Week 4 - Operations Management
3 OVERVIEW OF AIRLINE ECONOMICS, MARKETS AND DEMAND Peter P. Belobaba The provision of air transportation service is driven primarily by the demand for air travel, as well as the demand for the shipment of goods by air. Virtually all of the interrelated decisions of the many stakeholders in the airline industry stem from the need to accommodate the historically growing demand for air transportation. And, many of the activities of governments, airlines, airports, and aircraft manufacturers are determined by the interaction of supply and demand in a variety of different markets associated with the airline industry. This chapter provides a foundation for the discussion of the many facets of the airline industry addressed in the remainder of this book by introducing some basic airline terminology and definitions, along with the concepts of air transportation markets and the demand for air travel. 3.1 Airline Terminology and Definitions In the airline industry, there exist standard measures of passenger traffic and airline output, which are also combined to generate several common measures of airline performance. As we shall see later in this section, some of these performance measures are not particularly useful on their own, and in fact are often misinterpreted. At this point, we introduce the measures and their definitions. Airline Traffic and Revenue Measures of “airline traffic” quantify the amount of airline output that is actually consumed or sold. Traffic carried by airlines consists of both passengers and cargo, which can include air freight, mail, and passenger baggage. All-cargo airlines transport primarily air freight, whereas passenger or “combination” airlines transport a mix of traffic that can include all four types of traffic mentioned. Combination carriers can operate a mix of all-cargo (freighter) and passenger aircraft, but even the passenger aircraft can carry one or more types of cargo in their belly compartments. In the following paragraphs, the definitions and examples focus on passenger airlines, although there is a parallel terminology for cargo airlines. For passenger airlines, “traffic” refers to passengers carried or enplaned passengers, as opposed to “demand,” which includes both those who boarded the flight(s) and those who had a desire to travel but could not be accommodated due to insufficient capacity. Thus, at a given price level (or set of prices), there exists a total potential Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . demand for air transportation between cities. Given a limited total capacity (available seats) offered by airlines, this potential total demand includes both passengers carried (traffic) and passengers unable to find seats, also known as “rejected demand” or “spill.” Passenger airline traffic can be measured in terms of the number of passengers transported, but the most common measure of airline traffic is a revenue passenger kilometer (RPK) or, alternatively, a revenue passenger mile (RPM). In the following examples, we use kilometers. One RPK is defined as one paying passenger transported 1 km. For example, a flight carrying 140 passengers over a distance of 1000 km generates 140 000 RPK of airline traffic. The fare paid by passengers to travel by air varies by distance, season, and conditions and characteristics of the fare product purchased (e.g., business class or advance purchase excursion fares). Yield is a measure of the average fare paid by all passengers per kilometer (or mile) flown, in a market, on a set of routes, or a region of operation for an airline. Yield is calculated by dividing the total passenger revenues collected by the RPK carried. In our example, if the flight that carried 140 000 RPK generates $16 000 of total passenger revenue, its yield would be $0.114 per RPK (i.e., $16 000/140 000). Airline Output and Operating Expense As we shall see later in this book, the output of a passenger airline can be represented in a variety of ways, including the number of flight departures operated and number of seats flown. Similar to RPKs, the most common measure of airline output is an available seat kilometer (ASK) or available seat mile (ASM). One ASK is defined as one available seat flown 1 km. In our example, if the flight operates over a distance of 1000 km with a 200-seat aircraft, it generates 200 000 ASK of airline output. In generating its output, the airline incurs a variety of operating expenses, as will be detailed in Chapter 6. The average operating expense per unit of output (ASK) is the unit cost of the airline, an important measure of cost efficiency, which can be compared both over time and across airlines. Unit cost is defined as the total operating expense divided by the ASK produced by an airline, for a route, region, or total network. If the airline incurs $15 000 of expense to operate our example flight, the unit cost for this flight would be $0.075 per ASK (i.e., $15 000/200 000). Load Factor Load factor refers to the ratio of traffic to airline output, representing the proportion of airline output that is sold or consumed. For a single flight leg (i.e., a nonstop operation), its load factor can simply be defined as number of passengers divided by Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . the number of seats on the flight. For our example flight, the load factor can be calculated as passengers carried divided by available seats, or 70\% (140/200). Because most airlines operate many flights, each with different distances flown, the proportion of output consumed is better represented by an average load factor, defined as the ratio of RPK to ASK (or RPM/ASM). Our example flights load factor can thus also be calculated as 140 000 RPK divided by 200 000 ASK, or 70\%. Now, assume that the same airline operates another flight leg using the same 200- seat aircraft over a distance of 2000 km, and this second flight carries 170 passengers. The load factor of this second flight leg is What is the total average load factor of this small “network” of two flights? There are two different (and correct) answers: The average leg load factor is the simple mean of the load factors of the two flight legs: The average network or system load factor is the ratio of total RPK to ASK, as defined earlier: Both measures of load factor are correct, but are used in different ways. The average leg load factor is more appropriate for analysis of demand to capacity or passenger service levels on a series of flight leg departures (on a particular route over a month, for example). The average network load factor is the more common measure and is used in most financial and traffic reports of system-wide airline Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . (3.1) performance. These five measures – traffic (RPK), yield, capacity (ASK), unit cost, and load factor – are the most common measures of passenger airline performance and will be referred to throughout the rest of this book. Of course, there are numerous other measures of cost efficiency, productivity, and financial performance, which will be introduced in the relevant chapters. And, although we have defined these measures for a passenger airline, there are parallel and very similar measures that apply to cargo air transportation. For example, cargo traffic carried is measured in revenue tonne kilometers (RTK) or (revenue ton miles (RTM), meaning 1 t of cargo transported 1 km. Cargo airlines provide output in available tonne kilometers (ATK), and make use of both yield and unit cost measures in analyzing their performance. 3.1.1 Basic Airline Profit Equation As for any industry, operating profit for an airline is defined as total revenues minus total operating expense. For passenger airlines, the revenue and expense terms can be broken down into the measures of output and sales defined above, as follows: This basic airline profit equation illustrates how the use of any of the individual terms defined above to measure airline performance can be misleading. For example, high yield is often (incorrectly) used as an indicator of airline success and even profitability. A high yield is clearly not desirable if only a few passengers pay a very high fare and leave a large proportion of seats unused, resulting in a low average load factor (ALF) and total revenues that do not cover total operating expenses. As a general rule, yield is a poor indicator of airline profitability by itself. Low unit costs are also often mentioned as a measure of airline success. Although low costs of production provide a competitive advantage in any industry, low unit costs alone are of little value to an airline if yields and/or load factors are low, with total revenues falling short of covering total operating expenses. Even ALF on its own tells us little about profitability, as high ALF could be the result of selling a large proportion of seats at extremely low fares (yields). A high ALF does not guarantee operating profit, as many high-cost airlines have realized in the recent past. Given this basic profit equation, the obvious airline profit maximizing strategy is to increase revenues and/or decrease costs. However, there exist important interactions among the terms in the equation, so that no single term can be varied without affecting other terms and, in turn, overall operating profit. For example, a strategy Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . designed to increase revenues requires the airline to increase its traffic carried (RPK) and/or increase its average fares charged (yield). Either tactic can have unintended and potentially negative impacts on other terms in the airline profit equation, as explained below. In order to increase traffic, an airline may decide to cut fares (average yields) to stimulate demand, but the revenue impact of such a price cut depends on the elasticity of demand for air travel. For revenues to increase, the price cut must generate a disproportionate increase in total demand (i.e., “elastic demand”). Alternatively, the volume of traffic carried (RPK) can be increased if the airline increases its frequency of flights or improves its passenger service quality to attract passengers, but both of these actions will also increase operating costs. Increases in flight frequency, all else being equal, will increase total ASK and, in turn, total operating expenses. Improvements in passenger service quality will increase unit costs. Increasing total revenues by simply increasing fares (yields) is another option. However, economic theory tells us any price increase will inevitably lead to a traffic decrease. A price increase can still be revenue positive if demand is “inelastic” (i.e., the percent decrease in passengers is less than the percent increase in price). Airline efforts to improve profitability by reducing operating expenses include tactics that reduce unit costs (cost per ASK) and those that reduce the airlines output (ASK). Both strategies can lead to lower total operating expenses but, once again, there can be negative impacts on other terms in the airline profit equation. A common airline tactic is to reduce unit costs by cutting back on passenger service quality, for example, eliminating meals, pillows, and extra flight attendants. However, excessive cuts of this type can affect consumers perceptions of the airlines product, leading to a reduced market share and, in turn, RPK. A tactic for reducing unit costs indirectly is to actually increase ASK by flying more flights and/or larger airplanes, which can lower unit costs by spreading fixed costs over a larger volume of output. But, such an approach will still lead to higher total operating costs and potentially lower load factors and reduced profitability. Finally, an airline might decide to reduce its total operating expenses by decreasing its level of output (ASK). Cutting back on the number of flights operated will clearly reduce total operating costs, but lower frequencies might lead to market share losses (lower RPK and lower revenues). At the same time, reduced frequencies and/or use of smaller aircraft can lower ASK and total operating expenses, but can also lead to higher unit costs, as the airlines fixed costs are now spread over fewer ASK. The basic airline profit equation introduced here incorporates the five most common measures of passenger airline performance introduced above, and illustrates the interdependence among these measures in airline management decisions. Perhaps more important, it provides preliminary insights into the difficulties of finding strategies to improve and sustain airline profitability. Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . 3.2 Air Transportation Markets The second section of this chapter is devoted to the description of markets in air transportation. The discussion begins with a description of a typical air passenger trip, followed by alternative definitions of markets for air travel, focusing on scheduled air services for passengers. The objective is to establish geographic or spatial definitions of air transport markets, taking into account the characteristics of a typical trip by passengers that use scheduled air transportation services. 