Impact of continuous climb operations on airport capacity

The full benefits of Continuous Climb Operations (CCO) are realised when CCO are performed without interruption. However, CCO require safe departures that necessarily implies a reduction in capacity at high density traffic airports. This paper quantifies the capacity impact due to the integration of CCO (conflict-free with other departures and arrivals) in a high density traffic airport. The methodology develops a scheduling algorithm, a conflict-detection and resolution algorithm, and Monte Carlo simulations. The scheduling algorithm calculates two schedules, one for departures and another for arrivals, considering the CCO Rate. The conflict-detection and resolution algorithm compares CCO and arrival trajectories to detect which aircraft pairs are in conflict. The Air Traffic Control (ATC) intervention required to solve the conflict is modelled by delaying the CCO take-off. Numerical simulations based on Monte Carlo techniques are used to analyse scheduling combinations that are statistically significant in terms of conflict, ATC interventions, total delay and capacity. The results show a 32% reduction in the maximum theoretical capacity with a CCO Rate of 100%. Despite the reduction, the number of CCO departures is above the maximum operational capacity (50% of the maximum theoretical capacity). This implies that with optimised scheduling it is possible for all departures to be CCO.     

Airport privatization in congested hub–spoke networks

This paper investigates the airport privatization issue. One congested hub and two linked local airports serve symmetric hub carriers. Passengers valuate the congestion delay cost and benefit from greater frequencies. The government considers privatizing either the hub or local airports. We find that in each privatizing scenario, welfare-maximizing public airport(s) set a charge below their operating costs in order to fully coordinate the high charge of privatized airport(s). If this fiscal deficit is not allowed, each scenario causes distortion. Interestingly, the distortion—and hence welfare losses—in privatizing a hub are smaller (larger) than those in privatizing both local airports when both passengers’ valuations are small (large); this is exactly the case when privatized local airports are strategic substitutes (complements). We also surprisingly find that retaining the hub airport as public and privatizing one or both local airports achieves the same market outcomes. We further find that if all airports are privatized, welfare becomes worse than the other scenarios; the hub airport charges lower (higher) prices than local airports when both local airports are strategic substitutes (complements).     

基于功能定位的国际航空枢纽评价

针对我国国际枢纽机场未按照设计之初功能定位发展的现状,运用AHP法构建国际枢纽机场综合评价指标体系,将国际航空运输规模指标、国际节点网络连通度指标、枢纽功能指标、综合交通指标纳入体系当中。首先对国内外大型国际枢纽机场进行评价,其次对我国机场布局规划中的10个国际枢纽机场进行评价。结果表明我国国际枢纽机场国际业务发展、航空枢纽建设与国外对标机场有一定差距,与自身战略规划有所偏差,针对薄弱指标项基于自身优势给出发展建议。最后基于一市两场与机场群的视角,分析了如何根据自身功能定位进行协同发展问题。     

Joint impact of competition,ownership form and economic regulation on airport performance and pricing

The combined impact of ownership form, economic regulation and competition on airport performance is analyzed using data envelopment analysis to measure cost efficiency in the first stage and regression analysis to measure the impact of the environment in the second stage. The empirical results of an analysis of European and Australian airports over a 10 year timeframe reveal that under relatively non-competitive conditions, public airports operate less cost efficiently than fully private airports. Irrespective of ownership form, regulation is necessary to emulate competitive forces thus pushing airport management towards cost efficiency and reasonable pricing policies. Under potential regional or hub competition, economic regulation inhibits airports of any ownership form from operating and pricing efficiently. Although public and fully private airports operate equally efficiently in a competitive setting, private airports still set higher aeronautical charges. Furthermore, mixed ownership forms with a majority public holding are neither cost efficient nor low price, irrespective of the level of competition.     

Congestion spill effects of Heathrow and Frankfurt airports on connection traffic in European and Gulf hub airports

We develop two stage fixed-effects single-spill and double-spill models for congestion connection spills of London Heathrow and Frankfurt airports on 9 hub airports in Europe and the Gulf. Our panel data covers connection traffic from 1997 to 2013 for Heathrow and 1997 to 2011 for Frankfurt. The single-spill results support strongly that the connection spills from Heathrow’s capacity limitations do strengthen competing hub airports of major alliance groups and to a lesser degree one Gulf hub. The double-spill model for Heathrow and Frankfurt shows nearly asymmetric overall spill characteristics between the two airports. Our results underline the influence of airline network strategies on congestion spills as European airline networks are shaped by alliances and umbrella mergers. Thus, the airline network perspective in airport capacity expansion decisions needs to play a greater role, as indicated by our asymmetric results for overall spill effects between Heathrow and Frankfurt airports.     

