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Improving the Passenger Experience Concepts to Incorporate Technology into Landside Airport Operatio

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Title: Improving the Passenger Experience Concepts to Incorporate Technology into Landside Airport Operatio


1
Improving the Passenger Experience Concepts to
Incorporate Technology into Landside Airport
Operations and Aircraft
January 26, 2006
Susan E. Cliff Ames Research Center John E.
Melton Ames Research Center Scott D.
Thomas Raytheon Mary E. Livingston Ames
Research Center
Revolutionary Systems Concepts in Aeronautics
2
Agenda
  • Introduction
  • Status/trends of the air transportation industry
  • Airport diversity issues
  • Concepts
  • Logistics
  • Pros and Cons
  • Interviews
  • Turn-around-time assessment of concepts
  • Impact of reduced turn-around-time on delays
  • Recommendations

3
Introduction
  • Flying was fun at the start of the jet age
  • Economic performance is the design goal due to
    deregulation and privatization
  • 1.7 billion PAX in 2000, 1 trillion in revenues
    (half in U.S.)
  • Traffic will double within the next 20 years
  • Airports take 10 years to plan and need
    renovation after 20
  • lt 20 further capacity gains predicted via
    airside technology
  • U.S. must continue to lead and maintain growth in
    this industry
  • Little new technology in 30 years on landside
    little NASA involvement
  • Investment in IT and telecommunications on the
    rise
  • NASA can help

4
Current Trends/Status of the Air Transport
Industry
Seat-cost /mile
  • Several legacy carriers have filled bankruptcy
    and many have disappeared
  • New low cost carriers (LCCs) emerging and
    proving successful
  • Point-to-point routes ensure high load factors
  • Utilizing the secondary airports (lower landing
    and service fees)
  • Lower levels of service to passengers at a
    decreased ticket price
  • Intense competition forcing reduced levels of
    service across all airlines
  • CD forces economic efficiency with less/no
    government involvement
  • Largest airports in the world are now transfer
    hubs (consequence of CD)
  • Inconvenience to PAX - lengthens total trip time,
    increases delays and risk of lost baggage
  • Airlines benefit from more frequent flights, a
    ready supply of backup flights, and higher load
    factors

5
Airports appear simple but no two airports are
alike!If youve seen one airport, youve seen
one airport
  • Diversity (Covered in written report)
  • Cost structure (user charges / residual or
    compensatory)
  • Owner / Management structure
  • Planning
  • Architecture
  • Controlling power
  • Finance
  • 9/11 limits access
  • Fundamental problems
  • Limited information
  • 2 textbooks (one current)
  • A handful of research articles, and the Internet
  • Much is proprietary
  • Who do we talk to? Who will talk to us?

6

Metrics for Innovative Landside and Aircraft
Concepts
  • Passenger experience
  • Safety and security
  • Airline and airport ground operations
  • Worker efficiency
  • Aircraft efficiency
  • Cost effectiveness
  • Turn around time
  • Total trip time
  • Environmental friendliness

7
List of Concepts
  • Hardened cargo bins for narrow bodies (pressure
    and sniff tested)
  • Modular aircraft with removable wings, toilets,
    and water holding tanks
  • Oblique wing aircraft with LRU toilets and water
    holding tanks
  • Passengers carry luggage under seat/floor
    hardened bins
  • Autonomous baggage carts
  • Airlines offer door to door baggage delivery
  • Personalized service stations
  • Travel information pads (TIP)
  • Two abreast seating
  • Over-the-wing nacelles
  • Personalized rapid transit (PRT)

8
1. Utilize hardened cargo bins
  • Utilize hardened cargo bins on all aircraft
  • Bins capable of withstanding an explosion below
    the detection threshold
  • Pressure and sniff test all bins for explosive
    devices prior to loading
  • Utilize demonstrated technologies for explosive
    proof Hardened Unit Loading Devices (HULD)
    L3-Titan or others

