# Presentation: 509963

## Benefit-Cost Analysis Focus on Measuring Benefits

- Berta Fernandez
- April 20, 2004

**FAA NW Mountain Region Airports  Conference  **

## FAA Airport Benefit –Cost Analysis Office of Aviation Policy & Plans

**Originally Issued in 1994, Modified in 1997, Final Policy Issued in 1999**
**Required for Airport Capacity Projects with $5 Million Threshold in AIP Discretionary Grants**
**Rehabilitation/Reconstruction Projects may be Exempt**
**Process, Assumptions, Specifications are Well Defined**

## The Value of a BCA 

**FAA Requirement for LOI Funding**
**Decision Tool – Does A Project Make Sense?**
**Threshold Question – Is Further Study Warranted?**
**Do the Benefits Exceed the Costs? (BCA Ratio > 1)**

## BCA are not just for Runways..... 

**Capital Projects (Runways, Taxiways, Deicing Pads, Terminal/Landside Projects)**
**Equipment (Navaids, Snow Removal Equipment, etc.) **
**Procedures (ATC Initiatives, Snow Operations, Maintenance Procedures)**

## The BCA Process

**Define**
**Objectives**

**Specify**
**Assumptions**

**Identify**
**Base**
**Case**

**Identify**
**Alternatives**

**Determine**
**Evaluation **
**Period**

**Establish**
**Level of **
**Effort**

**Quantify**
**Benefits **
**& Costs**

**Measure**
**Impacts of**
**Alternatives**

**Compare**
**Benefits **
**& Costs**

**Perform Sensitivity **
**Analysis**

**Make**
**Recommendations**

**The BCA Process**

## Benefits to Consider

**Aircraft Delay/Taxi Time Reduction**
**Passenger Delay Reduction**
**Increased Non-Stop Service**
**Reduction in Noise/Environmental Impact**
**System Benefits**
**Other Hard to Quantify Benefits **
**	****(e.g., Safety & Security)**

## Costs to Consider 

**Capital Costs**
**Construction**
**Land Acquisition**
**Equipment**
**Operating & Maintenance Costs**
**Other Life Cycle Costs**
**Construction Duration**
**Runway Closure Delays**
**Noise/Environmental Mitigation**

## Tools for Measuring Benefits

**Simulation Models**
**TAAM**
**SIMMOD**
**ADSIM / RDSIM**
**Other Proprietary Models****	**
**Queuing Models**
**FAA’s NASPAC Model - System Benefits**
**Other Operational Analyses**

## Decisions, Decisions, Decisions...

**Less Time**
**Less Cost**
**Less Risk**

**More Time**
**More Cost**
**More Risk**

**Queuing Model**
**Order of Magnitude Cost**
**Heuristics**

**Simulation Models**
**(PAXSIM, TAAM, SIMMOD)**
**Engineering Studies**
**Detailed Operational Analysis**

**Time ****•**** Cost ****•**** Risk**

**Decisions, Decisions, Decisions...**

## Queuing Models Versus Simulations

**Queuing Models Versus Simulations**

- Queuing Models

- Simulation Models

## Benchmarking Capacity Rates

**APO Data System**
**ASPM**** – Aviation System Performance Metrics**
**ETMSC ****– Enhanced**** ****Traffic Management System Counts **
**ASQP**** – Airline Service Quality Performance**
**OPSNET**** – Delays Database**
**	**** **_**[http://](http://www.apo.data.faa.gov/)**__**[www.apo.data.faa.gov](http://www.apo.data.faa.gov/)**_
**ARTS – Automated Radar Terminal System**

## Choosing Models

_**Choose Queuing Models if:**_
**Capacity rates are known or readily estimated**
**Queues are independent of other flows**
**High accuracy is not needed to differentiate between alternatives**
**Animations are not needed  to demonstrate the viability of proposed solutions**
**Time and budget are limited**

**  **_**Choose Simulations if:**_
**Capacity rates must be computed by the model**
**Queues block other flows creating complex interactions**
**High accuracy is needed to differentiate between alternatives**
**Must have animations to demonstrate the viability of proposed solutions**
**Working model is available**

## Some Examples

**Tucson Runway Relocation and Upgrade**
**Denver Deicing Pads**
**High Speed Snow Removal Equipment**
**Cincinnati Third Parallel Runway**
**Cleveland Airport Development Program**

## Tucson Example Runway Relocation and Upgrade Project

**Tucson Example ****Runway Relocation and Upgrade Project**

**Existing Airfield **

**Proposed Airfield **

**Runway 11L/29R:**
**All AANG and Air Carrier operations**
**10% of GA operations**

**Runway 11R/29L:**
**90% of GA operations**

**Runway 11L/29R:**
**Primary runway for AANG and Air Carrier operations **

**Runway 11R/29L: **
**Upgraded for use by**
**Air Carrier operations as needed to balance delay**

## Tucson Example - BCA Assumptions 

**TIA passengers increase moderately at 2.3% annually through 2023.  Operations increase at 0.5%.**
**Runway 11R-29L is relocated and upgraded for use by air carrier operations and general aviation.  Project is complete by end of 2010.**
**Main project costs include construction and land acquisition.**
**Key project benefits are reduced delays under normal operating conditions and during closure of main air carrier Runway 11L-29R.**
**Existing Runway 11L-29R requires partial or complete reconstruction within 5-8 yrs.**
**Asphalt runway rehabilitation cycle is 15 years.  Concrete runway life is 30 years.**
**O&M expenses increase by 11%.**
**BCA valuation period is 2003-2040.**

