) ( ) Assume good weather conditions, and a 65% passenger load factor. What are the per plane delay times (assuming the arrival rate to be 50, 55 and 59 planes per hour)?
What is the total cost (operational and passenger costs) associated with arrival rates of 50 planes per hour, for all three types of planes mentioned? What are your results if the arrival rate is i) 55 planes per hour? ii) 59 planes per hour?
b) ( ) Now resolve the above question using the FAA’s definition of delay? Do you think this definition of delay is more reasonable?
c) If you think the above definition of delay is not reasonable, suggest an alternative.
d) Based on your calculations in part a) and part b), do you believe PPP is a potential solution (by reducing the arrival rates during periods where demand is much higher) to reduce the costs of over scheduling?
QUESTION 2
Once you read the Delay at Logan Airport case it is clear that peak periods exist for a reason. That is, they are not random fluctuations but rather a result of passenger’s desires for landings and takeoffs at certain times of the day. Therefore airlines will shift flights to different periods only if the costs of incurring peak charges outweigh the costs (in terms of lost revenue and customer dissatisfaction) of shifting flights to off-peak periods.
Continue to assume that planes fly with 35% of passenger seats empty (that is, 65% load factor) and also assume that per passenger revenue for different aircraft sizes are as follows; $230 for a turboprop airplane with 15 seats; $154 for a regional jet with 50 seats; $402 for a jet with 150 seats.
a) ( ) Which airplane types would feel a significant economic impact by peak-period landing fee of $150? What about $200 fee? What about $250 fee?
b) ( ) Assume that $150 landing fee is sufficient to reduce the peak period demand to 55 planes per hour, similarly with $200 fee the peak period demand is 45 planes per hour and with a $250 fee the demand is 40 planes per hour.
i) What level of landing fee is preferred by conventional jets and by turboprop airplanes?

ii) Based on your answer to 2a) would you agree that PPPs effect on delays depend on the particular mix of airplane types using Logan during a peak hour?
Do you believe PPP would have a significant effect if the typical airplane mix were 40% turboprop, 18% regional jet, and 42% conventional jet, as it approximately stands at Logan? iii) What would your answer be if we had a 10% turboprop, 30% regional jet, and 60% conventional jet mix, as one future scenario for 2015?
c) To what extend might savings in delay costs that result from demand management offset peak period fees?
QUESTION 3
The case clearly states that adverse weather conditions are the primary cause of delay. When winds from the northwest become moderately strong, Logan’s capacity drops from three runways (where one runway handles both arrivals and departures, one runway only departures and one runway only arrivals) to two (where two runways handle both arrivals a