International airports: financing methods in Japan

Capacity shortages at international airports in Japan are the most serious impediment to liberalization and free competition in international aviation. Here, we deal with the causes of this shortage, Japanese institutional systems of airport improvement and new financing methods for international airport capacity expansion in metropolitan areas. We emphasize the effectiveness of the joint-stock corporation system as a financial device. The introduction of the joint-stock corporation is one kind of airport privatization, but its characteristics completely differ from those of privatized airports in some European countries and in New Zealand.     

Municipal solid waste management and greenhouse gas emissions at international airports: A case study of Astana International Airport

The steady expansion of the city of Astana and the increase of airport capacity is leading to an increase in municipal solid waste generation. The purpose of this study was to perform compositional analysis of the municipal solid waste produced at the Astana International Airport and evaluate different waste management scenarios in terms of greenhouse gas emissions. Recyclable and combustible fractions were found to be the major fractions (over 50%) of the total municipal solid waste generated in the Astana International Airport. Four base greenhouse gas emissions scenarios were proposed in this study, namely scenario-1 describing the current municipal solid waste management case, scenario-2 with integration of 29% recycling and 71% of municipal solid waste landfilling, scenario-3 for 100% of airport municipal solid waste being incinerated and scenario-4 for recycling 29% and the remaining waste being processed for energy recovery purposes. The proposed scenario 2 demonstrated significantly reduced net greenhouse gas emissions (t CO₂ eq/year) over the existing scenario 1, while scenarios 3 and 4 showed negative net greenhouse gas emissions. The experimental data provided and the scenarios discussed in this work are useful tools for decision makers for environmental waste management at airports.     

Strategies and pitfalls in the infrastructure development of airports: A comparison of Milan Malpensa and Berlin Brandenburg International airports

The paper analyses two airport investment projects in Europe: the completed investment at Milan Malpensa Airport and the investment at Berlin Brandenburg International. The two facilities were chosen because of similarities in their market environments. The paper examines the history of the projects, their objectives, demand forecasts, assessment methodologies and the strategies of the main carriers that use them. A comparison between expectations and outcomes for Malpensa a decade after its opening allows examination of the validity of the parameters used in the decision-making. The criteria being used to assess the investment in Berlin Brandenburg International are explored.     

Analysis of ground access modes choice King Khaled International Airport, Riyadh, Saudi Arabia

Airports are vital to the transportation system because air travel is the fastest means of transporting people and goods around the world. Airports also connect aviation systems with other modes of transportation.As a result, access modes to airports are critical to the aviation system, and studying air passenger decisions regarding mode choice is an essential part of airport management and system planning.Though there has been systematic analysis of car use to access airports, there has been less systematic attention to the use of the public transport system, especially the taxi service. The aim of this study is to identify King Khaled International Airport (KKIA) access mode characteristics and users, which has not been investigated previously concentrating on the mix between car and taxi using data collected specifically for this research.More than half (55.5%) of the travelers surveyed arrived at KKIA by private car; taxi and limousine passengers accounted for 42.2% of the sample. The Saudi Public Transit Company (SAPTCO), transported only 2.3% of the air passengers surveyed. These results are similar to findings for an airport in the United States and very different from findings for an airports in the East (e.g., Hong Kong).A binary logit model was developed to evaluate the access mode choice. It was found that income, luggage, travel access time, and nationality significantly affect mode choice.Results provide insight for improved planning of access to KKIA.     

Relaxing the perimeter and high-density rules: implications for Washington Dulles International Airport

The Perimeter and High-Density Rules have been the foundation upon which the physically limited capacity of Ronald Reagan Washington National Airport has been allocated. The perimeter rule at National Airport requires nonstop scheduled airline flights from that airport to serve destinations within a 1250-mile perimeter. The distance limit was initially introduced for a combination of reasons including environmental conservation (especially with respect to noise nuisance) and the desire to offer some protection for other airports in the Washington DC area as they built up traffic to reach a critical mass. The US Senate has recently taken actions to adjust the perimeter rule at National Airport. Any major relaxing of the rule will have implications for the other major airports in the National Capital Region; namely Washington Dulles International Airport and Baltimore–Washington International Airport. The resultant knock-on effects of this development on the wider economy of the region is examined here. The main attention of the paper is on the impact of any major change in the perimeter rule on Washington Dulles International Airport, and on the subsequent knock-on effects this would have on the region's employment level and structure.     