3.2.1 Typical Air Passenger Trip The spatial definitions of air transportation markets involving consumers and air carriers (or “airlines”), as well as much of the economic modeling of demand and supply in these markets depend on the characterization of a typical trip by an air passenger. This characterization was originally proposed by Simpson (1995), and provides the basis for our definitions here. As shown in Figure 3.1, a typical air passenger trip starts not from an airport, but from an origin point such as a residence or place of business. The ground access portion of the trip from the passengers origin point to the originating airport can involve travel by private car, taxi, or public transport. The origination airport region containing the origin points of all travelers departing from an airport can have a radius ranging from a few kilometers to several hundred kilometers. Travel times for ground egress can therefore range from minutes to several hours. Figure 3.1 Representation of a typical air passenger trip Enplanement processing consists of purchasing tickets (if this has not been done in advance), obtaining boarding passes, checking baggage, undergoing security inspection, and boarding the aircraft. In short-haul domestic markets, this portion of the total trip time can be as short as 15–20 minutes at some small airports. However, heightened security requirements in the recent past have increased enplanement processing times at most airports around the world, and especially in the United Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . States, to 1 hour or more in many cases. For long-haul international services, enplanement processing can take even longer, as airlines can require minimum check- in times of 2–3 hours before flight departure. The aircraft portion of the outbound air trip lasts for 1 hour or more and covers distances of 200–14 000 km (125–9000 miles) or more. From 2004 to 2013, Singapore Airlines operated the longest nonstop flight offered in scheduled passenger service between New York (Newark) and Singapore, covering 15 283 km (9524 miles) in a scheduled time (gate-to-gate or “block time”) of about 19 hours (Official Airline Guides, 2008). Other “ultra-long haul” flights still being operated include Johannesburg–Atlanta (Delta) and Dubai–Los Angeles (Emirates), both of which have scheduled times over 16.5 hours. The average length of a typical airline passenger trip worldwide is approximately 1824 km (1140 miles) (Airline Business, 2005). In the United States, about one-fifth (21.5\%) of all domestic air trips are shorter than 500 miles in length (Aviation Daily, October 11, 2004]. After the flight arrives at its destination airport, deplanement processing can take from just a few minutes for the passenger to exit the airport terminal to over an hour when baggage retrieval and immigration and customs inspection are required. The trip then concludes with a ground egress portion involving travel from the airport to a destination point in the destination airport region. Each airline trip has a duration of stay at the destination point that can range from a few hours to several months or more, before the passenger returns to the originating airport or region and makes a final ground egress trip to a location in the travelers origination airport region (e.g., home or place of business). This description of a typical air passenger trip raises several points important to the definition of scheduled passenger air transportation markets and demand. First, the purpose of each air trip is to move from the “true” origin to the “true” destination of the passenger, not simply to travel from one airport to another. The characteristics of the total trip, including the time required for each of its components in addition to the actual times spent on board the aircraft, will affect the total demand for air transportation between two airports. Second, there is typically an outbound and inbound portion of passenger air trips, such that consumers in an air transport market start their trip in the origination airport region and return there after a trip of varying duration. As a result, every air travel market has an opposite market consisting of passengers who originate their trips from the destination airport region of the market described above. This opposite market is serviced by the same airline flights as the original market (Simpson, 1995). That is, the outbound flights for the original market are at the same time the inbound flights in the opposite market. As we will see later in the discussion, the supply of air service is also shared by demand from many markets, as passengers use various multi-stop or connecting itineraries in any given market. Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . 3.2.2 Spatial Definitions of Airline Markets Another way to define air transportation markets is through their spatial boundaries, as shown in Figure 3.2. The origination region around airport A contains all the origin points of travelers, also referred to as that airports catchment area. An airports catchment area can extend for hundreds of kilometers and can vary with the destination and trip purpose of the traveler. For example, a traveler flying a short distance for a business trip with a short duration of stay is more likely to minimize the travel distance and time of the ground egress portion to an airport. On the other hand, a vacation traveler flying a much longer distance and staying at the destination for several weeks is more likely to be willing to travel much further to an originating airport, perhaps to take advantage of lower fares. Figure 3.2 Distinct and separate O-D markets Similarly, airport B has a destination region that contains the destination points for passengers originating in region A. As was the case with the origination airport region, the size of destination airport region B can vary with trip purpose. For example, for London Heathrow Airport, the majority of destinations for non-resident business travelers are in a relatively small business area in central London, whereas the destination region for pleasure travelers, visitors, and residents of the surrounding area is much larger. In Figure 3.2, the market for air services from A to C and back is distinct and separate from the market ABA (Simpson, 1995). Improvements in the quality of airline service or changes in the fares charged in the market ACA should not affect the demand for air travel in the ABA market. These are clearly two different markets, although the potential passengers in both markets are residents of originating airport region A. There are also two “opposite” markets shown in Figure 3.2. Market BAB has origination region B for consumers wishing to travel to points in destination region A, and who use the same air services as market ABA. Opposite markets can have different characteristics. The volume of demand of opposite markets can be different, but since nearly all air trips are eventually round Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . trips, the flow of traffic in each direction will be approximately equal over an extended time period. It might also be the case that the prices are not equal in each opposite market even though both markets use the same airline flights. This can occur when the origins and destinations are in different countries and fares are determined in different currencies, for example. Airport regions can overlap when two or more airports provide alternative flight options for travelers in origin or destination regions. Figure 3.3 illustrates a scenario in which there exist flight options from airports A and D to airport B, while the only flights airport C are provided from airport A. In this example, the airport catchment area for market ACA is the total shaded area around A and D, while the airport catchment areas for markets ABA and DBD overlap. Passengers making trips originating in the overlap area must choose which airport they access in order to travel by air to B. Figure 3.3 Parallel markets and overlapping airport regions Markets ABA and DBD are called parallel markets, and the flight options serving each parallel market are to some extent substitutes for each other within the larger region. For example, if the availability or speed of ground access/egress to and from airport A improves, the catchment area of airport A will expand. The pricing of air services in parallel markets will also affect the volume of demand using each market. With competitive pricing by airlines, passengers have the option to increase the ground egress portion of their trip to take advantage of lower fares in a parallel market. For example, if the fares available to a European destination are much lower from Montreals Trudeau Airport, then at least some passengers from the Ottawa region (160 km away) can be expected to drive to Montreal rather than flying out of Ottawa Airport. As shown in Figure 3.4, a traveler in market A–B can connect between the flights being provided in markets A–C and C–B. The flight from A to B is thus providing a shared supply to both the A–B and A–C markets at the same time (as well as many other markets, depending on the extent of the airlines network). It is possible that the fares for travel A to B via C are lower than the nonstop AB fare. If service via C is cheaper, it will affect nonstop demand in market ABA. It is also possible to find examples where the fares from A to B via C are actually lower than the published AC fares. This is an outcome of the fact that AB and AC are economically distinct and Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:12:44. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . separate markets, in which prices for air travel are determined by the demand and competitive characteristics of the different markets, not necessarily the distances traveled. These and other airline pricing implications of the nature of air transportation markets are discussed in more detail in Chapter 4. Figure 3.4 Nonstop versus connecting service from A to B These spatial definitions of air travel markets suggest that there can be multiple, even overlapping geographical delineations of origination and destination regions for air travel. The most common representation of origin–destination (O-D) demand is with reference to a city-pair market – for example, the potential number of passengers per day wishing to travel between Boston and Chicago. However, because Chicago is served by two airports, the city-pair demand can be disaggregated to two (parallel) airport-pair markets – between Bostons Logan Airport and Chicagos OHare and Midway Airports, respectively. There is also a broader market for air travel between the larger Boston metropolitan region and Chicago metropolitan region, which can include additional airport-pairs such as Providence (Rhode Island)–Midway, Providence–OHare, Manchester (New Hampshire)–Midway, and Manchester– OHare. This broader region-pair market thus includes six airport-pair markets, all of which are parallel and interrelated. In summary, the spatial definitions of origin–destination markets presented here are based on consideration of the total trip characteristics for a typical airline passenger. Demand for air transportation is generated for a particular origin–destination market. However, with the existence of overlapping airport regions, parallel markets, and the sharing of scheduled airline supply on connecting flights, even “distinct and separate” O-D markets are interrelated. … 4 AIRLINE PRICING THEORY AND PRACTICE Peter P. Belobaba Few facets of the airline business generate as much discussion and confusion, among industry observers and consumers alike, as airline pricing and revenue management practices. “Pricing” refers to the process of determining the fare levels, along with various service amenities and restrictions, for a set of fare products in an origin– destination (O-D) market. “Revenue management” is the subsequent process of determining how many seats to make available at each fare level. Together, airline pricing and revenue management interact to create what can be a bewildering array of fare quotes for a consumer who simply wants to know how much it will cost to travel by air from one point to another. In this chapter, we build on the concepts of origin–destination demand, elasticities, and demand segmentation introduced in Chapter 3 to provide an overview of the economic rationale behind airline pricing practices. The chapter begins with a brief discussion of airline pricing concepts and definitions of relevant terms, including product differentiation and price discrimination. The theory and practice of airline differential pricing is then explored, using several examples of airline fare structures. The introduction of “simplified” and less restricted fare structures by some low-cost carriers (LCCs) is then described, followed by a discussion of more recent airline pricing trends that include “fare families” and increasing use of “unbundling” to generate ancillary revenues. The chapter concludes with an overview of the factors that affect fare structures in an O-D market in practice, as well as airlines competitive fare matching strategies. 