Improving the Passenger Experience Concepts to Incorporate Technology into Landside Airport Operatio

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Improving the Passenger Experience Concepts to
Incorporate Technology into Landside Airport
Operations and Aircraft
January 26, 2006
Susan E. Cliff Ames Research Center John E.
Melton Ames Research Center Scott D.
Thomas Raytheon Mary E. Livingston Ames
Research Center
Revolutionary Systems Concepts in Aeronautics
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Agenda

• Introduction
• Status/trends of the air transportation industry
• Airport diversity issues
• Concepts
• Logistics
• Pros and Cons
• Interviews
• Turn-around-time assessment of concepts
• Impact of reduced turn-around-time on delays
• Recommendations

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Introduction

• Flying was fun at the start of the jet age
• Economic performance is the design goal due to
  deregulation and privatization
• 1.7 billion PAX in 2000, 1 trillion in revenues
  (half in U.S.)
• Traffic will double within the next 20 years
• Airports take 10 years to plan and need
  renovation after 20
• lt 20 further capacity gains predicted via
  airside technology
• U.S. must continue to lead and maintain growth in
  this industry
• Little new technology in 30 years on landside
  little NASA involvement
• Investment in IT and telecommunications on the
  rise
• NASA can help

4
Current Trends/Status of the Air Transport
Industry
Seat-cost /mile

• Several legacy carriers have filled bankruptcy
  and many have disappeared
• New low cost carriers (LCCs) emerging and
  proving successful
• Point-to-point routes ensure high load factors
• Utilizing the secondary airports (lower landing
  and service fees)
• Lower levels of service to passengers at a
  decreased ticket price
• Intense competition forcing reduced levels of
  service across all airlines
• CD forces economic efficiency with less/no
  government involvement
• Largest airports in the world are now transfer
  hubs (consequence of CD)
• Inconvenience to PAX - lengthens total trip time,
  increases delays and risk of lost baggage
• Airlines benefit from more frequent flights, a
  ready supply of backup flights, and higher load
  factors

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Airports appear simple but no two airports are
alike!If youve seen one airport, youve seen
one airport

• Diversity (Covered in written report)
• Cost structure (user charges / residual or
  compensatory)
• Owner / Management structure
• Planning
• Architecture
• Controlling power
• Finance
• 9/11 limits access
• Fundamental problems
• Limited information
• 2 textbooks (one current)
• A handful of research articles, and the Internet
• Much is proprietary
• Who do we talk to? Who will talk to us?

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Metrics for Innovative Landside and Aircraft
Concepts

• Passenger experience
• Safety and security
• Airline and airport ground operations
• Worker efficiency
• Aircraft efficiency
• Cost effectiveness
• Turn around time
• Total trip time
• Environmental friendliness

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List of Concepts

• Hardened cargo bins for narrow bodies (pressure
  and sniff tested)
• Modular aircraft with removable wings, toilets,
  and water holding tanks
• Oblique wing aircraft with LRU toilets and water
  holding tanks
• Passengers carry luggage under seat/floor
  hardened bins
• Autonomous baggage carts
• Airlines offer door to door baggage delivery
• Personalized service stations
• Travel information pads (TIP)
• Two abreast seating
• Over-the-wing nacelles
• Personalized rapid transit (PRT)

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1. Utilize hardened cargo bins

• Utilize hardened cargo bins on all aircraft
• Bins capable of withstanding an explosion below
  the detection threshold
• Pressure and sniff test all bins for explosive
  devices prior to loading
• Utilize demonstrated technologies for explosive
  proof Hardened Unit Loading Devices (HULD)
  L3-Titan or others

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1. Utilize hardened cargo bins
Pros Improved security Bin loading in place on
large AC, so loading mechanism does not need
development Passenger experience enhanced by
additional safety precaution HULD technologies
developed by L3-Titan others Eases handling and
maximizes storage on narrow bodied AC Near
optimal bin loading is achievable bins stacked
based on destination
Cons Bins may not be feasible on small AC, no
room to enlarge cargo door Composite material
maybe heavier than existing cargo bins Cargo door
enlargement expenses for AC not using bins
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Passenger Terminal Dichotomy