9
1. Utilize hardened cargo bins
Pros Improved security Bin loading in place on
large AC, so loading mechanism does not need
development Passenger experience enhanced by
additional safety precaution HULD technologies
developed by L3-Titan others Eases handling and
maximizes storage on narrow bodied AC Near
optimal bin loading is achievable bins stacked
based on destination
Cons Bins may not be feasible on small AC, no
room to enlarge cargo door Composite material
maybe heavier than existing cargo bins Cargo door
enlargement expenses for AC not using bins
10
Passenger Terminal Dichotomy
  • All terminal buildings must bridge the scale
    from human to airplane
  • Need to both concentrate and spread out
    facilities
  • Virtually every terminal has been rebuilt due to
    increased wing spans
  • Solutions are biased toward retail rather than
    the passenger

11
2. Aircraft with removable wings and LRUs
  • Airplane transitions into bus
  • Rapid wing change out is accomplished in
    drive-through hangars
  • Utilizes rapid disconnect/reconnect fail-proof
    mechanical, electrical, and fuel couplings
    between the wing and fuselage
  • Drive-through hangars located near runway
  • Water valves are automatically closed at ramp
    arrival
  • Toilets and waste material replaced as a unit
    (eliminates toilet service)
  • Potable water tanks replaced (eliminates water
    filling)
  • New entry doors near the wing-body junction

12
2. Aircraft with removable wings and LRUs
Pros Reduces apron and taxiway size or permits 2
vehicles and 2-way traffic Improves access to
terminal, less pollution and noise during
taxi Improves ground vehicle maneuverability and
eliminates need for wing walker Pre-fueled wing
reduces fueling time and could be filled to
mission requirements Only requires one fuel
vehicle on apron Eliminates de-icing of wing
less use of ADF fluids over entire
airport Interchangeable wings designed to mission
and rented Modularity reduces out-of-service
time Reduces terminal size and walking
requirements Reduces TAT for potable water
refilling and toilet servicing / cleaning
Cons Weight penalty for connection
hardware Safety issue for attaching pre-fueled
wings Storage and autonomous attachment hardware
would require development Connection must be as
strong as integral wing-body aircraft and fail
proof Still need fuel service for some
aircraft Fuselage mounted engines would produce
more cabin noise Passenger may be kept on the
ground longer depending on the wing removal and
attachment time
13
3. Oblique wing aircraft with LRUs
  • Aircraft that rotates its entire wing during
    flight or on the ground
  • Airplanes can essentially have the functionality
    of a bus during taxi
  • Wing positioned for efficient flight over entire
    mission
  • No sonic boom for flights up to Mach 1.2
  • LRUs as discussed in 2
  • Multiple door egress and rapid cargo loading
    feasible

14
3. Oblique wing aircraft with LRUs
15
3. Oblique wing aircraft with LRUs
16
3. Oblique wing aircraft with LRUs
Pros Most efficient configuration for low
supersonic flight lighter, quieter, and more
fuel efficient than symmetrical configurations
with same mission Reduces terminal size and
walking requirements for passengers No sonic boom
for Mach 1.2 flight and allows for efficient and
low boom flight to Mach 1.4 Reduces apron and
taxiway size or permits 2 vehicles and 2-way
traffic on conventional taxi lanes Provides
reduced landing speeds and runway length,
additional taxiways SIGNIFICANTLY REDUCES TRAVEL
TIME Improves ground vehicle maneuverability Reduc
es time for de-icing of aircraft Possible
multiple door egress for reduced boarding time
and possibly TAT
Cons Increased weight for pivot mechanism, wing
box and fuselage structural reinforcements Fuselag
e mounted nacelles will produce more cabin
noise Stability and control system more complex
for asymmetric configuration and dynamic wing
17
4. Passengers carry their own luggage
  • No checked baggage service
  • Utilize small portion of cargo area for
    additional luggage
  • Explosive-hardened compartment below seat/floor
  • Floor lowered for additional luggage room
  • PRT system facilitates this concept since PAX
    only have to walk short distances