## Queuing model used to estimate average delay benefit with upgraded runway

Runway length analysis used to estimate benefit during closure of main air carrier runway

Without project, aircraft that cannot use Runway 3/21 due to length:
Wait for main air carrier runway to be available,
Conduct a 1 stop operation resulting in additional flight time, or
Flight is cancelled

**Runway length analysis used to estimate benefit during closure of main air carrier runway**
**Without project, aircraft that cannot use Runway 3/21 due to length:**
**Wait for main air carrier runway to be available,**
**Conduct a 1 stop operation resulting in additional flight time, or**
**Flight is cancelled**
** **

**Tucson Example - Delay Savings Analysis**

## Tucson Example - Delay Savings Analysis

## DIA Deicing Pad Example

**Current runway capacity exceeds deicing pad capacity**
**New deicing pad to service departures for new Runway 34L**
**Pads also used during thunderstorm and other Severe Weather Avoidance Plan conditions**
**Scenarios evaluated:**
**Do Nothing**
**Two alternative deicing pad locations**
**All deicing operations on pads**
**Partial Concourse A deice on gates**
**Benefits include reduced taxi distance and queue delay savings**

## DIA Deicing Pad Example

## DIA Deicing Pad Example

## Snow Removal Equipment Example

**Analysis of 3 in 1 Snow Removal Technology (Snow Plow, Snow Broom & Snow Blower)**
**Reduced delays due to R/W closures during snow removal operations**
**Queuing model used to assess runway acceptance rates under various conditions**
**Analysis of historical weather data to determine frequency and duration of snow events**
**Results used to justify acquisition of new equipment**

## Runway Operation-Existing Equipment vs. High Speed EquipmentFour Hour Snow Event Hourly Cycle

**Runway Operation-Existing Equipment vs. High Speed Equipment****Four Hour Snow Event Hourly Cycle**

## IFR Snow Configuration - Existing Equipment vs. High Speed EquipmentRunway Throughput versus Demand

**IFR Snow Configuration - Existing Equipment vs. High Speed Equipment****Runway Throughput versus Demand**

**Existing Equipment**

- 10

- 5

- 5

- 10

**9**

**10**

**11**

**12**

**13**

**14**

**Time of Day**

**Number of Aircraft **

**per 5 Minutes**

- Scheduled Demand-Arr

- Scheduled Demand-Dep

- Runway Throughput-Arr

- Runway Throughput-Dep

**High Speed Equipment**

- 10

- 5

- 5

- 10

**9**

**10**

**11**

**12**

**13**

**14**

**Time of Day**

**Number of Aircraft **

**per 5 Minutes**

## CVG Third Parallel Runway BCA

**Queuing Model Application**
**Dynamic application of capacity rates**
**Multiple weather conditions & runway operating plans**
**Multiple forecast demand years (2000-2025)**
**Model multiple airfield layout options**
**Capacity rates verified with real data & local ATC personnel**
**Delay levels calibrated to real-world observations in FAA CODAS/ASPM database**
**BCA used for successful LOI grant application for new third parallel runway**

## CVG Third Parallel RunwayDelay Model Sample Output

**CVG Third Parallel Runway****Delay Model Sample Output**

- Departing Aircraft

- Arriving Aircraft

- Time of Day (Five Minute Increments)

**Throughput later than scheduled (Delay)**

**Arrival Runway**
** ****Capacity**

**Departure Runway**
**Capacity**

**Demand Exceeds Capacity**

**Under used Capacity**

## CLE Development Program

**CLE Development Program**

_**Before**_**:**
**Annual Capacity:   368,000 aircraft operations**
**Runway Intersections:   5**
**Parallel Runway Separation:   441 feet**
**Single arrival and departure runways**

_**After:**_
**Annual Capacity:   525,000 aircraft operations**
**Runway Intersections:   0**
**Parallel Runway Separation:    1,241 feet**
**Dual arrival and departure runways**

- _Runway Lengths_
- 5L/23R 9,000 feet
- 5R/23L 11,250 feet
- 10/28 6,015 feet

- _Runway Lengths_
- 5L/23R 7,096 feet
- 5R/23L 8,999 feet
- 10/28 6,015 feet

## Minimum Runway Capacity NeedDefines latest time to provide additional capacity

**Minimum Runway Capacity Need*****Defines latest time to provide additional capacity***

- Phase I

- Phase II

## Summary of Cleveland Example

**Summary of Cleveland Example**

**Benefits Defined using Master Plan/EIS Simulation Analysis**
**$685M -New Runway and Other Near Term Projects**
**1.8 Billion NPV Benefit  Vs. $460 Million NPV Cost (3.9:1 Benefit-Cost Ratio)**
**$138M LOI for Discretionary Funding Awarded by FAA**

## Summary

**Various methods and tools are available to measure benefits from airport improvements**
**Define a methodology and an approach that are sufficient to meet the objectives and enable an informed decision**

**Summary**