Disrupting Complex Systems with Emerging Technologies: A Study on United States Airport Operations

The number of United States domestic commercial flight passengers are growing every year, which means the number of people checking-in, dropping off their bags, and going through TSA within airports is equally growing. With the increasing number of passengers and aging airports, there are several areas of pain points within airports where passengers hit a bottleneck due to the current systems that airports have in place. There are three main areas that we are going to reference. First the check-in process, where customers have to get their tickets, input identification information, and check-in for their flight. Second, baggage-drop off, where customers get their baggage weighed and tagged. Lastly, is Transport Security Administration (TSA). This is where consumers get their carry-on bags scanned as well as their person. In each of these areas, there are some levels of inconvenience imposed on the customer by the current system. With technological advancements being used in other industries, the goal of this thesis is to look at what existing technologies can be modified and used within airport operations to reduce the long lines that customers face every time they travel

Development Challenges of Secondary and Small Airports in California, Research Report 11-21

This study investigates the development of secondary and smaller airports in California. Low-Cost Carrier (LCC) business is growing at these airports because they offer reduced operating costs, and they have adequate capacity to help LCCs avoid battling with incumbent airlines at the large hubs for limited resources, such as gates. However, increased LCC aircraft operations at the secondary airports have led to significant noise impacts on the surrounding communities and this has been a challenge for the secondary airport operators. They have imposed operational curfews to limit the noise impacts, but this approach constrains the resident airlines that want to increase their traffic. As a result, some LCCs have begun to initiate flights out of the large hubs. Statistics from this study show that the LCCs have replaced the legacy airlines as the dominant air provider in the state. With their growing dominance, the LCCs will become more attractive to the large hub airports, and the secondary airports will face increased competition in retaining them. To retain those LCCs, the secondary airports must better understand how LCCs make investment decisions related to airport development. At the same time, they must better educate the LCCs about their airport needs

Airports at Risk: The Impact of Information Sources on Security Decisions

Security decisions in high risk organizations such as airports involve obtaining ongoing and frequent information about potential threats. Utilizing questionnaire survey data from a sample of airport employees in European Airports across the continent, we analyzed how both formal and informal sources of security information affect employee's decisions to comply with the security rules and directives. This led us to trace information network flows to assess its impact on the degree employees making security decisions comply or deviate with the prescribed security rules. The results of the multivariate analysis showed that security information obtained through formal and informal networks differentially determine if employee will comply or not with the rules. Information sources emanating from the informal network tends to encourage employees to be more flexible in their security decisions while formal sources lead to be more rigid with complying with rules and protocols. These results suggest that alongside the formal administrative structure of airports, there exists a diverse and pervasiveness set of informal communications networks that are a potent factor in determining airport security levels

Economic Importance of Air Transport and Airport Activities in Belgium. NBB Working Papers. No. 158, 10 March 2009

