Air Transport and Airports Lecture 3

Lecture content and dates 1st block 3rd block
(4.11.2022)
1. History of Civil Air Transport 4. Commercial Aircraft Operators (18.11.2022)
1.1 Milestones of Human Flight 4.1 Business Models and Networks

1.2 Major Technological Prerequisites 4.2 Operating Costs
1.3 Commercialization of Air Transport 4.3 Airline Planning and Strategy
2. Introduction to Modern Civil Air Transport 5. Airport Operations
2.1 Facts and Figures 5.1 Airport Elements and Operations
2.2 Market Outlook 5.2 Airport Planning
2.3 Future Challenges in Aviation 5.3 Airport Capacity
2.4 Major Players 6. Air Traffic Management
2.5 Rules and Regulations 6.1 Elements of an ATM System
2.6 Safety 6.2 Airspace and ATM Authorities
3. Aircraft Life Cycle and Development 6.3 ATM Operations
3.1 Consumer Needs 7. Environmental Impact of Aviation
3.2 Aircraft Life Cycle 7.1 Aircraft Noise
3.3 Aircraft Design Process 7.2 Aircraft Exhaust Emissions 4th block
3.4 Aircraft Cabin Design 2nd block (25.11.2022)
3.5 Costs (11.11.2022)
I 171 I © Bauhaus Luftfahrt e. V. I WS2022/23 I Air Transport & Airport Design / Luftverkehr
Air Transport & Airport Part 4: Commercial
Design / Luftverkehr Aircraft Operators
Winter Term 2022/2023
Dr. Kay Plötner Munich, October 2022
I 172 I © Bauhaus Luftfahrt e. V. I I
Lessons Learned of Chapter 4 (1/2)
What are the main differences between Full-Service Network Carrier (FSNC)
and Low-Cost Carrier (LCC)?
What are the key cost advantages of a LCC vs. FSNC?
What are the main differences between Hub & Spoke, what are the
advantages and disadvantages?
What are operating cost elements of a typical airline? Can you differentiate
between TOC, DOC, COO, COC ADOC?
What is the differences between fleet, route and schedule planning?
Can you explain a payload-range diagram?
What are criteria for airlines influencing aircraft buying decision?
Lessons Learned of Chapter 4 (1/2)
Can you explain the differences between “Macro” and “Micro” approach to
fleet planning
Name the four steps of schedule development planning?
What are criteria for airlines to evaluate a “new” route?
Part 4: Commercial Aircraft
Operators
4.1 Business Models and Networks
4.2 Operating Costs
4.3 Airline Planning and Strategy
Airline Business Models
Criteria: Business Cases:

 Target Groups  Full-Service Network Carrier (FSC)
 Revenue Models  Low-Cost Carrier (LCC)
 Ticket Price  Charter / Holiday Carrier
 Other Sources of Revenues  Regional Carrier
 Network  Hybrid Carrier
 Structure
 Cargo Carrier / Integrator
 Airports Served
 Aircraft Fleet
 Cooperation / Alliances
 …
Source: DLR (2008)
Air Operations Models
Capacity Provisioning Action Space
Complete aircraft Single Seats Short distance

Long distance
Full-Service Carrier
projected
Hybrid Carrier
- Low Cost Carrier
Private trip
Charter Carrier
Regional Carrier Charter
Target Group
Low Cost
On Demand
Business Transport
“Airtaxi”
Charter Airplane
Business trip
Hybrid
Regional
Cargo Carrier in all Categories Full Service
Based on Conrady (2013)
Development of Airline Operating Models
Past Present Future?!
• Clear separation of the segments • Convergence of costs, network and • Efficient differentiation and focus in unique
• only minor concept overlaps passenger segments selling points
• Partly same offer to PAX • Innovation of concessions in order to secure
 Three different airline operating models a competitive advantage
 Blurry airline operating models
Added value for passengers
FSC
FSC Charter
Charter Charter FSC
LCC LCC
Extreme
LCC
FSC: Full-Service Carrier, LCC: Low-Cost Carrier, LR: Long Range
Airline Business Models Changing
Dual-Brand Hybrid/ Full-Service

Long-Haul LCC Low-Cost Carrier
Strategy No-Frills Chic Carrier
•Qantas – Jetstar •Norwegian •jetblue •Lufthansa •Ryanair
•Lufthansa-Eurowings •Air AsiaX •Azul •Britisch Airways •Air Asia
•Singapore Airline-Scoot •Jetstar, Jetstar Asia •Easyjet •Air France •Southwest
•Air France/KLM-Transavia •… •… •Singapore Airlines •…
•United
•…
Airline Business Models: Market Shares in Europe
Saving Potentials of Low-Cost Carriers
Cost advantage of low-cost carriers vs. full-service carriers in € cents / ASK
9.1 2.2
1.6
0.7
0.7
0.5
3.4
Aircraft Operations Airports Distribution Personnel Service

• Denser seating • Cheaper airports • Internet distribution Lower costs Lower costs for ground services
• Higher utilization • Easier ground processes • No GDS (Global Distribution • Cabin and crew
• Homogeneous fleet System) fees • Admini-strative staff
• No commissions
• Spartan marketing &
communication efforts
Based on Conrady (2013)
Hub-&-Spoke vs. Point-to-Point
Point-to-Point VS. Hub-&-Spoke
787 A380
15.200 km 15.700 km
250 Pax 525 Pax
15.12.2009 27.04.2005
747-8I A350XWB
14.800 km 15.300 km
467 Pax 276 Pax
20.03.2011 14.06.2013
Hub-&-Spoke Networks Example: United Airlines (Domestic USA)
Example: Emirates
Hub-and-Spoke Systems Disadvantages:

Advantages:
- Reduced costs by using larger aircraft - Unattractiveness of connections to passengers
- Simplified planning of regular maintenance - High requirements of the performance of the
- Connecting places with less infrastructure (Peak times)
original volume through the aviation network - High complexity of the system
- Simplified planning and provision of aircraft, personnel, spare parts - Susceptibility to interference
Point-to-Point Networks: Ryanair Example
Mesh Network of Ryanair
on May 14
Source: OAG mapper.

