lorenzo castelli deei - university of trieste via valerio 10 i - 34127 trieste - italy phone:+39 -...
TRANSCRIPT
![Page 1: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/1.jpg)
1
Lorenzo Castelli
DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy
Phone: +39 - 040 - 676 7134Fax: +39 - 040 - 676 3460Email: [email protected]
DIPARTIMENTO DIELETTROTECNICAELETTRONICAINFORMATICA
STUDY OF THE IMPACT OF INNOVATIVE ROUTE CHARGE SCHEMES CONSIDERING ATC AND AIRLINES NEW PERSPECTIVES
CARE Innovative Action Project EUROCONTROL Brussels
24th January 2002
![Page 2: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/2.jpg)
2Lorenzo Castelli
Contents
• Preliminary study – Motivations – Objectives– Results
• Proposal for further work– Objectives– Work plan
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3Lorenzo Castelli
The ATM system
EUROCONTROL& ANS
PROVIDERS
EUROPEANAIRSPACE
USERSEUROPEANAIRSPACE
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4Lorenzo Castelli
Motivations
• Effective capacity has matched traffic growth in the last ten years (+80%). However, capacity has been lagging behind demand.
• Airline and ATFM were the main primary delay causes in 2000. ATFM delays were mostly due to lack of ATC en-route capacity (68%)
Source: 4th Performance Review Report, EUROCONTROL, April 2001
![Page 5: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/5.jpg)
5Lorenzo Castelli
![Page 6: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/6.jpg)
6Lorenzo Castelli
The ATM system
EUROCONTROL& ANS
PROVIDERS
EUROPEANAIRSPACE
USERS
Route charges
EUROPEANAIRSPACE
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7Lorenzo Castelli
Route Charges
They recover the costs incurred by states to provide en-route services and the costs incurred by EUROCONTROL
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8Lorenzo Castelli
Route charges – Airline Side
• No direct link exists between the level of service provided to flights (in terms of, e.g., imposed delay or deviations from the optimal route chosen) and route charges to be paid by carriers
• This situation provides to airlines little incentives to manage their operations in a way to allow the best use of the system capacity
![Page 9: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/9.jpg)
9Lorenzo Castelli
Route charges – ATC Side
The charging system based on a full cost recovery mechanism does not seem to give the necessary signals for ATC providers to supply the optimal amount of capacity at the right time and at the right location
![Page 10: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/10.jpg)
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Lorenzo Castelli
Our proposal
Investigation of economic measures to match air traffic services demand and supply for an efficient usage of the available capacity
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Lorenzo Castelli
General aim of the study
To define and study the impact of alternative route charging pricing schemes that could increase the performance of ATC providers and of airspace users, and stimulate a more efficient use of ATC capacity
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Lorenzo Castelli
Aims of the Preliminary Study
• To identify a general framework for evaluating different scenarios and different alternatives
• To provide sensible approaches, feasible methodologies and suitable techniques
• To identify the basic steps of a possible further and longer project
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Lorenzo Castelli
Main results of the Preliminary Study
• Extensive literature review
• Deeper understanding of the ATM system
• Preliminary results on:– Passenger demand for air transportation– ATS market segmentation
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Lorenzo Castelli
A first question
How does an airspace user react to a variation of one of its exogenous costs like, e.g., route charges?
IT DEPENDS……
on the characteristics of the airspace user.
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Lorenzo Castelli
Over 95% of the total EUROCONTROL
Route charges revenues
![Page 16: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/16.jpg)
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Lorenzo Castelli
The ATM systemExtension
EUROPEANAIRSPACE
USERS
PASSENGERS
SHIPPERS
EUROCONTROL& ANS
PROVIDERS
Airfares RouteCharges
![Page 17: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/17.jpg)
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Lorenzo Castelli
Open issue
• To understand airline and passenger behaviours with respect to the current ATC charging mechanism, i.e., – the direct impact on airline demand in terms of, e.g.,
aircraft movements or Km flown – the indirect impact on the final passenger demand
![Page 18: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/18.jpg)
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Lorenzo Castelli
Impact of Route Charges
• Direct impact on the different airspace users – by characterizing the main categories of such users
and model their behaviour induced by a variation in route charges
• Indirect impact on the final passenger (or shipper) demand– by assessing the price elasticity of demand for air
transportation for the different groups of airspace users.
