Logan Airport Case Study
Delays at Logan Airport 1. A) Delay in minutes per plane: Λ = 50 | Λ = 55 | Λ = 59 | 6.54 minutes | 12.52 minutes | 60.5 minutes |
Delay costs:
Turboprop:
Λ = 50 6.54min*($352 + 65%load*15passengers*$30.9)/60 = $71.20
Λ = 55 12.52min*($352 + 65%load*15passengers*$30.9)/60 = $136.31
Λ = 59 60.5min*($352 + 65%load*15passengers*$30.9)/60 = $658.72
Regional jet:
Λ = 50 6.54min*($672 + 65%*50passengers*$30.9)/60 = $182.71
Λ = 55 12.52min*($672 + 65%*50passengers*$30.9)/60 = $349.78
Λ = 59 60.5min*(672 + 65%*50passengers*$30.9)/60 = $1690.22
Conventional jet:
Λ = 50 6.54min*($1590 + 65%*150passengers*$30.9)/60 = $501.70
Λ = 55 12.52min*($1590 + 65%*150passengers*$30.9)/60 = $960.44
Λ = 59 60.5min*($1590 + 65%*150passengers*$30.9)/60 = $4641.11
B) According to the FAA definition a flight is delayed only if it arrives more than 15 minutes past schedule. Therefore, there are delay costs only in the case of an arrival rate of 59:
Delay time = 60.5 – 15 = 45.5 minutes
Turboprop 45.5min*($352 + 65%load*15passengers*$30.9)/60 = $495.4
Regional jet 45.5min*($672 + 65%*50passengers*$30.9)/60 = $1271.16
Conventional jet 45.5min*($1590 + 65%*150passengers*$30.9)/60 = $3490.42
C) The FAA should have a more relaxed definition of delay.
D) Peak-period pricing does prove to be a potential solution to reduce the costs of over scheduling. As seen in our calculations, increasing the arrival rate per hour dramatically increases the costs incurred by the airport. Shown above, if peak-period pricing can even reduce the arrival rate from 55 to 50 during peak hours, hundreds of dollars can be saved as a result of reduced delays 2. A) Revenue per plane:
Turboprop: 15passengers*65%load*$230 = $2242.50
Regional jet: 50passengers*65%load*$154 = $5005
Conventional jet: 150passengers*65%load*$402 = $39195 | $150 landing fee | $200 landing fee | $250 landing fee | Turboprop | 6.69% of revenue | 8.92% of revenue | 11.15% of revenue |
Delay costs:
Turboprop:
Λ = 50 6.54min*($352 + 65%load*15passengers*$30.9)/60 = $71.20
Λ = 55 12.52min*($352 + 65%load*15passengers*$30.9)/60 = $136.31
Λ = 59 60.5min*($352 + 65%load*15passengers*$30.9)/60 = $658.72
Regional jet:
Λ = 50 6.54min*($672 + 65%*50passengers*$30.9)/60 = $182.71
Λ = 55 12.52min*($672 + 65%*50passengers*$30.9)/60 = $349.78
Λ = 59 60.5min*(672 + 65%*50passengers*$30.9)/60 = $1690.22
Conventional jet:
Λ = 50 6.54min*($1590 + 65%*150passengers*$30.9)/60 = $501.70
Λ = 55 12.52min*($1590 + 65%*150passengers*$30.9)/60 = $960.44
Λ = 59 60.5min*($1590 + 65%*150passengers*$30.9)/60 = $4641.11
B) According to the FAA definition a flight is delayed only if it arrives more than 15 minutes past schedule. Therefore, there are delay costs only in the case of an arrival rate of 59:
Delay time = 60.5 – 15 = 45.5 minutes
Turboprop 45.5min*($352 + 65%load*15passengers*$30.9)/60 = $495.4
Regional jet 45.5min*($672 + 65%*50passengers*$30.9)/60 = $1271.16
Conventional jet 45.5min*($1590 + 65%*150passengers*$30.9)/60 = $3490.42
C) The FAA should have a more relaxed definition of delay.
D) Peak-period pricing does prove to be a potential solution to reduce the costs of over scheduling. As seen in our calculations, increasing the arrival rate per hour dramatically increases the costs incurred by the airport. Shown above, if peak-period pricing can even reduce the arrival rate from 55 to 50 during peak hours, hundreds of dollars can be saved as a result of reduced delays 2. A) Revenue per plane:
Turboprop: 15passengers*65%load*$230 = $2242.50
Regional jet: 50passengers*65%load*$154 = $5005
Conventional jet: 150passengers*65%load*$402 = $39195 | $150 landing fee | $200 landing fee | $250 landing fee | Turboprop | 6.69% of revenue | 8.92% of revenue | 11.15% of revenue |