This study is a publication issued by the Microeconomic Analysis service of the National Bank of Belgium, in partnership with the Department of Transport and Regional Economics of the University of Antwerp (UA). It is the outcome of a first research project on the Belgian airport and air transport sector. The former relates to the economic activities within the airports of Antwerp, Brussels, Charleroi, Kortrijk, Liège and Ostend, while the latter concentrates on the air transport business as a whole. In the past few years, the logistics business has come to play a significant part in income creation in our country, whose economy is to a large extent driven by services. Air transport and airports in particular are driving forces in this context, not only in terms of business generated within the air transport cluster, but also in terms of airports' attractiveness. On world scale an overall growth of cargo and passengers could be observed in the last ten years. However, the air transport sector has undergone a major crisis during the 2001-2003 period, when passenger traffic numbers first fell sharply and then stagnated. Only after 2003 this activity has picked up again and this until the third quarter of 2008. Cargo traffic on its part recovered already in 2002. In Belgium, a similar evolution can be observed. It should be stressed however that between 1997 and 2007 cargo volumes grew much faster than passenger traffic did. The rankings of European airports underline the importance of cargo traffic for Belgium: In 2006 Brussels, Liège and Ostend-Bruges respectively occupy ranks 6, 8, and 20 in the European cargo airport top 20, while for passenger airports, Brussels can only be found at the end of the top 20. In this study, a sectoral approach has been followed by focusing, for every airport, on two major economic activity components: the air transport cluster on the one hand and other airport-related sectors on the other hand. In that respect, annual accounts data from the Central Balance Sheet Office were used for the calculation of direct effects, the social balance sheet analysis and the study of financial ratios. Due to an inevitable time lag in the data provision, the analysis was limited to 2006. Like in other sectoral studies published by the Bank, indirect effects have also been estimated on the basis of data from the National Accounts Institute. In 2006, the total activities under review –direct and indirect, inside and outside airports- accounted for roughly 6.2 billion euro, i.e. 2 p.c. of Belgium's GDP and domestic employment. Considering the direct effects only, these percentages both amounted to 0.8 p.c. The three major airports, i.e. Brussels, Charleroi and Liège, alone account for 95.2 p.c. of the direct value added generated by the six airports under review. They represent 0.5 p.c. of Belgian GDP and, taking account of the indirect effects, 1.1 p.c. of the national income. Furthermore, it has to be pointed out that most Belgian airports are specialised. While the airports of Liège and Ostend focus on air cargo, Charleroi Airport deals mostly with low-cost passenger transport. Moreover, the smaller regional airports like Antwerp and Kortrijk focus on business travel

Aviation security and terrorism: a review of the economic issues

Following the terrorist attacks on September 11, 2001, the passage of the Aviation and Transportation Act mandated a substantial increase in resources devoted to aviation security. This paper summarizes the specific changes stemming from this legislation. In addition, the paper examines the economic issues underlying the regulation and provision of aviation security. The fact that security at one airport can affect the well being of those at other airports and elsewhere, an example of a network externality (spillover), provides an economic justification for governmental involvement in aviation security. A fundamental question is whether the federal role should be restricted to setting and monitoring security standards or whether the role should also include the financing and implementation of security. A controversial change is that the federal government has assumed responsibility from the airlines and airports for the actual provision of aviation security. Proponents of this change argue that, relative to private provision, public provision reduces the incentives to reduce quality through cost reductions. On the other hand, a public agency might not provide security services efficiently because it can operate in a more-or-less monopolistic way. Furthermore, a public agency might provide an excessive amount of security and incur unnecessary expenses because it is likely to be judged on its security record and not on all the attributes encompassed by air transportation services for consumers. Thus, economic theory does not provide a clear answer to what is likely to be a continuing source of controversy - the appropriate scope of governmental involvement in aviation security.Economic conditions ; War - Economic aspects

Environmentally sustainable practices at UK airports

In response to growing concerns about rising energy bills, long-term energy security and the environmental impacts of greenhouse gas emissions, airport operators worldwide are increasingly implementing new sustainable practices to help reduce costs, increase efficiency and reduce their environmental impacts. These initiatives include the installation of on-site wind turbines, biomass plants, and ‘smart' heating and lighting systems as well as other ‘green' initiatives including rainwater harvesting initiatives, improved recycling facilities and financial incentives to encourage staff to travel to work by modes other than the private car. Drawing on specific examples, this paper examines the ways in which UK airports have responded to the challenge of reducing the environmental impacts of operations for which they are directly responsible by implementing green and sustainable energy and working practices. The paper concludes by discussing the importance of sustainable airport practices in light of future growth in key emerging aviation markets