• All terminal buildings must bridge the scale
  from human to airplane
• Need to both concentrate and spread out
  facilities
• Virtually every terminal has been rebuilt due to
  increased wing spans
• Solutions are biased toward retail rather than
  the passenger

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2. Aircraft with removable wings and LRUs

• Airplane transitions into bus
• Rapid wing change out is accomplished in
  drive-through hangars
• Utilizes rapid disconnect/reconnect fail-proof
  mechanical, electrical, and fuel couplings
  between the wing and fuselage
• Drive-through hangars located near runway
• Water valves are automatically closed at ramp
  arrival
• Toilets and waste material replaced as a unit
  (eliminates toilet service)
• Potable water tanks replaced (eliminates water
  filling)
• New entry doors near the wing-body junction

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2. Aircraft with removable wings and LRUs
Pros Reduces apron and taxiway size or permits 2
vehicles and 2-way traffic Improves access to
terminal, less pollution and noise during
taxi Improves ground vehicle maneuverability and
eliminates need for wing walker Pre-fueled wing
reduces fueling time and could be filled to
mission requirements Only requires one fuel
vehicle on apron Eliminates de-icing of wing
less use of ADF fluids over entire
airport Interchangeable wings designed to mission
and rented Modularity reduces out-of-service
time Reduces terminal size and walking
requirements Reduces TAT for potable water
refilling and toilet servicing / cleaning
Cons Weight penalty for connection
hardware Safety issue for attaching pre-fueled
wings Storage and autonomous attachment hardware
would require development Connection must be as
strong as integral wing-body aircraft and fail
proof Still need fuel service for some
aircraft Fuselage mounted engines would produce
more cabin noise Passenger may be kept on the
ground longer depending on the wing removal and
attachment time
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3. Oblique wing aircraft with LRUs

• Aircraft that rotates its entire wing during
  flight or on the ground
• Airplanes can essentially have the functionality
  of a bus during taxi
• Wing positioned for efficient flight over entire
  mission
• No sonic boom for flights up to Mach 1.2
• LRUs as discussed in 2
• Multiple door egress and rapid cargo loading
  feasible

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3. Oblique wing aircraft with LRUs
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3. Oblique wing aircraft with LRUs
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3. Oblique wing aircraft with LRUs
Pros Most efficient configuration for low
supersonic flight lighter, quieter, and more
fuel efficient than symmetrical configurations
with same mission Reduces terminal size and
walking requirements for passengers No sonic boom
for Mach 1.2 flight and allows for efficient and
low boom flight to Mach 1.4 Reduces apron and
taxiway size or permits 2 vehicles and 2-way
traffic on conventional taxi lanes Provides
reduced landing speeds and runway length,
additional taxiways SIGNIFICANTLY REDUCES TRAVEL
TIME Improves ground vehicle maneuverability Reduc
es time for de-icing of aircraft Possible
multiple door egress for reduced boarding time
and possibly TAT
Cons Increased weight for pivot mechanism, wing
box and fuselage structural reinforcements Fuselag
e mounted nacelles will produce more cabin
noise Stability and control system more complex
for asymmetric configuration and dynamic wing
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4. Passengers carry their own luggage

• No checked baggage service
• Utilize small portion of cargo area for
  additional luggage
• Explosive-hardened compartment below seat/floor
• Floor lowered for additional luggage room
• PRT system facilitates this concept since PAX
  only have to walk short distances

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4. Passengers carry their own luggage
Cons Passengers have to haul their own
luggage Retrofitting costs for luggage room under
moveable seats and suitable seat movement
mechanism for public use Boarding and de-plane
times may be increased May decrease space
availability for pay cargo services
Pros Eliminates risk of lost luggage Reduces
baggage handling costs Eliminates waiting for
luggage at destination airport Reduces total trip
time Passengers may pack less if they know they
have to transport own luggage Strong boxes can
offer another layer of security if able to
withstand explosives
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5. Autonomous baggage carts

