Applying Benefit–Cost Analysis for Airport Improvements

Abstract

Benefit–cost analysis (BCA) is widely used for airport investment analysis, for both ranking of alternatives and funding decisions. Although the technique is theoretically straightforward, its application can become complicated by a series of factors that are particularly problematic for aviation applications. For one, the requirement for ground access makes air travel intrinsically multimodal. In addition, the speed of air travel attracts classes of users and dependent parties with particular speed sensitivities and delay consequences. When BCA is applied to airport project proposals, it can raise issues of how to handle competing modes and intermodal interactions, and the definition of the real users and beneficiaries of airport improvements. To examine these issues, the authors compared benefit–cost guidance for airports with counterpart guidance for other travel modes and conducted a review of the current state of practice of benefit–cost studies for airport improvements. The findings point to challenges for improving methods of airport BCA.

Hubungan Antara Kinerja Bandar Udara Dengan Kebijakan Pembiayaan Melalui Skema Public Private Partnership: Studi Kasus Bandar Udara Dalam Lingkup Pengelolaan Angkasa Pura Ii

“…Benefit Cost Analysis telah menjadi standar yang diterima untuk pengambilan keputusan pendanaan terutama untuk proyek infrastruktur besar karena besarnya taruhan dan risiko yang terkait dengan proyek tersebut. Ini telah diterima secara luas untuk investasi modal penerbangan, karena sumber daya yang dibutuhkan untuk membangun bandar udara baru dan memperluas bandar udara yang ada dapat menjadi signifikan (Landau et al, 2010). Tren liberalisasi telah menjauhkan maskapai penerbangan dari kendali negara dan memperkenalkan pendekatan berorientasi pasar, yang berdampak pada penyedia infrastruktur, mengubah model tata kelola, dan struktur pasar mereka (Cruz & Marques, 2011).…”

Airport site selection

“…In practice, however, this part of the assessment seems rarely to have been material to any project approval. A review of the FAA's approach to CBA (see Landau, Weisbrod, and Alstadt, 2009) suggests that this approach has been reasonably successful in marrying together different impacts of airport infrastructure on economic development at the local and national level, and has perhaps helped constrain PIMBY lobbying. Experience at the expert workshop suggested that, in a similar way, the increased use of CBA in Japan had helped to constrain PIMBY lobbying.…”