18
4. Passengers carry their own luggage
Cons Passengers have to haul their own
luggage Retrofitting costs for luggage room under
moveable seats and suitable seat movement
mechanism for public use Boarding and de-plane
times may be increased May decrease space
availability for pay cargo services
Pros Eliminates risk of lost luggage Reduces
baggage handling costs Eliminates waiting for
luggage at destination airport Reduces total trip
time Passengers may pack less if they know they
have to transport own luggage Strong boxes can
offer another layer of security if able to
withstand explosives
19
5. Autonomous baggage carts
  • Autonomous, self-propelled luggage carrying
    vehicles
  • Uses GPS, inertia sensing, navigation, collision
    avoidance systems technologies
  • Linked to passenger through RFID system
  • Finds its way onto airplane and to passenger
  • Near optimal loading is feasible
  • Orientation and tamper sensing devices used
  • Passenger and baggage would separate early
    (security/parking garage)

20
5. Autonomous baggage carts
Pros Provides link between passenger and
luggage Allows for smart baggage placement on
airplane with multiple destinations Frees the
passenger from tracking down luggage by reversing
the process the luggage finds its
owner Information of the luggage location
available at all times when tied with TIP Offers
savings in total trip time Reduces baggage
handling costs of loading bags in cargo hold
Cons Requires multiple systems to work together
and would require testing May be costly although
all technologies are in hand to accomplish all
functionalities Start up costs for such a system
may be large Development of separate luggage
lanes may be necessary
21
6. Door to door baggage service
  • Airlines provide door-to-door baggage delivery
  • Cost infrastructure with airline (single
    transaction)
  • Baggage picked up 0-7 days ahead of trip (reduced
    fares for longer lead times)
  • Airlines contract with large parcel carriers
  • Utilize Just in Time delivery system
  • Passengers with bags given 2-day service, unless
    premium paid
  • Transportation via all modes of travel (air,
    rail, or ground)

22
6. Door to door baggage service
Pros Security enhanced by baggage
decoupling Airport/airlines do not have (time,
labor, and passenger building size) expenses
associated with baggage handling Passenger not
required to haul baggage around expansive
airports Passenger able to track bags Relieves
passenger of transporting bags to and from
airport Parcel service may be more efficient than
airlines at single task Allows for more cargo to
be carried
Cons May require baggage carrying flights to same
destinations Delivery costs maybe higher than the
cost reduction of eliminating baggage operations.
Costs difference would be incurred by traveler
with security tax Requires passenger to pack
farther in advance of departure
23
7. Personalized service stations
  • Located in terminal with sufficient numbers to
    easy access
  • Privacy bubble and seat
  • Includes an identity authentication mechanism
  • Information shared wirelessly using RFIDs
  • Functions include
  • Directions
  • Airline service
  • Weather information
  • Telephone
  • Internet services
  • Flight statistics
  • Delay statistics
  • Baggage location

24
7. Personalized service stations
Pros Provides personalized service Provides a
mechanism to keep the passengers informed. Ties
passenger to their bags via RFIDs
Cons Many kiosks would be required to provide
adequate access to all passengers Space
requirement may negatively impact available space
in terminal
25
8. Travel Information Pad (TIP)
  • Wireless electronic tablet (PDA)
  • Mobile alternative to the personalized kiosk (7)
  • Essentially identical functionality of
    personalized kiosk with the addition of
  • Voice navigation
  • Biometric scanner to streamline security
  • Additional services and advertising opportunities