• Autonomous, self-propelled luggage carrying
  vehicles
• Uses GPS, inertia sensing, navigation, collision
  avoidance systems technologies
• Linked to passenger through RFID system
• Finds its way onto airplane and to passenger
• Near optimal loading is feasible
• Orientation and tamper sensing devices used
• Passenger and baggage would separate early
  (security/parking garage)

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5. Autonomous baggage carts
Pros Provides link between passenger and
luggage Allows for smart baggage placement on
airplane with multiple destinations Frees the
passenger from tracking down luggage by reversing
the process the luggage finds its
owner Information of the luggage location
available at all times when tied with TIP Offers
savings in total trip time Reduces baggage
handling costs of loading bags in cargo hold
Cons Requires multiple systems to work together
and would require testing May be costly although
all technologies are in hand to accomplish all
functionalities Start up costs for such a system
may be large Development of separate luggage
lanes may be necessary
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6. Door to door baggage service

• Airlines provide door-to-door baggage delivery
• Cost infrastructure with airline (single
  transaction)
• Baggage picked up 0-7 days ahead of trip (reduced
  fares for longer lead times)
• Airlines contract with large parcel carriers
• Utilize Just in Time delivery system
• Passengers with bags given 2-day service, unless
  premium paid
• Transportation via all modes of travel (air,
  rail, or ground)

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6. Door to door baggage service
Pros Security enhanced by baggage
decoupling Airport/airlines do not have (time,
labor, and passenger building size) expenses
associated with baggage handling Passenger not
required to haul baggage around expansive
airports Passenger able to track bags Relieves
passenger of transporting bags to and from
airport Parcel service may be more efficient than
airlines at single task Allows for more cargo to
be carried
Cons May require baggage carrying flights to same
destinations Delivery costs maybe higher than the
cost reduction of eliminating baggage operations.
Costs difference would be incurred by traveler
with security tax Requires passenger to pack
farther in advance of departure
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7. Personalized service stations

• Located in terminal with sufficient numbers to
  easy access
• Privacy bubble and seat
• Includes an identity authentication mechanism
• Information shared wirelessly using RFIDs
• Functions include
• Directions
• Airline service
• Weather information
• Telephone
• Internet services
• Flight statistics
• Delay statistics
• Baggage location

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7. Personalized service stations
Pros Provides personalized service Provides a
mechanism to keep the passengers informed. Ties
passenger to their bags via RFIDs
Cons Many kiosks would be required to provide
adequate access to all passengers Space
requirement may negatively impact available space
in terminal
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8. Travel Information Pad (TIP)

• Wireless electronic tablet (PDA)
• Mobile alternative to the personalized kiosk (7)
• Essentially identical functionality of
  personalized kiosk with the addition of
• Voice navigation
• Biometric scanner to streamline security
• Additional services and advertising opportunities

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8. Travel Information Pad (TIP)
Pros Provides personalized service Provides a
mechanism to keep the passengers informed. Ties
passenger to their bags via RFIDs
Cons TIP would have to be durable and easy to
operate Cost of wireless network infrastructure
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9. Two abreast seating
Cons Families with odd number will require one
person to sit alone Reduces seating capacity,
implying new mix of passengers to remain
profitable Retrofitting aircraft with less than 5
across seating may be difficult Wider-bodied
aircraft will significantly reduce performance
characteristics Lose the ability to lie down on
low-load factor flights
Pros Improves boarding and de-plane rates Rapid
exit improves passenger safety Everyone has
access to an isle for bathroom breaks,
etc. Eliminates the undesirable middle seat More
spacious seating and less intrusive to
neighbors Satisfies majority of travelers, most
travel in pairs or alone 2-abreast seating can be
used as selling point for airlines
B747-400 adding 2 isles and maintaining 10 seats
adds 38 inches to diameter and results in a
16,000 lbs increase in fuselage weight
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10. Over-the-wing nacelles
Pros Reduces airport community noise via wing
shielding engine Greater ground clearance
improves safety reduces nacelle strikes, blown
tire and gear out landings safer and less costly
to repair Reduced likelihood of FOD Quicker
service vehicle placement Provides more flexible
placement of landing gear for new designs Powered
lift USB may improve aerodynamic performance
during landing Reduced gear size and weight for
modern aircraft with large engines
Cons Installation drag penalty additional trim
drag from high mounted engine Engine may be more
difficult to access for repair and
maintenance Horizontal tail may be less effective
from the turbulent flow from the nacelles and may
need to be moved Emergency doors may need to be
moved to a new location
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11. Personal Rapid Transit APM