The economics of the Internet,the new economy and opportunities for airports

This paper provides an overview of how the new economy and the Internet have and are likely to change the conduct of business. The Internet creates value on both sides—on the demand side by allowing firms to customize to suit specific consumer needs and on the supply side by reducing costs. Our particular interest is in identifying opportunities for airports, which are almost an afterthought in the travel industry. Our survey of online trends indicates that airports are essentially local brands and the value proposition lies in complementing the local economy.     

Airline choice by passengers from Taiwan and China: A case study of outgoing passengers from Kaohsiung International Airport

Understanding what factors passengers consider when selecting an airline is critical, as airlines can utilize this information in market segmentation and marketing strategies. However, few studies have explored how passenger demographics and the nationality/type of carrier (full service or low-cost; regional or international) affect the choice factors of passengers when selecting airlines. The main objective of this study was to explore the airline choice factors considered by passengers, compare the choices of passengers with different demographics, and analyze which factors are emphasized by passengers from Taiwan and China when selecting airlines. We conducted a questionnaire survey of outgoing passengers at Kaohsiung International Airport in relation to 22 factors underlying their choice of airline. Using factor analysis, we identified the five factors: ground services, convenience, in-flight services, price, and travel availability. We then utilized cluster analysis to identify four groups, each concerned with price, comfort, convenience, and ground services, respectively. Nationality, age, income, flying frequency, and purpose of travel lead to differences in deciding which factors were considered by cross-strait passengers. Passengers of different nationalities concerned with different factors when selecting airlines. Our findings can add to the completeness of existing research as well as provide airlines with reference in developing marketing strategies for different customer groups.     

Effects of non-aeronautical activities at airports on the public transport access system: A case study of Zurich Airport

Many planning authorities and airports study measures to increase public transport use for airport ground access and egress. At the same time, an increase in real estate development at and around airports is occurring, both due to airports seeking new revenue possibilities and other developers attempting to profit from high value locations. This paper considers non-aeronautical activities at large airports, largely commercial centres and transit hubs, as land uses that have the potential to improve the situation for operating public transport services. In order to assess potential benefits and disadvantages, four research questions are considered: (1) Can the additional travel volume reach levels at which it has a significant impact? (2) To what extent do non-aeronautical activities influence the public transport access system? (3) Is the resulting demand distribution better or worse regarding peaking behaviour? (4) Is there a potential for the resulting overall demand to bring about capacity shortages?A case study is conducted at the airport of Zurich, Switzerland, which finds that non-aeronautical activities in the direct airport vicinity have led to a situation where the operation of public transport services is much more viable due to overall higher passenger numbers and a more even distribution throughout the day. It is concluded that locating non-aeronautical activities at airports can, in addition to providing commercial benefits to developers, lead to a situation where improved public transport services become feasible.     

Low-cost airlines,secondary airports,and state aid: An economic assessment of the Ryanair–Charleroi Airport agreement

This paper builds a vertical differentiation model to analyse the effects of subsidies, or lower aeronautical charges, for secondary airports on competition between low cost and full scheduled carriers. The Ryanair–Charleroi Airport agreement in Europe is used as an example and as a basis for the model. The main findings are that subsidization or lower airport charges benefit consumers and negatively affect incumbent airlines. However, they may be more affected by competition than by the subsidy. An empirical analysis provides a few insights on the influence of dominating airports in Ryanair fares. We conclude that this airline sets lower fares when flights depart from or arrive at dominated airports.     

Shopping mode choice: Physical store shopping versus e-shopping

This study aims to explore how consumers evaluate these time attributes; i.e., the value of time, when they are facing a shopping mode choice between physical store shopping and e-shopping. For this purpose, it conducts an experiment to acquire data on respondents’ stated preference choices between physical bookstore shopping and online bookstore shopping. It is finally found that the value of delivery time for a purchased book from an online bookstore to a consumer is approximately $0.53 per day, which means an online bookstore will have to lower a book’s price by $0.53 to attract a physical bookstore shopper if the delivery is delayed for one day. It is also found that in terms of monetary values, avoiding a shopping trip produces far more benefits than bearing waiting for the delivery of books for an online purchase.     