4.1 Airline Prices and O-D Markets As was the case with air travel demand, airline fares are defined for an O-D market, not for an airline flight leg. That is, airline prices are established for travel between origination point A and destination point C, where A–C (or C–A) is the relevant market. Given the “dichotomy of supply and demand” described in Chapter 3, travelers in the A–C market are able to choose from many itinerary (or path) options that can involve nonstop, one-stop, or connecting flights. At the same time, a single flight leg serves many different O-D markets, each with its own set of prices. The fact that airline prices are defined for each O-D market gives rise to the following additional observations about airline pricing. Airline prices for travel A–C depend primarily on the volume and characteristics of the O-D market demand for travel between A and C (e.g., trip purpose and price elasticity of demand), as well as the Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . nature of airline supply between A and C (frequency and path quality of flights) and the competitive characteristics in that market (number and type of airline competitors). There is therefore no inherent theoretical reason for prices in market A–C to be related to prices in another distinct and separate market A–D with a similar distance to be traveled (even though this was more likely to be the case under previously regulated airline pricing regimes). The distance to be traveled is certainly an important contributor to the cost of providing airline service and is thus reflected in price differences between markets in many cases. However, because the other market characteristics mentioned (demand elasticity, airline supply, and nature of competition) all affect airline prices, it could well be the case that prices for travel A– C are actually lower than prices for travel A–D, even though A–C involves a greater travel distance. As defined in Chapter 3, these are distinct and separate markets with different demand characteristics, which might just happen to share the joint supply of seats on a flight leg. 4.1.1 Regulated versus Liberalized Pricing Under historical conditions of airline regulation, prices were subject to controls by a government agency. In the United States, the Civil Aeronautics Board (CAB) used a mileage-based formula to ensure equal prices for equal distances. A passenger wishing to fly on a nonstop flight from Boston to Seattle ( 4000 km or 2500 miles) would pay the same price as a passenger traveling on a double-connection service from Boise, Idaho to Miami, Florida, covering about the same distance. Airlines were required to charge the same price for either passenger, despite the fact that the Boise–Miami O-D market is substantially smaller, and the costs to the airline of providing double connection service on smaller aircraft are substantially higher on a per passenger basis. In terms of different price levels, airlines were allowed to offer only first class and unrestricted economy fare (coach or “tourist” class) products, both of which were tied to the mileage-based fare formula. With deregulated or liberalized airline pricing in the United States and in many countries across the world, this strict relationship between airline fares and distance traveled has become less typical. Different O-D markets can have prices not related to distance traveled, or even the airlines operating costs, as airlines match low-fare competitors to maintain market presence and share of traffic. It is also possible that low-volume O-D markets that are more costly to serve on a per passenger basis will see higher prices than high-density O-D markets, even if similar distances are involved. The relationship between O-D markets and airline prices is illustrated by the example shown in Figure 4.1. There are two distinct and separate O-D markets shown: New York (NYC) to Dubai (DXB) and NYC to Mumbai (BOM). As described in Chapter 3, distinct and separate markets have different demand volumes, different travelers with Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . different price and time elasticities, and perhaps even different trip purposes and currency valuations. The lowest one-way economy class prices shown in Figure 4.1 were in effect in July 2014 for travel in each O-D market: $1007 one-way for travel on Emirates Airline from NYC to DXB, and $794 one-way for travel on the same airline from NYC to BOM (with a connection in DXB). The comparable fare in the NYC–BOM was substantially lower than for NYC–DXB, despite the substantially greater distance between NYC and BOM. Figure 4.1 Example of O-D market price differences. (Data source: www.itasofware.com.) This type of apparent inconsistency in airline prices occurs because the two markets are distinct and separate, with different demand characteristics, as mentioned. Moreover, competition can also explain many such inconsistencies – if a nonstop competitor offers a $794 fare for NYC–BOM, then Emirates is likely to match that fare to retain its market share of the NYC–BOM demand, even if the fare is lower than what the airline charges for the shorter distance market NYC–DXB. In economic terms, such pricing is entirely reasonable – different markets with different demand characteristics and competitive environments are priced differently. For passengers, however, it can be perplexing, given that the NYC–BOM passenger makes use of the same NYC–DXB flight and can sit next to a passenger who paid much more in the shorter O-D market. This is another vivid illustration of the dichotomy of demand and supply in air transportation networks. 4.1.2 Theoretical Pricing Strategies The different theoretical bases that an airline might use for establishing prices for air transportation services are introduced in this section. In theoretical terms, for determining the prices to charge in an O-D market, airlines can utilize one of the following economic principles (Simpson and Belobaba, 1992): Cost-based pricing Demand-based pricing Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . http://www.itasofware.com Service-based pricing In practice, most airline pricing strategies reflect a mix of these theoretical principles. As mentioned, prices are also highly affected by the nature of competition in each O- D market. The presence of a low-fare airline in an O-D market is perhaps one of the most important determinants of average fare levels. 4.1.2.1 Cost-Based Airline Pricing Microeconomics textbooks make reference to the practice of “marginal cost pricing,” in which the producer sets prices equal to the marginal cost of producing an incremental unit of output. This practice is one of the theoretically optimal conditions of “perfectly competitive” markets, which do not exist in the real world. Moreover, the marginal costs to an airline of selling an incremental seat and carrying an incremental passenger are very low. In the short run, the costs to an airline of operating a schedule of flights are effectively fixed. The commitment to operate a scheduled service irrespective of the number of passengers on board means that not only aircraft ownership costs but also crew costs and even fuel costs can be considered as fixed for a planned set of flights. The marginal costs of carrying an incremental passenger are therefore very low – essentially the cost of an additional meal and a very small amount of incremental fuel. Therefore, airlines could not possibly cover their total operating costs under a strict marginal pricing scheme in which marginal costs are attributed to an incremental passenger carried on a flight. An alternative approach to cost-based pricing is that of average-cost pricing. Under this pricing principle, an airline would set its prices in all O-D markets based on system-wide operating cost averages per flight or per available seat kilometer (ASK). This is in fact the pricing principle used under regulated airline regimes, as already described, so its use is feasible in airline markets, but its shortcomings are what led to the deregulation of airline pricing in the first place. Average cost pricing ignores airline cost differences in providing services to different O-D markets. It allows smaller markets to benefit (with artificially low prices) at the expense of higher density markets that airlines can serve more efficiently (e.g., with larger aircraft). Some have argued that average cost pricing ensures “equity” if we believe that making air travel available to all passengers at equal prices per kilometer traveled represents a form of air transportation equity. 4.1.2.2 Demand-Based Pricing The principle of “demand-based” pricing is based on consumers “willingness to pay” (WTP), as defined by the price–demand curve in each O-D market. The underlying assumption is that there are some consumers who are “willing” to pay a very high price for the convenience of air travel, while others will only fly at substantially lower prices. Under this approach, airlines charge different prices to different consumers Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . with different price sensitivity. The price elasticities of different demand segments and different O-D markets reflect their sensitivity to the prices of air travel, and the airline sets different prices for each segment in an attempt to maximize its total revenues. Demand-based pricing results in different prices for different O-D markets as well as for different demand segments within the same market. These price differences are not related to cost differences experienced by the airline in providing services to the different demand segments, but only to the differences in price sensitivity, demand elasticity, and “willingness to pay.” This practice is referred to as strict “price discrimination” by economists. 4.1.2.3 Service-Based Pricing The third theoretical pricing principle uses differences in the quality of services (and, in turn, in the cost of providing these services) as a basis for pricing. Even under US regulation of airline prices, some service distinctions were allowed in airline pricing structures (i.e., first class versus economy class) due to the different costs to the airlines of providing them. In theory (and in practice), the notion of fare product differentiation can be extended beyond this simple first versus economy class distinction. Unlike demand-based pricing, service-based pricing has a differential cost basis for the airline. Because higher quality services generally cost the airline more to produce, this approach cannot be considered strictly “price discrimination.” Even if the onboard product (i.e., economy seat and meal service) is the same, lower fares with advance purchase requirements actually represent an opportunity for cost savings to the airline, as the airline is better able to reduce uncertainty about loads on future departures and reduce the risk of lost revenue potential from empty seats. 4.1.3 Price Discrimination versus Product Differentiation In the preceding discussion of theoretical airline pricing principles, references were made to both “price discrimination” and “product differentiation.” It is important to recognize the differences between these terms, as the discussion moves toward understanding how airlines apply these principles in practice. Price discrimination is the practice of charging different prices for the same (or very similar) products that have the same costs of production, based solely on different consumers “willingness to pay” (Tirole, 1988). On the other hand, product differentiation involves charging different prices for products with different quality of service characteristics and therefore different costs of production (Botimer and Belobaba, 1999). Most airline fare structures reflect both of these strategies. Product differentiation is clearly evident in the variety of fare products offered by airlines in the same O-D market. Fare product differentiation by airlines involves not only differences in tangible Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . quality of services (e.g., first versus economy class) but also differences in the purchase and travel conditions associated with different fare products, most notably those with the lowest price levels. At the same time, the large differences in price levels charged for different fare products offered by many airlines within the economy class of service cannot be explained by product differentiation principles alone. The substantially higher prices that airlines charge for unrestricted fare products targeted at business travelers are also based on their greater willingness to pay, suggesting that price discrimination is a component of these pricing strategies. The term “differential pricing” will be used throughout the remainder of this discussion to refer to current airline pricing practices, which reflect both product differentiation and price discrimination principles. 