Case Study for Logan International Essay

Words: 1609
Pages: 7

1. a. Per plane delay times λ=50: 6.54 minutes/ plane λ=55: 12.52 minutes/ plane λ=59: 60.5 minutes/ plane

Delay costs Arrival rate | 50 | 55 | 59 | Turbo | 6.54(348+0.7*15*25.7)60=$67.07 | 12.5(348+0.7*15*25.7)60=$128.32 | 60.5(348+0.7*15*25.7)60=$620.02 | Jet | 6.54(1585+0.7*150*25.7)60=$467.29 | 12,5(1585+0.7*150*25.7)60=$893.95 | 60.5(1585+0.7*150*25.7)60=$4319.5 | Regional Jet | 6.54(632+0.7*50*25.7)60=$167.07 | 12.5(632+0.7*50*25.7)60=$319.62 | 60.5(632+0.7*50*25.7)60=$1544.37 |

b. Delay costs according to FAA
There are only delay costs associated with an arrival rate of 59, delay time: 60.5-15= 45.5

Arrival rate | 50 | 55 | 59 | Turbo | 0 | 0 | 45.5(348+0.7*15*25.7)60=$466.30 | Jet | 0 | 0 |
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In terms of peak-period pricing, there are both advantages and disadvantages. The community is in favour of peak-period pricing which is an advantage so as to have their support. On the other hand, peak-period pricing also has disadvantages. Firstly, it does not help with the weather-related problems (which is a main issue – delays jump from approximately 5% to 12%.) In order to help with the weather-related problems, a new runway would have to be built. Secondly, peak-period pricing has a negative effect on small planes. Regional carriers (such as Cape Air and New England Air) and Boston satellite communities were against the idea. They believed that there would be lots of job losses due to the higher prices at peak times. Furthermore, it would cause suffering for the residents. Massport even exempted 16 New England communities from some of the fees; however, this cancelled out the good effects that peak-period pricing could potentially bring to Logan airport.
In terms of building a new runway, there are also both advantages and disadvantages. A large advantage is that it deals with weather-related problems. While at the same time, if a new runway is built and the demand does increase (as projected – in 2010 or 2015 to be 37.5 million) then peak-period pricing may have to be put into effect anyways. Furthermore, the community does not want Massport to build a new runway and therefore they would have to deal with the complaints and conflict with them.