26
8. Travel Information Pad (TIP)
Pros Provides personalized service Provides a
mechanism to keep the passengers informed. Ties
passenger to their bags via RFIDs
Cons TIP would have to be durable and easy to
operate Cost of wireless network infrastructure
27
9. Two abreast seating
Cons Families with odd number will require one
person to sit alone Reduces seating capacity,
implying new mix of passengers to remain
profitable Retrofitting aircraft with less than 5
across seating may be difficult Wider-bodied
aircraft will significantly reduce performance
characteristics Lose the ability to lie down on
low-load factor flights
Pros Improves boarding and de-plane rates Rapid
exit improves passenger safety Everyone has
access to an isle for bathroom breaks,
etc. Eliminates the undesirable middle seat More
spacious seating and less intrusive to
neighbors Satisfies majority of travelers, most
travel in pairs or alone 2-abreast seating can be
used as selling point for airlines
B747-400 adding 2 isles and maintaining 10 seats
adds 38 inches to diameter and results in a
16,000 lbs increase in fuselage weight
28
10. Over-the-wing nacelles
Pros Reduces airport community noise via wing
shielding engine Greater ground clearance
improves safety reduces nacelle strikes, blown
tire and gear out landings safer and less costly
to repair Reduced likelihood of FOD Quicker
service vehicle placement Provides more flexible
placement of landing gear for new designs Powered
lift USB may improve aerodynamic performance
during landing Reduced gear size and weight for
modern aircraft with large engines
Cons Installation drag penalty additional trim
drag from high mounted engine Engine may be more
difficult to access for repair and
maintenance Horizontal tail may be less effective
from the turbulent flow from the nacelles and may
need to be moved Emergency doors may need to be
moved to a new location
29
11. Personal Rapid Transit APM
  • Type of Automated People Mover (APM)
  • Driverless
  • Electrically powered
  • Small vehicles that hold up to 4 passengers
  • Short headways with many vehicles (2-10 seconds)
  • Takes passenger from origin to destination
    without stopping

30
11. Personal Rapid Transit APM
Pros Origin to destination, no waiting, no stops
or transfers Small guide ways (7 ft width),
easily installed and inexpensive to
build Facilitates remote concourses reducing
aircraft taxi and operating costs Light weight
vehicles for 4 passengers and luggage - 1,800 lbs
gross wt. Environmentally friendly -no
emissions Capacities can be greater than APMs
using existing infrastructure Travel time is
less than APM Lower max speed provides
safety Eliminates crowding (security
vulnerability) Capital, operating and maintenance
costs less than light rail or APMs
Cons Capital cost greater than a bus Require 6-12
months of testing Not widely used (yet) Not easy
to fully understand Would require monitoring by
CCTV
31
BAA choose the ULTra PRT system for Heathrow
  • ULTra installed three-span guideway plus columns
    in 4 hours
  • BAA has invested 7.5M in acquiring 25 of ATS
    Ltd.
  • (Dec. 2005) ATS demonstrated the first three
    milestones
  • Automatic vehicle battery charging in station
  • Berth-to-berth transit from airport car park to
    terminal
  • Robust fault tolerant guidance autonomously
    maintain course in the absence of a signal from
    one of its guidance sensors

4 PRT
1 APM
Tunnel bores at Heathrow
32
Merit Estimates for Concepts
33
Computer Simulations are Needed
34
Interviews
  • PRT consultant Peter Muller
  • Cultural anthropologist Roxana Wales
  • Airport planning expert Gene Lewis
  • Airport simulation modeling Regine Weston
  • Airport architect Joseph Romano
  • HULD engineer Philemon Chan

35
Peter Muller (PRT Consulting)

Animation shows how many small vehicles (T-pods)
can carry as many or more people than a
conventional APM with a few large vehicles Equal
numbers of passengers come from the left and
right at the same rate Simulates 21 people being
transported over a 90 second time period 11
T-pods with an average occupancy of two per trip
is compared to a single conventional
APM Headway is 4.4 seconds and station rate is
840 passengers per hour
  • Visualization

Transcription Appendix F of Report
36
Roxana Wales (Cultural Anthropologist, NASA)
  • 2.5 years inside UAL (Pre 9/11)
  • Airlines need to know Its people not planes
  • Software needs to be rewritten
  • If travel plans fail NIs are the big
    bottleneck
  • NI Negotiated Interaction between traveler and
    airline
  • Provided proposal to UAL for wireless
    communications similar to (TIP concept)

Proposal in Appendix B in report
37
Gene Lewis (Leigh Fisher Associates)
  • Semi-retired airport planner with 40 years
    experience (20 billion)
  • Recognized expert in the field with great
    knowledge and experience
  • Designed worlds first landside/airside
    people-mover terminal concept for Tampa
    International Airport
  • Gene discussed
  • airport planning and design process and how
    decisions about airports are actually made
  • environmental issues lengthening airport project
    planning time
  • How he envisions 2X passengers will be
    accommodated in the next 20 years
  • Type of markets that would be most profitable
  • Roles for NASA in developing technological
    solutions for airport terminals

Transcription Appendix C of Report
38
Regine Weston (Arup / Weston-Wong)
  • Recognized expert in computer modeling
    simulations (primarily landside)
  • 20 year experience (Jet Blue terminal modeling at
    JFK recently)
  • Very interesting, impressive, and informative
    discussion
  • Why use computer simulations
  • What simulations are available
  • How to decide which model to use
  • Data requirements vs model fidelity
  • Simulation modeling with intelligent agents
  • Discussed how to assess our concepts

Transcription Appendix E of Report
39
Terminal Simulation
Click to launch Movie
40
Turn-around-time
  • Recognize first that the direct operating cost
    of a large commercial jet is of the order of
    about 100 per minute. Consider next an airport
    with 100,000 operations per year, which might
    serve approximately 10 million passengers a year.
    A configuration that saved just 1 min per
    operation at this airport would save the airlines
    around 10 million a year in direct costs alone
    the equivalent of about 100 million in extra
    capital cost . (Ref 1).

The U.S. FAA and ICAO regularly publish
estimates of direct operating costs of aircraft
including fuel, pilots, and crew, insurance,
depreciation, and maintenance. However, they
neither attempt to measure the multiplier effect
that delays have on lower productivity of the
aircraft or facilities in the airport passenger
buildings, nor do they account for any value of
time for the passengers. These estimates are
thus conservative estimates of the cost of delays
to the airlines and their passengers. Recent
figures estimate the per-minute costs of the
Boeing 747, Boeing 777, and Airbus 340 at 110,
140, and 70, respectively (FAA no date ICAO,
2001).
The translation between capital costs and
annual costs in an imprecise art that depends on
local circumstances. In the United States, the
capital for airport passenger buildings normally
comes from municipal bonds exempt of interest to
the owner. It thus costs the airport on the
order of 5 percent per year, which is about 2-3
percent a year in real terms. Factoring
incremental depreciation and maintenance over the
cost of the older building, the total additional
annual cost of a replacement building is of the
order of 10 percent of its capital cost. Private
companies typically have a higher cost of
capital, but may still be able to raise money
through real estate mortgages on their buildings
at about 5 percent a year in terms of real cost
net of inflation. The factor of 10 used to
translate annual savings into justifiable
additional capital expenditures is only an
order-of-magnitude approximation.
41
LMIs Modeling of Turn Around Time (TAT) Changes
for Concepts
  • Derived from Boeing TAT specs for 6 transport
    aircraft
  • Implemented in a spreadsheet model
  • Analysis of concepts changes in turn around time
    processes determined by LMI expertise
  • Concepts linked to specific model parameters
  • 3 processes (max of 3 queues is TAT)
  • PS Passenger Service
  • BCS Baggage and Cargo Service
  • AS Airplane Service

42
Baseline 747-400 Gantt Chart
Passenger Service
Cargo/Baggage Service
Airplane Service
43
C1269 747-400 Model
Passenger Service
Cargo/Baggage Service
Airplane Service
44
Queue Triples for Each Aircraft and Concept Combo
777-200
767-400ER
757-200
747-400
737-700
717-200
C2 Removable Wings C1_C2 Bins,
Removable Wings, LRU Water/Toilets C1_C3 Bins,
Oblique Wing, LRU Water/Toilets C1_C9 Bins, 2
Abreast Seating C1269 Bins, Rem. Wings, No
Bags, LRU W/T, 2 Abreast Seating
45
Impact Assessment of Reduced TAT on Delay (Sensis)
  • Examined runway delay impact due to reduced TAT
    at three airports
  • Chicago OHare (ORD)
  • Boston Logan (BOS)
  • Las Vegas McCarran (LAS)
  • Applied ACES Airspace Concepts Evaluation System
    fast-time simulation
  • Constructed arrival-departure gate connections
    using an actual daily flight schedule (19 Feb
    2004) for each airport
  • Baseline schedule used current Minimum TATs (22
    60 minutes)
  • Alternative schedule used 50 Minimum TATs (11
    -30 minutes)
  • Ran ACES with alternate schedules and compared
    landing, takeoff and total delays