Hub Transportation: Example of Lufthansa in Frankfurt
Middle East Middle East

Africa Africa Africa
South East Asia India China, Japan South EastAsia
South America South America
North America
Europe Europe Europe Europe Europe

Germany Germany Germany Germany Germany
06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
Operators
4.2 Operating Costs
Life-Cycle Costs (LCC)
LCC distribution for a typical short-to-medium-haul transport aircraft*
Additional Direct Operating Costs
* Underlying Assumptions:
Cost 616 NM stage length, operation: 20years, 35%
of Cash Operating Cost share of IOC, fuel price 3.0 US$/gal, program
Ownership costs covered by A/C market price, disposal cost
equal to residual value (20 years)
Indirect Operating Cost Direct Operating Cost
Program Cost Operating Cost Disposal Cost
For civil transport aircraft, LCC are dominated by the Operating Costs
Direct operating cost (DOC) have the highest share on Operating Costs
 Share depending on operator and external factors i.e. fuel price
 Decrease of Indirect Operating Costs (IOC) share can be observed (for AEA1996: 50%, 2006:40%)
Operating Costs - Overview
Total Operating Costs (TOC)
Indirect Operating Costs (IOC) Direct Operating Costs (DOC)
Costs of Ownership (COO)

Landed Properties & Ground Equipment
• Depreciation
• Depreciation • (Leasing)
• Maintenance • Interest Costs
• Insurance
Passage / Freight
Cash Operating Costs (COC)
• Passenger, Baggage & Cargo Handling (Check-In)
• Crew (Flight Deck, Cabin)
• Booking, Sales
• Ground Handling
• Distribution
• Maintenance (Airframe, Engines)
• Marketing
• Navigation Fees
• Landing Fees
Administration & Overheads • Operating Materials (Fuel, Oil, etc.)
• Buildings, Station Costs
• Training, Education Additional DOC (ADOC)
• Local Noise Charges
• Local Emission Charges
• Emission Trading Charges
Operating Costs - Overview
Total Operating Costs (TOC)
Indirect Operating Costs (IOC) Direct Operating Costs (DOC)
Cost reduction is achievable through Cost reduction is especially achievable through

corporate strategy optimization with the technological improvements of aircraft in the
aircraft operator. following areas:
Technological or efficiency improvements of • Low fuel burn

aircraft do not contribute to cost reductions in • Low maintenance efforts
this field. • Safety
• Reliability
• Commonality
Airbus A320 Cost Shares in 2008
Averaged values for 20 years operations, 3 US$/gal
Local Emission
Local Noise Charges EU-Emission
Charges 0.02% Trading Scheme
0.08%
1.47%
Insurance Cost
Average Aircraft Average Aircraft
0.13%
Direct Operating Costs Cash Operating Costs
Interest Cost
9.63% Cabin Crew
Cost
10.91%
Flight Crew
Depreciation Fuel Cost Cost
Cost 33.36% 9.41%
11.53%
Engine DMC Fuel Cost
3.15% 43.25%
Cabin Crew Cost Airframe DMC

8.42% 8.01%
Navigation
Flight Crew Cost Charges
7.26% 6.29%
Airport Charges
Source: Bauhaus Luftfahrt

13.98%
Groundhandling Landing
Charges Charges
0.85% 6.76%
Service
Engine DMC Groundhandling Charges Passenger
Navigation 1.34% Terminal Lightning
2.43% Charges Charges Navaid Charges Charges
Airframe DMC Charges Charges
0.65% 2.41% 3.97%
6.18% 4.85% 3.45% 0.19%
Airport Charges
Landing Charge
Lighting Charge
Terminal User Charge
Ground Handling Charge
Inspection Charge
Service Charge
Passenger Related Charge
Additional Charge Cargo Charge
Airport Tax & Development Charge
Noise Charge
Terminal Navaid Charge
Emission Charge
Noise Charges at Airports
NAP: Noise Abatement

Procedures
Crew Costs (Flight Deck & Cabin)
Variation of crew cost depending on Number of Crew

 Airline Business Model  20 seats and more: 1 cabin crew member
 Market Sector  Each 50 seats (per deck): 1 additional cabin
 Airline Age crew member (Canada: per 40 PAX onboard)
 Geographical region (crew´s base country)
 Aircraft type Flight crew:
 8h to 12h: 3 (typically 1 Cpt, 2 F/Os)
 >12h: 2 Cpts and 2 F/Os
Crew Costs: International Comparison
Share of Crew Costs in Total Turnover
Source: Handelsblatt Research Institute (2014)
Crew Costs: International Comparison
Crew Costs per Employee [€]
Source: Handelsblatt Research Institute (2014)
Maintenance Costs
Expenditures for maintenance and overhaul
 Direct Maintenance Cost (DMC): labor and material cost associated with airframe and
engine
 Indirect Maintenance Cost (IMC): Overhead, administration, tooling, testing equipment,
quality controls
 Aircraft Down-time (associated costs not included)
DMC Cost Share: Airframe / Engine
100%
Percentage on Total Maintenance Costs [%]
90%
80%
70%
60%
50%
40%
30%
Maintenance Burden %
20%
Direct Maint. - Engines %
10% Direct Maint. - Airframe %
0%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Airline Monitor Data, US A320 Fleet
Direct Maintenance Cost Share
DMC breakdown for airframe systems of narrowbody aircraft (Boeing 1990)
Windows 56 AC 21 Auto Pilot 22
Stabilizers 55 3.4% Wings 57 4.2% 2.5%
1.1% 3.4% Communication 23
Nacelles/Pylons 54 1.8%
0.7%
Fuselage 53 Electrical Power 24
Doors 52 3.8% 3.8%
2.5%
APU 49 Equipment/Interior 25
8.6% 11.8%
Water/Waste 38
Fire Protection 26
0.7%
0.6%
Pneumatics 36
Flight Controls 27
1.9%
4.8%
Fuel System 28
Oxygen 35 1.0%
Hydraulic Power 29
1.2% 3.2%
Ice & Rain Protection 30
1.0%
Lights 33 Instruments 31
Navigation 34 2.1% 1.4%
9.0%
Landing Gear 32
25.3%
Engine Maintenance Costs
Labor Cost
25%
32%
Repair Cost
10% Material Cost
65%
18%
11% 11%
9% 8% 9%
3%
Fan LPC Acces. HPC CC HPT LPT Misc.

