"The primary focus of this research is to draw conclusions on three areas:
o Examine how airline cost at airports influences airline decisions, and if so, to what extent. Research should attempt to differentiate: (1) the effect of airline cost on passengers/service; and (2) the inverse, the effect of passenger/air service on airport infrastructure/airline cost.
o Identify what causes airlines to add or reduce service at airports and the associated metrics to measure it. What is the relationship between airline revenues, yields, costs and profitability at various airports and how this affects airline growth?
o Are there new metrics that could be introduced to measure this?
More specifically, the research consultant should address the following questions:
o Validate the DFW work over a twenty-year period-of-time to determine if there is a correlation between changes in airline cost at airports and changes in airline service/passengers. The research should address large, medium and small hub airports.
o Does increased airline cost result in an airport being less competitive (i.e., loss of service or losing traffic to competing airports)?
o Could depreciation/net book value of assets be considered when comparing airline cost at different airports. In other words, where is the airport in the redevelopment cycle and what impact might this have on costs and growth?
o To what extent do airports compete within the same geographic area, or for connecting passengers between large hubs? Does airline cost make a difference, or are there other factors?
o How much does route profitability impact the addition or reduction of service at airports? (e.g., an airline will move a fight to a different route or hub if it is not generating enough yield relative to its own flights, not the flights of a competitor).
oThe industry looks at costs on a per enplanement basis, however, airline metrics are per mile/km (RASM, CASM), etc. An airline's route decision does not really look at the CPE, rather it looks at the input of the airport cost on CASM. International carriers and routes support higher CPEs today. Aircraft type and stage length support different cost structures. Should the industry evaluate airline costs in a different manner (e.g., stage length adjusted or on a CASM basis) and if so what new metrics should be used?
o Identify the impact of the local, regional and national economy on airline service. Is there a way to correlate this statistically over the twenty-year period?
o Is there a way to calculate airline profitability at airports with existing publicly available data? If so, identify the methodology and data sources.
o How does the timing of large capital projects at airports (expansion or major renovation of terminals) impact airline revenues, yields, cost, and changes in service and passengers?
o Do these answers change when comparing connecting-hub airports with originating and destination airports?"
