Mitigating airport congestion : market mechanisms and airline response models

Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2009.This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.Includes bibliographical references (leaves 157-165).Efficient allocation of scarce resources in networks is an important problem worldwide. In this thesis, we focus on resource allocation problems in a network of congested airports. The increasing demand for access to the world's major commercial airports combined with the limited operational capacity at many of these airports have led to growing air traffic congestion resulting in several billion dollars of delay cost every year. In this thesis, we study two demand-management techniques -- strategic and operational approaches -- to mitigate airport congestion. As a strategic initiative, auctions have been proposed to allocate runway slot capacity. We focus on two elements in the design of such slot auctions -- airline valuations and activity rules. An aspect of airport slot market environments, which we argue must be considered in auction design, is the fact that the participating airlines are budget-constrained. -- The problem of finding the best bundle of slots on which to bid in an iterative combinatorial auction, also called the preference elicitation problem, is a particularly hard problem, even more in the case of airlines in a slot auction. We propose a valuation model, called the Aggregated Integrated Airline Scheduling and Fleet Assignment Model, to help airlines understand the true value of the different bundles of slots in the auction. This model is efficient and was found to be robust to data uncertainty in our experimental simulations.(cont.) -- Activity rules are checks made by the auctioneer at the end of every round to suppress strategic behavior by bidders and to promote consistent, continual preference elicitation. These rules find applications in several real world scenarios including slot auctions. We show that the commonly used activity rules are not applicable for slot auctions as they prevent straightforward behavior by budget-constrained bidders. We propose the notion of a strong activity rule which characterizes straightforward bidding strategies. We then show how a strong activity rule in the context of budget-constrained bidders (and quasilinear bidders) can be expressed as a linear feasibility problem. This work on activity rules also applies to more general iterative combinatorial auctions.We also study operational (real-time) demand-management initiatives that are used when there are sudden drops in capacity at airports due to various uncertainties, such as bad-weather. We propose a system design that integrates the capacity allocation, airline recovery and inter-airline slot exchange procedures, and suggest metrics to evaluate the different approaches to fair allocations.by Pavithra Harsha.Ph.D

Aircraft cost modelling, integrated in a multidisciplinary design context

Most of the current cost models focus on a particular manufacturing process or a specific maintenance aspect, therefore not providing the whole picture. The main challenge in modelling the manufacturing cost, associated to a new aircraft at the initial design stage, is to examine all the cost features and the way to link them into the decision making process. It is important to understand the cost related to different competing designs, and this can be tackled by including cost estimation in the design process. Estimating the cost at the early design stage is paramount to reduce the life cycle cost of the aircraft. This paper presents the development of a new methodology for the generation of a cost estimation approach for preliminary aircraft design in a multidisciplinary environment. The framework is able to capture the design attributes that drive the cost allowing a designer to assess cost changes with respect to different design configurations. The cost model is built in Excel using a Visual Basic interface and it is integrated within Model Centre platform, where it can be treated as a component of a computational design process. The paper concludes by presenting the results from a real wing trade-off study that includes all the components of a complete design system

Slot-Based Approaches to Airport Congestion Management

This paper analyzes slot-based approaches to management of airport congestion, using a model where airlines are asymmetric and internalize airport congestion. Under these circumstances, optimal congestion tolls differ across carriers, and since a slot-sale regime (with its uniform slot price) cannot duplicate this pattern, the equilibrium it generates is inefficient. Flight volumes tend to be too low for large carriers and too high for small carriers. Under a slot-trading regime or a slot auction, however, the existence of a fixed number of slots causes carriers to treat total flight volume (and thus congestion) as fixed, and this difference can lead to an efficient outcome.