Cost share of IAE V2500-A5 engine (MTU Maintenance 2013)
Engine DMC mean values for repair, material, and labor cost (Ackert, 2011)
ADOC: Emission Trading Scheme
 Additional costs for emitting CO2

 Aviation included in EU ETS since 2012, but only for Domestic EU Flights
 Allocation of free allowances to European Airlines (85% in 2012, 83% in 2013-2020
Operators
4.2 Operating Costs
Airline Planning Tasks
The most important planning decisions faced by airline managers can be

categorized as follows:
 Fleet Planning: What type of aircraft to acquire,
when and how many of each?
 Route Planning: Where to fly the aircraft
profitably, subject to fleet availability
constraints?
 Schedule Development: How frequently and at
what times on each route should flights be
operated, subject to operational and
aircraft limitations?
Stages of Airline Planning
Airline Planning is made on long term. It starts with long-term decisions of strategic
nature and continues with planning and steering activities of the airline management.
At the start of the airline planning process, detailed knowledge about the airline’s fleet
composition as well as the network to be served and the flight schedule to be offered is
available.
Strategic Decisions Planning Decisions Tactical Decisions
• Market planning • Flight schedule development • Capacity management and capacity
• Market strategies • Basic price structures (fares, adjustment
• Aircraft ordering / conditions) • Pricing
fleet planning • Fundamental decisions in
revenue management
Steering
Planning
Development
5 years ahead 1 year 6 months 3 months Take-off After Take-off

Airline Planning: Influence Factors
Market / Demand Operations Restrictions Quality
• Strategy / Market Share • Aircraft Performance • Fleet • Punctuality
• Amount of Passengers • Crew • Slots • Passenger Connections
• Yield per Passenger • Technical Requirements • Block Times • Baggage Connections
• Demand Behavior • Dispatch • Ground Times
• Competitors • Cost Structures • Airport Infrastructure
• Cooperation • Curfews
• Traffic Rights
• Aircraft / Fleet
• Frequencies
• Departure Time
• Hub Structure
Timetable of Scheduled Flights
Operators
4.2 Operating Costs
 Fleet Planning
 Route Planning
 Schedule Development
Questions in Airline Fleet Planning
Please buy one or more aircraft units with a budget of 145 Mio. US$!
Would you buy one of this type? Or would you buy several ones of this type?
Do you pay cash or by instalments?

Do you pay in Euros or Dollars?
What are your decision criteria?
Key Questions
An airline has to treat the

following questions in fleet
planning:
 When should it buy an aircraft?
 How many aircraft should it buy?
 Which types of aircraft should it
buy?
 Which type of aircraft should it use
on which route?
Cost Factors of an Aircraft Fleet
Operating Costs • Fuel, crew, maintenance, airport charges, take-off and landing fees, etc.
• Size of reserves, provision of spare aircraft in order to ensure stable traffic

Reserves (Back-Up)
operations
• Expenses and effort necessary to replace defective aircraft (crew licensing,

Flexibility of Equipment Replacements
capacity, range, etc.)
• Maintenance intervals, capacity utilization of maintenance operation, experience

Maintenance
concerning specific aircraft types
Degree of Standardization • Crew training, cooperation with manufacturers, technical inspections
Top-Level Goals of Fleet Development…
… from airline perspective:

 Minimum Operating Costs
 Modern aircraft
 Economies of scale in acquisition
 Fleet commonality
 Capacity and range flexibility
 Minimum capital investment
 Risk management
 Product differentiation
Aircraft Selection Criteria (1)
• Seats / Cargo Capacity

• Range
• Fuel Consumption
Technical Criteria
• Take-Off Performance and Speed
• Weights (MTOW, OEW)
• Noise and Exhaust Emissions
• Sales Price
• Residual Value
• Maintenance Costs
Financial Criteria
• Manufacturer Guarantees
• Product Support
• Fleet Commonality
• Passenger Comfort
• Crew Requirements
Other Criteria
• Required Infrastructure at Airports
• Delivery Flexibility (Production Slots)
Two major selection criteria: MTOM

Maximum
 Payload Capacity Fuel Reserves
Take-Off Mass
Design Point
 Range Capability
max. Fuel
 Payload-Range Diagram Fuel
MZFM
Mass
Maximum Zero Fuel
Mass
max. Payload
Payload
OME
Operating Mass
Aircraft Structure Empty
Range
The Payload-Range Diagram: Examples 787
Source: Boeing, Airplane Characteristics for Airport Planning
The most important criterion is the economic profitability of an aircraft that

is a direct result of its Direct Operating Costs.
The airline has to do an economic and financial trade-off before buying a
new aircraft:
Higher Lower
Ownership Costs Operating Costs
Further criteria also influence the airline’s selection of aircraft:
 Noise and emissions performance of the aircraft

