Large commercial airports in the United States : operative revenue framework

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2002.Includes bibliographical references (leaves 227-230).The air transportation system in the United States is in a state of constant change and adaptation. Greatly affected by rapid changes in the industry are the large commercial airports that handle the greater proportion of passenger traffic. To increase capacity, maintain adequate levels of safety and security, and provide increased convenience and comfort to passengers, these airports need to invest heavily in capital programs, whose prices continue to escalate rapidly. The funding of capital programs for airports in the United States is closely associated with their operating revenue structures. Therefore, this thesis develops a framework for understanding these operating revenue structures. The high concentration of the air traffic in the United States suggests that a large portion of investment in airport infrastructure will be destined to few large facilities. Hence the primary area of concern of this study is the largest commercial airports in the United States Part I examines the financial data of the airports at the aggregate level to create a consolidated financial profile of these facilities. The consolidated operating revenue is analyzed to identify the most important line items. Special consideration is given to the alternative cost recovery methodologies - residual, compensatory and hybrid - used by airport operators to set their aeronautical fees. The objective of this exercise is to identify the main drivers and factors that shape the revenue structure of large commercial airports. In addition, by synthesizing scattered operational and financial data, the research highlights the impact of airport operations and business practices on the airports' revenues. Part Il contains the case studies of three airports. Each case is evaluated within the basic framework used to analyze the system at an aggregate level in Part 1. However, the evaluation of the case studies also emphasizes the unique characteristics of each case. The case studies include Logan International Airport in Boston (BOS), Dallas/Fort Worth International Airport (DFW), and Baltimore/Washington International Airport (BWI).by Victor Rivas.S.M