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Congestion at New Delhi Airport

The document discusses congestion at New Delhi airport and provides recommendations to ease the problem. It notes that New Delhi airport currently has 2 runways used for both landings and take-offs, handling 38 flights per hour during peak periods. The Airport Authority of India recommends a peak period congestion charge of Rs. 20,000 per runway use to encourage rescheduling flights. This is estimated to reschedule 20% of flights, reducing average daily congestion costs. An alternative proposal dedicates one runway for landings and one for take-offs, upgrading facilities for Rs. 25 crore to standardize turnaround times. This could further reduce congestion costs compared to the congestion charge.

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107 views2 pages

Congestion at New Delhi Airport

The document discusses congestion at New Delhi airport and provides recommendations to ease the problem. It notes that New Delhi airport currently has 2 runways used for both landings and take-offs, handling 38 flights per hour during peak periods. The Airport Authority of India recommends a peak period congestion charge of Rs. 20,000 per runway use to encourage rescheduling flights. This is estimated to reschedule 20% of flights, reducing average daily congestion costs. An alternative proposal dedicates one runway for landings and one for take-offs, upgrading facilities for Rs. 25 crore to standardize turnaround times. This could further reduce congestion costs compared to the congestion charge.

Uploaded by

Prasad Rn
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Indian Institute of Management

Ahmedabad Exercise*
Congestion at New Delhi Airport The air traffic in India has increased drastically in recent years. Mumbai and New Delhi airports are the busiest ones in the country with 30.3 and 21.8 percent of the total domestic passenger traffic. Looking at the congestion at these airports, especially during the peak hours, and the cries of both passengers and the airlines, Airport Authority of India (AAI) conducted a detailed study. The following exhibit provides a summary of the projected traffic at New Delhi airport and AAIs recommendation to ease the problem. Observations: Number of runways (used both for landings and take-offs): 2 The flights typically handled during the peak hours: 38 per hour (say, about 19 arrivals and 19 departures)
Aircraft type Boeing 737 Airbus 320 Airbus 300/310 Capacity 200 200 160 Occupancy level 80% 80% 90% Arrivals/departures per hour 12 10 16 Airline delay cost* per hour (Rs) 90000 90000 75000

* Includes operating costs in air and extra ground staff time costs. Average cost of passenger wait: Rs 100 per hour per passenger. Runway time required for an arrival or a departure of an aircraft: Varies with the type of aircraft and the service (landing / take-off). Average time: 3 minutes. Peak period duration: 6 hours per day. Recommendation: Peak period pricing: Airlines will have to pay airport congestion charge of Rs 20,000 for runway use. This charge applies to all landings and take-offs from New Delhi airport during peak period.
Exhibit 1: Observations and Recommendation for New Delhi Airport

(a) Making appropriate assumptions as necessary, estimate the average daily cost of congestion at New Delhi airport. You must clearly state your assumptions and provide a brief justification.

(b) AAI expects that the airline companies are likely to respond to the proposed congestion charge by rescheduling about 20% of the flights from the peak period to off-period time slots. It further expects that the occupancy levels during peak period would increase by about 5% of the current values. Determine the impact of the proposed charge on the average daily cost of congestion.
*

This exercise was developed by Prof. Devanath Tirupati and Dr. Chetan Soman as the basis for class discussion.

(c) As an alternative to the congestion charge, Swati Bhargava, consultant to Ministry of Civil Aviation, has proposed that following: (i) Dedicate the two runways one for landing and the other for take-offs. (ii) Invest in new equipment and upgrade the runway facilities at a cost of Rs 25 crores. As a result the runway times would become constant with exactly 3 minutes required for each landing / take-off. However, the requests for take-offs and landings will continue to be random. (Swati also suggested that AAI can recover investment costs of upgrading by levying a suitable annual charge on the airlines.) What is the impact of her proposal on the congestion costs?

(d) Based on your analyses in (a) (c), what alternative would you recommend? Why?

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