 Cabin seat configuration, e.g., 6-abreast vs. 5-abreast (A320 vs. Jumbolino)
 Propeller vs. Jet, e.g., ATR vs. Bombardier Regional Jet
 Engine position, e.g., Boeing 737 vs. Boeing 717
 Variability of utility elements (e.g., kitchen)
 “Passenger appeal” (Have you already flown with an Airbus A380??)
 Influence on fleet selection by politics
 …
The Airline Fleet Planning Cycle
Annual Strategic
Planning
- Strategic goals on long
term (5 years+)
- Definition of product to
deliver to the customer
Result = Aircraft Fleet

Selection of aircraft
Required based on
types based on
- Demand projections
- Direct Operating (routes, growth rates,
Costs
yield, etc.)
- Cash Operating Costs - Cost projections
Required: X aircraft No. of aircraft required

with Y seats and a = sum of...
range capability of Z - Aircraft needed for
miles planned expansion
- Based on demand - plus aircraft for
projections rollover/retirement
- Market growth (replacement of old
forecasting aircraft)
Critical Inputs required for Fleet Planning
The most critical inputs include

 the air traffic forecast
 yield forecast
 estimated aircraft productivity
 operating costs
These data usually come from databases managed by different departments

within the airline, which can make the planning process difficult to
implement in practice.
Two fundamental Approaches to Fleet Planning
1. The ‘top-down’ or ‘macro’ approach based on relatively high-level

aggregate analysis
2. The ‘bottom-up’ or ‘micro’ approach based on much more detailed

analysis of data and forecasts by flight and route
The Macro Approach to Fleet Planning
The main input data required for this approach consist of the traffic forecast
and a target average load factor. In addition, the retirement of older aircraft
must be considered. Airline Transport
RPK = lf ∙ ASK = lf ∙ ෍(Seats ∙ Dist ∙ Freq)
Performance:
lf a/c
2
ASK2
Market Growth
lf Gap Capacity Gap:
RPK2
1 New Aircraft required
ASK1 Retirement Gap
RPK1
ASK’2
Remaining ASK
Year 1 (Base Year) Year 2 Time

Source: Belobaba (2009), Clark (2007)
...the same applies to ATK.
The Micro Approach to Fleet Planning
involves a much more detailed evaluation of specific route characteristics

and aircraft requirements.
…requires much more detailed descriptions of future scenarios for the
subnetwork or routes under consideration (e.g., traffic growth rates of
specific Origin-Destination Markets)
…generates much more detailed outputs that include individual aircraft tail
assignments and operating statistics by route, flight, and even aircraft tail
number.
The airline’s own share of total demand in each O-D market must be
estimated with a market share model.
The Micro Approach to Fleet Planning
Forecasts of demand and revenues for each O-D market are then allocated
to each future flight in the airline’s schedule using a traffic allocation model.
The Micro Approach provides the airline with a complete representation of

its network and operations under different fleet alternatives for a range of
time periods into the future.
The Micro Approach requires highly detailed input data featuring high
uncertainty about the future. The Macro Approach is therefore more
commonly used.
Operators
4.2 Operating Costs
 Fleet Planning
 Route Planning
Route Planning
Goal of route planning: Airline defines the route network to be flown.

 Aircraft & fleet performance characteristics for specific routes provide a feedback loop
to fleet planning decisions!
Performance
Capabilities
Fleet Planning Route Planning
Performance
Requirements
 Route planning is made both on long-term (strategic planning, time horizon: several
years) and short-term (tactical planning, time horizon: weeks to months) basis.
Route Evaluation (1)
Economic considerations dominate route evaluation
 Does the route own the potential of being profitable when served?
Important input data required for route evaluation:
 Passenger and cargo demand forecasts
 Expected market share
 Expected revenues
 Competitor’s behavior
It is important not to consider the O-D passengers only, but also the
connecting passengers (hub-&-spoke network).
There might be routes that are not profitable by themselves (considering
only O-D passengers), but that make an important contribution as “feeder
operations” to other routes within the airline network
Route Evaluation (2)
Criteria for route evaluation:
 Incremental profitability (on short term): estimating the opportunity cost of taking
aircraft from one route to another.
 Technical capability and availability of aircraft: adequate range and payload
capacity.
 Operating cost characteristics of aircraft: estimating the operating costs when
operating the aircraft on a specific route.
 New route? Consider additional costs of establishing airport facilities, sales offices, and
staff relocation.
 Political and legal restrictions, bilateral agreements, limited airport slots, etc.
 Strategic considerations: evaluate competitor’s behavior and decide how to (re)act
Route Profitability Model
…used by airlines to select routes to maximize the total profits,

 given a set of candidate routes and estimated demands,
 subject to fleet and capacity constraints.
Results depend entirely on the quality of the input data. Garbage in, garbage
out! Need to do sensitivity analyses!!
Example: Route Profitability Analysis: Route Proposal:

Montreal (YUL) to Rome (FCO), non-stop, 6,600 km of stage length
YUL – FCO: Revenue Calculations
Demand and fare estimates for year Annual demand Average revenue (one way) TOTAL REVENUE
Total YUL-FCO local O-D passengers (both directions) 102,000

Expected market share for one daily flight 70%
Local YUL-FCO passengers on new flight 71,400 $450 $32,130,000
Additional Traffic
Connections North American cities behind YUL to/from
FCO 24,000 $425 $10,200,000
Connections to/from YUL beyond FCO 12,000 $400 $4,800,000
Connections behind YUL to/from destinations beyond FCO 4,500 $375 $1,687,500
Total passengers (both directions) 111,900 $48,817,500
Additional cargo revenue (estimated 10% of Pax revenue) $4,881,750
TOTAL REVENUES $53,699,250
YUL – FCO: Operating Cost and Profit Calculations
Inputs and assumptions Calculated measures (per annum)
Aircraft type Boeing 767-300ER Annual flights 716

