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The Value of an Additional Slot at Capacitated Airports.

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Presentation on theme: "The Value of an Additional Slot at Capacitated Airports."— Presentation transcript:

1 The Value of an Additional Slot at Capacitated Airports

2 Sponsors Judith Teller Foundation Toronto, CA Marty Goldberg

3 The Team Hebrew University School of Business Administration – Prof. Nicole Adler – Dr. Ekaterina Yazhemsky – Oren Petraru – Hadar Israeli – AOR Research methodology Data collection Analyzing results Writing Dissemination Fisher Institute – Itai Alon – AOR Airport and Flight Safety Discussion & advice Dissemination

4 Airport & Flight Safety Movements versus Safety How to measure airport safety? FOQA, Mishaps, Accidents How far can you go? IFR / VFR, Theory/Reality Xie 2004

5 Aims Compute the value of additional slots at congested airports Analyzing 30 busiest airports in United States and Europe Need to balance: capacity utilization delays Administrative systems: US based on first come first served principle Europe based on slot allocation & grandfather rights

6 ATM & Delay The aviation system is a queuing system & as demand hits capacity the delays increase non-linearly Odoni et al. (2010) measured the value of delay in the US for 2007:

7 Source: Odoni & Morisset (2011)

8 Scheduling based on VFR or IFR? 8

9 Capacity Utilization versus Delays US: airline schedules based on VFR & high capacity utilization therefore high level of delays Europe: airline schedules based on slot allocations based on IFR & low capacity utilization therefore low levels of delay estimate connection between: – runway & terminal capacity – delays – profits for airports & airlines where is it worthwhile increasing capacity & how much is an extra movement worth?

10 Europe 15 airports ( ) ATM (monthly) Terminal capacity Profit Delays (monthly) Runway capacity In August

11 USA 15 airports ( ) ATM (monthly) Terminal capacity Profit Delays (monthly) Runway capacity In August In February 0.35

12 Conclusions Airside greater impact on throughput than landside Slot allocations limit volume hence reduce delays (excessively) In Europe: worthwhile increasing slots because value of additional slot exceeds additional cost of delay Questions to be considered in second part of project: – Passenger viewpoint (schedule versus real delay) – Safety – Environmental externalities


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