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Logan

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OM Logan Airport Assignment
a)
Delays: 50: 6.55 minutes 55: 12.52 minutes 59: 60.5 minutes
Costs:
Assuming we use two runways, and that by total cost they mean total cost for all the planes arriving.
For arrival rate of 50: 15 seat plane:
352* 6.55/60+30.9*6.55/60*(15*0.65)*50=3565.79 50 seat plane:
672* 6.55/60+30.9*6.55/60*(50*0.65)*50=5554.89 150 seat plane
1590*6.55/60+30.9*6.55/60*(150*0.65)*50= 16618.17
For the arrival rate of 55:

15 seat plane:
352* 12.52/60+30.9*12.52/60*(15*0.65)*55=3531.08 50 seat plane:
672* 12.52/60+30.9*12.52/60*(50*0.65)*55=11665.67 150 seat plane
1590*12.52/60+30.9*12.52/60*(150*0.65)*55= 34908.10
For the arrival rate of 59: 15 seat plane:
352* 60.5/60+30.9*60.5/60*(15*0.65)*59=18278.29 50 seat plane:
672* 60.5/60+30.9*60.5/60*(50*0.65)*59=60422.10 150 seat plane
1590*60.5/60+30.9*60.5/60*(150*0.65)*59= 180836.77

b)
According to the FAA definition of delay, the airport would only experience delays at an arrival rate of 59. Therefore, the cost for arrival rates of 50 and 55 for all planes would be 0 as there’d be no delay. For arrival rate of 59, the costs would be the same as part a).
I’d expect that a delay of 15 minutes would mean little for the passengers, so the cost per passenger would be negligible as well. It’s also possible that the cost per passenger and operational costs aren’t evenly spread out over an hour (i.e. the first 15 minutes don’t contribute 25% of the cost). Given this information, and given the FAA’s expertise on the matter in the first place, only considering a delay a “delay” after 15 minutes seems reasonable.

d)
Given the dramatic effect even a small change in arrival rate has on delay costs as shown in a), even a small decrease through PPP in arrival rates would contribute to significant savings in costs. This is especially true under the FAA

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