No. of seats 210 Block Hours 6,086
Total annual flights (each direction) 358 RPMs 457,223,400

(reflects 98% completion of daily schedule) Pax yield 0.1068
ASMs 614,370,960
Block Hours YUL - FCO 08:00 Seat departures 150,360
Block Hours FCO - YUL 09:00 Passengers enplaned 111,900
Average load factor 74.42%
Stage length YUL / FCO 4,086
Aircraft operating costs per Block Hour TOTALS

Crew costs $890
Fuel / oil $3,280
Ownership $870
Maintenance $710
Total per Block Hour $5,750 DIRECT OPERATING COSTS $34,994,500
Indirect operating costs

Passenger service $0.015 per Revenue Pax Mile (RPM) PAX SERVICE $6,858,351
Traffic servicing $22per enplanement TRAFFIC SERVICE $2,461,800
Aircraft servicing $1.800 per departure AIRCRAFT SERVICE $1,288,800
Promotion and sales 9.00% of passenger revenues PROMOTION / SALES $4,393,575
General and administrative $0.002 per Available Seat Mile (ASM) GEN ADMINISTRATION $1,228,742
Operating costs $51,225,768
Operating profit $2,473,482

Operating margin 4.8%
Operators
4.2 Operating Costs
 Fleet Planning
 Route Planning
Schedule Development
Four major tasks:

 Frequency planning: how often should the airline operate flights on the selected route
network?
 Timetable development: at what times should flight departures be scheduled?
 Fleet assignment: what type of aircraft should be used for each departure time?
 Aircraft rotation planning: how should each aircraft type be flown over the airline’s
network in order to ensure an overall balance of aircraft arrivals and departures et each
airport?
Schedule Development: Chronological Overview
Fleet planning
decisions
Aircraft availability
Route evaluations
Unexpected
operational
Timetables of departure times
constraints
Aircraft rotation plans
Final revisions
2-5 years ahead 1 year 2-6 months Flight departure

Time
Source: Belobaba (2009)
Task 1: Frequency Planning
 Based on the outputs of the route evaluation process, the airline should already have
estimates of the total “local” demand between the origin and destination served by the
route under consideration.
 The airline’s supply decision consists of two choices: number of departures per day
and number of seats to be offered on each departure
Higher frequency / lower seat capacity Lower frequency / higher seat capacity
= =
Increasing Pax convenience Decreasing Pax convenience
& &
Source: Belobaba (2009) Increasing operating costs Decreasing operating costs
Task 2: Timetable Development
 Initial goal of the airline: provide departures at peak periods (usually at around 09:00 am
and 5:00 pm), especially for business travelers
 This is not always possible: slot restrictions, limited amount of aircraft in fleet, etc.
 Trade-off required:
Maximization of
Pax convenience
Important issues to consider: aircraft utilization
 Turn-around time at the airport (de-/boarding, cleaning, refueling, etc.)

 Schedule quality for return flight (resulting in a reduced load factor)
 Connecting times (hub network)
 Time zone differences between origin and destination airport
 Regulatory constraints (e.g., night curfews at certain airports)
 Crew scheduling requirements & aircraft routine maintenance
Task 2: Timetable Development-The Schedule Map
Schedule maps are a visual representation of flight legs that incorporate

aircraft movement in terms of both geography and time.
 EXAMPLE: two aircraft operating as feeders in a small European network
ARN AMS FRA MAD
(main hub)
07:00 07:00
10:00
10:30
Long
Turn-around 13:30
15:00
17:00
Connecting banks at
19:00 19:00 FRA for European
feeder traffic
21:00
Long
Overnight
23:30
Task 3 & 4: Fleet Assignment and Aircraft Rotations
 Fleet Assignment Problem (FAP): determines the type of aircraft to be flown on each
flight leg departure, given a planned network of routes and specified timetable of
flights.
 Objective of FAP: Minimize the combined costs of “spill” (= rejected payload demand)
and aircraft operating costs over the entire airline fleet and network.
Payload Spill Operating Costs

(larger aircraft) (smaller aircraft)
 …subject to: constraints such as minimum ground time, maintenance requirements,

number of aircraft by type available, aircraft rotation constraints (= ensure
feasible aircraft cycles, balance of aircraft inflow/outflow at each airport)
Aircraft Utilization
Utilization = Block Hours (BH) + Turn-Around Hours (TH) + Maintenance

Hours (MH)
 BH = Time needed to accomplish flight mission from gate to gate

 BH = f (stage length, cruise speed, airport infrastructure, etc.)
 TH = Time needed to de-/board the aircraft and make it ready for the next flight mission
 TH = f (no. of passengers, type of aircraft cabin, airport infrastructure, etc.)
 MH = Time needed to maintain the aircraft

 MH = f (type of aircraft, type of engines, degree of utilization, etc.)
Aircraft Availability
What is aircraft availability?

 Aircraft availability = 1 – ‘non-availability’
 non-availability’ = days-out-of-service + technical day
 Traditionally, needs to be explored with each specific airline
Not available: typical 5 to 10% of a year (18 to 36 days): for multiple reasons
Not utilized: big portion of airplane available timesmart operators utilize
to the maximum
More efficient use of utilized time: get extra flights and profit!
Airlines, MROs,* and manufacturers: must work together to achieve higher
aircraft availability!
How a Boeing 777 spends a Day
Source: Boeing (2013)
How a 737NG spends a Day with major US Airline
Source: Boeing (2013)
Airline, MRO, & Manufacturer Partnership
Enhancing aircraft availability More reliable airplanes: less delays

 Schedule reliability: from 98% to 99.4% (777)
Rapid parts delivery
 < 24-hour delivery time
Operations center
 7/24 rapid response
Daily checks tasks reduced
Check Interval Optimization
 A-Check: from 600 Fhrs to 1,000 Fhrs
 C-Check: from 2 years to 3 years
 Days-out-of-service: 17 to 12 days
Air Transport & Airport
Part 5: Airport Operations
Design / Luftverkehr
Winter Term 2022/2023
Dr. Kay Plötner Munich, October 2022
I 240 I © Bauhaus Luftfahrt e. V. I I
5.1 Airport Elements and Operations
5.2 Airport Planning
5.3 Airport Capacity
Lessons Learned Chapter 5
What are major airport facility components?