En route speed optimization for continuous descent arrival

Continuous Descent Arrival (CDA) procedures have been shown to minimize the thrust required during landing, thereby reducing noise, emissions, and fuel usage for commercial aircraft. Thus, implementation of CDA at Atlanta's Hartsfield-Jackson International Airport, the world's busiest airport, would result in significant reductions in environmental impact and airline operating costs. The Air Transportation Laboratory at Georgia Tech, Delta Air Lines, and the local FAA facilities (Atlanta Center and Atlanta TRACON) collaborated to design CDA procedures for early morning arrivals from the west coast. Using the Tool for Analysis of Separation and Throughput (TASAT), we analyzed the performance of various aircraft types over a wide range of weights and wind conditions to determine the optimum descent profile parameters and to find the required spacing between aircraft types at a fixed metering point to implement the procedure. However, to see the full benefits of CDA, these spacing targets must be adhered, lest there will be a loss in capacity or negation of the noise, emissions, and fuel savings benefits. Thus a method was developed to determine adjustments to cruise speeds while aircraft are still en route, to achieve these spacing targets and to optimize fleet wide fuel burn increase. The tool in development, En route Speed Change Optimization Relay Tool (ESCORT), has been shown to solve the speed change problem quickly, incorporating aircraft fuel burn information and dividing the speed changes fairly across multiple airlines. The details of this tool will be explained in this thesis defense. Flight tests were conducted in April-May of 2007, where it was observed that the spacing targets developed by TASAT were accurate but that delivery of these aircraft to the metering point with the desired spacing targets was very challenging without automation. Thus, further flight tests will be conducted in 2008 using the en route spacing tool described above to validate the improvement it provides in terms of accurately delivering aircraft to the metering point.M.S.Committee Chair: Clarke, John-Paul; Committee Member: Barnes, Earl; Committee Member: Pritchett, Am

Development of a process driven approach to improving supply chain performance within the airline service industry: executive summary

This programme of research investigated the development of a process driven approach to improving supply chain performance within the airline service sector. Work was undertaken within the Engineering division of an established UK scheduled airline, and specifically within the maintenance, repair and overhaul sector (MRO). The underlying objective of this research was to establish the relevance of supply chain management as a source of competitive advantage to the airline service sector. A detailed review of the literature revealed that best practice originated predominately from the Japanese automotive sector, notably a manufacturing based industry. A review of the characteristic differences between these two industry sectors was undertaken to identify the opportunity for cross-sectoral transfer of knowledge. This was complemented by a thorough benchmarking analysis that identified the airline industry's position relative to best practice. This confirmed the relative immaturity of supply chain management within the airline service sector, which was representative of progress achieved by the automotive sector in the early 1980's. The key aspects of best practice were then structured into a proposed process for improving supply chain performance. This process consisted of specific strategies with their corresponding tools and techniques for implementation. A number of case study implementations were then used to further validate, test and develop this generic process within a real airline operational environment. Significant improvements in both operational and financial performance were achieved through adopting this approach. A 40 % reduction in chemical sourcing costs was achieved, representing a £990,000 saving over three years for the case study company. A further 12.5 % reduction in landing gear overhaul costs was achieved (approximately £300,000), whilst at the same time improving the operational performance of this supply chain by 60 %. This research concludes by recommending a generic process for improving supply chain performance. The benefits achieved through implementing this process further confirm the relevance of supply chain management to the airline service sector. Finally, this paper proposes a deterministic tool to assist practitioners in the selection of the most appropriate supply chain strategy for a given situation. Whilst this tool requires further validation, the possibilities for it's application extend far beyond those of the airline service sector. As a result this work has significantly contributed to knowledge in the field, representing considerable innovation

An Agent Based Modelling and Simulation Framework to Support Strategic Cargo Airlift Evaluation

When there is a need to move cargo across the world in the fastest possible manner, airlift is the prime solution. Due to the potential extreme requirements of airlift, aircraft have to be capable of performing in a myriad of operational environments. To support future aircraft design loops, this work proposes a framework which couples aircraft design and operational effectiveness in an agent-based simulation, allowing a more direct evaluation of design choices. Aircraft are modelled with inputs akin to typical design tool outputs, and airlift operational objectives and events are parameterized to allow for user customization and mission tailoring. To deal with stochastic and unexpected events that occur within airlifts, such as aircraft servicing, cargo demand reformulation and airbase access restriction, the aircraft and cargo are modelled as agents and managed by a dispatcher. Aircraft bid for cargo with flights which are configured by the dispatcher, allowing cargo to choose its flight path according to the airlift objective. Through analyzing a theoretical disaster relief mission, the impact of disruptive events on airlift time, cost and cargo throughput is shown to be significant, motivating their inclusion in future analysis. An exploration of aircraft design and airlift objectives is also analyzed, which highlighted the variance in airlift performance due to changes in aircraft payload-range and operational logics. The results demonstrate the framework's ability to capture the varying complexities of the airlift system, exemplifying its utility in future airlift and aircraft design optimization and resilience testing

Aeronautical engineering, a continuing bibliography with indexes

This bibliography lists 419 reports, articles and other documents introduced into the NASA scientific and technical information system in March 1985

