Delays at Logan Airport

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For short term and long term, Logan Airport is recommended to increase its service level by adding one new runway () in operation to ensure at least two runways are working (). The level of safety capacity () thus can be increased, , so , where is the processing time, is the runway capacity, and is the inflow rate. Local users will be benefited by the new runway because the safety capacity during bad weather conditions and peak periods will be increased to mitigate delays. To minimize the effect on the affected residential and commercial area, in addition to having noise reduction facilities, we recommend Logan Airport to mainly use the new runway when there would be less than two runways in operation. After all, having at least two runways working was the ultimate goal of the plan. It is a sustainable solution to the airport and users because it increases the capacity of the airport.[pic 4][pic 5][pic 6][pic 7][pic 8][pic 9][pic 10][pic 11]

During the construction of the new runway, FAA and Logan Airport shall utilize the regional airports to maintain the service level of transit in the city and temporarily relieve the delays in Logan Airport. This solution will be beneficial to the region because of increased utilization of resources of the region. Logan Airport’s geographical advantage, as one of the largest origin and destination markets in the country, should keep Logan Airport’s growth in demand unshaken by the regional airports after the termination of this solution.

Logan Airport is also recommended to adopt demand management measures (peak-pricing), in the future, to reduce average queue time during peak periods. The average queue time () will be reduced as the variability in interarrival rate,, is reduced according to the queue length formula, , where is the capacity utilization and is the coefficient of variation in processing time. Since processing time for flights are presumed to be uniform and be more synchronized with the variability in interarrival time, delays and waiting time will be reduced. In 2015, peak pricing will reduce the number of delayed flights per 4-hour-period by 21% and the standard deviation of demand per 4-hour-period by 8.5%. Appendix C shows the expected positive result of peak pricing. Because overscheduling is a potential problem and peak pricing has been claimed discriminatory to small planes, Logan Airport can test peak pricing with lower flat fee for smaller aircrafts and contract the peak period to 7am-10am and 2pm-8pm, which were the busiest periods of weekdays. Moreover, smaller planes were gradually being replaced by larger planes therefore delay problems would be reduced, and peak prices can be adjusted according to the need of demand control. As demand reduces, heavy load on other resources in the airport will be driven down.in the airport will be driven down.[pic 12][pic 13][pic 14][pic 15][pic 16]

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Appendix A (Costs calculation 1)

- There is an average of 47.5 delays per 1,000 flights

- Estimated annual operations in 2001 and 2015 are 470,000 and 510,000 respectively

2001 estimates

2015 estimates

Annual operations

479,000

510,000

Annual delays

(479,000)(47.5)/1000 = 22,753

(510,000)(47.5)/1000 = 24,225

Annual number of passengers

27.4 million

37.5 million

Avg. number of passengers per flight

(27.4 mil)/(479,000) = 57.20

~approx. 60

(37.5 mil)/(510,000) = 73.53

~approx. 70

Assumptions:

- Each passenger on a delayed flight is compensated

- Compensation cost per passenger for Logan is $500

- No change in compensation costs per passenger over the years

2001 estimates

2015 estimates

Compensation cost per

passenger

$500

$500

Total cost per flight

(500)(60) = $30,000

(500)(70) = $35,000

Total annual cost

(30,000)(22,753)

= approx. $683 million

(35,000)(24,225)

= approx. $848million

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Appendix B (Cost calculation 2)

Assumptions:

- For every 10 delayed flights at Logan, 1 passenger chooses another airport

- Average revenue per passenger for Logan is $500

- No change in revenue per passenger over the years

2001 estimates

2015 estimates

Annual delays

22,753

24,225

Number of passengers who choose a different airport

(22,753)/10 = approx. 2,275

(24,225)/10 = approx. 2,423

Revenue per passenger

$500

$500

Total revenue

(500)(2,275)

= approx.