What is an airport masterplan?
How is runway capacity determined and what are main elements impacting
the capacity?
The Airport System
Landing Take-Off
Runway Runway
Taxiway Taxiway
Airside Airside
Aircraft
Apron Apron
Parking Position Parking Position
Gate Catering Gate

Post
Freight
Land Side Arrival Area Departure Area Land Side
Baggage Claim Pax Handling
Ground-based Means
Car Parking Streets Streets Car Parking
of Transport
City Connections
Airport Elements
Duty free
Läden, etc
shops
Ramp
Gate 1
Landside
Parken Flughafe
n
Gate 2
Flughafe
n
Apron
Terminal
Flughafe
GA
n
Tower
Flughafe
n
Vorfeld
Flughafe
n
n
hafe
Flug
Flughafe
n
Hangar
 Landside including the

Flughafe
n
Fracht
facilities for passenger
handling and assistance:  Airside with technical & operational facilities for
focus on the passenger Hand-out - 17.06. 2009 - 2
handling the air traffic: focus on the airplane
Major Airport Facility Components
Runway Maintenance Hangars
Taxiway Car Parking Areas
Air Traffic Control Facilities: Street Connections
 Tower Public Transport Connections
 Apron / Ground Control Airport Maintenance and Winter Services
Nav Aids Electric Energy Supply
Lighting Waste Water Facilities
Fuel Tanks Security Fences and Gates
Pax Terminals and Apron Hotels
Cargo Terminals and Apron Industry Facilities
General Aviation Area Safety Facilities (fire department, medical
Catering Services services, etc.)
Airport Layout (Munich Airport)
Source: Jeppesen
Example 1: New York La Guardia
 Two intersecting runways
 Normally operated with two

active runways, one used
primarily for arrivals and the
other for departures
 In strong wind / poor

weather conditions, all
movements may be
accommodated on a single
runway
Example 2: Munich
 Two independent parallel

runways
 Northern runway used
primarily for north-bound
departures and arrivals,
southern runways for south-
bound traffic
 Two types of passenger
terminals: T1 for O-D traffic
(point-to-point network), T2
for connecting traffic (hub-
and-spoke network)
Example 3: Atlanta International
 Main runway system consists of two

pairs of close parallel runways
 Typically, runways 08L/26R and
09R/27L are used for arrivals and the
other for departures
 Passenger terminal consisting of a main
terminal and five linear mid-field
satellites, all connected via an
underground passage and automated
people mover
Airside Elements of the Airport (1): Runway
Runway
 made of concrete or bituminous construction
 dimensioning in compliance with ICAO guidelines
and mean sea level
Navigation lighting
 Border lighting
 Middle line lighting
 Edge lighting
 Approach lighting
Signage
Airside Elements of the Airport (2): Taxiways
Taxiway
 made of concrete or bituminous construction
 dimensioning in compliance with ICAO guidelines
Navigation lighting
 Border lighting
 Middle line lighting
 Stop Bar lighting
Signage
Taxi guidance surveillance systems, e.g.

induction loops
Airside Elements of the Airport (3): Apron
Apron
 mostly made of concrete
 rarely bituminous construction
Navigation lighting ,Taxi guidance
systems
Docking systems, Boarding bridges,
Parking positions
Areas for parking operational devices
Optional:
 Electric power supply
 Fuel supply (hydrants)
 Pre-Conditioned Air Units (PCA)
 Air Starter Units (ASU)
Airside Elements of the Airport (4): PAX Handling (Terminal)
Primary Elements Secondary Elements
 Check-In Counters  Lost & Found
 Ticket Counters  Restaurants
 Security Control  Travel Agencies
 Waiting Areas  Spiritual Welfare
 Baggage Systems  Travel Requisites and other
 Customs Control commercial facilities
 Immigration Control  Lounges (Business / First
Class)
 Border Control
 Tourist Information Center
 Baggage Claim
 Medical Services
Airside Elements of the Airport (4): Passenger Terminal Layouts
General Airport Requirements and Planning Factors
Requirements Planning Factors

 Safe operations  Number and direction of runways
 24/7-operability  Number of taxiways
 Economic efficiency  Size and shape of apron
 Intermodal connections  Terrain conditions of available land surface
 Minimization of environmental impact  Navigation obstacles
 Acceptance with local population  Land surface available for future expansion
projects
 Meteorological conditions
 Size of planned airport facilities
Airside Planning Fundamentals
ICAO Regulations
 Convention on International Civil Aviation of 7 December 1944 (Chicago) and their
annexes (Annex 1 - 18) and the Manuals
ICAO, acting on the basis of convention specifications for the design,
construction, and operation of airports and their facilities. Goal: the
establishment of international quality and safety standards.
The ICAO fundamentally distinguishes between “Standards" and
"Recommended Practices.“
Standards are compulsory: minimum planning requirements for all airports
of the member states.
Recommended Practices are non-compulsory recommended
implementation guidelines.
ICAO Guidelines for Airport Planning (1)
Source: ICAO
ICAO Annexes 1-18
Source: ICAO
Annex 14: PART I: AERODROME DESIGN AND