4.2 Differential Pricing The use of differential pricing by airlines in an O-D market is designed to present a range of fare product options to consumers, who must make a trade-off between the inconvenience of fare restrictions associated with lower fares and the higher prices of unrestricted fares. In microeconomic terms, airline fare structures allow each consumer to maximize his or her utility (or minimize disutility) subject to a budget constraint. Business travelers are assumed to be willing to pay higher fares in return for more convenience and fewer restrictions on the purchase and use of tickets, meaning price is less important to them than the disutility of these restrictions. Leisure travelers are less willing to pay higher prices, but accept the disutility “costs” of restrictions on low- fare products, longer travel times associated with connecting flights, and a lower quality of onboard service. The economic concept of willingness to pay is defined by the theoretical price– demand curve in an O-D market. The price–demand curve can be interpreted as the maximum price that any given number of consumers will all pay for a specified product or service. The use of differential pricing principles by airlines is an attempt to make those with higher WTP purchase the less restricted higher priced fare product options. In Figure 4.2, a simple price–demand curve for an O-D market is illustrated. If the airline offers an unrestricted fare P1 to those consumers with higher WTP, we would expect that Q1 consumers will purchase this fare because they have a WTP equal to P1 or greater. If the airline also offers a lower or “discount” fare P2 to those consumers with a lower WTP, then Q2 − Q1 additional consumers would be expected to purchase this lower fare, as they have a WTP greater than P2 but less than P1. This simple model assumes that the airline has a perfect ability to segment demand according to WTP such that all consumers with high WTP purchase the higher fare Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . P1. Figure 4.2 Differential pricing model Assuming for the moment that the airline does have the perfect ability to segment its market demand by WTP as shown in Figure 4.2, the advantages of differential pricing for both the airline and consumers can be identified. For the airline, offering two different fares instead of a single fare for all passengers (which would be set at P* to maximize revenues) allows it to increase total flight revenues with little impact on total operating costs. Incremental revenue will clearly be generated by the (Q2 − Q*) discount fare passengers who otherwise would not fly at the single fare P*. Incremental revenue will also be generated from the high-fare passengers willing to pay P1, which is more than P* (i.e., what the airline would charge under a single-price strategy). At a single fare level, many “legacy” airlines with high costs would be unable to attract enough passengers (and revenue) to cover the total operating costs of their flights. Consumers can also benefit from the airlines use of differential pricing. Obviously, the (Q2 − Q*) discount fare passengers paying P2 who otherwise would not fly at the single fare level P* benefit from the practice. Note that the (Q* − Q1) passengers who might have been willing to pay P* also benefit from paying P2 in this example. While it is true that the high-fare passengers paying P1 are paying more than they would if the airline offered a single price level at P*, it is also conceivable that these high-fare passengers actually end up paying less and/or enjoy more frequency of flights given the presence of low-fare passengers. This argument is based on the premise that, without low-fare passengers to contribute incremental revenue to the operating costs of the airline, high-fare passengers would have to pay even higher fares and/or have a reduced set of flight departure options. The above discussion is the basis of much disagreement among consumers and even some government regulators, as the common perception is that the airline practice of charging business travelers substantially more than leisure travelers is blatantly unfair to business travelers. It is important, however, to recognize that economic theory Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . supports and helps to explain these pricing practices. 4.2.1 Market Segmentation The successful use of differential pricing principles depends on the airlines ability to identify different demand groups or segments. In theory, total revenue in an O-D market (or even on a single flight) is maximized when each customer pays a different price equal to his WTP. In the context of the price–demand curve shown in Figure 4.2, the entire triangular area under the curve represents the total potential revenue available in a market. If the airline could charge a different price for each consumer based on his or her maximum willingness to pay, its revenues would be close to this theoretical maximum total potential revenue. In practice, such a theoretical segmentation is clearly impossible to achieve as airlines cannot determine each individuals WTP for a given trip, nor can they publish different fares available only to specific individuals. Instead, airlines identify segments of the total market demand with similar characteristics, in terms of trip purpose, price sensitivity, and time sensitivity. Business and leisure travelers are the two traditional segments targeted by airlines in their differential pricing efforts. Even with recent shifts in demand patterns and the decreasing proportion of business versus leisure passengers, this is still the most important distinction made between air travel demand segments for pricing purposes. It is possible for the airline to further increase revenues with more prices and products targeted at additional demand segments, but it becomes more difficult to identify differences in purchase and travel behaviors between these additional segments. To achieve demand segmentation in practice, airlines can physically differentiate their fare products by offering clearly identifiable products with different quality of service such as first class and business class in addition to economy (or coach) class. On the other hand, restrictions on the advance purchase, use, and refundability of lower priced fare products within the economy class cabin, although not physical product differentiators, are designed to reduce the attractiveness (increase the disutility) of these fare products, particularly to business travelers. The combination of greater service amenities and lack of restrictions on the so-called “full coach fares” makes these fare products more attractive to business travelers, relative to the more restricted discount fare products. For example, even though travelers on full coach fares typically receive the same quality of onboard service as those paying reduced fares, some airlines offer priority seat assignment and special check-in services for full-fare travelers, increasing the attractiveness of the unrestricted full-fare product. At the same time, the complete absence of restrictions on the full-fare product is in itself a differentiating factor (compared to the lower, restricted fares) that is highly valued by some business travelers. The overall goals for an airline establishing a differentiated fare structure in any O-D Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2015). The global airline industry. ProQuest Ebook Central <a onclick=window.open(http://ebookcentral.proquest.com,_blank) href=http://ebookcentral.proquest.com target=_blank style=cursor: pointer;>http://ebookcentral.proquest.com</a> Created from erau on 2021-08-22 19:13:41. C o p yr ig h t © 2 0 1 5 . Jo h n W ile y & S o n s, I n co rp o ra te d . A ll ri g h ts r e se rv e d . market can be summarized as follows. A wide enough range of fare product options at different price levels should be offered to capture as much of the revenue potential from the market price–demand curve as possible, while ensuring that each fare product can be targeted at specific demand segments with different levels of willingness to pay. At the high end of the fare structure, the airline should offer enhanced service amenities that improve the attractiveness of the fare products to travelers who are not price sensitive and willing to pay for these amenities. And, at the low end of the fare structure, prices low enough to stimulate new demand for low-fare travel should be offered to fill empty seats that would otherwise remain empty. The most difficult goal is to find mechanisms to prevent the diversion of consumers with higher WTP (who were expected to buy the higher fare products) to the lower fare products, given that they were planning to fly anyway and that they could well be aware of the lower priced options. 4.2.2 Fare Product Restrictions As introduced earlier, the application of progressively more severe restrictions on low-fare products has traditionally been the primary mechanism used by airlines to prevent diversion, as differences in service amenities are generally not enough to prevent many high-WTP travelers from buying lower fares. The types of restrictions applied to the lower fares in most O-D markets are familiar to most air travelers. The lowest fares can have advance purchase and minimum stay requirements as well as cancellation and change fees. These restrictions increase the inconvenience or “disutility cost” of low fares to travelers with high WTP, causing them to choose higher fares when they minimize their own disutility of air travel. Studies have shown that the “Saturday night minimum stay” condition is among the most effective in keeping business travelers from purchasing low fares (Boeing, 1988). Longer minimum stay conditions (e.g., 7 days) are more common in longer haul international markets, as the Saturday night minimum stay restriction is not sufficient to prevent diversion of business passengers to lower fares on longer haul trips. Even with the use of a variety of fare restrictions, it is impossible to achieve the perfect segmentation of demand implied by the model in Figure 4.2. Some proportion of travelers with high WTP will be able to meet even the most severe restrictions, or alternatively will replan their trips in order to meet these restrictions. Airline data show that some business travelers have long been able to purchase restricted fares by rearranging their travel plans. This practice became even more common as the price differences between the highest unrestricted full coach fares and the lowest available restricted fares increased, and as business travelers became less willing to pay the highest fare levels. … 9. Airfield Design The geometric design of an airfield should provide for operational efficiency, flexibility, and potential for future growth. It should also comply with an extensive set of design standards and recommended practices, developed over the years by international and national civil aviation organizations and intended to promote a maximum level of safety. The two most influential sets of design standards are those of the International Civil Aviation Organization (ICAO) and the U.S. Federal Aviation Administration (FAA). They are based on similar, but not identical, coding systems that classify airfields according to the most demanding type of aircraft they are designed to serve. Once the reference code of an airfield or runway has been specified, design standards can be obtained from the relevant manuals and other supporting documents. Airfields typically account for 80 to 95 percent of the total land area occupied by an airport and affect in critical ways every facet of airport operations. The principal determinants of the size of the airfield include the number and orientation of the runways; the geometric configuration of the runway system; the dimensional standards to which the airfield has been designed; and the land area set aside to provide for future growth and/or environmental mitigation. This chapter discusses these topics in varying levels of detail. The chapter reviews the characteristics and some advantages and disadvantages of a broad set of common airport layouts. These range from single runways, to a pair of parallel runways, to intersecting pairs of runways, to systems of three, four, or more runways. Several airports in the United States use complex, multirunway layouts to serve very large volumes of nonhomogeneous traffic. Four common mistakes in planning and designing airfields are the following: Failure to provide flexibility for future expansion Overbuilding the airfield in its initial phases Lack of integration and coordination of the planning process Insufficient appreciation of the economic consequences of some design choices The implications of these mistakes for the capital and operating costs of airports and their users can be serious. The chapter also reviews many of the FAA and ICAO technical and dimensional standards for the various elements of the airfield. These include coverage for crosswinds, runway length, other runway geometric standards and obstacle clearance requirements, separation of runways from adjacent facilities and from static or moving objects, taxiway geometric standards and separation requirements, apron layouts and separation requirements, and obstacle limitation surfaces (or imaginary surfaces) in the airspace in the vicinity of airports. The objective is to provide a summary overview of the standards and recommended practices, outline their rationale, and indicate where readers can find further information in the detailed relevant documents. 