The Modelling Airport Economic Value Study recently published (link here) has been made by the University of Westminster (Andrew Cook, Gerald Gurtner, Graham Tanner and Anne Graham) and Innaxis Research Institute (Samuel Cristobal), supporting EUROCONTROL (Denis Huet and Bruno Desart) within SESAR Project 06.03.01. The study provides a better understanding of the interdependencies of various key performance indicators (KPIs) and assesses the existence and behaviour of an airport economic optimum, in a similar way to the early 2000s, when estimating the economic en-route capacity optimum.
By gathering for the first time real operational, financial and passenger-satisfaction-related data over 32 European airports, it was possible to develop and calibrate a model which produces reliable and realistic results. The fully calibrated results show the presence of a trade-off between the cost of extra capacity and the increase in the number of flights operated. As a consequence, all 32 airports exhibit a maximum in net income as a function of capacity, when the marginal cost of operating extra capacity is sufficiently low. This threshold in the marginal cost is, however, rather different across airports, and only a few airports can sustain a high cost of capacity: these are the largest and most congested airports, which clearly need extra capacity. This threshold is roughly consistent with the airports’ current operational cost of capacity, which means that they should be able to manage this growth, subject to the availability of investment.
The team has also developed a tool that provides access to all the features of the mathematical model with out having to dig into the equations. The underlying mathematical module is written in Python, while the interface is written in Matlab. The communication between the modules is transparent to the user and the software is capable of auto-calibrate the airport model using the existing or new data. The tool is flexible to explore the parameter space and different views of the output variables can be selected for a better understanding of the model outcomes. Results can be saved then in common format for further use (txt, csv, png, fig, etc.)
We warmly invite you to read the full report here!
Congrats to Samuel/UoW colleagues for such a superb study 😉