OPERATIONS
A) Aerodrome Data
 In order to classify airports, an Aerodrome reference code
(ARC) is defined
 The classes are related to aircraft categories (aircraft reference
code). As a result, various qualitative and quantitative planning
projects for the airports can be determined.
 The Aerodrome Reference Code is composed of:
 Aeroplane reference field length
 Aircraft reference code consisting of the aircraft wingspan and
the wheelbase of the outer main gear
Airside Design Standards
Source: ICAO
ICAO Aerodrome Reference

Code (ARC)
 Classification of aircraft in
Airport Reference Codes for
airport planning
 2 code elements: flight
performance + geometric
properties
Aircraft Dimensions and References
6 Airports Codes
(Definition of geometric minimum
requirements)
Airplane
parameters
Source: ICAO

OPERATIONS
b) Physical Characteristics
This chapter describes (among others) the requirements to
topography and design of the runway system, the apron, the
aircraft parking positions, and the taxiways with respect to:
 Dimensioning (length, width, height)
 Admissible lengthwise and crosswise gradients
 Curve radii
 Constructional and qualitative surface design (profiles)
 As a function of the airport reference code, allowances of safety

clearances between the functional areas are defined in particular
Example: Calculation of Taxiways/Radii
Source: ICAO
Source: ICAO

OPERATIONS
c) Obstacle restriction and removal
When building an airport, certain obstacle clearances are to be
maintained for safe airport operations. Buildings and other artificial and
natural obstacles of the environment of the airport are only permitted to
have certain limited heights.
The maximum heights are determined according to the following aspects:
 Inner Arrival / Departure Zone | Direct Arrival Area Landing / Take-Off
Zone |Transition Zone
 Landing System depending on airport without Instrument Landing or
Airport without Precision Landing System
Source: ICAO

OPERATIONS
d) Equipment and Installations
 Among others, the installation and the operation of technical equipment
(e.g., electric energy supply, safety lighting, etc.) are defined here.
e) Emergency and other Services
 The requirements to rescue services, airport fire department, and
emergency planning are defined here.
2.2 PART II: Heliports
 The planning prescriptions of Part I (Aerodrome Design and
Operations) are analogously valid for helicopter airfields, however
aircraft-specific requirements are adapted.
Source: ICAO
Annex 14: Manuals

 Manuals are added to the ICAO convention and its
annexes. The books based on Annex 14 specify the basic
planning prescriptions at a high level of detail.
As far as Annex 14 is concerned, the following

major manuals are:
 Aerodrome Design Manual
 Airport Planning Manual
 Airport Service Manual
 Heliport Manual
The Airport Master Plan
Source: Gaffal (2014)
The airport master plan is a development plan for the airport facilities that is
supposed to ensure a well-coordinated and demand-oriented expansion of
the airport.
The master plan is supposed to describe
 where the future development and expansion projects will take place and
 what maximum potential they may reach and to consider a certain time horizon.
The major goal of the master plan is to define the balance of capacity, i.e.,
an economically well-balanced equilibrium among the primary traffic
handling facilities
Further goals of the master plan are to show future perspectives to provide
internal and external information, and to direct the general planning of the
airport infrastructure and its financing
Balance of Capacity
Source: Gaffal (2014)
Regional Connections
City Connections
Car Access
Car Parking
Terminals
(public, non-public)
Apron
Runway
Airspace
The capacity of the entire airport system is determined by the element with the smallest capacity.
Airport Master Plan: Toronto Pearson Intl. Airport
Source: Toronto Pearson Airport
Airport Master Plan: Memphis Intl. Airport
Airport Capacity: Airside Capacity (1) - Runways
The most important airport elements determining the airport airside capacity
are the runways, the taxiways, and the aprons.
Runway Capacity (“Maximum throughput capacity”): “…defined as the
expected (“average”) number of movements (landings and takeoffs) that can
be performed per unit of time, typically 1 hour, in the presence of
continuous demand and without violating air traffic control separation
requirements.”
The runway systems of the world’s busiest airports belong to the principal
“bottlenecks” (limiting factors) in many regions of the world.
Airport Capacity: Airside Capacity (1) - Taxiways
Taxiway Capacity:
 At major airports, the taxiway capacity almost always exceeds the runway capacity by
considerable margin.
 Some exceptions may exist at older airports with limited land area or inadequate
taxiway systems.
 Taxiway capacity problems are airport-specific and must be resolved in the context of
local conditions.
Airport Capacity: Airside Capacity (3) - Apron
Static Capacity:
 refers to the number of aircraft stands available at the airport, i.e., the maximum number
of aircraft that can be stationed on the apron simultaneously.
 stands may be designed for specific aircraft types only.
Dynamic Capacity:
 indicates the number of aircraft that can be served at the apron per unit of time, typically
per hour, and is the more important measure for operating and planning purposes.
 takes into account the stand occupancy times: for a given static capacity, short stand
occupancies result in a high dynamic capacity and vice versa.
 The most critical question is whether the dynamic capacity is consistently greater than
the capacity of the runway system, so that the apron does not constrain runway
operations.
ICAO Aircraft Classification

The capacity of a single runway is largely (Wake Turbulence Categories)
determined by the minimum separation Heavy (H) MTOW > 136 tons
Medium (M) 7 tons <= MTOW <= 136 tons
requirements between consecutive aircraft for Light (L) MTOW < 7 tons
same-runway operations.
FAA Aircraft Classification
(Wake Turbulences Categories)
The minimum separation requirements are Heavy (H) MTOW > 116 tons
specified for every possible pair of aircraft Boeing 757 MTOW at the borderline btw. L and
H Classes: 757 constitutes an
classes (e.g., Heavy-Class Aircraft followed by aircraft class by itself due to its
severe wake vortices.
Light-Class Aircraft) and for every possible Large (L) 19 tons <= MTOW <= 116 tons
sequence of movements (e.g., departure Small (S) MTOW < 19 tons
followed by arrival).
Excursion: Wake Turbulence Videos
Excursion: Wake Turbulence
Source: Airbus
Aircraft Separation Requirements (ICAO)
Leading aircraft …followed by…
A380
Super
Heavy
> 136 t
Medium
≥ 7 - 136 t
Light Minimum Separation [Nautical Miles]