9.1. Introduction The geometric design of an airfield critically affects every aspect of airport operations. This includes landside facilities and services, as the layout of the runway system largely dictates the general placement of the passenger, cargo, and other buildings, as well as the interfacing of airside and landside operations. Because of the overwhelming importance of safety for aviation operations, airfield design must comply with a voluminous set of detailed standards and recommended practices developed over the years by national and international civil aviation © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. authorities and organizations. The ICAO plays a central role in this respect. Its Annex 14 to the International Convention on Civil Aviation specifies the standards and recommended practices that have been adopted by its nearly 200 Member States (formally Contracting States) over the years. An ICAO standard is any specification for physical characteristics, configuration, material, performance, personnel or procedure, the uniform application of which is recognized as necessary for the safety or regularity of international air navigation and to which Contracting States will conform (ICAO, 2009). By comparison, a recommended practice is any specification … the uniform application of which is recognized as desirable … and to which Contracting States will endeavor to conform. Note that a standard is necessary for safety, while a recommended practice is desirable (endeavor to conform). In practice, the design standards and practices of national civil aviation agencies everywhere are largely based on or, in most cases, identical to those specified in the ICAOs Annex 14. Member States that, for any reason, are unable to comply with an Annex 14 standard—and adopt a different one—must notify promptly the ICAO to this effect. This is referred to as filing a difference. The ICAO publishes these differences for the information of all its Member States. The United States has historically filed the largest number of differences. The FAA has developed and applies a set of airport design standards and recommended practices, which are similar to those of the ICAO, but also differ in some important respects. This chapter cites examples later on. For practical purposes, the FAA plays almost as important a role as the ICAO in setting airport design specifications. One reason is that the United States is still the most important air travel market in the world, with the largest volume of air traffic and with most of the busiest airports (see Chaps. 1 and 2 and Sec. 9.2). Second, the FAA and the U.S. government have traditionally invested heavily in research on aviation, including airports and air traffic management (ATM). As a result, the design standards that the FAA has adopted or updated have often preceded the ICAO adoption of identical or very similar standards. Airport professionals should therefore be cognizant of both the ICAOs and the FAAs sets of design standards and recommendations. Annex 14 (ICAO, 2009) was first published in 1951 and has since been amended many times, usually following reports and studies by committees and panels of experts. A large number of related ICAO publications amplify on aspects of the Annex 14 and provide more detailed guidance. Important examples are three multivolume manuals, the Aerodrome Design Manual (ICAO, current-a), the Airport Services Manual (ICAO, current-c), and the Airport Planning Manual (ICAO, current-b), all of which are updated at irregular intervals. Of special relevance to this chapter are the Aerodrome Design Manual—Runways (ICAO, 2006), the Aerodrome Design Manual—Taxiways, Aprons, and Holding Bays (ICAO, 2005), and the Airport Planning Manual—Master Planning (ICAO, 1987). The principal document on the FAA side is the Airport Design Advisory Circular (FAA, 2012). This also references numerous other related advisory circulars and federal aviation regulations (FAR), some of which are cited later in this chapter. A few commercial vendors increasingly provide specialized computer-aided- design (CAD) software to support the planning and design of airfields. Despite such support and extensive sets of guidelines, airport planners must still exercise a great deal of judgment in making critical design choices. Subject to the environmental, political, and economic constraints at each site, they must address such fundamental issues as the following: How much land should be acquired or reserved for a new airport? What should be the overall geometric layout of runways, taxiways, and aprons? What size of aircraft should the airfield be designed for? How should the construction of airside facilities be phased? Variants of these questions must also be addressed when modifying or expanding the airfields of existing airports. Modification and expansion projects have, in fact, become the most common, by far, context for airport planning and design in view of the [1] [2] © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. https://www.accessengineeringlibrary.com/mhe-lookup/atom-id/6455a16f56ea6bf3 https://www.accessengineeringlibrary.com/mhe-lookup/atom-id/2716e44c79cba8b3 small number of entirely new major airports currently being built or planned anywhere in the world. Expansion and modification projects are often as complex as the design of new airports—and sometimes more so. One of the biggest challenges in this respect is developing a schedule of construction activities and a transition plan that will allow the airport to continue operations during the period of airport reconfiguration. Four generic types of mistakes are common in planning and designing airfields: Failure to provide flexibility for responding to future developments Overbuilding for the initial stages of an airports operation Adopting a hierarchical, nonintegrated approach to design that does not consider adequately the interactions among the various elements of the airport Insufficient appreciation of the economic implications of design choices The first of these applies to long-range planning. Too many airports face today severe, sometimes insuperable, constraints because their original designers and planners failed to anticipate the eventual land area requirements of the airfield (see Sec. 9.4). Another example of failure to plan for flexibility is the selection and construction of airside layouts (runways, taxiways, and aprons) that make it impossible to accommodate new, larger types of aircraft without either making very expensive changes to existing facilities or having to rebuild them from scratch (see Secs. 9.5–9.8). The second type of mistake, that is, the tendency to overbuild the airfield in the initial stages of airport operations, is in some ways the reverse of the first. For example, an airport in its early phases of development may not need the full system of runways and taxiways it has been planned for, or the eventual full length of one or more of its runways. Only part of the planned system may be sufficient for the initial phase of operations. This may mean, for instance, building only one full-length taxiway running parallel to a main runway, instead of the two parallel taxiways that may be necessary when the airport reaches full development. Failure to adopt an integrated approach to planning for the various parts of the airfield is a third weakness encountered in practice. Airports tend to be planned and designed hierarchically, often without fully considering the interactions among their various subsystems (runways, taxiways, aprons, passenger and cargo buildings, service areas, etc.). On the airside for example, the highest level of the design process typically focuses on settling the configuration of the runway system, with limited analysis of what this implies for the other components of the airfield. Similarly, on the landside, passenger buildings are often designed with inadequate understanding of how they interface with the apron areas, taxilanes, and taxiways. Because of such absence of a systems viewpoint, taxiway and apron systems, in particular, are often inefficient and sometimes include parts that are obvious candidates to become congestion points (hot spots) for air traffic (see Secs. 16.2 and 16.3). Airfield design also needs to consider safety-related criteria such as minimizing the number of runway crossings and reducing the likelihood of runway incursions. This can be achieved only through an integrated approach to planning and design. Finally, the economic implications of some design choices are often not fully appreciated and analyzed. Sometimes planners make design choices that save some capital costs but greatly increase the operating costs of airport users—for example, by increasing taxiing times on the airfield. This is because planners often do not have a good grasp of the cumulative economic value of their design choices. For example, saving an average of 2 minutes of taxiing time per landing and/or takeoff may be worth tens of millions of dollars per year to aircraft operators at a busy airport with hundreds of thousands of annual operations (see Secs. 9.7 and 14.3). This chapter both reviews the most important airfield design standards and recommended practices and provides a perspective on how these are, or should be, applied. The ICAO and the FAA use simple classification schemes to develop two- element reference codes for airports. These reference codes determine the design standards to be used at each airport. Section 9.2 explains the airport reference codes (ARCs), discusses their application, and provides relevant background and terminology for the chapter. Section 9.3 reviews wind coverage requirements that determine whether it is necessary to construct runways in more than one orientation at an airport. Section 9.4 offers a brief tour through progressively more complex airfield configurations, using a few important airports as examples. It shows how the requirements for separations between runways largely dictate the overall layout of the airport. It also points to some important systemic differences between © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. https://www.accessengineeringlibrary.com/mhe-lookup/atom-id/b9aeeb0da945361b#ch16lev1sec02 https://www.accessengineeringlibrary.com/mhe-lookup/atom-id/b9aeeb0da945361b#ch16lev1sec03 https://www.accessengineeringlibrary.com/mhe-lookup/atom-id/2948e6ee48d41153#ch14lev1sec03 airport traffic characteristics in different regions of the world. Section 9.5 provides an overview of the topic of runway length. The emphasis is on explaining the fundamental concepts and the meaning of various technical terms without going into much technical detail. Section 9.6 summarizes some of the most important design standards for runways, as they apply to major airports. Sections 9.7 and 9.8 do the same for taxiways, elements of taxiway systems, such as high-speed exits and taxilanes, and apron stands. In all cases, the principal concern centers on the practical implications for busy airports serving large commercial airplanes. Section 9.9 goes beyond airport boundaries to compare the standards that the ICAO and the FAA have developed for protecting the airspace in the immediate vicinity of airports from natural or man-made obstructions that may pause a threat to the safety of runway operations. The section describes the various obstacle limitation surfaces (or imaginary surfaces) that form the basis for these standards. It should be noted that the review of design standards in Secs. 9.6 through 9.9 is far from exhaustive, as it omits several topics altogether—such as the design of taxiway turns and fillets, visual aids and marks, and emergency and rescue services—and leaves out numerous details on others. Such coverage is beyond the scope of this text. Those engaged in the detailed design of airfield facilities are familiar with the voluminous materials referenced earlier and other related documents. These professionals also consult regularly with the competent government organizations and regulators, are typically employed by engineering consulting firms, and work with special-purpose airfield design software. 