Assessment of Passenger Benefits Brought About by International Airport Projects

Abstract This study sets forth a method to calculate the passenger benefits of an international airport project and assesses the passenger benefits brought about by two international airport projects. An international airport project mainly increases the number of flights and the possibility of determining convenient timetables. It does not significantly decrease the flight time of international travel. Thus, the user benefits brought about by an international airport project cannot be expressed by the conventional concept of ‘traveling time’, which is the term generally used. In this study, the ‘Expected Value of Traveling Time’ and ‘Expected Value of Generalized Cost’ are presented as indexes to evaluate improvements in convenience brought about by international airport projects. The passenger benefits of two airport projects in Japan are measured by consumer surplus calculated from the demand function using these indexes. These indexes are accurately calculated taking into consideration factors such as scheduling connections between domestic and international transport, and so enable a grasp not only of reductions in flight time, but also of passenger benefits resulting from international airport projects, such as increases in the number of flights and reductions in the time required to make transfers during domestic travel.

[1]  Mark Hansen,et al.  Airline competition in a hub-dominated environment: An application of noncooperative game theory , 1990 .

[2]  B. Adrangi,et al.  The demand for US air transport service: a chaos and nonlinearity investigation , 2001 .

[3]  Yoshinori Suzuki,et al.  AIRPORT LEAKAGE AND AIRLINE PRICING STRATEGY IN SINGLE-AIRPORT REGIONS , 2004 .

[4]  Anming Zhang,et al.  Airport charges, economic growth, and cost recovery , 2001 .

[5]  Frode Steen,et al.  Collude, Compete, or Both? Deregulation in the Norwegian Airline Industry , 2003 .

[6]  Tae Hoon Oum,et al.  INTER-FIRM RIVALRY AND FIRM-SPECIFIC PRICE ELASTICITIES IN DEREGULATED AIRLINE MARKETS. , 1993 .

[7]  Thomas J. Zlatoper,et al.  U.S. Air Passenger Service: a Taxonomy of Route Networks, Hub Locations, and Competition , 1998 .

[8]  Nicole Adler,et al.  Evaluating optimal multi-hub networks in a deregulated aviation market with an application to Western Europe , 2001 .

[9]  Tae Hoon Oum,et al.  Alternative Forms of Economic Regulation and their Efficiency Implications for Airports , 2004 .

[10]  Tae Hoon Oum,et al.  A note on optimal airport pricing in a hub-and-spoke system , 1996 .

[11]  Peter Nijkamp,et al.  Access to and Competition Between Airports: A Case Study for the San Francisco Bay Area , 2003 .

[12]  Patrick T. Harker,et al.  Air traffic network equilibrium: Toward frequency, price and slot priority analysis , 1992 .

[13]  M. Uncles,et al.  The benefits of airline global alliances: an empirical assessment of the perceptions of business travelers , 2003 .

[14]  G. Harvey.  Airport choice in a multiple airport region , 1987 .

[15]  Romano Pagliari,et al.  A comparative analysis of the application and use of public service obligations in air transport within the EU , 2004 .

[16]  S. Phang.  Strategic Development of Airport and Rail Infrastructure: The Case of Singapore , 2003 .

[17]  New Airline Entry Rates in Deregulated Air Transport Markets , 2002 .

[18]  C. Yeh,et al.  Evaluating passenger services of Asia-Pacific international airports , 2003 .