Mode choice behavior modeling of ground access to airports: A case study in Istanbul,Turkey

The increase in air transportation mode share, thereby the passenger traffic at airports has made the ground access to the airports more important in recent years. The aim of this study is to analyze the ground access mode choice to airports by using Multinomial Logit (MNL). In particular, our focus is on how transit areas of influence affect the mode choice for travelling to airports. Atatürk International Airport (IST) in Istanbul, Turkey was selected for the analyses and the investigated modes to access IST were automobile, drop-off, public transit, and taxi. The results showed that significant factors and variables included the trip distance to access IST, type of destination, trip cost to IST, automobile ownership status, employment status, travelling group size, location of the trip origin with respect to public transit influence, and time difference between the flight time and departure time to IST. It is also concluded that if the trip origin to IST was inside the influence areas of public transit, then public transit would be more likely to be chosen over other modes for accessing IST.     

The impact of low-cost carriers on catchment areas of established international airports: The case of Hanover Airport,Germany

The rise of low-cost carriers (LCCs) is challenging traditional structures in the aviation industries. This article focuses on the impact of LCCs on airports, analyzing the example of Hanover Airport, a medium-sized international airport in Germany. The analysis is based on a survey that included more than 15,000 passengers at Hanover Airport. The survey was sponsored by Hanover Airport and conducted by the Department of Economic Geography of the University of Hanover in 2003. The results show that LCCs can help airports to enlarge their catchment areas and strengthen their competitive position in national aviation markets.     

A data-driven operational model for traffic at the Dallas Fort Worth International Airport

Airports are on the front line of significant innovations, allowing the movement of more people and goods faster, cheaper, and with greater convenience. As air travel continues to grow, airports will face challenges in responding to increasing passenger vehicle traffic, which leads to lower operational efficiency, poor air quality, and security concerns. This paper evaluates methods for traffic demand forecasting combined with traffic microsimulation, which will allow airport operations staff to accurately predict traffic and congestion. Using two years of detailed data describing individual vehicle arrivals and departures, aircraft movements, and weather at Dallas-Fort Worth (DFW) International Airport, we evaluate multiple prediction methods including the Auto Regressive Integrated Moving Average (ARIMA) family of models, traditional machine learning models, and DeepAR, a modern recurrent neural network (RNN). We find that these algorithms are able to capture the diurnal trends in the surface traffic, and all do very well when predicting the next 30 minutes of demand. Longer forecast horizons are moderately effective, demonstrating the challenge of this problem and highlighting promising techniques as well as potential areas for improvement.Traffic demand is not the only factor that contributes to terminal congestion, because temporary changes to the road network, such as a lane closure, can make benign traffic demand highly congested. Combining a demand forecast with a traffic microsimulation framework provides a complete picture of traffic and its consequences. The result is an operational intelligence platform for exploring policy changes, as well as infrastructure expansion and disruption scenarios. To demonstrate the value of this approach, we present results from a case study at DFW Airport assessing the impact of a policy change for vehicle routing in high demand scenarios. This framework can assist airports like DFW as they tackle daily operational challenges, as well as explore the integration of emerging technology and expansion of their services into long term plans.     

A price forecasting model for predicting value of commercial airports: a case of three Korean airports

As the privatization of airports progresses throughout the world, the economic value of these strategic assets must be determined from a commercial perspective, rather than the economic impact perspective, which is typically used by governmental agencies to justify their construction. This paper applies financial theory of asset valuation to commercial airports. The authors have selected three airports for valuation purposes: Gimpo, Kimhae and Jeju. These airports are ranked top three in terms of annual traffic volume, among the 16 airports operated by Korea Airport Corporation (“KAC”). The authors estimate the intrinsic value of three major airports; Gimpo, Kimhae, and Jeju based on the discounted cash flow (DCF) model at $1.8 billion. The ultimate price achieved depends on the individual expectations of potential buyers, their opportunity costs and entrepreneurial abilities, as well as the ensuing negotiations. This paper, therefore, provides a benchmark for determining airport valuation in the event of privatization.     