9.2. Airport Classification Codes and Design Standards 9.2.1. Reference Codes for Aircraft Classification Both the ICAO and the FAA use simple classification schemes to develop a two-element reference code for each type of aircraft. The ICAO reference code (ICAO, 2009) consists of two elements, a code number and a code letter (Table 9.1). The code number of any type of aircraft is determined by the airplane reference field length, the minimum field length that aircraft requires for takeoff at maximum takeoff weight (MTOW), sea level, standard atmospheric conditions, no wind, and level runway (see Sec. 9.5). The code letter is determined by two physical characteristics of the aircraft: its wingspan and the distance (span) between the outside edges of the wheels of the aircrafts main gear. When the aircrafts wingspan and outer main gear wheel span (OMG) correspond to different code letters, the aircraft is assigned the more demanding code letter. For example, the Boeing 747-800 has an airplane reference field length of approximately 3000 m, which gives it code number 4, a wingspan of 68.5 m (code letter F), and OMG of 12.7 m (code letter E). Thus, the ICAO reference code for the Boeing 747-800 is 4-F. Table 9.1 ICAO Airport Reference Code ICAO Code Element 1 ICAO Code Element 2 Code Number Airplane Reference Field Length (RFL) Code Letter Wingspan (WS) Outer Main Gear Wheel Span (OMG) 1 RFL < 800 m A WS < 15 m OMG < 4.5 m 2 800 m ≤ RFL < 1200 m B 15 m ≤ WS < 24 m 4.5 m ≤ OMG < 6 m 3 1200 m ≤ RFL < 1800 m C 24 m ≤ WS < 36 m 6 m ≤ OMG < 9 m 4 1800 m ≤ RFL D 36 m ≤ WS < 52 m 9 m ≤ OMG < 14 m E 52 m ≤ WS < 65 m 9 m ≤ OMG < 14 m F 65 m ≤ WS < 80 m 14 m ≤ OMG < 16 m [3] © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. Analogously, the FAA uses aircraft approach speed to determine the first element of its reference code, the aircraft approach category, designated by a letter between A and E (Table 9.2). The aircraft approach speed is defined as 1.3 times the stall speed in the aircrafts landing configuration at maximum landing weight (MLW). The second element is a Roman numeral (I through VI) that specifies the design group to which the aircraft belongs. The design group is determined by the most demanding of two of the physical characteristics of the aircraft: its wingspan and its tail height. For example, in the case of the Boeing 737-800, the aircrafts approach speed is 142 knots (FAA approach category D); its wingspan of 34.3 m and tail height of 12.6 m, both place it in design group III. Thus, the FAA reference code for the Boeing 737-800 is D-III. Table 9.2 FAA Airport Reference Code (FAA Code Element 1) Aircraft Approach Category (FAA Code Element 1) Aircraft Approach Speed (AS) (knots) (FAA Code Element 2) Airplane Design Group (FAA Code Element 2) Aircraft Wingspan (WS) (FAA Code Element 2) Tail Height (TH) Wheel Span (OMG) Source: FAA, 2012. A AS < 91 I WS < 49 ft (WS < 15 m) TH < 20 ft (TH < 6 m) B 91 ≤ AS < 121 II 49 ft ≤ WS < 79 ft (15 m ≤ WS < 24 m) 20 ft ≤ TH < 30 ft (6 m ≤ TH < 9 m) C 121 ≤ AS < 141 III 79 ft ≤ WS < 118 ft (24 m ≤ WS < 36 m) 30 ft ≤ OMG < 45 ft (9 m ≤ OMG < 13.5 m) D 141 ≤ AS < 166 IV 118 ft ≤ WS < 171 ft (36 m ≤ WS < 52 m) 45 ft ≤ OMG < 60 ft (13.5 m ≤ OMG < 18.5 m) E 166 ≤ AS V 171 ft ≤ WS < 214 ft (52 m ≤ WS < 65 m) 60 ft ≤ OMG < 66 ft (18.5 m ≤ OMG < 20 m) VI 214 ft ≤ WS < 262 ft (65 m ≤ WS < 80 m) 66 ft ≤ OMG < 80 ft (20 m ≤ OMG < 24.5 m) 9.2.2. Airport Reference Code The airport reference code (ARC) of an airfield is determined by the code of the most demanding type of aircraft (critical aeroplane in ICAO terminology) that the airport is designed to serve. For instance, if the most demanding aircraft for some airport is the Airbus 340-600, classified as a 4-E aircraft in the ICAOs scheme and as a D-V in the FAAs, the airports ARC would be 4-E or D-V according to the ICAOs or the FAAs reference codes, respectively. It is important to note that an airports most demanding aircraft—the type that determines an airports ARC—need not be an aircraft that is currently using the airport. In other words, an airport can be designed to accommodate in the future aircraft types that are more demanding than the ones that have been served there in the past. At multirunway airports, individual runways may differ in their ability to serve different types of aircraft. For example, one runway may be too short for handling takeoffs by long-range aircraft, whereas another may be sufficiently long for this purpose. In such cases, different runway design codes (RDCs) will be associated with different runways. For example, the long runway © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. may have an FAA RDC of D-V, and the shorter runway an RDC of C-III. In such situations, the runway with the highest RDC determines the overall ARC. Thus, in our example the ARC will be D-V—the most demanding of D-V and C-III. 9.2.3. Practical Implications When it comes to the first element of the ICAO reference code, note that the most common narrow-body commercial aircraft, such as the Airbus 320 and the Boeing 737, has a reference field length greater than 1800 m (Table 9.3b). This means that the ARC of virtually all major commercial airports has an ICAO code number of 4. At the same time, for all practical purposes the wingspan of the most demanding aircraft determines the second element of the ICAO reference code. This is because, for the existing types of important commercial jets, the OMG almost never places these aircraft in a code letter category higher than the one to which they would be assigned based on their wingspan. For example, no airplane assigned code letter D on the basis of its wingspan would be assigned code letter E or F on the basis of its OMG. It follows from these two observations that the ICAO reference code for major airports can only be 4-C (in the rather unusual case where aircraft like the Airbus 320 or the Boeing 737 are the most demanding that the airport can serve) or, far more often, 4-D, 4-E, or 4-F. Table 9.3a Characteristics of Common Wide-Body Turbofans WS (m) Length (m) TH (m) OMG (m) MTOW (tons) Passenger Seats Range (km) TO Field Length (m) ICAO RC FAA RC FAA TDG Sources: Manufacturers data, FAA (2012), ICAO (2006). Airbus A300- 600R 44.9 54.1 16.6 10.9 171.7 220–266 7,540 2320 4-D C-IV 5 A310- 300 43.9 46.7 15.8 10.9 164.0 218–240 9,600 2260 4-D C-IV 5 A330- 200 60.3 58.8 17.4 12.6 233.0 253–293 13,430 2220 4-E C-V 6 A340- 300 60.3 63.6 16.9 12.6 276.5 295–375 13,700 3000 4-E D-V 6 A340- 600 63.5 75.3 17.3 12.6 368.0 380–440 14,350 3100 4-E D-V 6 A350- 900 64.8 66.9 17.1 12.9 268.0 315–366 15,000 n.a. 4-E D-V 6 A380 79.8 72.7 24.5 14.3 560.0 525–644 15,400 2900 4-F D-VI 7 Boeing 747- 200B 59.6 70.6 19.3 12.4 377.8 366–452 12,700 3190 4-E D-V 6 747- 400 64.4 70.6 19.4 12.6 396.9 416–524 13,450 3200 4-E D-V 6 747-8 68.5 76.3 19.4 12.7 448.0 467–605 14,800 3000 4-F D-VI 6 © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. 767- 200ER 47.6 48.5 16.1 10.9 179.2 181–224 11,825 2740 4-D D-IV 5 767- 300ER 47.6 54.9 16.0 10.9 186.9 218–269 11,065 2540 4-D D-IV 5 777- 200ER 60.9 63.7 18.5 12.9 297.6 301–400 14,300 3570 4-E C-V 6 777- 300ER 64.8 73.1 18.5 12.9 351.5 365–451 14,690 3200 4-E D-V 6 787-8 60.2 56.7 16.9 11.7 228.0 242–264 15,200 2850 4-E D-V 6 787-9 60.2 62.8 17.0 11.7 251.0 250–290 15,700 n.a. 4-E D-V 6 WS (m) Length (m) TH (m) OMG (m) MTOW (tons) Passenger Seats Range (km) TO Field Length (m) ICAO RC FAA RC FAA TDG Table 9.3b Characteristics of Common Narrow-Body Turbofans WS (m) Length (m) TH (m) OMG (m) MTOW (tons) Passenger Seats Range (km) TO Field Length (m) ICAO RC FAA RC FAA TDG *Boeing/Douglas airplane. Sources: Manufacturers data, FAA (2012), ICAO (2006). Airbus A318 34.1 31.4 12.6 8.7 68.0 107–117 5700 1828 4-C C-III 3 A319- 100 34.1 33.8 11.8 8.7 75.5 124–134 6700 2164 4-C C-III 3 A320- 200 34.1 37.6 12.1 8.7 77.0 150–164 5900 2090 4-C C-III 3 A321- 200 35.8 44.5 11.8 9.1 93.0 185–199 5950 2560 4-C C-III 5 Boeing 717- 200 28.5 37.8 8.9 5.4 54.9 106–117 3800 1800 4-C C-III 3 737- 200 28.4 30.5 11.2 6.4 58.1 102–136 4300 2090 4-C C-III 5 737- 300 28.9 33.4 11.1 6.4 62.8 128–140 4200 2300 4-C C-III 3 737- 400 28.9 36.5 11.1 6.4 68.0 146–159 4200 2540 4-C C-III 3 737- 500 28.9 31 11.1 6.4 60.6 108–122 4450 2470 4-C C-III 3 © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. 737- 600 34.3 31.2 12.6 7.0 66.0 108–123 5650 1750 4-C C-III 3 737- 700 34.3 33.6 12.5 7.0 70.1 128–140 6230 2100 4-C C-III 3 737- 800 34.3 39.5 12.5 7.0 79.0 160–175 5670 2400 4-C D-III 3 737- 900 35.7 42.1 12.5 7.0 85.1 174–204 5000 3000 4-C D-III 3 757- 200 38.1 47.3 13.6 8.6 115.7 200–239 7200 2910 4-D C-IV 5 MD- 81* 32.8 45.0 9.0 6.2 63.5 155–172 2910 1870 4-C C-III 3 MD- 87* 32.8 39.7 9.3 6.2 63.5 130–139 4400 1860 4-C C-III 3 WS (m) Length (m) TH (m) OMG (m) MTOW (tons) Passenger Seats Range (km) TO Field Length (m) ICAO RC FAA RC FAA TDG Turning to the FAA ARC, it is again true that the wingspan of the most demanding aircraft determines the airplane design group for all practical purposes (see Table 9.3). This is because the tail height never places an aircraft in a design category higher than the one to which it would have been assigned based solely on its wingspan. Note also that the wingspan thresholds that separate FAA airplane Groups I through VI from one another are exactly the same as the ICAO thresholds. For example, FAA Group IV aircraft have wingspans between 36 and 52 m, exactly the same as ICAO code letter D aircraft. This means that the second elements of the FAA and the ICAO reference codes for all types of aircraft correspond perfectly. The only difference is that the FAA uses Roman numerals and the ICAO uses capital letters to designate that second element. An airport with an ARC in Group V per the FAA will have code letter E per the ICAO and vice versa—certainly a desirable circumstance for airfield designers. This is pointed out in Fig. 9.1, which plots the length and wingspan of many of the most common types of current commercial jet airplanes and identifies on the right vertical axis the second code element to which they belong. © McGraw-Hill Education. All rights reserved. Any use is subject to the Terms of Use, Privacy Notice and copyright information. Figure 9.1 Length and wingspan of current types of commercial jet transport airplanes. The corresponding ICAO and FAA reference codes are indicated along the vertical axis on the right. [Sources: Manufacturer specifications, FAA (2012), ICAO (2006).] The second code element largely determines many of the geometric design standards at airports, such as the required separation between a runway and a parallel taxiway or between two parallel taxiways. This is because wingspan reflects well the physical size of aircraft, especially when it comes to selecting airfield dimensions that will ensure safe operations. It follows that it makes little difference, in most instances, whether an airport is designed to FAA or ICAO standards because (1) these agencies will classify any airport in the same way, on the basis of wingspan, and (2) their dimensional standards for different wingspan categories are usually either identical or very similar. There are, however, a few significant exceptions to this statement (see Secs. 9.6–9.9). The choice of ARC is obviously a critical decision for airport planners and operators. Building for a more demanding aircraft than necessary means incurring unnecessary capital and maintenance costs: the dimensions of runways, taxiways, and aprons and the separations between them will be larger than necessary. On the other hand, it may be even costlier to under-design the airport. If, at some future time, an airline wishes to initiate service with a type of aircraft that the airport is not designed to handle, this service must either be denied, or arrangements must be made to accept the aircraft under some special handling provisions, or the airports facilities must be modified to make them compatible with the aircraft. The first two choices are unattractive in the long run, especially if the popularity of the aircraft in question increases over time. The third choice can be very expensive and disruptive if adequate provisions were not made at the outset for the possibility of future redimensioning of airfield facilities, as Examples 9.1 and 9.2 suggest. Example 9.1 The Airbus 380, with a wingspan of 79.8 m, was the first nonmilitary airplane with an ICAO reference letter F (or FAA Group VI) designation to be widely introduced at commercial airports. Before its entry into service, Airbus Industrie surveyed 81 leading airports around the world, considered the top candidates to receive A380 service, in order to identify potential airport/aircraft compatibility problems. The survey found that the three principal problems were runway and … AB_CS Aviation Open skies 0715 Publisher Proof Reader Creation date 10/12/14 Editor Production Manager Modification date June 26, 2015 9:13 PM Art Director Advertising Manager Output date 06/26/15 Subeditor Picture Editor 38 African Business July 2015 COVER�STORY T he potential contribution of the avia- tion industry to Africa’s growth and development is irrefutable. Air travel links African countries and regions with each other and with the world. It increases efficiency and connectivity. And it creates new opportunities for trade, business and tourism. According to a report by the Air Transport Action Group, aviation in 2012 created 428,000 direct jobs, supported 6.9m jobs, and generated $80.5bn in GDP on the African continent. Meanwhile, the African Development Bank reported that international traf- fic in Africa grew 6.1\% over 2010–15, compared to the global average of 5.8\%. Driven by a growing middle class, an expanding population of 1bn spread across a vast continent, and rapidly developing economies, the potential for future growth is similarly significant. And its current low Above:�Boarding�a� flight�–�but�only�10\%�of� Africans�travel�by�air. development represents a huge opportunity. The Air Transport Action Group estimates that jobs supported by aviation and tourism will grow to some 10.5m by 2032, while its contribution to GDP could more than double over that same period. However, this fate is not necessarily assured. It must be created, but for too long the aviation industry has conspicuously been missing in regional integration discussions, which have typi- cally been dominated by talk of trade policy, telecom- munications, ICTs, roads and railways. One reason for this neglect could be the policies most African countries adopted post-independence – policies focused on developing international routes mostly to and from their former colonisers – while another could be low demand; only 10\% of Africans travel by air. But regardless of these factors, air transport on the continent can and will play a vital role in Africa’s future – so long as the right policies are implemented. Skies and Seas Open skies will allow Africa to take off A boosted aviation industry could hugely benefit Africa’s trade, business and tourism. But for this to happen, governments need to liberalise the skies and move the sector up its list of priorities. Tel: (+27) 011 784 0085 Cell: +27 (0) 827814178, +27 (0) 83 780 2107 e-mail: [email protected] , w w w.timeaviation.co.za M a n d e l a S q u a re , We s t To w e r, 4 t h F l o o r, C / O A