Collaborative Funding to Facilitate Airport Ground Access, Research Report 11-27

This report presents the findings and conclusions from a research study that has examined the challenges of funding airport ground access projects and the role of collaborative funding strategies between the different agencies that typically become involved in such projects. The report reviews the recent literature on funding airport ground access projects, as well as funding transportation projects more generally. This is followed by a detailed review of current federal transportation funding programs relevant to airport ground access projects, as well as a discussion of state and local funding programs and potential opportunities for private-sector funding. A major component of the research described in the report consists of detailed case studies of seven selected airport ground access projects, including a major intermodal center, two automated people-mover projects, two airport access highway projects, and two airport rail links. These case studies examine the history of each project, the costs involved, and the funding programs and mechanisms used to finance the projects. Based on the literature review, the review of current funding programs, and the case study findings, the report identifies potential funding strategies for intermodal airport ground access projects, requirements for effective implementation of these strategies, and a recommended approach to facilitate successful project development and implementation. The report also presents recommended changes to transportation funding program rules and regulations that could facilitate and simplify development of intermodal solutions to future airport ground access needs

Aviation security and terrorism: a review of the economic issues

Following the terrorist attacks on September 11, 2001, the passage of the Aviation and Transportation Security Act mandated a substantial increase in resources devoted to aviation security. This paper summarizes the specific changes stemming from this legislation. In addition, the paper examines the economic issues underlying the regulation and provision of aviation security. The fact that security at one airport can affect the well being of those at other airports and elsewhere, an example of a network externality (spillover), provides an economic justification for governmental involvement in aviation security. A fundamental question is whether the federal role should be restricted to setting and monitoring security standards or whether the role should also include the financing and implementation of security. A controversial change is that the federal government has assumed responsibility from the airlines and airports for the actual provision of aviation security. Proponents of this change argue that, relative to private provision, public provision reduces the incentives to reduce quality through cost reductions. On the other hand, a public agency might not provide security services efficiently because it can operate in a more-or-less monopolistic way. Furthermore, a public agency might provide an excessive amount of security and incur unnecessary expenses because it is likely to be judged on its security record and not on all the attributes encompassed by air transportation services for consumers. Thus, economic theory does not provide a clear answer to what is likely to be a continuing source of controversy - the appropriate scope of governmental involvement in aviation security.Economic conditions ; War - Economic aspects

Regulating privatized infrastructures and airport services

For a World Bank Institute course on transport privatization, the authors cover basic issues associated with the regulation of privatized airport infrastructure and services: 1) Economic characteristics of airport. Three types of activities are carried out in airports: essential operational services (aeronautical and non-aeronautical), handling services (aeronautical and non-aeronautical), and commercial activities. Demand for basic airport services is directly influenced by trip purpose. The two types of airline customers (business and leisure travelers) need different levels of flexibility and tend to travel at different times. Analyzing airport capacity (practical and saturation) under peak demand is essential to airport success. Among other important issues: runway cost, level and volume of service, pollution, congestion, and air traffic control. 2) Recent trends in the airport industry. The movement toward privatization may involve public ownership and private operation, including joint ventures; partial or majority divestiture; management contracts; and BOT (build-operate-transfer) schemes and variants, including BOOT (build-own-operate-transfer) schemes and LDO (lease-develop-operate) schemes. Or it may involve private ownership and operation. 3) Price regulation. Topics covered include traditional pricing policies'price regulation through an RPI-X formula; charges for congestion, noise, and other externalities; investment plans; and design of the regulatory system. 4) Regulation of quality in the industry. Topics covered: regulation of services to passengers (as measured by targets for check-in queues, immigration queues, baggage reclaim queues, concourse crowding, shopping, parking, and so on); fault repair times; average levels of passenger boarding and disembarkation and baggage delivery; safety; and investment obligation. 5) Performance indicators in the industry. Topics covered: strategic indicators and other financial indicators (including revenues), as well as indicators of cost, productivity, and quality of service.Transport and Trade Logistics,Public Sector Economics&Finance,Banks&Banking Reform,Environmental Economics&Policies,Decentralization,Roads&Highways,Airports and Air Services,Public Sector Economics&Finance,Banks&Banking Reform,Transport and Trade Logistics