The Value of an Additional Slot at

Capacitated Airports

Sponsors

 Judith Teller FoundationToronto, CA

Marty Goldberg

The Team• Hebrew University

School of Business Administration

– Prof. Nicole Adler– Dr. Ekaterina Yazhemsky– Oren Petraru– Hadar Israeli

– AOR• Research methodology• Data collection• Analyzing results• Writing• Dissemination

• Fisher Institute– Itai Alon

– AOR• Airport and Flight Safety• Discussion & advice• Dissemination

Airport & Flight Safety• Movements versus Safety

• How to measure airport safety? FOQA, Mishaps, Accidents

• How far can you go?• IFR / VFR, Theory/Reality• Xie 2004

Aims• Compute the value of additional slots at

congested airports• Analyzing 30 busiest airports in United States and Europe

• Need to balance:• capacity utilization • delays

• Administrative systems:• US based on first come first served principle• Europe based on slot allocation & grandfather rights

ATM & Delay• The aviation system is a queuing system & as demand hits

capacity the delays increase non-linearly• Odoni et al. (2010) measured the value of delay in the US for

2007:

Source: Odoni & Morisset (2011)

Scheduling based on VFR or IFR?

8

Capacity Utilization versus Delays

• US: airline schedules based on VFR & high capacity utilization therefore high level of delays

• Europe: airline schedules based on slot allocations based on IFR & low capacity utilization therefore low levels of delay

• estimate connection between:– runway & terminal capacity – delays– profits for airports & airlines

• where is it worthwhile increasing capacity & how much is an extra movement worth?

Europe15 airports (2005-2013)

ATM

)monthly(

Terminal capacity

Profit

Delays

(monthly)

Runway capacity

0.31

0.66

-0.34In August

0.46

0.85

USA15 airports (2003-2013)

ATM

)monthly(

Terminal capacity

Profit

Delays

(monthly)

Runway capacity

0.36

0.50

-0.47In August

0.54

0.60

-0.65In February

0.35

Conclusions• Airside greater impact on throughput than landside• Slot allocations limit volume hence reduce delays

(excessively)• In Europe: worthwhile increasing slots because value

of additional slot exceeds additional cost of delay• Questions to be considered in second part of project:

– Passenger viewpoint (schedule versus real delay)– Safety– Environmental externalities