consequences of constraints on airport choice dr. marc ch. gelhausen brussels, 18.09.2007

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Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

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Page 1: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Consequences of constraints on airport choice

Dr. Marc Ch. Gelhausen

Brussels, 18.09.2007

Page 2: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Relevant constraints

• Runways

• Aprons

• Terminals

• Curfews & night bans

• Political constraints

• Environmental capacities: Noise & emissions

• Surface access

• Terminal area

• Air service agreements (ASA)

• Yearly / hourly capacity

Options for research:• Quantification of each constraint• Quantification of impacts of constraints on:

• Demand• Airport choice• …

Page 3: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Options to handle capacity exceeding demand

Travel Disutility

Airport capacity expandable?

Low

YesHigh / No

Airport capacity

expansion

Re-assignment

of demand

Mixed

strategy

Restricted growth of demand

e.g. DUS

e.g. HHN

e.g. MGL

e.g. HOQ

• Three options/strategies:

• Re-assignment to other airports

• Capacity expansion

• Lost demand

Importance of high speed trains!

Page 4: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Airport choice and future avenues

• Aim: Show the dependence between airport and access mode characteristics and airport choice

Model currently employed by Deutsche Bahn AG (2006)

• Innovation: Inclusion of capacity constraints at airports to show dependence between airport choice, airport & access mode characteristics and capacity constraints at airports

• Additional output: Number of air Passengers to reassign to neighbour airports because of capacity constraints

Page 5: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Airport system in Germany – airport choice

FDH

MUC

STR

SCN

NUE

HHN FRA

CGN ERFDRS

DUSLEJ

DTM PAD

FMOSXFHAJ

THF

TXL

BRE

HAMLBC

FKB

NRN

• 19 international airports (2 Hubs)

• 5 regional airports

No. of airports serving a SPR:

• Minimum 3 airports

• Maximum 14 airports

• On average 8 airports

• 67 % choose nearest airport

Some facts from the German Air Traveller Survey 2003:

Page 6: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Average distribution:

• Private car driver 18 %

• Car passenger 34 %

• Rental car driver 4 %

• Taxi passenger 19 %

• Bus passenger 9 %

• Urban railway passenger 11 %

• Train passenger 5 %

Airport system in Germany – access mode choice

Urban Area Share of IC Trains (%)

Distance to Frankfurt (kms)

Hamburg 83 495

Bremen 57 445

Hannover 68 350

Berlin 36 545

Dortmund 57 225

Düsseldorf 70 220

Köln 68 180

Leipzig 82 385

Stuttgart 50 205

Nürnberg 44 225

München 66 390

Good Rail Access

FDH

MUC

STR

SCNNUE

HHN FRA

CGN ERFDRS

DUSLEJ

DTM PAD

FMOSXFHAJ

THF

TXL

BRE

HAMLBC

FKB

NRN

Page 7: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

„Key aspects“

Nested logit-model

Airport and access mode choice model

Abstraction from specific alternatives

Generally applicable model

Linear programming (LP)

Consideration of capacity constraints

Page 8: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Forecasting philosophy

Traveller: „Which alternative is the best for me?“

Evaluation of alternatives by means of utility

Forecaster: „ Which alternative is most likely the best for him?“

Lack of observability, measurement errors, …

Choice probabilities

Summing up over homogenous populations

Market segment specific market shares of all alternatives

Access cost, access time, flight plan, ...

Page 9: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Analysing airport and access mode choice

Airport and access mode choice

Airport and access mode characteristics

Point of view: air traveller

Discrete choice models

Utility function Distribution of error term

U = V(x) + i.e. U(FRA/Car) = a*(Access time) + b*(Access cost) + ... +

Page 10: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Cluster groups and airport categories

Limited number of different generic airport/access mode combinations

3 airport categories 7 access mode categories

Cluster analysis according to flight services

Group-specific correlation structure among alternatives

„Airport categories as different product types“

LCBRD CCBRD FSBRD LCEUR CCEUR FSEUR LCINT CCINT FSINT NUMBRD NUMEUR NUMINT

AP 1 3.18 0.43 20.39 0.87 5.83 55.81 0.00 1.24 12.25 8.31 60.27 31.42

AP 2 8.97 0.58 28.27 11.65 11.76 37.24 0.02 0.71 0.79 16.23 74.62 9.16

AP 3 1.29 0.86 39.22 32.57 15.57 10.05 0.02 0.42 0.00 19.94 78.90 1.16

LCBRD CCBRD FSBRD LCEUR CCEUR FSEUR LCINT CCINT FSINT NUMBRD NUMEUR NUMINT

AP 1 106 16 756 32 225 2138 0 49 517 19 144 83

AP 2 104 7 348 129 153 487 0 11 11 17 80 12

AP 3 3 1 80 47 25 39 0 0 0 6 22 1

Values in %

Absolute values

Hub, medium and low-cost airports

Page 11: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Why consider capacity constraints in airport choice?

• Air fares do not reflect the capacity situation at airports fully, at least over a short time horizon

• In a equilibrium of air fares and airport capacities, the first choice of an air traveller regarding the departure airport is not necessarily met

• Air fares are often not included in airport choice models due to data problems

Most airport choice models assume unconstrained airport capacities

Page 12: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Implementing capacity constraints

Idea: The higher the loss in personal welfare (utility) from alternative to alternative, the higher the efforts to get a “slot” for the best

alternative, i.e. by early booking or paying higher prices.

Approach: Capacity at airports is filled up in this manner simultaneously across market segments, trip origin and trip destination.

Realisation: Minimisation of the sum of personal welfare subject to capacity constraints (LP).

First step: Unconstrained airport and access mode choice model based on a discrete choice approach, e.g. nested logit-model

Second step: Redistribution of excess demand by a decision-rule based LP-approach

Capacity module as „add-on“

Page 13: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Airport 1 Airport 2EUR S 720 280EUR H 80 920∑ PAX 800 1200

+ 450 PAX- 450 PAX

A simple hypothetical example

Airport 1 Airport 2EUR S 72% / 350 U 28% / 150 UEUR H 53% / 280 U 47% / 220 U

Airport 1 Airport 2EUR S 720 280EUR H 530 470∑ PAX 1250 750Capacity 800 1200

Airport 1 Airport 2EUR S 72% 28%EUR H 8% 92%

1000 PAX per market segment

LP-Redistribution

Market shares with capacity constraints

Loss of air traveller‘s welfare about 5%

Page 14: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Conclusions• Airport choice is significantly different in the presence of capacity constraints

• Decision-rule based LP-approach enables to model capacity constraints apart from the price mechanism

• Quantification of airport capacity as well as access mode capacity constraints

Model shows also:

• Loss of welfare due to capacity constraints is considerable from the point of view of the air traveller = assessment of regional airport supply

instrument to optimise supply side

Page 15: Consequences of constraints on airport choice Dr. Marc Ch. Gelhausen Brussels, 18.09.2007

Thank you for your attention

Contact:

Dr. Marc Ch. Gelhausen DLR - German Aerospace Center Air Transport and Airport Research Linder Höhe 51147 Köln/Germany

[email protected]