• Type of Automated People Mover (APM)
• Driverless
• Electrically powered
• Small vehicles that hold up to 4 passengers
• Short headways with many vehicles (2-10 seconds)
• Takes passenger from origin to destination
  without stopping

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11. Personal Rapid Transit APM
Pros Origin to destination, no waiting, no stops
or transfers Small guide ways (7 ft width),
easily installed and inexpensive to
build Facilitates remote concourses reducing
aircraft taxi and operating costs Light weight
vehicles for 4 passengers and luggage - 1,800 lbs
gross wt. Environmentally friendly -no
emissions Capacities can be greater than APMs
using existing infrastructure Travel time is
less than APM Lower max speed provides
safety Eliminates crowding (security
vulnerability) Capital, operating and maintenance
costs less than light rail or APMs
Cons Capital cost greater than a bus Require 6-12
months of testing Not widely used (yet) Not easy
to fully understand Would require monitoring by
CCTV
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BAA choose the ULTra PRT system for Heathrow

• ULTra installed three-span guideway plus columns
  in 4 hours
• BAA has invested 7.5M in acquiring 25 of ATS
  Ltd.
• (Dec. 2005) ATS demonstrated the first three
  milestones
• Automatic vehicle battery charging in station
• Berth-to-berth transit from airport car park to
  terminal
• Robust fault tolerant guidance autonomously
  maintain course in the absence of a signal from
  one of its guidance sensors

4 PRT
1 APM
Tunnel bores at Heathrow
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Merit Estimates for Concepts
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Computer Simulations are Needed
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Interviews

• PRT consultant Peter Muller
• Cultural anthropologist Roxana Wales
• Airport planning expert Gene Lewis
• Airport simulation modeling Regine Weston
• Airport architect Joseph Romano
• HULD engineer Philemon Chan

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Peter Muller (PRT Consulting)

Animation shows how many small vehicles (T-pods)
can carry as many or more people than a
conventional APM with a few large vehicles Equal
numbers of passengers come from the left and
right at the same rate Simulates 21 people being
transported over a 90 second time period 11
T-pods with an average occupancy of two per trip
is compared to a single conventional
APM Headway is 4.4 seconds and station rate is
840 passengers per hour

• Visualization

Transcription Appendix F of Report
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Roxana Wales (Cultural Anthropologist, NASA)

• 2.5 years inside UAL (Pre 9/11)
• Airlines need to know Its people not planes
• Software needs to be rewritten
• If travel plans fail NIs are the big
  bottleneck
• NI Negotiated Interaction between traveler and
  airline
• Provided proposal to UAL for wireless
  communications similar to (TIP concept)

Proposal in Appendix B in report
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Gene Lewis (Leigh Fisher Associates)

• Semi-retired airport planner with 40 years
  experience (20 billion)
• Recognized expert in the field with great
  knowledge and experience
• Designed worlds first landside/airside
  people-mover terminal concept for Tampa
  International Airport
• Gene discussed
• airport planning and design process and how
  decisions about airports are actually made
• environmental issues lengthening airport project
  planning time
• How he envisions 2X passengers will be
  accommodated in the next 20 years
• Type of markets that would be most profitable
• Roles for NASA in developing technological
  solutions for airport terminals

