Case Study for Logan International
1. a. Per plane delay times λ=50: 6.54 minutes/ plane λ=55: 12.52 minutes/ plane λ=59: 60.5 minutes/ plane
Delay costs Arrival rate | 50 | 55 | 59 | Turbo | 6.54(348+0.7*15*25.7)60=$67.07 | 12.5(348+0.7*15*25.7)60=$128.32 | 60.5(348+0.7*15*25.7)60=$620.02 | Jet | 6.54(1585+0.7*150*25.7)60=$467.29 | 12,5(1585+0.7*150*25.7)60=$893.95 | 60.5(1585+0.7*150*25.7)60=$4319.5 | Regional Jet | 6.54(632+0.7*50*25.7)60=$167.07 | 12.5(632+0.7*50*25.7)60=$319.62 | 60.5(632+0.7*50*25.7)60=$1544.37 |
b. Delay costs according to FAA
There are only delay costs associated with an arrival rate of 59, delay time: 60.5-15= 45.5
Arrival rate | 50 | 55 | 59 | Turbo | 0 | 0 | 45.5(348+0.7*15*25.7)60=$466.30 | Jet | 0 | 0 | 45.5(1585+0.7*150*25.7)60=$3248.62 | Regional Jet | 0 | 0 | 45.5(632+0.7*50*25.7)60=$1161.49 |
c. We think 20-30 minutes would be a reasonable definition of delay because there shouldn’t be delay costs associated with delays under 30 minutes because it’s not a lot of time.
d. PPP is a good solution if it can reduce the arrival rate by even a small amount, say 5 planes. By reducing it from 59 to 55, per plane delay times will decrease dramatically, as will delay costs.
2. a. Revenue per plane Turbo | Jet | Regional Jet | 15*0.7*240=2520 | 150*0.7*400=42000 | 50*0.7*160=5600 |
% of fee/ revenue Landing Fee | 200 | 250 | 300 | Turbo | 2002520=7.9% | 2502520=9.9% | 3002520=11.9% | Jet | 20042000=0.48% | 25042000=0.6% | 30042000=0.71% | Regional Jet | 2005600=3.6% | 2505600=4.5% | 3005600=5.4% |
We think having a fee of at least 3% of revenue would be significant.
For all landing fees, turboprobs and regional jets would feel a significant impact, conventional jets would not. Turboprobs would be the most affected.
b. Per plane delay times λ=40: 3.6 minutes/ plane λ=45: 4.57 minutes/ plane λ=55: 12.52 minutes/ plane
i. Delay cost Arrival rate | 40 | 45 | 55 | Turbo | 3.6(348+0.7*15*25.7)60=$37.07 |
Delay costs Arrival rate | 50 | 55 | 59 | Turbo | 6.54(348+0.7*15*25.7)60=$67.07 | 12.5(348+0.7*15*25.7)60=$128.32 | 60.5(348+0.7*15*25.7)60=$620.02 | Jet | 6.54(1585+0.7*150*25.7)60=$467.29 | 12,5(1585+0.7*150*25.7)60=$893.95 | 60.5(1585+0.7*150*25.7)60=$4319.5 | Regional Jet | 6.54(632+0.7*50*25.7)60=$167.07 | 12.5(632+0.7*50*25.7)60=$319.62 | 60.5(632+0.7*50*25.7)60=$1544.37 |
b. Delay costs according to FAA
There are only delay costs associated with an arrival rate of 59, delay time: 60.5-15= 45.5
Arrival rate | 50 | 55 | 59 | Turbo | 0 | 0 | 45.5(348+0.7*15*25.7)60=$466.30 | Jet | 0 | 0 | 45.5(1585+0.7*150*25.7)60=$3248.62 | Regional Jet | 0 | 0 | 45.5(632+0.7*50*25.7)60=$1161.49 |
c. We think 20-30 minutes would be a reasonable definition of delay because there shouldn’t be delay costs associated with delays under 30 minutes because it’s not a lot of time.
d. PPP is a good solution if it can reduce the arrival rate by even a small amount, say 5 planes. By reducing it from 59 to 55, per plane delay times will decrease dramatically, as will delay costs.
2. a. Revenue per plane Turbo | Jet | Regional Jet | 15*0.7*240=2520 | 150*0.7*400=42000 | 50*0.7*160=5600 |
% of fee/ revenue Landing Fee | 200 | 250 | 300 | Turbo | 2002520=7.9% | 2502520=9.9% | 3002520=11.9% | Jet | 20042000=0.48% | 25042000=0.6% | 30042000=0.71% | Regional Jet | 2005600=3.6% | 2505600=4.5% | 3005600=5.4% |
We think having a fee of at least 3% of revenue would be significant.
For all landing fees, turboprobs and regional jets would feel a significant impact, conventional jets would not. Turboprobs would be the most affected.
b. Per plane delay times λ=40: 3.6 minutes/ plane λ=45: 4.57 minutes/ plane λ=55: 12.52 minutes/ plane
i. Delay cost Arrival rate | 40 | 45 | 55 | Turbo | 3.6(348+0.7*15*25.7)60=$37.07 |