46
ORD 2004 example baseline schedule takeoff
peaking is higher than landing peaking reduced
TAT lowers takeoff peaks
47
ORD 2004 50 reduced TAT shifts takeoffs to
earlier times (into baseline off-peaks),
dispersing takeoff peaks
50 TAT
100 TAT Baseline
48
ORD, BOS, LAS 2004 examples 50 reduced TAT
leads to reduced overall runway system delay
49
Recommendations / Possible NASA Roles
  • 1, Continue / expand current research
  • Curb-to-curb TAT
  • Evaluate concepts using appropriate computer
    sims
  • 2. A systems approach including airport and
    terminal impacts to vehicle design
  • Landing field length, terminal size, taxi and
    ramp operations
  • Oblique wing aircraft design
  • 3. Develop an airport simulation test facility
  • Real people and hardware experimental site at
    ARC, combined with FFC
  • Advanced technologies, terminal processing,
    autonomous transportation
  • 4. Expand industry partners to Include airlines,
    airport planners and operators
  • Partnerships at levels below JPDO
  • Industry wants NASA help
  • 5. All fundamental research described relative
    to the concepts (written report)
  • Look for synergies with new and existing
    aeronautics programs

50
Acknowledgements
  • LMI
  • Jesse Johnson
  • Sensis
  • George Couluris David Signor Anna
    Dabrowski
  • MIT Professors
  • Amedeo Odoni Richard de Neufville
  • Interviewees
  • Peter Muller Gene Lewis Regine Weston
  • Roxana Wales Joseph Romano Don Shaw
  • Philemon Chan William Baumgardner
  • Eloret /NASA
  • Veronica Hawke Sandra Cory David Kinney

51
BACKUP SLIDES
52
Computer simulations necessary to assess concepts
(1)
  • Bins
  • Simulate loading bins versus individual bags
  • Loading time and required personnel differences
  • Removable/Oblique Wing
  • Simulate and identify terminal changes (smaller
    pier length with greater width) where aircraft
    pull into terminal with multiple door egress
  • Terminal size/cost and passenger egress time
    differences
  • Simulate taxi and maneuver times of wingless AC
  • Time differences
  • Passenger carry on all baggage
  • Simulate terminal changes (no baggage system,
    carousals, check-in, baggage handlers and smaller
    waiting room)
  • Terminal size/cost and passenger time differences

53
Key Technology Simulation Issues
  • What model is best
  • Validity
  • Complexity Fidelity
  • Cost
  • Time
  • Skill

54
Computer simulations necessary to assess concepts
(2)
  • Autonomous Baggage Carts
  • Simulate terminal changes (required pathways for
    ABCs)
  • Terminal size, passenger lug time, and personnel
    differences
  • Door to door baggage delivery
  • Simulate and identify terminal changes (no
    baggage system, carousals, check-in, baggage
    handlers smaller waiting room)
  • Terminal size/cost, passenger time differences
  • Over-the-wing nacelle
  • Simulate aircraft servicing vehicle placement
  • Time savings

55
Applying Concepts to Terminal Ops
PS BCS AS
Models
Baseline Spreadsheet
56
Boeing 747-400 from Internet
Passenger Service
Baggage/Cargo Service
Airplane Service
57
1. Potential NASA Research Topics
  • Materials development for hardened bomb proof
    airplanes, extended airframe lifetimes, and crash
    safety.
  • Sensor development
  • RFID integration, networks of robots
  • Passenger personal protection technologies

58
2. Potential NASA Research Topics
  • Risk and structural assessment of modular
    aircraft and study of optimal location for
    break-away components in crash situation
  • Development of advanced rapid electromechanical
    coupling technologies. Parts that can be attached
    autonomously with fuel as well as electrical
    couplings.