Flight deck automation: Promises and realities

Issues of flight deck automation are multifaceted and complex. The rapid introduction of advanced computer-based technology onto the flight deck of transport category aircraft has had considerable impact both on aircraft operations and on the flight crew. As part of NASA's responsibility to facilitate an active exchange of ideas and information among members of the aviation community, a NASA/FAA/Industry workshop devoted to flight deck automation, organized by the Aerospace Human Factors Research Division of NASA Ames Research Center. Participants were invited from industry and from government organizations responsible for design, certification, operation, and accident investigation of transport category, automated aircraft. The goal of the workshop was to clarify the implications of automation, both positive and negative. Workshop panels and working groups identified issues regarding the design, training, and procedural aspects of flight deck automation, as well as the crew's ability to interact and perform effectively with the new technology. The proceedings include the invited papers and the panel and working group reports, as well as the summary and conclusions of the conference

Airport development in Sub-Saharan Africa: opportunities for public private partnerships

Report submitted in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment Faculty of Commerce, Law and Management Wits Business School University of the Witwatersrand Johannesburg, South AfricaThe development of transportation infrastructure, including airports, plays a vital role in economic growth in emerging markets. However, government budget allocations for this purpose are often insufficient to realise the full benefits. Project finance and Public Private Partnerships (PPPs) in particular, have been used to enable private sector participation in the financing of airport development. Airports PPPs have successfully been implemented worldwide, including, to a lesser extent, in emerging markets and Sub-Saharan Africa (SSA). There is a lack of literature on the benefits, risks, challenges and opportunities associated with airport PPPs in SSA, which this research aims to address. Case studies of recent airport PPPs in Brazil and India provide an outline of the emerging market context and insight into factors that affected these airport PPPs. In-depth interviews with two representatives of governments in SSA provide a rich view on the perceived benefits, risks, challenges and opportunities associated with airport PPPs in Africa. This research has found that airport PPPs can contribute to airport developments in SSA by enabling the private funding of airport upgrades and expansions. However, governments have an important role to play in providing an enabling environment for private investors by improving investability and implementing clear and practical PPP legislation, aviation policies and economic regulation of airport services. The limited institutional capacity and domain expertise of SSA governments is perceived as a challenge to the implementation of airport PPPs in the region. The low level of air traffic and small number of airports that handle more than one million passengers per annum further limit the opportunities for airport PPPs in SSA, although strong GDP growth provides an encouraging sign. Successful airport PPPs require the participation of private consortia with expertise in airport operations, construction and infrastructure concessions. Financing of airport PPPs is done preferably from domestic sources and development finance can play an important role. There are risks associated with the foreign ownership of key national infrastructure and a reliance on private sector to provide public infrastructure. Lighter forms of PPPs that limit the private sector risk exposure may be more suitable to the low-traffic and high-risk environment in SSA.MT201

Power and Narrative in Project Management: Lessons Learned in Recognising the Importance of Phronesis

A component part of modern project management practice is the ‘lessons learned’ activity that is designed to transfer experience and best practice from one project to another, thus improving the practice of project management. The departure point for this thesis is: If we are learning lessons from our experiences in project management, then why are we not better at managing projects? It is widely cited in most project management literature that 50–70% of all projects fail for one reason or another, a figure that has steadfastly refused to improve over many years. My contention is that the current rational approach to understanding lessons learned in project management, one entrenched in the if–then causality of first-order systems thinking where the nature of movement is a ‘corrective repetition of the past in order to realise an optimal future state’ (Stacey 2011: 301), does not reflect the actual everyday experience of organisational life. I see this as an experience of changing priorities, competing initiatives, unrealistic timescales, evaporation of resources, non-rational decisions based on power relations between actors in the organisations we find ourselves in; and every other manner of challenge that presents itself in modern large commercial organisations. I propose a move away from what I see as the current reductionist view of lessons learned, with its emphasis on objective observation, to one of involved subjective understanding. This is an understanding rooted in the particular experience of the individual acting into the social, an act that necessarily changes both the individual and the social. My contention is that a narrative approach to sense making as first-order abstractions in the activity of lessons learned within project management is what is required if we are to better learn from our experiences. This narrative approach that I have termed ‘thick simplification’ supports learning by enabling the reader of the lessons learned account to situate the ‘lesson learned’ within their own experience through treating the lessons learned as a potential future understanding .This requires a different view of what is going on between people in organisations – one that challenges the current reliance on detached process and recognises the importance of embedded phronesis, the Aristotelian virtue of practical judgement. It is an approach that necessarily ‘focuses attention directly on patterns of human relating, and asks what kind of power relations, ideology and communication they reflect’ (Stacey 2007: 266)