f r i c a n A s i a n Ca p i t a l , M a u d e St , S a n d t o n , J o h a n n e s b u rg , S A The exclusive representative for Bombadier Business aircraft in Africa Airframe Total Time: 3708hrs Year of Manufacture: 2000 $2,5mil Airframe Total Time: 3928hrs Fresh 8C Inspection & Avionics Upgrade Year of Manufacture: 2002 $14,950mil Airframe Total Time: 3500hrs FANS 1A Equipped Year of Manufacture: 2003 $14,9mil Airframe Total Time: 510hrs Year of Manufacture: 2012 POA Airframe Total Time: 25hrs Year of Manufacture: 2014 $47,9mil SN5797, 2009, $13,9mil SN5842, 2010, $13,6mil SN5852, 2010, $13,8mil SN5845, 2010, $14,9mil LearJet45 Global Express Global 6000 Challenger 605 Global Express Global 5000 DSJ-1742 Time Aviation A4 Ad.indd 1 2015/06/17 8:18 AM AB0715.indb 38 26/06/2015 21:16 AB_CS Aviation Open skies 0715 Publisher Proof Reader Creation date 10/12/14 Editor Production Manager Modification date June 26, 2015 9:13 PM Art Director Advertising Manager Output date 06/26/15 Subeditor Picture Editor 40 African Business July 2015 COVER�STORY Opening the skies The main impediments to the growth of African aviation currently are the regulations that restrict open competition. These barriers help governments support their own national carriers, but make it difficult for foreign airlines to access certain routes. T h e Ya m o u s s o u k r o D e c l a r a t i o n o f 19 9 9 recommended the liberalisation of the sector and called for the establishment of a single African market, but it has never been fully implemented. If it were, it could see Africa reap many benefits including more affordable fares, increased flight routes and frequencies, and lower travel times. There are plenty of examples of this happening already. In Europe, for instance, the creation of a single EU aviation market greatly increased competition, resulting in many more new routes and a 34\% decline in discount fares, according to the International Air Transport Association. An agreement for a more liberal air market between South Africa and Kenya in the early 2000s led to a 69\% rise in passenger traffic. And the 2006 Morocco- EU Open Sky Treaty led to 160\% rise in traffic as the number of routes between the EU and Morocco increased from 83 in 2005 to 309 in 2013. Et hiopia’s pursuit of more libera l bi latera l agreements meanwhile has contributed to Ethiopian Airlines becoming one of the largest and most Above:�Ethiopian� Airlines�has�liberalised� its�operations�and� reaped�the�benefits. profitable in Africa. It is reported that on intra-African routes with more liberal set-ups, Ethiopians benefit from 10-21\% lower fares and 35-38\% higher frequencies compared to restricted intra-Africa routes. The potential for Africa under an open-skies agreement is thus immense. According to the International Air Transport Association, open skies in just 12 African countries could encourage tourism, help create more than 150,000 jobs and add $1.3bn to GDP. Taking off Howe ver, i mplement i ng t he Ya mou s s ou k ro Declaration will not solve all Africa’s aviation problems, and many additional, though connected, challenges remain. One leading concern is air safety, which needs to be made a key priority going forwards. In 2011, the average number of air traffic accidents was nine times higher in Africa than the global average. High frequency of accidents is often due to inconsistent implementation and enforcement of international safety standards and practices. To remedy this, African governments must foster greater oversight. Africa also lags significantly behind other regions in terms of its soft and hard infrastructure. This includes poor airport facilities, a lack of physical and human resources, and insufficient transit networks. It is critical, therefore, that African countries invest in building and upgrading the infrastructure that underpins the industry. Finally, aviation still features too low down on most African governments’ list of priorities and few are pursuing the necessary policies to nurture the development of the industry. Besides implementing the Yamoussoukro decision, national policies are also needed. Among many other possibilities, these could include a waiver of airport taxes and fees for regional airlines or the relaxation of transit visa requirement among African nationals. If African governments can get all this right and truly recognise the vast potential for connectivity, trade and economic development that a boosted aviation sector promises, the sky is truly the limit. � Dr Richard Munang is Coordinator, Africa Regional Climate Change Programme, at United Nations Environment Programme (UNEP). Robert Mgendi is an ecosystem-based adaptation policy expert at the Africa Climate Change Programme.  The views expressed do not necessarily represent those of the institution with which they are affiliated.� Skies and Seas Open�skies�in�just�12� African�countries�could� encourage�tourism�and� help�create�more�than� 150,000�jobs. 150,000 O U R S I G H T S A R E S E T H I G H E R B U S I N E S S A I R C R A F T . B O M B A R D I E R . C O M Bombardier, Learjet, Challenger, Global and The Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries. © 2015 Bombardier Inc. All rights reserved. 10858-BBA-AfricanBusinessAD-210x270.indd 1 11/06/2015 14:57AB0715.indb 40 26/06/2015 21:16 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. The International Aviation Business Environment Research Paper Topic Selection Post a summary of your research paper problem statement. With a research topic in hand, a carefully constructed problem statement will set the stage for the smooth development of a research paper. The research problem statement should include keywords such as; ‘purpose,’ ‘intent,’ or ‘objective’ to ensure the research has a direction and can adequately present a conclusion or solution. Check that the topic and problem statement have a narrow concept so that one idea can be explored, and the research paper stays on topic. The research problem statement should also include verbs, such as ‘describe,’ ‘understand,’ ‘develop,’ ‘examine,’ ‘discover,’ to indicate what the audience can expect from the research. Lastly, show how the research will be conducted using a word such as ‘collect,’ ‘synthesize,’ and ‘analyze.’Post a summary of your research paper problem statement. In Week 9, You will submit an 8-10 page research paper on a contemporary international aviation industry issue. Please remember that the nature of the class is to investigate international aviation management and its three elements: the nature of international aviation business, working in a foreign environment, and managing in an international environment. The focus of the paper should revolve around this theme. Your goal is to design a course of action to solve a research problem using appropriate, multidisciplinary approaches. The most critical step in preparing your research paper is topic selection. Identify an interesting topic that is practical, useful, and relevant to the course goals. The topic needs to be researchable, meaning it is not too broad, not too narrow. A key component of the research paper is to address ethical and social issues relevant to the topic. Requirements: · Define and articulate a problem statement. · Design a course of action to solve the research problem using appropriate, multidisciplinary approaches. · Address any ethical or social issues relevant to your research topic. · Reach decisions or conclusions based on the analysis and synthesis of evidence. Case Study: Transforming Intra-African Air Connectivity Read the resources attached (Open skies will allow Africa to take off) and the webpage provided below. Prepare a 2-3 page case study that explains the information provided, identifies the benefits and drawbacks of liberalization, summarizes the case study of your choice from https://www.iata.org/contentassets/44c1166a6e10411a982b2624047e118c/intervistas_africaliberalisation_finalreport_july2014.pdf and presents your thoughts. Include an assessment of socioeconomic and ethical forces relevant to your case study and provide possible solutions for those issues. Be sure to include additional research and resources to support your case study. The assignment should be written according to the APA format. This includes a title page, header, page numbers, restatement of the title on the top line above the introduction, conclusion, a reference page (at least three references), and all in-text and reference citations.  Data Analysis You were asked to research international round trip flights in Week 1. As you recall, the requirements were to plan eight international flights from the closest international airport and return two weeks later to the same airport. Now a month has passed. Compare and analyze the fare changes. Destination Airlines Depart: Seattle-Tacoma International Airport (SEA) Return Round Trip Airfare Honolulu, Hawaii Alaska Airlines Mon, Nov 8 8:42 AM (SEA) Travel time: 6 hr 28 min 1:10 PM Daniel K. Inouye International Airport (HNL) Mon, Nov 22 1:15 PM Daniel K. Inouye International Airport (HNL) Travel time: 6 hr 4 min 9:19 PM Seattle-Tacoma International Airport (SEA) $456 Tokyo, Japan Delta Airlines Mon, Nov 8 11:25 AM (SEA) Travel time: 10 hr 45 min 3:10 PM+1 Haneda Airport (HND) Mon, Nov 22 5:20 PM Haneda Airport (HND) Travel time: 9 hr 20 min 9:40 AM Seattle-Tacoma International Airport (SEA) $1560 Ontario, Canada Air Canada Mon, Nov 8 07:20 AM (SEA) Travel time: 4 hr 37 min 2:57 PM Toronto Pearson International Airport (YYZ) Mon, Nov 22 6:25 PM Toronto Pearson International Airport (YYZ) Travel time: 5 hr 21 min 8:46 PM Seattle-Tacoma International Airport (SEA) $409 Reykjavík, Iceland Icelandair Mon, Nov 8 2:50 PM (SEA) Travel time: 7 hr 25 min 6:15 AM+1 Keflavík Airport (KEF) Mon, Nov 22 5:05 PM Keflavík Airport (KEF) Travel time: 7 hr 50 min 4:55 PM Seattle-Tacoma International Airport (SEA) $605 Malé, Maldives Singapore Airlines Mon, Nov 8 8:45 AM (SEA) Travel time: 16 hr 40 min 5:25 PM+1 Singapore Changi Airport (SIN) 3 hr 10 min layover 8:35 PM+1 Singapore Changi Airport (SIN) 10:10 PM+1 Velana International Airport (MLE) Mon, Nov 22 11:40 PM Velana International Airport (MLE) Travel time: 4 hr 35 min 7:15 AM+1 Singapore Changi Airport (SIN) 2 hr 10 min layover 9:25 AM+1 Singapore Changi Airport (SIN) 7:25 AM+1 (SEA) $1125 Hong Kong United Airlines Mon, Nov 8 9:39 AM (SEA) Travel time: 2 hr 19 min 11:58 AM San Francisco International Airport (SFO) 1 hr 17 min layover 1:15 PM San Francisco International Airport (SFO) 8:20 PM+1 Hong Kong International Airport (HKG) Mon, Nov 22 10:30 PM Hong Kong International Airport (HKG) Travel time: 12 hr 20 min 6:50 PM San Francisco International Airport (SFO) 1 hr 50 min layover 8:40 PMSan Francisco International Airport (SFO) 10:39 PM (SEA) $656 London, United Kingdom Virgin Atlantic Mon, Nov 8 3:40 PM (SEA) Travel time: 9 hr 20 min 9:00 AM+1Heathrow Airport (LHR) Mon, Nov 22 11:35 AM Heathrow Airport (LHR) Travel time: 9 hr 45 min 1:20 PM (SEA) $901 Paris, France AirFrance Mon, Nov 8 4:30 PM (SEA) Travel time: 9 hr 45 min 11:15 AM+1 Paris Charles de Gaulle Airport (CDG) Mon, Nov 22 1:15 PMParis Charles de Gaulle Airport (CDG) Travel time: 10 hr 15 min 2:30 PM (SEA) $884 1. Use the same dates of travel, the same destinations, and the same search engine you did in Week 1. Determine how the fares have changed. 2. Use a spreadsheet and a graphing tool of your choice (Excel® is preferred) to illustrate the trend by city and continent. This is useful information, but the information is not knowledge until analyzed. 3. Now use your critical thinking skills to analyze your graph and find reasons the fares have changed. The readings this week discussed these reasons: · Competition with other airlines. · Some routes operate without earning enough money to justify the operating costs. · Ticket prices will drop and rise very regularly for internal reasons such as: · The route is typically used by business or leisure travelers. If the route is used frequently by business travelers, airlines might start by selling tickets at lower prices to tempt leisure travelers to fill the plane. They may then raise prices as the flight date nears because business travelers usually book at the last minute (and on their corporate credit card). · How booked up the flight is. If a flight is not getting booked, the airline might be tempted to sell more seats at lower prices to fill up the plane. Higher fares for last-minute flyers are reserved for those people who need to be on that flight, no matter the price.  · Real-time bookings and cancellations. Airlines use planning applications to adjust their prices, to respond to supply and demand in real-time. If some bookings get canceled, the software might automatically offer those seats at a meager price. · When the booking is made. For international flights, booking as far ahead as possible usually gets you the best price. For domestic flights, the sweet spot is between three and six weeks out. In some situations, tickets are cheaper when purchased in the afternoon than in the morning. · Supply and demand · Testing a fare change. Airlines might test a fare change to measure the effect on a route. · Ticket prices will drop and rise very regularly for external reasons such as: · A competing carrier goes in or out of business or leaves that market. · A competitor changes prices, and the increase or decrease is matched. · A major sporting event or conference changes location. · The currency exchange rate fluctuates. What can help you identify potential factors? Remember the resources provided in Week 3? These social media sites can be very useful. Submit the spreadsheet, graph, and analysis. Airport Operations for Large Aircraft Discuss and debate one adaptation you must consider as an airport planner if a New Large Aircraft (NLA) such as the Airbus 380 was in service at your airport. You may refer to the following http://www.tc.faa.gov/its/worldpac/techrpt/ar97-26.pdf Runway Headings and Lengths For airport planners, what is the most important aspect of airport design? When surveyed, most individuals concluded that the runway, its configuration, and length were most important. Planning and designing an airport requires an understanding of the aircraft that will use the airport. You will have the opportunity in Week 8 for your term project to create a runway specifically for a large jet. In this activity, you will learn how to determine runway headings and lengths. Throughout your readings, runway designation, classification, and wind coverage are explored. A planner must provide adequate runway coverage for crosswinds. The FAA recommends the number and orientation of runways should be fashioned in such a manner that the crosswind coverage is at least 95\%. Specifically, if the prevailing winds were from the East (090 degrees), your #1 design for a runway would be 09/27. If you cannot build this runway for some reason, you will have to build an airport with at least two runways. In addition, each aircraft has different characteristics. A planner must know which aircraft will be using the airfield. Once orientation is determined, the length of the runway is critical. This is based on an Aircraft Classification Reference Code and an Airport Reference Code. These codes, along with Table 9.3 a, b, and c will help you determine runway length. In addition, each aircraft has different characteristics. A planner must know which aircraft will be using the airfield. Once orientation is determined, the length of the runway is critical. This is based on an Aircraft Classification Reference Code and an Airport Reference Code. These codes, along with Table 9.3 a, b, and c will help you determine runway length. Consider the relationship that the following have on runway development: · temperature · surface wind · runway gradient · altitude · the condition of the runway surface Consider the advantages and disadvantages of: · parallel · intersecting · open/closed V runways Using your chapter readings and the Internet, prepare a minimum of a 2-page research paper (with accompanying diagrams and not including the reference page) exploring the criteria used to determine runway orientation and length. Explain aircraft reference codes, airport reference codes, single, parallel, open V, and intersecting runways. Lastly, what criteria should a planner use in determining runway length? Include in your report a diagram of the four types of runway mentioned above with correct runway orientation for each runway presented.  Cite all sources in the current APA format. Your paper will automatically be evaluated through Turnitin when you submit your assignment so ensure that you have not plagiarized any material! FINANCE  Interest Rates and Bond Valuation - The Bond Market Now that you are taking Corporate Finance, your relatives are asking you for financial advice on their investments. They are curious about bonds.  Aunt Mary (age 65) is interested in the U.S. Treasury market. She thinks that Treasury Inflation Protected Securities (TIPS) may be good for her. What would you tell her? Be specific. Your mom and dad will be retiring in five (5) years or so and feel that they shouldn’t be totally invested in the stock market. They ask you for advice on how to start transitioning to less risky investments, such as Treasurys and blue-chip corporate bonds. What would you tell them? Are there any funds out there you can suggest for them to consider? Be specific. Long Term Financing and Leasing - Buying versus Leasing We cover long term finance and leasing this week. Most, if not all, of you, either own or lease a vehicle. Please answer the following questions as completely as possible. · If you own, did you consider leasing? If yes, why did you choose a purchase over a lease? · If you lease, why did you go with a lease? List the specific advantages you feel you gained by leasing. · If you were to advise a classmate on buying vs leasing, what would be the key factors that you would like them to consider?
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Indigenous Australian Entrepreneurs Exami Calculus (people influence of  others) processes that you perceived occurs in this specific Institution Select one of the forms of stratification highlighted (focus on inter the intersectionalities  of these three) to reflect and analyze the potential ways these ( American history Pharmacology Ancient history . Also Numerical analysis Environmental science Electrical Engineering Precalculus Physiology Civil Engineering Electronic Engineering ness Horizons Algebra Geology Physical chemistry nt When considering both O lassrooms Civil Probability ions Identify a specific consumer product that you or your family have used for quite some time. This might be a branded smartphone (if you have used several versions over the years) or the court to consider in its deliberations. Locard’s exchange principle argues that during the commission of a crime Chemical Engineering Ecology aragraphs (meaning 25 sentences or more). Your assignment may be more than 5 paragraphs but not less. INSTRUCTIONS:  To access the FNU Online Library for journals and articles you can go the FNU library link here:  https://www.fnu.edu/library/ In order to n that draws upon the theoretical reading to explain and contextualize the design choices. Be sure to directly quote or paraphrase the reading ce to the vaccine. Your campaign must educate and inform the audience on the benefits but also create for safe and open dialogue. A key metric of your campaign will be the direct increase in numbers.  Key outcomes: The approach that you take must be clear Mechanical Engineering Organic chemistry Geometry nment Topic You will need to pick one topic for your project (5 pts) Literature search You will need to perform a literature search for your topic Geophysics you been involved with a company doing a redesign of business processes Communication on Customer Relations. Discuss how two-way communication on social media channels impacts businesses both positively and negatively. Provide any personal examples from your experience od pressure and hypertension via a community-wide intervention that targets the problem across the lifespan (i.e. includes all ages). Develop a community-wide intervention to reduce elevated blood pressure and hypertension in the State of Alabama that in in body of the report Conclusions References (8 References Minimum) *** Words count = 2000 words. *** In-Text Citations and References using Harvard style. *** In Task section I’ve chose (Economic issues in overseas contracting)" Electromagnetism w or quality improvement; it was just all part of good nursing care.  The goal for quality improvement is to monitor patient outcomes using statistics for comparison to standards of care for different diseases e a 1 to 2 slide Microsoft PowerPoint presentation on the different models of case management.  Include speaker notes... .....Describe three different models of case management. visual representations of information. They can include numbers SSAY ame workbook for all 3 milestones. You do not need to download a new copy for Milestones 2 or 3. When you submit Milestone 3 pages): Provide a description of an existing intervention in Canada making the appropriate buying decisions in an ethical and professional manner. Topic: Purchasing and Technology You read about blockchain ledger technology. Now do some additional research out on the Internet and share your URL with the rest of the class be aware of which features their competitors are opting to include so the product development teams can design similar or enhanced features to attract more of the market. The more unique low (The Top Health Industry Trends to Watch in 2015) to assist you with this discussion.         https://youtu.be/fRym_jyuBc0 Next year the $2.8 trillion U.S. healthcare industry will   finally begin to look and feel more like the rest of the business wo evidence-based primary care curriculum. Throughout your nurse practitioner program Vignette Understanding Gender Fluidity Providing Inclusive Quality Care Affirming Clinical Encounters Conclusion References Nurse Practitioner Knowledge Mechanics and word limit is unit as a guide only. The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-su Trigonometry Article writing Other 5. June 29 After the components sending to the manufacturing house 1. In 1972 the Furman v. Georgia case resulted in a decision that would put action into motion. Furman was originally sentenced to death because of a murder he committed in Georgia but the court debated whether or not this was a violation of his 8th amend One of the first conflicts that would need to be investigated would be whether the human service professional followed the responsibility to client ethical standard.  While developing a relationship with client it is important to clarify that if danger or Ethical behavior is a critical topic in the workplace because the impact of it can make or break a business No matter which type of health care organization With a direct sale During the pandemic Computers are being used to monitor the spread of outbreaks in different areas of the world and with this record 3. Furman v. Georgia is a U.S Supreme Court case that resolves around the Eighth Amendments ban on cruel and unsual punishment in death penalty cases. The Furman v. Georgia case was based on Furman being convicted of murder in Georgia. Furman was caught i One major ethical conflict that may arise in my investigation is the Responsibility to Client in both Standard 3 and Standard 4 of the Ethical Standards for Human Service Professionals (2015).  Making sure we do not disclose information without consent ev 4. Identify two examples of real world problems that you have observed in your personal Summary & Evaluation: Reference & 188. Academic Search Ultimate Ethics We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities *DDB is used for the first three years For example The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case 4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972) With covid coming into place In my opinion with Not necessarily all home buyers are the same! When you choose to work with we buy ugly houses Baltimore & nationwide USA The ability to view ourselves from an unbiased perspective allows us to critically assess our personal strengths and weaknesses. This is an important step in the process of finding the right resources for our personal learning style. Ego and pride can be · By Day 1 of this week While you must form your answers to the questions below from our assigned reading material CliftonLarsonAllen LLP (2013) 5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda Urien The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle From a similar but larger point of view 4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open When seeking to identify a patient’s health condition After viewing the you tube videos on prayer Your paper must be at least two pages in length (not counting the title and reference pages) The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough Data collection Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an I would start off with Linda on repeating her options for the child and going over what she is feeling with each option.  I would want to find out what she is afraid of.  I would avoid asking her any “why” questions because I want her to be in the here an Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych Identify the type of research used in a chosen study Compose a 1 Optics effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte I think knowing more about you will allow you to be able to choose the right resources Be 4 pages in length soft MB-920 dumps review and documentation and high-quality listing pdf MB-920 braindumps also recommended and approved by Microsoft experts. The practical test g One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research Elaborate on any potential confounds or ethical concerns while participating in the psychological study 20.0\% Elaboration on any potential confounds or ethical concerns while participating in the psychological study is missing. Elaboration on any potenti 3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family A Health in All Policies approach Note: The requirements outlined below correspond to the grading criteria in the scoring guide. At a minimum Chen Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change Read Reflections on Cultural Humility Read A Basic Guide to ABCD Community Organizing Use the bolded black section and sub-section titles below to organize your paper. For each section Losinski forwarded the article on a priority basis to Mary Scott Losinksi wanted details on use of the ED at CGH. He asked the administrative resident