< 7t
3NM 4NM 5NM 6NM 7NM 8NM
Further factors influence the runway capacity:

 Aircraft performance characteristics: e.g., speeds on final approach influencing the
runway occupancy time and the time separation between consecutive landings
 Geometric characteristics of the runway: e.g., availability of well-spaced high-speed
exits reducing runway occupancy time on landing
 Aircraft fleet mix: a homogeneous mix of aircraft will result in higher capacities than
when the runway is used by a diverse mix
 Types of movements (arrivals only, departures only, or mixed operations)
When a multi-runway system is being employed, two important factors

influence the overall capacity of the runway system:
 Geometric layout
> 1,035 m
> 210 m
Closed Parallel Runway System: Open Parallel Runway System: Crossing Runway System Complex Runway System
A/C OPS mutually dependent A/C OPS mutually independent Example: Hamburg Example: Amsterdam
Example: Frankfurt Example: Munich
 Degree of dependence between operations on different runways: the extent to

which operations on a runway may constrain operations on one or more other active
runways. In the best case, movements on two different simultaneously active runways
are mutually independent.
Lecture content and dates 1st block 3rd block
(4.11.2022)
1. History of Civil Air Transport 4. Commercial Aircraft Operators (18.11.2022)
1.1 Milestones of Human Flight 4.1 Business Models and Networks

1.2 Major Technological Prerequisites 4.2 Operating Costs
1.3 Commercialization of Air Transport 4.3 Airline Planning and Strategy
2. Introduction to Modern Civil Air Transport 5. Airport Operations
2.1 Facts and Figures 5.1 Airport Elements and Operations
2.2 Market Outlook 5.2 Airport Planning
2.3 Future Challenges in Aviation 5.3 Airport Capacity
2.4 Major Players 6. Air Traffic Management
2.5 Rules and Regulations 6.1 Elements of an ATM System
2.6 Safety 6.2 Airspace and ATM Authorities
3. Aircraft Life Cycle and Development 6.3 ATM Operations
3.1 Consumer Needs 7. Environmental Impact of Aviation
3.2 Aircraft Life Cycle 7.1 Aircraft Noise
3.3 Aircraft Design Process 7.2 Aircraft Exhaust Emissions 4th block
3.4 Aircraft Cabin Design 2nd block (25.11.2022)
3.5 Costs (11.11.2022)

Air Transport and Airports Lecture 3

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Air Transport and Airports Lecture 3

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Lecture content and dates 1st block 3rd block

1.1 Milestones of Human Flight 4.1 Business Models and Networks

Criteria: Business Cases:

Complete aircraft Single Seats Short distance

Cargo Carrier in all Categories Full Service

Based on Conrady (2013)

Past Present Future?!

FSC: Full-Service Carrier, LCC: Low-Cost Carrier, LR: Long Range

Dual-Brand Hybrid/ Full-Service

Aircraft Operations Airports Distribution Personnel Service

Based on Conrady (2013)

Point-to-Point VS. Hub-&-Spoke

Hub-and-Spoke Systems Disadvantages:

Source: OAG mapper.

Middle East Middle East

Europe Europe Europe Europe Europe

Indirect Operating Cost Direct Operating Cost

Program Cost Operating Cost Disposal Cost

Indirect Operating Costs (IOC) Direct Operating Costs (DOC)

Costs of Ownership (COO)

Indirect Operating Costs (IOC) Direct Operating Costs (DOC)

Cost reduction is achievable through Cost reduction is especially achievable through

Technological or efficiency improvements of • Low fuel burn

Cabin Crew Cost Airframe DMC

Source: Bauhaus Luftfahrt

Airport Tax & Development Charge

NAP: Noise Abatement

Variation of crew cost depending on Number of Crew

Share of Crew Costs in Total Turnover

Source: Handelsblatt Research Institute (2014)

Crew Costs per Employee [€]

Source: Handelsblatt Research Institute (2014)

Source: Airline Monitor Data, US A320 Fleet

Fan LPC Acces. HPC CC HPT LPT Misc.

 Additional costs for emitting CO2

The most important planning decisions faced by airline managers can be

5 years ahead 1 year 6 months 3 months Take-off After Take-off

Timetable of Scheduled Flights

Do you pay cash or by instalments?

What are your decision criteria?

An airline has to treat the

• Size of reserves, provision of spare aircraft in order to ensure stable traffic

• Expenses and effort necessary to replace defective aircraft (crew licensing,

• Maintenance intervals, capacity utilization of maintenance operation, experience

Degree of Standardization • Crew training, cooperation with manufacturers, technical inspections

… from airline perspective:

• Seats / Cargo Capacity

Two major selection criteria: MTOM

The most important criterion is the economic profitability of an aircraft that

Further criteria also influence the airline’s selection of aircraft:

 Noise and emissions performance of the aircraft

Result = Aircraft Fleet

Required: X aircraft No. of aircraft required

The most critical inputs include

These data usually come from databases managed by different departments

1. The ‘top-down’ or ‘macro’ approach based on relatively high-level

2. The ‘bottom-up’ or ‘micro’ approach based on much more detailed

Year 1 (Base Year) Year 2 Time

involves a much more detailed evaluation of specific route characteristics

The Micro Approach provides the airline with a complete representation of

Goal of route planning: Airline defines the route network to be flown.

Fleet Planning Route Planning

…used by airlines to select routes to maximize the total profits,

Example: Route Profitability Analysis: Route Proposal: