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Airport Systems 2 About the Authors Dr. Richard de Neufville is professor of Engineering Systems and professor of Civil and Environmental Engineering at MIT. He is known for his development of engineering systems analysis and many texts, most recently, Flexibility in Engineering Design. He has consulted and taught on airport planning “on all continents except Antarctica” for over 40 years. Among his many honors are the Francis X. McKelvey award for Aviation, the FAA award for Excellence in Education (with Amedeo Odoni) and several other teaching awards, the Irwin Sizer award for the Most Significant Contribution to MIT Education, the Chevalier des Palmes Académiques (France), and an honorary doctorate from the Delft University of Technology. Dr. Amedeo R. Odoni is professor of Aeronautics and Astronautics and professor of Civil and Environmental Engineering at MIT. He specializes in the use of operations research and other quantitative methods in planning, designing, operating, and evaluating airport and air traffic management systems. Over the years he has consulted at Amsterdam, Athens, Boston, Milan, Montreal, Munich, New Delhi, New York, Sydney, Stockholm, and many other airports, as well as several civil aviation authorities. He is a member of the National Academy of Engineering, a fellow of INFORMS, and the recipient of an honorary doctorate from the Athens University of Economics and Business and of many awards for his research and teaching. He has served, among other positions, as codirector of MIT’s Operations Research Center and of NEXTOR, the National Center of Excellence in Aviation Operations Research, established by the FAA in 1996. Dr. Peter P. Belobaba is principal research scientist at MIT, where he teaches graduate courses on the Airline Industry and Airline Management. He is program manager of MIT’s Global Airline Industry Program and director of the PODS Revenue Management Research Consortium. He has a Ph.D. in Flight Transportation Systems from MIT. He is a lead author and editor of the recently released book, The Global Airline Industry. Dr. Belobaba has been involved in research related to airline economics, pricing, competition, and revenue management since 1985. He has worked as a consultant on the development and implementation of revenue management systems at over 40 airlines and other companies worldwide. He has also published articles in a variety of journals, including Airline Business, Operations Research, Transportation Science, Journal of Revenue and Pricing Management, and Journal of Air Transport Management. Dr. Tom G. Reynolds specializes in advanced air transportation systems development and environmental mitigations at MIT Lincoln Laboratory, where he works in the Air Traffic Control Division. He has particular interest in the development of advanced technologies and operations for improving efficiency and mitigating environmental impacts of aviation, and has helped deploy many improvements at major international airports in the United Kingdom and the United States. He has a Ph.D. in Aerospace Systems from MIT, and has worked on the research staff at MIT, the University of Cambridge, and British Airways Engineering. He has won several national awards including the AIAA Orville & Wilbur Wright Graduate Award and was a U.K. Fulbright Scholar. 3 Airport Systems Planning, Design, and Management Richard de Neufville Amedeo R. Odoni with contributions by Peter Belobaba and Tom Reynolds Second Edition New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto 4 Copyright © 2013 by The McGraw-Hill Education LLC. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-177059-0 MHID: 0-07-177059-3 e-Book conversion by Cenveo® Publisher Services Version 1.0 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-177058-3, MHID: 0-07-177058-5. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at bulksales@mcgraw- hill.com. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. Information has been obtained by McGraw-Hill from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, McGraw-Hill, or others, McGraw-Hill does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the results obtained from the use of such information. TERMS OF USE This is a copyrighted work and The McGraw-Hill Education LLC (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms. THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, 5 consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise. 6 To Ginger, Julie, and Robert de Neufville Eleni Mahaira-Odoni Mary Belobaba The Reynolds family 7 Contents Preface Acknowledgments User’s Guide Part I Introduction 1 The Future of the Airport and Airline Industry 1.1 The Airport Industry in the Early Twenty-First Century 1.2 Long-Term Growth 1.3 Organizational Change Low-Cost and Integrated Cargo Airlines Privatization Globalization 1.4 Technological Change 1.5 Implications for Airports Systems Planning and Design Exercises References 2 The Evolving Airline Industry: Impacts on Airports 2.1 Trends in Airline Fleets 2.2 Airline Network Structures 2.3 Airline Scheduling and Fleet Assignment Optimization 2.4 Airline Operations at the Airport 2.5 Airline Operating Costs and Productivity 2.6 Summary Exercises References 3 International Differences 3.1 Introduction 3.2 Some Physical Differences Check-in Facilities Aircraft Contact Stands 3.3 Some Useful Distinctions National Differences in Diversity of Decision Making National Differences in Performance Criteria 3.4 Implications for Practice General Implications Specific Implications Exercises References 8 Part II Systems Planning Design and Management 4 Dynamic Strategic Planning 4.1 Planning Concepts Plans Master Plans Strategic Plans 4.2 Systems Perspective Airport Systems Planning Airport Systems 4.3 The Forecast Is “Always Wrong” Cost Estimation Aggregate Forecasts Effect of Longer Planning Periods Effect of Economic Deregulation 4.4 Concept of Dynamic Strategic Planning Assessment of the Issues Flexible Approach Proactive Stance 4.5 Dynamic Strategic Planning Process and Methods 4.6 Summary of Dynamic Strategic Planning Exercises References 5 Multi-airport Systems 5.1 Introduction 5.2 Basic Concepts and Issues Definitions Prevalence Unequal Size 5.3 Difficulties in Developing Multi-airport Systems Insufficient Traffic at New Airport Difficulty in Closing Old Airport Insufficient Traffic Overall Impractical to Allocate Traffic Volatility of Traffic at Secondary Airport Overall Perspective 5.4 Market Dynamics Concentration due to Sales Opportunities Airlines Concentrate on Routes Airlines Concentrate at Primary Airports Factors Favoring Multi-airport Systems 5.5 Planning and Developing Multi-airport Systems Land Banking Incremental Development 9 Flexible Facilities Careful Marketing 5.6 Take-aways Exercises References 6 Aviation Environmental Impacts and Airport-Level Mitigations 6.1 Introduction 6.2 Aircraft Noise Background Aircraft Noise Sources Measuring Aircraft Noise and Its Impacts Airport-Level Noise Mitigations 6.3 Air Quality Background Air Quality Emissions Sources Measuring Air Quality and Its Impacts Airport-Level Air Quality Mitigations 6.4 Climate Change Background Climate Change Emissions Sources Measuring Climate Change and Its Impacts Airport-Level Climate Change Mitigations 6.5 Water Quality Water Quality Impacts Airport-Level Water Quality Mitigations 6.6 Wildlife Wildlife Impacts Airport-Level Wildlife Mitigations 6.7 Environmental Legislation and Review Processes Environmental Legislation Environmental Review Processes 6.8 Summary Exercises References 7 Organization and Financing 7.1 Introduction 7.2 Ownership and Management of Airports 7.3 Organizational Structures 7.4 Regulatory Constraints on Airport User Charges “Single Till” versus “Dual Till” Residual versus Compensatory 7.5 Financing Capital Investments Outright Government Grants Special-Purpose User Taxes 10

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