Transcription Appendix C of Report
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Regine Weston (Arup / Weston-Wong)

• Recognized expert in computer modeling
  simulations (primarily landside)
• 20 year experience (Jet Blue terminal modeling at
  JFK recently)
• Very interesting, impressive, and informative
  discussion
• Why use computer simulations
• What simulations are available
• How to decide which model to use
• Data requirements vs model fidelity
• Simulation modeling with intelligent agents
• Discussed how to assess our concepts

Transcription Appendix E of Report
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Terminal Simulation
Click to launch Movie
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Turn-around-time

• Recognize first that the direct operating cost
  of a large commercial jet is of the order of
  about 100 per minute. Consider next an airport
  with 100,000 operations per year, which might
  serve approximately 10 million passengers a year.
  A configuration that saved just 1 min per
  operation at this airport would save the airlines
  around 10 million a year in direct costs alone
  the equivalent of about 100 million in extra
  capital cost . (Ref 1).

The U.S. FAA and ICAO regularly publish
estimates of direct operating costs of aircraft
including fuel, pilots, and crew, insurance,
depreciation, and maintenance. However, they
neither attempt to measure the multiplier effect
that delays have on lower productivity of the
aircraft or facilities in the airport passenger
buildings, nor do they account for any value of
time for the passengers. These estimates are
thus conservative estimates of the cost of delays
to the airlines and their passengers. Recent
figures estimate the per-minute costs of the
Boeing 747, Boeing 777, and Airbus 340 at 110,
140, and 70, respectively (FAA no date ICAO,
2001).
The translation between capital costs and
annual costs in an imprecise art that depends on
local circumstances. In the United States, the
capital for airport passenger buildings normally
comes from municipal bonds exempt of interest to
the owner. It thus costs the airport on the
order of 5 percent per year, which is about 2-3
percent a year in real terms. Factoring
incremental depreciation and maintenance over the
cost of the older building, the total additional
annual cost of a replacement building is of the
order of 10 percent of its capital cost. Private
companies typically have a higher cost of
capital, but may still be able to raise money
through real estate mortgages on their buildings
at about 5 percent a year in terms of real cost
net of inflation. The factor of 10 used to
translate annual savings into justifiable
additional capital expenditures is only an
order-of-magnitude approximation.
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LMIs Modeling of Turn Around Time (TAT) Changes
for Concepts

• Derived from Boeing TAT specs for 6 transport
  aircraft
• Implemented in a spreadsheet model
• Analysis of concepts changes in turn around time
  processes determined by LMI expertise
• Concepts linked to specific model parameters
• 3 processes (max of 3 queues is TAT)
• PS Passenger Service
• BCS Baggage and Cargo Service
• AS Airplane Service

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Baseline 747-400 Gantt Chart
Passenger Service
Cargo/Baggage Service
Airplane Service
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C1269 747-400 Model
Passenger Service
Cargo/Baggage Service
Airplane Service
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Queue Triples for Each Aircraft and Concept Combo
777-200
767-400ER
757-200
747-400
737-700
717-200
C2 Removable Wings C1_C2 Bins,
Removable Wings, LRU Water/Toilets C1_C3 Bins,
Oblique Wing, LRU Water/Toilets C1_C9 Bins, 2
Abreast Seating C1269 Bins, Rem. Wings, No
Bags, LRU W/T, 2 Abreast Seating
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Impact Assessment of Reduced TAT on Delay (Sensis)

• Examined runway delay impact due to reduced TAT
  at three airports
• Chicago OHare (ORD)
• Boston Logan (BOS)
• Las Vegas McCarran (LAS)
• Applied ACES Airspace Concepts Evaluation System
  fast-time simulation
• Constructed arrival-departure gate connections
  using an actual daily flight schedule (19 Feb
  2004) for each airport
• Baseline schedule used current Minimum TATs (22
  60 minutes)
• Alternative schedule used 50 Minimum TATs (11
  -30 minutes)
• Ran ACES with alternate schedules and compared
  landing, takeoff and total delays