![Page 19: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/19.jpg)
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Lorenzo Castelli
General aim of the studyRevisited
To investigate the application of economic measures to promote status and ways of operations positively affecting the behaviour of the system, both from the point of view of ATS suppliers and of the customers
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Lorenzo Castelli
Supply side
• Incentives for ANS providers: investigation on the applicability of performance based regulation techniques for the ATC centers
• Frontier benchmarking methods (e.g., Data Envelopment Analysis) to evaluate the performance of ATC centers
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Lorenzo Castelli
Passenger demand for air transportation
EUROPEANAIRSPACE
USERS
PASSENGERS
SHIPPERS
EUROCONTROL& ANS
PROVIDERS
Airfares RouteCharges
WP 1
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Lorenzo Castelli
Passenger demand
To provide a deep and sound knowledge of the behaviour of the demand for air transportation
– WP1: Analysis of the demand for passenger air transportation
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Lorenzo Castelli
Analysis of the demand for passenger air transportation
• Preliminary study on 4 routes of Air Dolomiti in May 1999, 2000 and 2001
• Encouraging results
• Model extension
• Model refinement
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Lorenzo Castelli
Air-Rail Modal Choice
• Important issue in the European context
• High speed trains compete with air transport for medium range distances
• Exploitation of WP 1 results
• Random utility models are likely to be used
• Need of further data collection
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Lorenzo Castelli
Passenger modal choice
EUROPEANAIRSPACE
USERS
PASSENGERS
SHIPPERS
EUROCONTROL& ANS
PROVIDERS
Airfares RouteCharges
MEDIUM RANGE TRAIN TRIPS WP 3
WP 1
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Lorenzo Castelli
Passenger demand
To provide a deep and sound knowledge of the behaviour of the demand for air transportation
– WP1: Analysis of the demand for passenger air transportation
– WP3: Analysis and modelling of passenger choice between air and rail transportation modes for a specific city pair.
Interactions with airlines are necessary…
![Page 27: Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 I - 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 Email:castelli@units.it](https://reader035.vdocuments.net/reader035/viewer/2022062619/55154e6c5503465e608b65cd/html5/thumbnails/27.jpg)
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Lorenzo Castelli
Air Dolomiti
• Regional airline– Fleet: 15 turbo-props, 3 jets– More than 600 flights per week (Summer 2001)– 30 National & international routes– 24 European destinations
• Business Traveller Market Oriented
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Lorenzo Castelli
• Awards:– Customer Satisfaction Award 1999– 1998/99 ERA Airline of the Year Award– 1998 ATR Award for Excellence – Sapphire Award 1998 & 2001 – Emerald Awards 1997 – Gold Mercury Award 1996
• UNI EN ISO 9001 certification of quality (2000)
Air Dolomiti
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Lorenzo Castelli
Air Dolomiti
• Not too small to be not significant;• Not too large to be sluggish in producing data and
information;• Complete availability of information, including
operational and tactical strategies;• Immediate access to the historical data of the company
databases;• The collaboration has already been successfully tested
during the preliminary study.
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Lorenzo Castelli
ATS demand segmentation
EUROCONTROL& ANS
PROVIDERS
Airfares RouteCharges
PASSENGERS
SHIPPERS
MEDIUM RANGE TRAIN TRIPS
WP 3
WP 1
EUROPEAN AIRSPACEUSERS
WP 2
SEGMENTATION
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Lorenzo Castelli
ATS demand segmentation
Identification of relatively homogeneous families for which similar attitudes and behaviours may be expected.
