Demand uncertainty and airport capacity choice

This study analyzes the effects of demand uncertainty on airport capacity choices. It shows that demand uncertainty will not change optimal capacity choice if demand variation is low and capacity cost is high; otherwise the optimal airport capacity under demand uncertainty will be larger than the case when a deterministic mean demand is considered. These conclusions are robust with respect to the different market structures considered in this study and hold for both profit-maximizing and welfare-maximizing airports. The moderating effects of commercial revenue, capital cost, and airport operation cost on airport capacity choice are qualitatively the same in the cases of uncertain demand and deterministic demand.

• Record URL:
  • https://doi.org/10.1016/j.trb.2013.08.014
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0191261513001501
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Supplemental Notes:
  • Abstract reprinted with permission by Elsevier.
• Authors:
  • Xiao, Yibin
  • Fu, Xiaowen
  • Zhang, Anming
• Publication Date: 2013-11

Language

• English

Media Info

• Media Type: Print
• Features: Appendices; Figures; References;
• Pagination: pp 91-104
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 57
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Airport capacity; Competition; Costs; Market structure; Uncertainty
• Subject Areas: Aviation; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01505053
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 27 2014 10:45AM