A new era for airport regulators through capacity investments

Private and public airports’ optimal actions may not coincide. While private airports usually pursue profit maximization, publicly owned airports look for maximum social welfare. Thus, the prices charged by private airports may differ from the socially optimal charges and public intervention may be needed. In this paper, we analyze airport charges when an increase in frequency produces positive or negative externalities and carriers have market power. We use the methodology of game theory to show that there may exist a level of capacity for which private and social objectives coincide, so no price regulation is needed. Thus, the usual role of regulators and planners could be modified in order to decide the appropriate capacity investments for which airport regulation is no longer necessary.     

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.     

The Measurement of Efficiency of UK Airports,Using a Stochastic Latent Class Frontier Model

Abstract

In this paper, the latent stochastic frontier model is used to estimate the technical efficiency of UK airports. These airports are ranked according to their technical efficiency for the period 2000–06 and the airports are disentangled and segmented by the cost frontier model, which leads us to advise the implementation of policies by segments. Economic implications arising from the study are also considered.     

Determination and Applications of Environmental Costs at Different Sized Airports – Aircraft Noise and Engine Emissions

With the increasing trend of charging for externalities and the aim of encouraging the sustainable development of the air transport industry, there is a need to evaluate the social costs of these undesirable side effects, mainly aircraft noise and engine emissions, for different airports. The aircraft noise and engine emissions social costs are calculated in monetary terms for five different sized airports, ranging from hub airports to small regional airports. The number of residences within different levels of airport noise contours and the aircraft noise classifications are the main determinants for accessing aircraft noise social costs. The environmental impacts of aircraft engine emissions include both aircraft landing and take-off and 30-minute cruise. The social costs of aircraft emissions vary by engine type and aircraft category, depending on the damage caused by different engine pollutants on the human health, vegetation, materials, aquatic ecosystem and climate. The results indicate that the relationship appears to be curvilinear between environmental costs and the traffic volume of an airport. The results and methodology of environmental cost calculation could be applied to the proposed European wide harmonised noise charges as well as the social cost benefit analysis of airports.     

Effects of corruption on efficiency of the European airports

The effect of corruption on airport productive efficiency is analyzed using an unbalanced panel data of major European airports from 2003 to 2009. We first compute the residual (or net) variable factor productivity using the multilateral index number method and then apply robust cluster random effects model in order to evaluate the importance of corruption. We find strong evidence that corruption has negative impacts on airport operating efficiency; and the effects depend on the ownership form of the airport. The results suggest that airports under mixed public–private ownership with private majority achieve lower levels of efficiency when located in more corrupt countries. They even operate less efficiently than fully and/or majority government owned airports in high corruption environment. We control for economic regulation, competition level and other airports’ characteristics. Our empirical results survive several robustness checks including different control variables, three alternative corruption measures: International Country Risk Guide (ICRG) corruption index, Corruption Perception Index (CPI) and Control of Corruption Index (CCI). The empirical findings have important policy implications for management and ownership structuring of airports operating in countries that suffer from higher levels of corruption.     

A time series analysis of the dynamic competition between major cargo airports

This paper models the dynamic competition between major cargo airports from the time series perspectives of long-term equilibriums and short-run dynamics. We first apply a unit root test to examine the stationarity of cargo throughput data. Airports are then analysed pairwise by region to test their equilibrium relationships through cointegration analysis. Meanwhile, we also utilise the error correction model to investigate the short-run impacts of cargo traffic between the airports. According to our findings, there are four positive long-term equilibriums, one positive short-run dynamic and three negative short-run dynamics in Asia. In addition, the airports in North America are found to have four positive long-term equilibriums, three negative long-run equilibriums, seven positive short-run impacts and three negative short-run impacts. As these dynamic relationships imply competition between cargo airports, our study can provide airport authorities with the reference to develop their long-term strategies and short-run operational plans.     

Experience sampling in and around airports. Momentary subjective wellbeing,airports, and aviation noise in England

We explore the wellbeing of people in and around English airports using real-time data from a large spatial positioning experience sampling dataset (Mappiness). We analyze the association between subjective wellbeing reported in the moment and aviation, in terms of airport location, aircraft noise, and activities within airports. This is the first time that a large Experience Sample Method (ESM) of momentary wellbeing measurements has been used to quantify the associations between aviation and subjective wellbeing. Being within areas of high levels of aircraft noise is associated with lower levels of happiness and relaxation. Those surveyed in proximity to airports report significantly lower levels of relaxation. These findings have important implications to policy. Exploiting the panel nature of the ESM data provides the strongest causal claims to date of the negative association between aviation activities and subjective wellbeing. The Mappiness application also allows us to assess the association between airports and wellbeing on those inside them, and divide activities within airports between those who work there and those who are passing through for travel purposes, as well as the effects of aircraft noise beyond airports. This gives us a broader insight into the range of impacts, both positive and negative, that aviation has on peoples’ momentary wellbeing, which may be used to inform aviation noise mitigation and compensation policies in the future.     

