trans sys chap29
TRANSCRIPT
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 1/18
Introduction to Transportation
Systems
1
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 2/18
PART III:TRAVELER
TRANSPORTATION
2
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 4/18
Air Traveler Transportation
Costs/Financial Situation Air Traveler Transportation and the 30 “Key Points”
Stochasticity
Peaking Selecting Capacity
Network Behavior
Land-side Issues
Airport Access
Airport Terminal Design
Important Issues
Airport Capacity
Hub-and-Spoke Operation
Safety
Aircraft Technology
Yield Management
Understanding the Air Traveler Market
Subsidies -- Air as an example
4
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 5/18
Airline Costs and Financial
Situation
Labor Costs
Fuel Costs
Equipment Costs
5
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 6/18
Reasons for Air Industry
Financial Problems Competition is the critical element. There are those
that would argue that the industry has morecapacity than it needs for the demands it serves.
Earnings in the airline industry are very sensitive tothe ratio of filled seats to total seats. Once a seatflies empty, the revenue from that seat is goneforever. And airlines, recognizing that fact, havegone through some destructive pricing battles.
The airline industry finds it difficult to quickly adjustits fleet size and hence its capacity. The time
between ordering new aircraft from themanufacturer and delivery to the airline can beseveral years.
A Trend: Strategic Alliances
6
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 8/18
Land-Side Issues Airport Access
Airport Location
Airport Airport
Center CityCenter City
It is door-to-door travel time that
matters.Figure 29.1 8
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 9/18
Other Points
Proximity of Airport to Center City Rail Access to Airports Airport Terminal Design Airports as Commercial Carriers
9
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 11/18
Hub-and-Spoke Airline
OperationsHub-and-Spoke Air Network
Denver
New York
Boston
Francisco
Seattle
San
Los
Angeles
Washington D.C.
Hub-and-Spoke as a Cost/LOS Trade-Off
Hub-and-Spoke Operations and System
Stability
Figure 29.2 11
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 12/18
Safety
Safety is a key level-of-service variable in theairline industry.
Although substantially safer than automobile
transportation, the fact that the accidents thatdo occur are big and eye-catching makestravelers very sensitive to safety concerns.
The Federal Aeronautics Administration (FAA)in the U.S. has responsibility for regulatingairline safety; they also have a charter topromote the airline industry. Some feel thereis an inherent conflict in these two roles.
CLASS DISCUSSION
12
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 13/18
Aircraft Technology
Aircraft Size
Short Take-Off and LandingAircraft
Hypersonic Flight
The “Space Plane”
Engine and Materials Technology
13
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 14/18
Yield Management in Air
Transportation
COSTS Total Costs
Operating
Costs
Spill Costs
AIRPLANE CAPACITY
Figure 29.3 14
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 15/18
Air Transportation as an
Example of Subsidies Subsidies
Between long-distance and short-distancepassengers. Cost functions look differentfor long-distance and short-distancepassengers, so there may be cross-
subsidies. Between business and non-business
travelers. Business travelers require flexibilityto make plans on very short notice and
change their plans very quickly. The airlineindustry charges them a premium for thisservice.
Among various origin-destination pairs.Customers on the non-competitive routessubsidize those on competitive routes.
15
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 16/18
Flows of Funds in Air
Transportation
Airlines
Passengers Airports
Air TrafficControl
Figure 29.4 16
8/9/2019 Trans Sys Chap29
http://slidepdf.com/reader/full/trans-sys-chap29 17/18
Subsidies in Air
Transportation
Airlines
Passengers
Society-at-
Large
Airports
Air Traffic
Control
Figure 29.5 17