Delays at Logan Airport Case Questions (OM 502)

1. What is this case about? Provide a very brief synopsis.

Boston’s Logan airport is suffering from high number of flight delays with an average
of 47.5 delays per 1000 flights. This has led to Logan Airport being ranked as the
fifth most significantly delayed airport in the United States. The main reasons for
delays are adverse weather conditions and the increase in demand, which is
resulting in increase in waiting times and missed connections. In order to solve these
problems, the authorities are thinking of expanding capacity at Logan by building a
new runway.

2. Which of the solutions explored in the case do you favor the most: peak
period pricing, additional runway, developing other regional airports?
Boston’s Logan airport should construct a new runway to provide a long term
solution for increasing capacity and decreasing the number of delays. With huge
increase in demand forecasted, the new runway will help in expanding the capacity
and servicing the current customers as well. This is the most viable solution as the
peak period pricing will require frequent increases to maintain its effectiveness with
capacity remaining the same. Also, since most of the flights originate from the Logan
airport, developing other regional airports won’t help much

3. “Overscheduling problem happens only when scheduled number of

operations (landing and take-off) exceeds the capacity.” True or False?
True

4. What do you think about the landing fee approach that was implemented in
1988?
Flat landing fee approach was unfair for the airlines with the smaller aircrafts since
the fee is spread over smaller seating capacity and thus was discriminatory towards
the smaller aircrafts as compared to the ones with bigger aircrafts and thus larger
seating capacity.