preferences: An application to airline travel

An essential element of demand modeling in the airline industry is the representation of time of day demand—the demand for a given itinerary as a function of its departure or arrival times. It is an important datum that drives successful scheduling and fleet decisions. There are two key components to this problem: the distribution of the time of day demand and how preferred travel time influences itinerary choice. This paper focuses on estimating the time of day distribution. Our objective is to estimate it in a manner that is not confounded with air travel supply; is a function of the characteristics of the traveler, the trip, and the market; and accounts for potential measurement errors in self-reported travel time preferences. We employ a stated preference dataset collected by intercepting people who were booking continental US trips via an internet booking service. Respondents reported preferred travel times as well as choices from a hypothetical set of itineraries. We parameterize the time of day distribution as a mixture of normal distributions (due to the strong peaking nature of travel time preferences) and allow the mixing function to vary by individual characteristics and trip attributes. We estimate the time of day distribution and the itinerary choice model jointly in a manner that accounts for measurement error in the self-reported travel time preferences. We find that the mixture of normal distributions fits the time of day distribution well and is behaviorally intuitive. The strongest covariates of travel time preferences are party size and time zone change. The methodology employed to treat self-reported travel time preferences as potentially having error contributes to the broader transportation time of day demand literature, which either assumes that the desired travel times are known with certainty or that they are unknown. We find that the error in self-reported travel time preferences is statistically significant and impacts the inferred time of day demand distribution.     

Valuation of externalities through neo-classical methods by including institutional variables

Externalities are uncompensated influences that are not expressed in a market but that affect the production possibilities or the welfare level of third parties. An example is the noise pollution in airport areas. Although air transport is an important source of economic growth and employment in many countries, the social and environmental problems connected with this sector are rising rapidly. Consequently, airports are becoming a matter of concern to many politicians. On what kind of values should they base their decisions as to further growth or consolidation of the current situation? In this paper we discuss two approaches, one based on mainstream, neo-classical, economics, and one based on institutional approaches, more in particular new institutional economics, which can be seen as a development complementary to the mainstream.     

Airport and airlines competition: Incentives for vertical collusion

This paper develops a model of airport and airline competition in a three-stage game. We analyse incentives for vertical collusion between one airport and one airline that compete with another airport and another airline, by means of static and dynamic games. We find that incentives for collusion exist when airports and airlines have different market sizes and, under certain conditions, also when secondary airports and low cost airlines compete with main airports and full service airlines.     

Modeling taxi drivers’ decisions for improving airport ground access: John F. Kennedy airport case

Taxi service is an important component of airport ground access, which affects the economic competitiveness of an airport and its potential positive impact on the surrounding region. Airports across the globe experience both taxi shortages and excesses due to various factors such as the airport’s proximity to the city center, timing and frequency of flights, and the fare structure. Since taxi drivers are independent entities whose decisions affect the taxi supply at airports, it is important to understand taxi drivers’ decision mechanisms in order to suggest policies and to maintain taxi demand and supply equilibrium at the airports. In this paper, New York City (NYC) taxi drivers’ decisions about airport pick-ups or cruising for customers at the end of each trip is modeled using logistic regression based on a large taxi GPS dataset. The presented approach helps to quantify the potential impacts of parameters and to rank their influence for policy recommendations. The results reveal that spatial variables (mainly related to proximity) have the highest impact on taxi drivers’ airport pickup decisions, followed by temporal, environmental and driver-shift related variables. Along with supplementary information from unstructured taxi driver interviews, the model results are used to suggest policies for the improvement of John F. Kennedy (JFK) airport’s ground access and passenger satisfaction, i.e. the implementation of taxi driver frequent airport server punch cards and a time-specific ride share program.     

Efficient Transit Schedule Design of timing points: A comparison of Ant Colony and Genetic Algorithms

This work defines Transit Schedule Design (TSD) as an optimization problem to construct the transit schedule with the decision variables of the location of timing points and the amount of slack time associated with each timing point. Two heuristic procedures, Ant Colony and Genetic Algorithms, are developed for constructing optimal schedules for a fixed bus route. The paper presents a comparison of the fundamental features of the two algorithms. They are then calibrated based on data generated from micro-simulation of a bus route in Melbourne, Australia, to give rise to (near) optimal schedule designs. The algorithms are compared in terms of their accuracy and efficiency in providing the minimum cost solution. Although both procedures prove the ability to find the optimal solution, the Ant Colony procedure demonstrates a higher efficiency by evaluating less schedule designs to arrive at a ‘good’ solution. Potential benefits of the developed algorithms in bus route planning are also discussed.     

A transit ridership‐revenue model

The paper outlines the theoretical underpinnings of an urban mass transit revenue and ridership model designed to provide medium term forecasts of future trends in situations of data sparsity. The specific example laid out in the paper relates to the Greater Vancouver Regional District but the framework is of general applicability. Much of the informational input at the initial stage is of a general kind and details of the specific transit system and local area are of the sort which should be readily available to most urban authorities. The model developed is designed for use on a desk‐top micro‐computer and offers an inter‐active method of forecasting. The operator has the facility to both consider fare policy sensitivity and review alternative scenarios about future trends in exogenous factors. A selection of forecasts developed for the GVRD is provided to reveal the main features of the approach.     

浅淡广西机场客运快线发展思路与运营模式

文章分析了广西机场客运快线的发展现状及存在的问题,探讨了广西机场客运快线的发展思路,并提出了加快全区机场客运快线发展的运营模式。