59
Air Transportation Riddled with Dichotomies
  • Passenger (wants inexpensive flights and high
    LOS)
  • Airlines (cost effective offer range of LOS)
  • Government involvement (Needed but not wanted)
  • Airplane design (Best design not conventional and
    not accepted by aviation community)
  • Technology (needed but risk adverse)
  • Forecasts (wrong and continually sought/needed)
  • Airport planning (design time and wear out time
    approaching equal)
  • Buildings (need to be compact and spread out)
  • Capacity (bottlenecks is runways and no land
    available)
  • Proximity (want close but not in my backyard)

60
Current Trends/Status of the Air Transport
Industry
  • Commercialization and deregulation (C/D) forces
    economic efficiency with less/no government
    involvement
  • Governments do own the land of an airport
    which they typically lease for 30-50 years
  • Emergence of transfer hubs are a consequence of
    C/D
  • Inconvenience to the passenger since it lengthens
    the total trip time, increases the risk of lost
    baggage, and compounds delays
  • Airlines benefit from more frequent flights
    (drive the costs down), a supply of backup
    flights, and full flights using larger aircraft
    (less expensive)
  • Airport competition is fueling volatility of
    transfer hubs
  • The largest airports in the world are now
    transfer hubs
  • Interest in Information Technology (IT) and
    telecommunications is on the rise for the Airport
    industry
  • 71 percent of airports are planning to increase
    spending on IT
  • Airports are investing about twice the amount
    that the airlines are
  • Airports are investing 2.5 billion a year (up
    20 from last year)
  • 2/3 of airports will have shared-use kiosks in
    the next 2 years (only 2 dedicated use)
  • WI-FI, web services for passengers, managed
    airport networks on the rise, mobile passenger
    check-in and payment systems to a lesser extent

61
Background Organization and Financing
  • Airports must contend with legal financial
    planning public communication administration
    human resource environmental
    engineering/technical commercial operational
    issues
  • Airport capital investments financed in many
    different ways grants from national governments
    revenue bonds issued and serviced by airport
    operators general obligation bonds user taxes
    bank loans operating surplus
  • Airport ownership the licensed airport operator
    acts as owner and everyday decision maker. Hence
    shareholders of the airport operator are treated
    as the owners. Shareholders can be government or
    private interests or both. Airport ownership is
    any combination of
  • National government.
  • Local and State/regional governments
  • Corporate entities
  • Private investors
  • (Many airports have agreements with the airlines
    that the airlines fees cover the difference in
    the total costs of running the airport and the
    total revenues from all sources. Hence benefits
    accrue to the airline, if right to profit define
    ownership in these cases the airlines are the
    owner)

62
Background Airport User Charges
  • User Charges include Aeronautical and Non
    aeronautical fees
  • Aeronautical charges regulated through target
    rates of return, price caps, and restrictions on
    the annual rate of increase of unit charges
  • Aeronautical User Charges include
  • Landing fees (MTOW or MLW)
  • Terminal air navigation fees (ATC and air
    navigation)
  • Airport parking and hanger fees (Stand type and
    duration)
  • Noise fees (time of day and noisiness of
    aircraft)
  • Terminal/Passenger service (passenger building
    security)
  • ATM facility fee paid out of a passenger ticket
    tax
  • Ground handling services (confidential)
  • Non-aeronautical charges are usually highly
    profitable
  • Residual and compensatory systems approaches
    to non-aero revenues
  • Compensatory is difference between the total
    costs of running the airport and total revenues
    from all sources
  • Residual is full cost recovery of facilities and
    services
  • Non-Aeronautical User Charges include
  • Concession fees for fuel and oil ( of sales)
  • Concession fees for retail shops, bars and
    restaurants (fixed or variable rent)
  • Airport car parking and rental car fees (biggest
    source of revenues in US)

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Background Organization Financing of Airports
OWNED BY
OPERATED / MANAGED BY
National, regional and/or local government
Branch of national government
Private Interest
Branch of local or regional government
Private minority shareholders (no publicly traded
shares)
Management contract by a publicly or privately
owned company
Private minority shareholders (some publicly
traded shares)
Private investors (no publicly traded shares)
Autonomous airport authority
Private investors (publicly traded shares)
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