Emissions & Regulations & Finance Flashcards
What is the impact of aviation emissions?
Global impact: ozon layer, acidification (NOx and SOx with water form acid), global warming.
Local Emissions: local air quality
What is dispersion?
Calculating how the emitted pollutants spreak over the airport’s environment.
What are some mitigation measures?
Engine design, extensive air quality monitoring, reducing delays, emission-based fees, electri ground level service euipment, altiernative fuels.
What are third party risks?
Safety risk of people living close to an airport, chance that some will be killed by an aircraft, prob. that a group of N people would get killed due to an accident
What is water management?
Surface water, foul water.
What is the EU ETS (Emission Trading Scheme)?
Cap and Trade system: - caps the overall level of emissions allowed, - participants able to buy and sell allowances.
1st and 2nd trading period: -member states draw up national allocation plans - at the end of each year allowances must be equal to emissions
Companies can: - sell excess allowances, - buy extra allowances they need on the market, - take measures to reduce their own emissions
What is waste management?
Collection, sorting, ‘pre’-cycling
What is energy management?
Building thermal control, solar cells, solar collectors, wind energy, LED lightning
What did deregulation bring for US airlines?
Reorganized networks, Flexible pricing, Frequent flyer programs, Low fare carriers, Cargo airlines, Dropped uneconomical services.
What did deregulation bring for hub and spoke airlines?
Drop flights between secondary markets, lower overall costs, lower average speed, concentrate flights to hubs: higher freq, higher load factor, bigger aircraft, crew basing.
What is privatization?
Transfer of some ownership rights: residual income, management control, actual property (long term leases)
What are the three ownership rights?
Residual income, management control and actual property
What are the effects of different ownership and operator combinations?
Full government is ineff for large airports.
Full private need public control with regard to prices, access and long term development.
Regulated control: Government controls prices.
Partnership control: private companies plan operate.
What is the tension between airports (ACI) and airlines (IATA)?
Airports should maintain full financial records, full cost, no charges for facilities not used, airport revenues may exceed costs, users ability pay should not be taken into account until all costs are assessed.
What are aeronautical charges?
Landing, terminal area air navigation, pax service, cargo service, aircraft parking and hangars, security, airport noise, emmission, ground
What are non-aeronautical charges?
ICAO, concession fees aviation fuel and oil, concession fees commercial activities, revenues car parking and car rentals, non operating
What is the euro control formula?
Charge = service unit rate x #service units,
#service units = distance factor x weight factor, distance factor = great circle distance/100km, weight factor = (max permissible takeoff weight/50)^0.5
What is the single till principle?
all airport activities (including aeronautical and commercial) are taken into consideration when determining the level of airport charges
What is the dual till principle?
Only aeronautical activities are taken into consideration when setting charges.
What is the residual cost approach?
Airlines assume financial risk, airlines charged for residual costs (single-till system)
What is the compensatory approach?
AIrport operator assumes entire financial risk, airlines pay aeronautical charges sufficient to recover acutal costs (dual till)
Who is pro what?
Airports are pro dual till, airlines are pro single till
What is Business & Financial Planning?
The business planning will translate the strategic development options into the profit generation capabilities.
How to calculate Net Present Value?
NPV = sum{ (B_t - C_t) / (1 + r)^t}
How do you calculate Internal Rate of Return?
sum{ (B_t - C_t) / (1+IRR)^t = 0