Wayfinding in the passenger terminal of Hong Kong International Airport

One of the important features of airport passenger terminal layout is passenger orientation (wayfinding). Many people have difficulty in locating their desired destination within an airport despite the availability of information signs. This paper describes the use of a quantitative measure, or visibility index, to evaluate the ease of orientation in the departure lounge of Hong Kong International Airport. Based on the visibility index, a new set of level-of-service standards for orientation is proposed. The findings of this paper are compared with those of previous studies.     

Factors affecting airport access mode choice for elderly air passengers

This research investigates whether elderly air passengers exhibit different mode choice behavior in regard to airport ground access. Using survey data from a Taiwanese sample, our results show that elderly air passengers prefer to ask family members to drive them to the airport, while general passengers prefer to take a taxi. The results also indicate that “safety” is the most important item in the choice of access mode and “user friendly” and “convenience for storing luggage” as the next most important items for the elderly. Elderly passengers are found to be less likely to use public transport than private transport. Factors such as “possessing a car in their household”, “carrying more luggage”, “spending more time spent in the vehicle”, and “higher ticket prices for public transport” increase the propensity for the elderly to use private transport.     

Walking down the habitual lane: analyzing path dependence effects of mode choice for social trips

In the field of transportation, several studies have researched commute mode choice and its dynamics in the short and in the long term. Relatively less is known about mode choice for discretionary and more flexible activities, such as social visits. These choices are dynamic and depend on personal habits and preferences, reflected to some extent in the history of similar choices. This study adopts the theory of path dependence to take life cycle dynamics and habitual preferences into account. Using a dataset collected in the Netherlands in 2011, a multinomial logit model of mode choice was developed. Results suggest that mode choices for social activities are path dependent, yet not entirely. There is also evidence of switching towards faster and more flexible modes after a life cycle event.     

Elasticities of mode choice probabilities and market elasticities of demand: Evidence from a simultaneous mode choice/shipment-size freight transport model

This paper presents empirical estimates of market elasticities of demand and elasticities of mode choice probabilities in the intercity freight transport market. Results are derived from a mixed discrete/continuous choice model of mode and shipment size. The mode choice component of the full model was specified as a binary probit function. The two modes considered were rail and regulated common carriers (full truck load). Data was drawn from the US Commodity Transportation Survey consisting of individual shipments of manufactured goods identified at the most disaggregate level. Results obtained in this study are compared with those obtained in previous studies, and areas of similarities and dissimilarities in the magnitude as well as interpretation of the results are highlighted. The own-price and cross-price elasticities of mode choice probabilities were found to vary from 1.44 to 1.88, and from 1.54 to 1.75, respectively. The market price elasticities of demand were found to vary significantly across commodity groups and geographic territories. Among the 40 market segments considered, the truck price elasticity of demand ranged between −0.749 and −2.525; the rail price elasticity of demand was slightly larger, ranging between −0.956 and −2.489; and the rail–truck cross-price elasticity of demand ranged between 0.904 and 2.532.     

Modelling the joint access mode and railway station choice

This study models the choices of Dutch railway users. We find a steeper negative distance effect on the utility of departure stations accessed by the non-motorized modes of walking and bicycle as compared to the motorized modes of car and public transport. Availability of parking places and bicycle standing areas have a positive effect on the choice of departure railway stations accessed by car and bicycle, respectively. Public transport frequency has a positive whereas travel time has a negative effect on the choice of departure stations accessed by public transport. The derived rail service quality index (RSQI), which provides a measure of rail accessibility to all other stations, has a significant and positive effect on the choice of departure stations accessed by all modes. The outcome of this paper can be used to develop a comprehensive railway accessibility indicator for neighbourhoods, for hedonic pricing studies.     

Determining passenger potential for a regional airline hub at Canberra International Airport

This study investigates the implications on passenger flows of a regional airline adding a hub to its existing network. The very specific application focuses on a hub addition at Canberra International Airport (Australia) by Hazelton Airlines, although the approach is sufficiently general to implement for other hubs and regional airlines.