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Lorenzo Castelli
Percentage of route charges paid by category of users, Years 1999 and 2000
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Lorenzo Castelli
Airlines demand
To provide a deep and sound knowledge of the behaviour of airlines
– WP 4: at the operational level (e.g., how they react to traffic restrictions)
– WP 5: at the tactical level (e.g., how they react to exogenous price changes in terms of flight frequencies and route coverage)
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Lorenzo Castelli
Airlines demand
EUROPEAN AIRSPACEUSERS
EUROCONTROL& ANS
PROVIDERS
RouteCharges
PASSENGERS
SHIPPERS
MEDIUM RANGE TRAIN TRIPS
WP 3
WP 1
WP 4
WP 5
WP 2
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Lorenzo Castelli
To define and study the impact of economic
demand management measures to:– Limit the demand for access to busy airfields or to
congested airspace– Modify the spatial and temporal distribution of this
demand to bring it closer to the available capacity
Economic demand management strategies
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Lorenzo Castelli
Economic demand management strategies
EUROPEAN AIRSPACEUSERS
EUROCONTROL& ANS
PROVIDERS
RouteCharges
PASSENGERS
SHIPPERS
MEDIUM RANGE TRAIN TRIPS
WP 3
WP 1
WP 4
WP 5
WP 2
WP 6
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Lorenzo Castelli
Work planWP1: Analysis of the demand for passenger air transport;
WP2: ATS demand segmentation;
WP3: Analysis and modelling of passenger choice between air and rail transportation modes;
WP4: Analysis of airlines operational attitudes and behaviours;
WP5: Study of ATS demand elasticity of airspace users;
WP6: Design of economic demand management strategies.
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Lorenzo Castelli
Work plan structure
WP 1
WP 5
WP 4
WP 3
WP 2 WP 6
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Lorenzo Castelli
University of Padova
• Application of Operations Research to Airports and Air Traffic Flow Management:– “TAPE”, “OPAL” and “THENA” EU projects– Transportation Science, Operations Research, Air
Traffic Control Quarterly, Journal of Air Transport Management, etc.
• Collaboration with MIT “International Center for Air Transportation”
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Lorenzo Castelli
TRIESTEPADOVA
Air DolomitiHQ
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Lorenzo Castelli
Airlines demand analysis
University of Trieste
University of Padova Air Dolomiti
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Lorenzo Castelli
Route charges - Formula
iii tMTOW
dr 50
n
irRThe total charge per flight (R) is
where ri is the charge generated in the FIRs of State i, and is calculated as:
where di is the great circle distance flown, expressed in hundreds of kilometres, MTOW is the Maximum Take Off Weight, expressed in metric tons, and ti is the unit rate.
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Lorenzo Castelli
Results of regression analysis
Explanatory variableCoefficient Estimated coefficient T-statistic
Constant α 0.122 0.17
Population (POP) β1 -0.056 -1.652
GDP per-capita (GDP) β2 0.765 11.275
Frequency of flights (FREQ) β3 -0.164 -2.034
Airfare (FARE) β4 -1.217 -48.012
Aircraft seat capacity (CAPA) β5 0.762 5.107
Year (YEAR) β6 0.149 3.116
Hub airport (HUB) γ1 0.291 4.896
Tourist market (TOUR) γ2 0.122 1.516
Direct competition (COMP) γ3 -0.266 -4.785
Observations 3793
R2adj 0.465
Fisher Test 367.67
Durbin-Watson Test 1.817
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Lorenzo Castelli
Drivers for Air Travel Demand
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Lorenzo Castelli
The econometric model
)exp( 3216
54321
iiit
itiftitititift
COMPTOURHUBYEAR
CAPAFAREFREQGDPPOPAD
iiitit
iftitititift
COMPTOURHUBYEARCAPA
FAREFREQGDPPOPD
32165
4321
lnln
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Lorenzo Castelli
Operating costs, Year 2000, IATA