# Delay at Logan Airport Case Analysis Essay

1689 Words Apr 9th, 2015 7 Pages
Course: Operation Management
Delays at Logan Airport Problem set Analysis
Problem #1
a. Assume normal, good weather capacity and a 70% passenger load factor. Using the attached Excel exercise, what are the pre plane delay times and operational and passenger delay costs associated with arrival rates of 50 planes per hour, for all three types of planes mentioned? At 55 planes per hour? At 59? | Delay Dollars per person per hour | 70% Load factor | Delay cost per hr | Total Delay Cost / hour | Total Delay Cost / minute | Turboprop | \$25.70 | 13.3 | \$348.00 | \$689.81 | \$11.50 | Regional | \$25.70 | 35 | \$640.00 | \$1,539.50 | \$25.66 | Conventional | \$25.70 | 105 | \$1,585.00 | \$4,283.50 | \$71.39 |

Total
b. Based on your answer to 2(a), whether peak period pricing has a significant effect on the magnitude of delays may depend on the particular mix of airplane classes utilizing Logan during a peak hour. Do you believe peak period pricing would have a significant effect if the typical airplane mix were 40% turboprop, 18% regional jet and 42% conventional jet, as it approximately currently stands at Logan? What about 20% turboprop, 30% regional jet, and 50% conventional jet, as one future scenario for 2015 envisioned by Massport/FAA has it? As we can see in 2(a), turboprop is the most effected by peak-period pricing, while conventional jet is the least effected jet. With the mix model of 40% turboprop, 18% regional jet and 42% conventional jet, peak-period pricing could solve the delay problem in the short time, because this plan significantly discourages the use of smaller aircraft since the high landing fees. However, in the future, when the mix model becomes 20% turboprop, 30% regional jet, and 50% conventional jet, peak-period pricing won’t have significant effect on delays.
c. To what extent might savings in delay costs that result form demand management offset peak period fees? Assume that \$100 landing fee can reduce the arrival rate to 55 planes per hour, \$150 landing fee can reduce the arrival rate to 50 planes per hour and \$200 landing fee can reduce the arrival rate to 45 planes per hour. Based on the formula: Total

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