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ORD 2004 example baseline schedule takeoff
peaking is higher than landing peaking reduced
TAT lowers takeoff peaks
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ORD 2004 50 reduced TAT shifts takeoffs to
earlier times (into baseline off-peaks),
dispersing takeoff peaks
50 TAT
100 TAT Baseline
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ORD, BOS, LAS 2004 examples 50 reduced TAT
leads to reduced overall runway system delay
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Recommendations / Possible NASA Roles

• 1, Continue / expand current research
• Curb-to-curb TAT
• Evaluate concepts using appropriate computer
  sims
• 2. A systems approach including airport and
  terminal impacts to vehicle design
• Landing field length, terminal size, taxi and
  ramp operations
• Oblique wing aircraft design
• 3. Develop an airport simulation test facility
• Real people and hardware experimental site at
  ARC, combined with FFC
• Advanced technologies, terminal processing,
  autonomous transportation
• 4. Expand industry partners to Include airlines,
  airport planners and operators
• Partnerships at levels below JPDO
• Industry wants NASA help
• 5. All fundamental research described relative
  to the concepts (written report)
• Look for synergies with new and existing
  aeronautics programs

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Acknowledgements

• LMI
• Jesse Johnson
• Sensis
• George Couluris David Signor Anna
  Dabrowski
• MIT Professors
• Amedeo Odoni Richard de Neufville
• Interviewees
• Peter Muller Gene Lewis Regine Weston
• Roxana Wales Joseph Romano Don Shaw
• Philemon Chan William Baumgardner
• Eloret /NASA
• Veronica Hawke Sandra Cory David Kinney

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BACKUP SLIDES
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Computer simulations necessary to assess concepts
(1)

• Bins
• Simulate loading bins versus individual bags
• Loading time and required personnel differences
• Removable/Oblique Wing
• Simulate and identify terminal changes (smaller
  pier length with greater width) where aircraft
  pull into terminal with multiple door egress
• Terminal size/cost and passenger egress time
  differences
• Simulate taxi and maneuver times of wingless AC
• Time differences
• Passenger carry on all baggage
• Simulate terminal changes (no baggage system,
  carousals, check-in, baggage handlers and smaller
  waiting room)
• Terminal size/cost and passenger time differences

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Key Technology Simulation Issues

• What model is best
• Validity
• Complexity Fidelity
• Cost
• Time
• Skill

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Computer simulations necessary to assess concepts
(2)

• Autonomous Baggage Carts
• Simulate terminal changes (required pathways for
  ABCs)
• Terminal size, passenger lug time, and personnel
  differences
• Door to door baggage delivery
• Simulate and identify terminal changes (no
  baggage system, carousals, check-in, baggage
  handlers smaller waiting room)
• Terminal size/cost, passenger time differences
• Over-the-wing nacelle
• Simulate aircraft servicing vehicle placement
• Time savings

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Applying Concepts to Terminal Ops
PS BCS AS
Models
Baseline Spreadsheet
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Boeing 747-400 from Internet
Passenger Service
Baggage/Cargo Service
Airplane Service
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1. Potential NASA Research Topics

• Materials development for hardened bomb proof
  airplanes, extended airframe lifetimes, and crash
  safety.
• Sensor development
• RFID integration, networks of robots
• Passenger personal protection technologies

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2. Potential NASA Research Topics

• Risk and structural assessment of modular
  aircraft and study of optimal location for
  break-away components in crash situation
• Development of advanced rapid electromechanical
  coupling technologies. Parts that can be attached
  autonomously with fuel as well as electrical
  couplings.

