2013
DOI: 10.1016/j.trc.2011.10.003
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Estimating domestic US airline cost of delay based on European model

Abstract: Abstract-In this paper, we detail a method for calculating the cost of delays to an airline. The approach extends a EU report that calculated delays for three alternative scenarios (low cost, baseline costs and high costs) and for short delays (under 15 minutes) and long delays (over 65 minutes). Our extension to this report determines the factors that make up the multipliers presented in that report. We next apply the individual cost factor delays to US data. The approach allows one to update the cost wheneve… Show more

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Cited by 64 publications
(22 citation statements)
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“…Despite this focus on late arrivals, we expect that among all late flights, those incurring longer delays and cancellations will have a disproportionately larger negative impact on market returns than those that are simply late, for several reasons. First, flights that incur long delays or cancellations for reasons within the airlines' control result in substantial costs for refunds, rebooking of passengers, hotels, meals and incidental expenses, over and above additional fuel and staff costs incurred by all late flights (Ferguson et al 2013). Second, in terms of passenger experience, passengers making connections at hub airports have a higher chance of missing their connections when the first leg of their flight has a longer delay.…”
Section: Hypothesis Developmentmentioning
confidence: 99%
“…Despite this focus on late arrivals, we expect that among all late flights, those incurring longer delays and cancellations will have a disproportionately larger negative impact on market returns than those that are simply late, for several reasons. First, flights that incur long delays or cancellations for reasons within the airlines' control result in substantial costs for refunds, rebooking of passengers, hotels, meals and incidental expenses, over and above additional fuel and staff costs incurred by all late flights (Ferguson et al 2013). Second, in terms of passenger experience, passengers making connections at hub airports have a higher chance of missing their connections when the first leg of their flight has a longer delay.…”
Section: Hypothesis Developmentmentioning
confidence: 99%
“…Gillen et al (1985Gillen et al ( , 1990 measured and compared the productive performance of seven Canadian air carriers during 1964-81 by analyzing total factor productivity (TFP) and total cost functions. Ferguson et al (2013) described the development of an airline cost model, based on the Eurocontrol model, which explicitly identified the components of airline costs for US airline cost data including 111 aircraft types. Zou and Hansen (2012) developed and incorporated two distinct sets of operational performance metrics into the airline cost models as arguments.…”
Section: Literature Reviewmentioning
confidence: 99%
“…In a study on the economic loss of aircraft based on Eurocontrol standards, Cook and Tanner [31] compared the management costs of takeoff delays and in-flight delays. The work of Ferguson et al [32] used Eurocontrol criteria to analyze delays over a period of time at 19 major airports in the United States by type of aircraft, time of day, and route.…”
Section: Delay Cost Analysismentioning
confidence: 99%