Airport–Airline interaction: some food for thought

Abstract

We provide an interpretive analysis of vertical relations between airports and carriers, while assessing the way in which deregulation of the airline market and the privatization of airports have created incentives for airport–airline interaction. In particular, if the vertical structure approach has become the standard approach in air transport research, we add to the literature by discussing three issues that we believe need further understanding. The three issues that we think should be the focus of future research on airport–airline interaction are (i) incomplete contracts and asymmetric information structure; (ii) upstream horizontal complementarities; and (iii) airports as two-sided platforms.     

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.     

Evaluating the operational performance of airside and landside at Chinese airports with novel inputs

ABSTRACT

This paper evaluates the operational performance of airside and landside at Chinese airports with two novel inputs. Furthermore, the airport landside operation is decomposed into passenger-terminal operations and cargo-warehouse operations. One novel input is the capability of the runway system which is introduced into airside performance evaluation. The other novel input is cargo warehousing which is introduced into landside performance evaluation. To address multiple optimal solutions when estimating Returns to Scale in Data Envelopment Analysis, we adopted the Zhu and Shen method. This empirical study shows that neither the number of runways nor total runway length is a genuine index of runway system capability in the evaluation of airside performance. Only four airports achieved full efficiency in all eight measures while eight airports did not achieve any full efficiency. In addition, one airport did not perform well in the benchmark analysis.     

Non-parametric analyses of efficiency of airports

This paper estimates the efficiencies and productivity changes of 12 international airports in the Asia-Pacific region based on data from 1998 to 2006. We apply stochastic frontier analysis (SFA) to compute efficiency estimates and use the Malmquist productivity index (MPI) to analyze productivity changes. We use the SFA model with a translog-type production function after testing the statistical hypotheses. According to the results of the SFA hypothesis tests, airports have experienced a technological regression; the deviations from the efficiency frontier are caused more by technical inefficiency than random noise. However, the inefficiency was found to decrease. The MPI reveals a declining trend resulting more from technological change than from efficiency change, with a decrease in inefficiency. Taken together, both the hypothesis tests and the MPI not only provide consistent conclusions, but also suggest that airports should concentrate on technological progress.     

A multi-criteria evaluation of solutions and alternatives for matching capacity to demand in an airport system: the case of London

This paper applies multi-criteria decision-making (MCDM) methods to the evaluation of solutions and alternatives for matching airport system airside (runway) capacity to demand. For such a purpose, ‘building a new runway’ is considered as the solution and candidate airports of the system as alternatives for implementing the solution. The alternative airports are characterized by their physical/spatial, operational, economic, environmental, and social performance represented by corresponding indicator systems which, after being defined and estimated under given operating scenarios, are used as evaluation attributes/criteria by the selected MCDM methods. Two MCDM methods – Simple Additive Weighting and Technique for Order of Preference by Similarity to Ideal Solution – are applied to the case of the London airport system to rank and select the preferred alternative from three candidate airports – Heathrow, Gatwick, and Stansted – for where a new runway could be built.     

Benchmarking airports with specific safety performance measures

The purpose of this paper is to develop safety performance measures and test the measures on data for air traffic management failure events. Failure events are classified by the severity of the consequence of occurrence, resulting in the rate of occurrence in severity categories. The safety measures are standard statistics calculated from this “distribution” for comparison of airport operations by stochastic ordering. For comparisons a benchmark is developed from the aggregation of failure data on a set of comparable airports. Airport performance is then compared with the benchmark using the defined safety measures. The benchmark comparison was implemented with failure data for major airports in Canada from 2005 to 2012. The results show a number of patterns and anomalies and some airports perform poorly in comparison to a class of similar operations. We conclude by suggesting benchmarking safety measures as a natural addition to the information system on aviation safety compiled by a national regulatory body to unravel anomalies such as implementation problems of a safety management system.     

An expert system for air traffic flow management

An expert system for the air traffic flow management (ATFM) problem is presented. Two main prototypes have been constructed, one for timetable rescheduling that attempts to modify airline timetables to smooth traffic peaks at airports during rush-hours and another for centralized flow control that works to forecast the place, time and magnitude of the congestion and to propose mitigative actions. Simulations for the Brazilian ATFM, including the principal 14 airports, show the potential usefulness of the expert system.     

Demand for rail travel to and from airports

Rail access to airports is becoming increasingly important for both train operators and the airports themselves. This paper reports analysis of inter-urban rail demand to and from Manchester and Stansted Airports and the sensitivity of this market segment to growth in air traffic and the cost and service quality of rail services. The estimated demand parameters vary in an expected manner between outward and inward air travellers as well as between airport users and general rail travellers. These parameters can be entered into the demand forecasting framework widely used in the rail industry in Great Britain to provide an appropriate means of forecasting for this otherwise neglected market segment. The novel features of this research, at least in the British context, are that it provides the first detailed analysis of aggregate rail flows to and from airports, it has disaggregated the traditional generalised time measure of rail service quality in order to estimate separate elasticities to journey time, service headway and interchange, and it has successfully explored departures from the conventional constant elasticity position.