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Air Transportation Riddled with Dichotomies

• Passenger (wants inexpensive flights and high
  LOS)
• Airlines (cost effective offer range of LOS)
• Government involvement (Needed but not wanted)
• Airplane design (Best design not conventional and
  not accepted by aviation community)
• Technology (needed but risk adverse)
• Forecasts (wrong and continually sought/needed)
• Airport planning (design time and wear out time
  approaching equal)
• Buildings (need to be compact and spread out)
• Capacity (bottlenecks is runways and no land
  available)
• Proximity (want close but not in my backyard)

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Current Trends/Status of the Air Transport
Industry

• Commercialization and deregulation (C/D) forces
  economic efficiency with less/no government
  involvement
• Governments do own the land of an airport
  which they typically lease for 30-50 years
• Emergence of transfer hubs are a consequence of
  C/D
• Inconvenience to the passenger since it lengthens
  the total trip time, increases the risk of lost
  baggage, and compounds delays
• Airlines benefit from more frequent flights
  (drive the costs down), a supply of backup
  flights, and full flights using larger aircraft
  (less expensive)
• Airport competition is fueling volatility of
  transfer hubs
• The largest airports in the world are now
  transfer hubs
• Interest in Information Technology (IT) and
  telecommunications is on the rise for the Airport
  industry
• 71 percent of airports are planning to increase
  spending on IT
• Airports are investing about twice the amount
  that the airlines are
• Airports are investing 2.5 billion a year (up
  20 from last year)
• 2/3 of airports will have shared-use kiosks in
  the next 2 years (only 2 dedicated use)
• WI-FI, web services for passengers, managed
  airport networks on the rise, mobile passenger
  check-in and payment systems to a lesser extent

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Background Organization and Financing

• Airports must contend with legal financial
  planning public communication administration
  human resource environmental
  engineering/technical commercial operational
  issues
• Airport capital investments financed in many
  different ways grants from national governments
  revenue bonds issued and serviced by airport
  operators general obligation bonds user taxes
  bank loans operating surplus
• Airport ownership the licensed airport operator
  acts as owner and everyday decision maker. Hence
  shareholders of the airport operator are treated
  as the owners. Shareholders can be government or
  private interests or both. Airport ownership is
  any combination of
• National government.
• Local and State/regional governments
• Corporate entities
• Private investors
• (Many airports have agreements with the airlines
  that the airlines fees cover the difference in
  the total costs of running the airport and the
  total revenues from all sources. Hence benefits
  accrue to the airline, if right to profit define
  ownership in these cases the airlines are the
  owner)

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Background Airport User Charges

• User Charges include Aeronautical and Non
  aeronautical fees
• Aeronautical charges regulated through target
  rates of return, price caps, and restrictions on
  the annual rate of increase of unit charges
• Aeronautical User Charges include
• Landing fees (MTOW or MLW)
• Terminal air navigation fees (ATC and air
  navigation)
• Airport parking and hanger fees (Stand type and
  duration)
• Noise fees (time of day and noisiness of
  aircraft)
• Terminal/Passenger service (passenger building
  security)
• ATM facility fee paid out of a passenger ticket
  tax
• Ground handling services (confidential)
• Non-aeronautical charges are usually highly
  profitable
• Residual and compensatory systems approaches
  to non-aero revenues
• Compensatory is difference between the total
  costs of running the airport and total revenues
  from all sources
• Residual is full cost recovery of facilities and
  services
• Non-Aeronautical User Charges include
• Concession fees for fuel and oil ( of sales)
• Concession fees for retail shops, bars and
  restaurants (fixed or variable rent)
• Airport car parking and rental car fees (biggest
  source of revenues in US)

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Background Organization Financing of Airports
OWNED BY
OPERATED / MANAGED BY
National, regional and/or local government
Branch of national government
Private Interest
Branch of local or regional government
Private minority shareholders (no publicly traded
shares)
Management contract by a publicly or privately
owned company
Private minority shareholders (some publicly
traded shares)
Private investors (no publicly traded shares)
Autonomous airport authority
Private investors (publicly traded shares)
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