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Prioritizing Projects Emerging from Aviation System Plans

Steven Landau Economic Development Research Group, Inc. www.edrgroup.com January 13, 2014. Prioritizing Projects Emerging from Aviation System Plans.

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Prioritizing Projects Emerging from Aviation System Plans

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  1. Steven Landau Economic Development Research Group, Inc.www.edrgroup.com January 13, 2014 Prioritizing Projects Emerging from Aviation System Plans

  2. The primary purpose of airport system planning is to study the performance and interaction of an entire aviation system to understand the interrelationship of the member airports. - FAA Advisory Circular 150/5070-7, The Airport System Planning Process, 2004

  3. The Role of Economic Analysis in a System Plan - FAA Advisory Circular 150/5070-7 Among goals of a System Plan are: • To provide for the timely development of airports that will meet the air transportation needs and economic goals of the system planning study area • To maximize the economic benefits from the development of the airport system

  4. FAA lists 25 scoping items that may be included in a System Plan

  5. Return on Investment in System Planning

  6. Setting Priorities in Transportation States are using economic criteria to help prioritize surface transportation improvements. Among these are North Carolina, Kansas & Ohio.

  7. Example of Criteria Source: North Carolina DOT Project Prioritization Process

  8. Multiple Reasons to Support Projects Source: Kansas DOT “Tworks”

  9. Aviation System Plans Include • Actions and projects to improve system performance relative to airport-specific facility, service, and equipment objectives; and provide • Generalized cost estimates related to implementing improvements identified in the system plan

  10. Examples of Projects Evaluated &Recommended in System Plans

  11. Metrics Derived/Inferred from System Plans • Rough cost estimates • Approximate implementation schedules • Likely benefits of investments (e.g., operations, enplanements, reduced diversions) • Forecasts of operations, enplanements & fleet mix

  12. Are Some Capital Investments More Important than Others? Who wants to know? • Managers of aviation and transportation budgets • Policy makers who appropriate state & local expenditures for airports • Airlines and other airport stakeholders

  13. Different Ways to Classify ROI Element of System Plan

  14. Project Profile – Single Project Runway Extension - 30 year cost and benefit stream

  15. Benefit/Cost by Different Perspectives

  16. Multi-Modal Improvements

  17. Bang for the Buck: Benefits & Costs

  18. Net Present Value & Benefit Cost Ratio

  19. Marginal Economic Impacts Contribution to Gross State Product ($1000s, discounted over the life of the projects)

  20. System Planning using ROI

  21. Economic Analysis Communicates ROI Of Airport Investment • Demonstrates how economic analysis is being used in the screening/selection process and how it helps lead to better decisions on how to spend public money

  22. Setting & Communicating Priorities Prioritization of Airport Projects System Roles & Connectivity Benefits/Costs of Airport Investments Economic Impacts of Airport Investments State Aviation System Plan

  23. Thank You Steven Landau Economic Development Research Group 155 Federal Street, Boston, MA 02110 617-338-6775 x 206 Slandau@edrgroup.com www.edrgroup.com

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