This chapter reviews existing knowledge of the impacts of airport operational performance on airline costs. Operational performance includes different aspects, including delay against schedule, flight time variability, and flight cancellations. We focus on the airline costs that are incurred as the result of delays against schedule as well as additional time that airlines build into their schedules in anticipation of delay. Methods for estimating these costs fall into two categories. The cost factor approach applies cost factors to delay quantities. Different cost factors may be used for different kinds of delay, based on where the delay occurs (at the gate, in the air, etc.), delay type, aircraft type, and delay duration. Problems with the cost factor approach include limitations in data necessary to categorize delay, the limited basis for determining cost factors, and the assumption that the aggregate cost of delay can be obtained by summing the costs of individual delay events. The second approach is based on aggregate cost, and posits some relationship between total airline cost and the amount of delay (including both delay against schedule and schedule padding) incurred by flights of the airline. Recent research investigates this relationship using the methodology of statistical cost estimation. Estimates of the total cost of delay to US domestic airlines based on the aggregate approach are somewhat higher than those based on the cost factor approach, suggesting the delay effects airline cost structures in ways that the cost factor approach does not capture. The differences in total cost estimates are fairly modest, however, suggesting that the latter approach is reasonable when the goal is to monetize delay reduction benefits from initiatives to reduce delay at individual airports.


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    Title :

    Airport Operational Performance and Its Impact on Airline Cost


    Contributors:


    Publication date :

    2013-07-26


    Size :

    25 pages




    Type of media :

    Article/Chapter (Book)


    Type of material :

    Electronic Resource


    Language :

    English