Logan Airport
Executive Summary 2 Introduction 3 Causes of Delay 3 Assumptions and Facts 4 Alternative 1: Regional Solution 5 Alternative 2: New Runway 14/32 7 Alternative 3: Peak-Period Pricing 10 Alternative 4: New Runway and Peak-Period Pricing 12 Recommendation & Conclusion 13 References 14
Executive Summary
This report aims to analyze and attempt to reduce Logan airport’s delay problem in the year 2000. The airport was experiencing unacceptable numbers of delays due to three main problems: 1) Weather conditions, 2) Mix of aircrafts, and 3) Overscheduling. Under normal weather, the three-runway configuration is sufficient to handle incoming and outgoing planes. However, the delay problem at Logan is the most acute during severe weather, as only one runway is allowed to operate. With annual operation expected to increase to 510,000 to 656,000 in 2015, it is imperative that Logan finds an effective solution to have enough capacity in the long run to handle this projected demand.
This report examines four possible alternatives proposed to reduce Logan’s delay problems: 1) Divert demand to other regional airports, 2) Build a new runway, 3) Implement peak-period pricing, and lastly, 4) Combining peak-period pricing with the building of a new runway.
Upon analysis, we found that while diverting demand to other regional airport may provide some short-term relief to throughput (average inflow rate of planes), it cannot be sustained in the long-term, as growth of demand is only to be delayed, not eliminated. Next, building a new runway was identified as an effective solution. Despite its initial fixed cost of $100 million, it can help Logan save $5,196.92 and $251,739.36 per hour of delay avoided under adverse and severe weather, respectively. Furthermore, peak-period pricing was also identified as a viable solution by decreasing the variability of inflow rates – as a result, its incremental benefit is projected to be $57,037,500 in 2015.
Lastly, we
Executive Summary
This report aims to analyze and attempt to reduce Logan airport’s delay problem in the year 2000. The airport was experiencing unacceptable numbers of delays due to three main problems: 1) Weather conditions, 2) Mix of aircrafts, and 3) Overscheduling. Under normal weather, the three-runway configuration is sufficient to handle incoming and outgoing planes. However, the delay problem at Logan is the most acute during severe weather, as only one runway is allowed to operate. With annual operation expected to increase to 510,000 to 656,000 in 2015, it is imperative that Logan finds an effective solution to have enough capacity in the long run to handle this projected demand.
This report examines four possible alternatives proposed to reduce Logan’s delay problems: 1) Divert demand to other regional airports, 2) Build a new runway, 3) Implement peak-period pricing, and lastly, 4) Combining peak-period pricing with the building of a new runway.
Upon analysis, we found that while diverting demand to other regional airport may provide some short-term relief to throughput (average inflow rate of planes), it cannot be sustained in the long-term, as growth of demand is only to be delayed, not eliminated. Next, building a new runway was identified as an effective solution. Despite its initial fixed cost of $100 million, it can help Logan save $5,196.92 and $251,739.36 per hour of delay avoided under adverse and severe weather, respectively. Furthermore, peak-period pricing was also identified as a viable solution by decreasing the variability of inflow rates – as a result, its incremental benefit is projected to be $57,037,500 in 2015.
Lastly, we
References: Federal Aviation Administration. (2002). Logan Airside Improvements Planning Project GRA, Incorporated. (2004). Economic Values for FAA Investment and Regulatory Decisions, A Guide